Consumers spent $10.1 billion on automotive fuels, oils and additives in retail stores in the second quarter of 2006, an increase of 22.4% over the same quarter last year. This was due in part to a 16.6% rise in the price of gasoline over the same period.

Automotive fuels, oils and additives accounted for 10 cents of every retail dollar in the second quarter of 2006. This was the sixth consecutive quarter that automotive fuels, oils and additives accounted for at least 9 cents of every dollar spent in retail stores. In comparison, in 2004, this commodity represented just over 8 cents of every retail dollar.

In total, consumers spent $103.2 billion on goods and services in retail stores in the second quarter of 2006, up 7.2% over the second quarter of 2005. Excluding automotive fuels, oils and additives, the rest of retail sales increased at a slightly lower rate of 5.8% in the second quarter of 2006.

Sales of health and personal care products showed the second strongest growth (+9.2%) of the major commodity groupings over the same quarter last year. This was the highest growth since the first quarter of 2004. Drugs (prescription and over-the-counter drugs, vitamins and other health supplements) accounted for two-thirds of the sales of this commodity grouping. In the second quarter of 2006, year-over-year sales of prescription drugs advanced 11.1% to $4.5 billion, a faster pace than the approximately 8% increase observed in the previous three quarters. Over-the-counter drugs, vitamins and other health supplements registered sales of $984.9 million, up 7.7% from the second quarter of 2005.

In the second quarter of 2006, the market share of pharmacies and personal care stores for over-the-counter drugs, vitamins and other health supplements was 64%, up 5 percentage points from the second quarter of 2005. Their market share for prescription drugs remained stable at 82% over the same period.

At $8.8 billion, sales of hardware, lawn and garden products continued to benefit from a strong housing and home renovation market, rising 8.9% over the second quarter of 2005. This increase was due in part to the strength in sales of hardware and home renovation products which rose 9.1%, driven by a 12.5% increase in sales of lumber. Sales of lawn and garden products, equipment and plants also contributed to the overall growth, increasing 8.4% from the same quarter last year to $2.7 billion.

In the second quarter of 2006, sales of new motor vehicles, parts and services totalled $23.8 billion, 2.3% more than the same quarter last year. This was the lowest year-over-year increase since the third quarter of 2004. The value of new vehicle sales rose by 1.1% on the strength of new car sales (+4.2%), which was partially offset by a decline of 1.7% in sales of new trucks (which include minivans, sport-utility vehicles, light and heavy trucks, vans and buses). This was the first decline in sales of new trucks since the fourth quarter of 2003. Used vehicle sales gained 2.2%, the largest increase since the third quarter of 2005. Sales of automotive parts and services (including tires), which account for one-fifth of sales in this group, advanced 6.3%.

Consumers spent 5.4% more on food and beverages in retail stores in the second quarter of 2006 compared to the same quarter last year. Since the beginning of 2006, food and beverage stores have accounted for 86% of retail sales of food and beverages, down one percentage point from the first six months of 2005. The market share of general merchandise stores (which include department stores) for food and beverage products increased by one percentage point over the same period.

Note: The Quarterly Retail Commodity Survey collects national level retail sales by commodity, from a sub-sample of businesses in the Monthly Retail Trade Survey. Quarterly data have not been adjusted for seasonality. For example, no adjustment has been made for Easter, which occurred in the second quarter of 2006 but took place in the first quarter in 2005. All percentage changes are year-over-year.

Sales by commodity, all retail stores
	Second quarter 2005r	First quarter 2006r	Second quarter 2006p	Second quarter 2005 to second quarter 2006
	Unadjusted
	$ millions			% change
Commodity
Food and beverages	20,134	18,827	21,214	5.4
Health and personal care products	7,577	7,715	8,271	9.2
Clothing, footwear and accessories	7,485	5,923	7,990	6.8
Furniture, home furnishings and electronics	7,525	7,632	8,087	7.5
Motor vehicles, parts and services	23,223	18,151	23,759	2.3
Automotive fuels, oils and additives	8,292	8,308	10,148	22.4
Housewares	1,772	1,709	1,874	5.8
Hardware, lawn and garden products	8,063	4,574	8,778	8.9
Sporting and leisure goods	2,931	2,608	3,098	5.7
All other goods and services	9,260	7,247	9,997	8.0
Total	96,262	82,693	103,217	7.2
r revised p preliminary

Consumers purchased 144,394 new vehicles in August, 3,882 more than in July. August volumes were the highest since July 2005 and the second highest on record. The all-time peak was reached in August 2002 when 145,562 vehicles were sold.

Quebec was responsible for over half of the national increase in August.

Truck sales accounted for 80% of the overall increase in new motor vehicle sales in August. Dealer incentives geared toward larger vehicles may have contributed to consumer preference for trucks in August. According to the Consumer Price Index, the price paid for all new vehicles (both cars and trucks) edged down 0.8% in August.

New motor vehicle sales have been trending upwards recently, following a relatively flat period during the first half of 2006. In 2005, sales had been extremely volatile with the introduction and subsequent removal of dealer incentive programs such as "employee pricing."

Truck sales show continued strength

Truck sales (which include minivans, sport-utility vehicles, light and heavy trucks, vans and buses) posted a second consecutive increase in August, rising 4.6% to 71,144 vehicles. Excluding the record peak in July 2005, truck sales have never been higher.

Passenger car sales edged up 1.1%, offsetting the 1.1% slip in July. This latest advance was attributed to a 6.3% increase in the sales of North American built cars, which more than erased July's 4.5% drop and saw the largest month-over-month gain since June 2005. North American built car sales accounted for 66.3% of all passenger cars sold in August. Overseas built passenger car sales fell 7.9% in August, ending a streak of six consecutive monthly increases.

Car and truck sales have been on an upward trend since May 2006, with trucks showing a somewhat steeper incline than passenger cars. This upward trend follows a period of relatively flat sales since the fourth quarter of 2005.

Over half the increase occurs in Quebec

New motor vehicle sales increased in eight provinces in August, with Nova Scotia (+8.2%) and Quebec (+6.1%) experiencing the strongest gains. Quebec new motor vehicle sales reached 35,762 units in August, up 2,052 vehicles compared with July. Quebec sales represented slightly more than half (52.9%) of the national increase in August, despite representing only one quarter of the Canadian automotive market. This sales level was also Quebec's highest since the peak reached in July 2005.

New motor vehicle sales in Alberta increased 2.4% to 22,204 vehicles, the highest sales level ever recorded for the province.

Prince Edward Island (+3.6%), British Columbia (+2.8%), Ontario (+1.0%), and New Brunswick (+0.7%) all posted second consecutive monthly increases and the highest sales of the year.

Manitoba and Saskatchewan were the only provinces that posted lower sales in August. Sales in Manitoba fell 2.0% after two consecutive monthly increases, while Saskatchewan sales were relatively flat (-0.1%).

New motor vehicle sales
	August 2005	July 2006r	August 2006p	August 2005 to August 2006	July to August 2006
	Seasonally adjusted
	number of vehicles			% change
New motor vehicles	137,690	140,512	144,394	4.9	2.8
Passenger cars	71,973	72,481	73,250	1.8	1.1
North American1	48,935	45,706	48,585	-0.7	6.3
Overseas	23,039	26,775	24,666	7.1	-7.9
Trucks, vans and buses	65,717	68,031	71,144	8.3	4.6
New motor vehicles
Newfoundland and Labrador	1,788	1,963	2,020	13.0	2.9
Prince Edward Island	430	422	437	1.6	3.6
Nova Scotia	4,068	3,809	4,121	1.3	8.2
New Brunswick	2,958	2,964	2,986	0.9	0.7
Quebec	33,149	33,710	35,762	7.9	6.1
Ontario	51,532	52,435	52,962	2.8	1.0
Manitoba	3,994	3,858	3,782	-5.3	-2.0
Saskatchewan	3,362	3,404	3,400	1.1	-0.1
Alberta	19,394	21,690	22,204	14.5	2.4
British Columbia2	17,015	16,258	16,720	-1.7	2.8
	August 2005	July 2006r	August 2006p	August 2005 to August 2006
	Unadjusted
	number of vehicles			% change
New motor vehicles	146,862	145,521	157,868	7.5
Passenger cars	78,942	76,556	82,244	4.2
North American1	53,093	48,349	53,812	1.4
Overseas	25,849	28,207	28,432	10.0
Trucks, vans and buses	67,920	68,965	75,624	11.3
New motor vehicles
Newfoundland and Labrador	2,153	2,244	2,482	15.3
Prince Edward Island	504	519	531	5.4
Nova Scotia	4,345	3,998	4,597	5.8
New Brunswick	3,242	3,149	3,389	4.5
Quebec	36,084	36,605	40,566	12.4
Ontario	55,081	53,323	56,732	3.0
Manitoba	4,685	4,092	4,471	-4.6
Saskatchewan	3,873	3,540	3,963	2.3
Alberta	19,742	21,075	23,266	17.9
British Columbia2	17,153	16,976	17,871	4.2
r revised p preliminary 1. Manufactured or assembled in Canada, the United States or Mexico. 2. Includes Yukon, the Northwest Territories and Nunavut.

Note to readers

All data in this release are seasonally adjusted.

Passenger cars include those used for personal and commercial purposes, such as taxis or rental cars. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.

North American built new motor vehicles include vehicles manufactured or assembled in Canada, the United States or Mexico. All other new motor vehicles are considered to have been manufactured overseas.

For reasons of confidentiality, data for Yukon, the Northwest Territories and Nunavut are included with those for British Columbia.

The New Motor Vehicle Sales Survey is compiled on the basis of figures obtained from motor vehicle manufacturers and importers. These results may vary from those obtained directly from auto dealers, due to possible differences in record keeping.

High Interest Savings Accounts, Mortgages and Guaranteed Investment Certificates offered in a two city pilot

TORONTO - Canadian Tire Financial Services Limited, a wholly-owned subsidiary of Canadian Tire Corporation, Limited (CTC, CTC.a) on October 12, launched a limited pilot of new retail banking products including High Interest Savings accounts, variable and fixed-rate Mortgages and Guaranteed Investment Certificates.

The pilot markets selected for the product launch are Calgary, Alberta and Kitchener-Waterloo, Ontario. Multiple channels will be used to promote the products including television, outdoor billboards, online, Canadian Tire flyers, direct mail and in-store promotion.

"The pilot we have launched today will explore the potential to leverage our strengths and grow our business by deepening our customer relationships with new value-added products. Our pilot has been structured in a comprehensive manner but as we always do when introducing new products to the marketplace, we will test and learn over a period of time in a measured fashion, potentially adding additional financial products in the first half of 2007 as part of the pilot," said Marco Marrone, president, Canadian Tire Financial Services.

"Canadian Tire has unique and privileged relationships with consumers across Canada. In particular, our research demonstrates that we enjoy high levels of confidence and trust from the customers of our financial services products. Canadian Tire Financial Services currently has a relationship with approximately four million customers through our Canadian Tire MasterCard(R) franchise and our insurance and personal loan products. Our research indicates a strong opportunity for us to expand our financial services portfolio and our customer base," added Marrone.

Proprietary company research demonstrates Canadians consistently rate Canadian Tire higher than traditional financial services organizations across a range of attributes including friendliness, trustworthiness and caring. The Company's new products will feature the brand positioning: Be nice to your money. Great rates. No monthly fees. And bonus electronic Canadian Tire 'money' gift cards.

The new financial products will be provided by Canadian Tire Bank, a wholly-owned subsidiary of Canadian Tire Financial Services (CTFS).

"We are uniquely positioned to meet targeted financial needs of Canadians because of our retail scale, customer relationships, credit management capabilities and trust in our brand. We also know that Canadians are pre-disposed to alternative options for their financial services and products, and believe there is a significant potential market opportunity to explore," said Marrone.

Canadian Tire Financial Services' earnings growth over the last half of the year will be impacted by expenses of approximately $10.2 million to support the retail banking initiative, the majority of which will be incurred in the fourth quarter. Retail banking capital and expenses have been incorporated in the Company's 2006 capital plan and earnings guidance.

Canadian Tire Corporation, Limited (TSX: CTC, CTC.a), operates an inter-related network of businesses engaged in retail, financial services and petroleum. The Company operates more than 1,100 stores, gas bars and car washes, including the country's most-shopped general merchandise retailer. Canadian Tire Financial Services manages approximately 4 million Canadian Tire MasterCard(R) accounts and markets related financial products and services for retail and petroleum customers. More than 50,000 Canadians work across Canadian Tire's organization from coast-to-coast in the enterprise's retail, financial services, and petroleum businesses.

72% of Canadians Plan to Celebrate the Spookiest Day of the Year

TORONTO - According to a new study conducted by Pollara on behalf of Retail Council of Canada, 72% of Canadians plan to participate in at least one Halloween-related activity this year, such as wearing a costume, going to a party, getting together with friends, handing out candy, taking children trick-or-treating, and/or decorating their home. On average, Canadians plan to spend $60 on items such as candy, pumpkins, costumes and decorations, compared to $57 in 2005. The Halloween season accounts for approximately $1.15 billion in sales.

"Canadians of all ages have a real affection for Halloween and are ready to have fun by getting together with friends, taking their kids out trick-or-treating, decorating their homes or handing out treats," says Diane J. Brisebois, President and CEO, Retail Council of Canada. "Consumer confidence, strong employment numbers and low interest rates continue to fuel growth in retail across Canada and this trend is expected to be maintained throughout the remainder of the year."

"Halloween tends to bring out the kid in all of us, no matter what age or stage," says Roland Merbis, Associate Vice-President, Public Affairs, POLLARA. "It's no surprise that the traditional Halloween items, such as candy and other treats, along with pumpkins, costumes and decorations continue to be the most popular items."

Of those surveyed, 69% of Canadians plan to spend the same amount on Halloween items as they did in 2005 ($57), while 11% intend to spend more and 16% plan to spend less.

Highlights of the survey include:

Who is buying <<

- Among those who will be buying this Halloween, residents in British Columbia lead the average anticipated personal spending at $65, followed by Albertans at $64 and Ontarians at $63. Residents in the Prairies and Atlantic provinces intend to spend $55 respectively, while Quebecers intend to spend the least at $54.

- Households with at least one child under the age of 18 years expect to spend more on Halloween-related items ($75) than those households with no children ($50).

- On average, men intend to spend more on Halloween items than women: $66 compared to $55, respectively.

- Men between the ages of 18 and 34 will spend the most on Halloween items at $76, while women aged 55 years and older will spend the least at $36.

Popular Halloween Purchases

Candy and Other Halloween Treats

- 95% of Canadians plan to buy candy and/or other Halloween treats and expect to spend $29 on average.

- Residents of Alberta plan to spend the most at $32, while Ontarians plan to spend $31. Residents of the Atlantic provinces plan to spend $29, residents of the Prairies and British Columbia plan to spend $28 respectively, and Quebecers intend to spend $26.

- On average, men plan to spend $32 on candy and other Halloween treats, while women plan to spend $27.

Costumes

- 52% of Canadians plan to purchase costumes for Halloween and are looking to spend $33 on average. (*)

Decorations

- 45% of Canadians intend to decorate this Halloween and indicate they are looking to spend $19 on average.

Pumpkins

- Pumpkins continue to be a Halloween mainstay with 58% of Canadians planning to buy pumpkins and spending $10 on average.

Halloween Cards

- Only 7% of Canadians plan to buy Halloween cards and intend to spend $11 on average. >>

Partners with Tree Canada Foundation to plant trees in 42 communities

ST. JACOBS, ON - Home Hardware Dealers across Canada are joining together to celebrate Canada's first Maple Leaf Day on Wednesday, September 27th, by planting hundreds of trees across the country. In total, Dealers in 42 communities were selected to participate in this nationwide tree planting initiative.

Working in cooperation with Tree Canada, Home Hardware will be launching the program in Combermere, Ontario where trees will be planted as part of a community effort to restore the municipality's forests which were devastated by a tornado on August 2, 2006.

Maple Leaf Day celebrations will feature a number of ceremonial plantings across the country, a list of which can be found at: www.mapleleafday.ca.

"With more than one thousand stores, Home Hardware is definitely a part of the scenery in communities across Canada and our Dealers are excited to have a hand in making that scenery more beautiful," said Paul Straus, Vice President and CEO, Home Hardware Stores Limited. "Dealers and staff across Canada are proud to roll up their sleeves and do their part to give back to the communities they call home."

Home Hardware has worked with Tree Canada Foundation for the past seven years. In addition to the thousands of native evergreen trees that Dealers have planted in and around their communities over the years, the company has donated more than $380,000 to Tree Canada to-date. These funds were raised through the sale of specially selected items.

"Home Hardware's long-standing partnership with Tree Canada has made an incredible impact on communities across the country," said Jeff Monty, President, Tree Canada Foundation. "Dealers across Canada are helping us improve the lives of Canadians, beautify our communities and create a better environment for our children."

Maple Leaf Day - the official day to celebrate trees in Canada coincides with National Forest Week, now the last week of September. With 10 native species of maple, Canada is fortunate to have a maple tree growing in almost every part of the country - an enduring symbol seen on our flag, our penny and in many of our institutions and companies.
Tree planting events are taking place in the following communities:

Alberta
Three Hills
Valleyview
Ponoka

British Columbia
Campbell River
Castlegar
Gallano Island
Prince George
Trail

Manitoba
Morden
Snow Lake
Swan River

New Brunswick
Fredricton

Newfoundland
Goulds

Nova Scotia
Antigonish
Amherst
Bridgewater
Parrsboro

Ontario
Alexandria
Belle River
Casselman
Coboconk
Comberemere
Echo Bay
Elmira
Gananoque
Ingersoll
Kincardine
Napanee
Noelville
Peterborough
Russell
St. Isidore
St. Catharines
Vanleek Mill
Winchester
Wingham

Prince Edward Island
Charlottetown

Quebec
Granby
Farnham

Saskatchewan
Carlyle
Hudson Bay
Saskatoon

With more than 1,000 stores across the country, Home Hardware is a strong, contributing member of hundreds of Canadian communities. Home Dealers believe in making a difference in their communities. In addition to this involvement at the community level, Home Hardware supports three national charitable partners that impact children, communities and the environment - Sick Kids Foundation, the Tree Canada Foundation and Special Olympics Canada.

Excluding sales by dealers of new, used and recreational vehicles and auto parts, retail sales rose 0.7% from June, after two months of flatness. The main contributor to the growth in the rest of retailing in July was gasoline station sales; excluding this component as well, retail sales edged up by only 0.2%.

Contrasting with the strong gains made in the automotive sector (+4.0%), five other sectors showed only modest growth in July: pharmacies and personal care stores (+0.8%), food and beverage stores (+0.4%), general merchandise stores (+0.4%), furniture, home furnishings and electronics stores (+0.3%) and building and outdoor home supplies stores (+0.3%).

Meanwhile, sales in the clothing and accessories stores (-1.7%) and miscellaneous retailers (-0.3%) sectors declined from the previous month. Miscellaneous retailers include stores such as sporting goods, hobby, music and book stores.

Once price changes were taken into account, total retail sales in constant dollars grew by only 0.4%, indicating that much of July's growth was price driven, mainly due to higher prices at the pump.

Retail sales get a boost from strong auto sales

Sales at new car dealers bounced back 4.3% in July, following three months of weak sales. According to the New Motor Vehicle Sales Survey, the number of automobiles sold was up by 3.0% in July, buoyed in part by the return of some incentive programs. Among automobiles sold in July, trucks, which generally sell for more, surged ahead 7.8%.

Used and recreational motor vehicles and parts dealers saw their sales advance by 3.1% in July. Sales at these dealers have increased at a rapid clip since November 2005. July's sales were over 20% higher than they were in the same month last year. The recent demand for recreational vehicles made a large contribution to this rise.

Prices rose at the pump in July, resulting in an increase of 3.7% in the value of sales at gasoline stations. Over the long run, gasoline station sales have been on the rise since mid-2003. Prices have played a major role in this run-up.

Outside of the automotive sector, the pharmacies and personal care stores sector led with a 0.8% increase in sales. July's advance was the ninth consecutive increase.

In the food and beverage stores sector, a 0.8% increase in supermarkets, the largest component in the sector, was partially offset by a 1.3% decline in beer, wine and liquor stores. Sales in convenience and specialty food stores edged up 0.2%, making it the eighth monthly sales increase in a row for these types of stores.

The general merchandise stores (+0.4%) and the furniture, home furnishings and electronics stores (+0.3%) sectors each posted modest increases in July. A sales gain of 1.2% in home electronics and appliance stores, the largest component in the latter sector, offset a 1.3% sales decline in home furnishing stores. Despite July's increase, sales growths in these two sectors have been relatively moderate compared to the large sales gains seen in both sectors in January 2006.

Consumer spending at the building and outdoor home supplies stores sector was up 0.3% in July, as sales in specialized building material and garden stores increased by 2.4%. Retail sales in home centres and hardware stores were essentially flat (-0.1%). Although the annual rate of increase has been declining since 2003, these types of stores have maintained double digit annual sales growth in the previous four years.

Third decline in a row for clothing and accessories stores

Shoppers spent fewer dollars (-1.7%) in the clothing and accessories stores sector in July, making it the third monthly decline in a row. Both clothing stores (-1.8%) and shoe, clothing accessories and jewellery stores (-1.4%) had lower sales in July compared to June. The recent declines in this sector followed a period of steady growth as sales picked up momentum at the start of 2006.

Miscellaneous retailers reported their second decline this year as sales slipped by 0.3% in July. The 0.4% sales gain in sporting goods, hobby, music and book stores was more than offset by a 1.0% decline in miscellaneous stores retailers.

Sales increase in all provinces in July

All provinces registered sales increases in July. Sales in the Atlantic provinces (+2.7%) bounced back from the 2.9% decline in June. Nova Scotia (+3.5%) and New Brunswick (+2.9%) lead the Atlantic provinces in sales growth.

The Prairie provinces continued to post sales growth at or above the national average with Manitoba gaining 2.1% in sales and Saskatchewan and Alberta each gaining 1.5% in July. Quebec (+1.4%) and Ontario (+1.3%) both posted increases after two months of lacklustre sales. Sales in British Columbia bounced back in July, increasing by 1.2% after falling by a similar amount in June.

Related indicators for August

Employment was little changed for the third consecutive month in August, marking the longest stretch without gains since the end of 2001. The unemployment rate edged up 0.1 percentage points to 6.5%, still among the lowest in 30 years.

Housing starts were down 9.6% in August to a seasonally adjusted annual rate of 213,700 units, according to the Canada Mortgage and Housing Corporation.

Based on preliminary sales data, the number of new motor vehicles sold in August is estimated to have grown by about 3%. Truck sales were responsible for 80% of this increase.

Retail sales
	July 2005	April 2006r	May 2006r	June 2006r	July 2006p	June to July 2006	July 2005 to July 2006
	Seasonally adjusted
	$ millions					% change
Automotive	10,968	11,485	11,273	11,156	11,596	4.0	5.7
New car dealers	6,436	6,168	6,053	5,936	6,193	4.3	-3.8
Used and recreational motor vehicle and parts dealers	1,296	1,547	1,524	1,511	1,557	3.1	20.2
Gasoline stations	3,236	3,769	3,696	3,708	3,846	3.7	18.8
Furniture, home furnishings and electronics stores	2,123	2,271	2,305	2,311	2,319	0.3	9.2
Furniture stores	733	789	794	788	790	0.3	7.9
Home furnishings stores	395	444	449	450	444	-1.3	12.5
Computer and software stores	130	124	129	135	135	0.0	3.7
Home electronics and appliance stores	865	913	933	938	949	1.2	9.7
Building and outdoor home supplies stores	1,896	2,054	2,072	2,082	2,089	0.3	10.2
Home centres and hardware stores	1,513	1,683	1,683	1,706	1,704	-0.1	12.6
Specialized building materials and garden stores	383	371	389	376	385	2.4	0.4
Food and beverage stores	7,261	7,358	7,326	7,324	7,351	0.4	1.2
Supermarkets	5,279	5,287	5,253	5,244	5,286	0.8	0.1
Convenience and specialty food stores	770	790	796	797	799	0.2	3.8
Beer, wine and liquor stores	1,212	1,281	1,277	1,282	1,266	-1.3	4.4
Pharmacies and personal care stores	1,992	2,170	2,211	2,239	2,256	0.8	13.2
Clothing and accessories stores	1,764	1,879	1,874	1,871	1,839	-1.7	4.2
Clothing stores	1,356	1,431	1,442	1,428	1,402	-1.8	3.4
Shoe, clothing accessories and jewellery stores	408	448	432	443	437	-1.4	7.0
General merchandise stores	3,634	3,889	3,912	3,850	3,866	0.4	6.4
Miscellaneous retailers	1,582	1,680	1,682	1,687	1,682	-0.3	6.3
Sporting goods, hobby, music and book stores	804	839	835	837	841	0.4	4.6
Miscellaneous store retailers	778	841	847	850	841	-1.0	8.1
Total retail sales	31,220	32,787	32,654	32,520	32,998	1.5	5.7
Total excluding new car dealers, used and recreational motor vehicle and parts dealers	23,488	25,072	25,078	25,073	25,247	0.7	7.5
Provinces and territories
Newfoundland and Labrador	493	504	501	497	503	1.3	2.1
Prince Edward Island	118	123	124	120	121	0.5	2.6
Nova Scotia	888	945	954	912	944	3.5	6.3
New Brunswick	715	742	745	728	749	2.9	4.8
Quebec	7,036	7,295	7,261	7,255	7,359	1.4	4.6
Ontario	11,485	11,863	11,656	11,659	11,811	1.3	2.8
Manitoba	1,075	1,100	1,108	1,094	1,117	2.1	3.9
Saskatchewan	949	988	985	976	991	1.5	4.5
Alberta	4,154	4,700	4,729	4,744	4,817	1.5	16.0
British Columbia	4,199	4,419	4,480	4,425	4,476	1.2	6.6
Yukon	37	38	38	38	38	0.8	3.4
Northwest Territories	49	50	51	50	49	-1.7	0.3
Nunavut	21	21	21	21	22	2.4	3.4
r revised p preliminary

Retail sales
	July 2005	June 2006r	July 2006p	July 2005 to July 2006
	Unadjusted
	$ millions			% change
Automotive	11,846	12,936	12,709	7.3
New car dealers	6,892	7,129	6,771	-1.8
Used and recreational motor vehicle and parts dealers	1,473	1,884	1,770	20.1
Gasoline stations	3,481	3,923	4,168	19.7
Furniture, home furnishings and electronics stores	2,072	2,229	2,250	8.6
Furniture stores	792	814	843	6.4
Home furnishings stores	380	445	424	11.7
Computer and software stores	111	128	119	6.8
Home electronics and appliance stores	789	843	864	9.5
Building and outdoor home supplies stores	2,172	2,658	2,404	10.7
Home centres and hardware stores	1,747	2,152	1,965	12.5
Specialized building materials and garden stores	425	506	439	3.3
Food and beverage stores	7,933	7,646	7,787	-1.8
Supermarkets	5,585	5,425	5,428	-2.8
Convenience and specialty food stores	864	860	888	2.8
Beer, wine and liquor stores	1,484	1,360	1,472	-0.9
Pharmacies and personal care stores	1,920	2,247	2,173	13.2
Clothing and accessories stores	1,654	1,867	1,718	3.9
Clothing stores	1,261	1,423	1,310	3.9
Shoe, clothing accessories and jewellery stores	393	443	408	3.9
General merchandise stores	3,704	4,020	3,932	6.2
Miscellaneous retailers	1,537	1,691	1,636	6.4
Sporting goods, hobby, music and book stores	759	790	799	5.2
Miscellaneous store retailers	777	902	837	7.6
Total retail sales	32,839	35,294	34,611	5.4
Total excluding new car dealers, used and recreational motor vehicle and parts dealers	24,473	26,281	26,069	6.5
Provinces and territories
Newfoundland and Labrador	539	555	541	0.4
Prince Edward Island	142	137	142	-0.1
Nova Scotia	956	1,025	1,005	5.1
New Brunswick	763	809	799	4.7
Quebec	7,443	7,999	7,800	4.8
Ontario	11,927	12,624	12,227	2.5
Manitoba	1,129	1,199	1,174	4.0
Saskatchewan	1,009	1,072	1,051	4.2
Alberta	4,365	5,052	5,047	15.6
British Columbia	4,448	4,701	4,704	5.7
Yukon	43	45	44	3.5
Northwest Territories	54	54	54	0.6
Nunavut	22	22	22	2.1
r revised p preliminary

Pharmacies still dominate the retail drug market. However, between 1998 and 2005, they lost market share to food and general merchandise stores, according to a new study.

Pharmacies accounted for 84.0% of sales of prescription and over-the-counter drugs in 1998. However, by 2005, this share had tumbled to 76.9%. At the same time, the proportion of drug sales in both food stores and general merchandise stores edged up.

Pharmacies includes drug stores, cosmetics, beauty supplies and perfume stores, optical goods stores and other health and personal care stores.

Drug sales refers to sales of prescription and over-the-counter drugs, vitamins, herbal remedies and other health supplements.

In Quebec, any store incorporated as a pharmacy must be owned and operated by a pharmacist. Consequently, in contrast to the situation in other provinces, Quebec pharmacies located in food and general merchandise stores are included in the pharmacies trade group only. In other provinces, the sales of pharmacies located in another store are included in the host store's sales. As a result, the drug sales of food and general merchandise stores are underestimated at the national level.

For every $100 in drug purchases in 2005, consumers spent $14.10 in food stores, up from $10.30 in 1998. In general merchandise stores, they spent $9.00 on drugs in 2005, up from $5.50.

During this period, drug sales increased at an average annual rate of 6.5% in pharmacies. However, this was only half the growth rate of 13.8% for drug sales in food and general merchandise stores.

Sales of prescription and over-the-counter drugs have exploded in Canada during the past decade or so, with the nation's greying population and the millions of prescriptions now being written each year by physicians.

In 2005, retail sales of drugs surpassed the $20-billion mark for the first time.

This boom in drug sales has been accompanied by an emerging phenomenon in the retail market — the appearance of more and more pharmacy outlets in food and general merchandise stores.

The article "Competing for the retail drug market", published today in the online Analysis in Brief series, looked at this phenomenon, focusing on the competition between pharmacies and food and general merchandise stores between 1998 and 2005 using data from the Quarterly Retail Commodity Survey. It also compared the situations in Canada and the United States.

The growth of drug sales outpaced that of all retail commodities combined. Drug sales grew at an annual average rate of 7.9% between 1998 and 2005, compared with growth of 5.3% for all retail commodities combined.

In the United States, the demand for prescription and over-the-counter drugs grew at about the same pace as in Canada. In contrast to the situation in Canada, however, American pharmacies captured an increasing share of the market for health and personal care products. Food and general merchandise stores lost market share.

The increase in drug sales is probably not entirely the result of rising drug costs. Demand appears to be responsible for most of the growth. The number of prescriptions filled by Canadian pharmacies, including new prescriptions and renewals, has risen sharply during the past decade.

Relative to other products, drugs accounted for a rising share of sales for retailers that sell them.

§ Tuesday, September 19, 8:00 a.m. - Keynote Address - Award-winning comedian, Ron James, will entertain the group with his unique blend of poetically charged, kinetically driven comedy as he captures the spirit of being Canadian.

§ Throughout the Market - Beauti-Tone Paint Palette Demonstrations - Representatives from Beauti-Tone will be on hand to demonstrate the unique new paint colour palette and show Dealers how they can leverage its design to help customers choose the right colours.

§ Various Times Throughout the Market - Distribution Centre Tours - Guided tours of Home Hardware's state-of-the-art warehouse facility and distribution centre

§ Various Times Throughout the Market - Burford Paint Plant Tours - Guided tours of the Burford Paint Plant where Home Hardware's Beauti-Tone Paint is manufactured.

Home Hardware is also celebrating the 15th anniversary of PRISM, the company's point of sale system, and the 10th anniversary of HomeInfo, its electronic catalogue, ordering and inventory system.

Home Hardware's national charitable partners - SickKids Foundation, Tree Canada Foundation and Special Olympics Canada - will be represented at the Market with displays, fundraising initiatives and informal meetings.

The Fall Market follows Home Hardware's Pre-Market Conference (PMC) at the Waterloo Inn on Saturday, September 16. The PMC allows Dealer-owners and staff to learn from industry experts at more than 60 seminars during a full-day session with nearly 800 people expected to attend.

Home Hardware Stores Limited is Canada's largest independent hardware, lumber and building materials and furniture retailer with more than 1,000 stores across Canada, under the Home Hardware, Home Building Centre, Home Hardware Building Centre and Home Furniture banners. Dealers have access to 100,000 quality brand name and private label products and in 2005, the company had annual retail sales of $4.3 billion. The cooperative was founded on January 1, 1964 by 128 independent hardware Dealers.

Retail sales edged down for the second month in a row, slipping 0.2% to $32.5 billion in June. Nevertheless, retail spending continued to grow at a fast rate in the second quarter (+2.3%), though sales were inflated by a spike in gasoline prices.

Keeping prices constant, retail sales edged up 0.2% in June as automobile prices fell.

Sales in the automotive sector fell for a second time in a row (-0.8%) after two strong increases in March (+3.5%) and April (+4.3%). Retail spending in the general merchandise sector, which includes department stores and other general merchandise stores, declined 1.4% in June.

These declines were partly offset by increased sales in pharmacies and personal care stores (+1.4%), which rose for the eighth consecutive month in June. Retail sales in the building and outdoor home supplies stores sector were 0.8% higher in June compared to May. Sales grew by 1.0% in the second quarter for retailers in this sector after a robust 5.4% increase in the first quarter.

Marginal gains or losses were experienced by furniture, home furnishings and electronic stores (+0.4%), food and beverage stores (+0.2%), clothing and accessories stores (-0.2%) and miscellaneous retailers (+0.1%).

Excluding new car dealers and used and recreational motor vehicles and parts dealers, total retail sales remained relatively flat (+0.1%) in June.

Declines in the automotive and general merchandise stores sectors more than offset gains elsewhere

Sales in the automotive sector were largely pulled down by weaker sales at new car dealers (-1.4%) in June. Sales at used and recreational motor vehicle and parts dealers also slowed down (-0.7%) after large increases in March (+4.8%) and April (+8.1%).

Gasoline station sales remained steady (+0.1%) as prices showed relatively small changes in June (-0.4%), according to the Consumer Price Index.

Although sales in the automotive sector fell in June, this did not prevent quarterly sales in this sector from soaring 3.9% to the highest quarter-to-quarter increase in over four years. This gain was driven mainly by higher sales at gasoline stations and used and recreational motor vehicle and parts dealers. In contrast, sales at new car dealers have been generally flat since last fall.

The other major contributor to the decline in total retail sales in June was the slowdown in retail spending in general merchandise stores (-1.4%). This was the first drop in sales in 10 months for retailers in this sector. Since spiking in January (+3.5%), gains in this sector have been relatively moderate.

Pharmacies and personal care stores posted their highest year-over-year sales increase in 10 years (+13.2%) in June. Sales have declined only three times since June 2004. Sales of prescription drugs were the main driver for the growth in this sector. According to the Retail Commodity Survey, prescription drugs accounted for 55.0% of drug store sales in 2005, up sharply from 45.5% in 1998.

Within the building and outdoor home supplies stores sector, sales in home centres and hardware stores picked up again (+1.6%) after pausing for two months. Though the annual rate of increase has been declining since 2003, these types of stores have maintained double digit annual sales growth in the previous four years.

Sales down in most provinces

Sales were down in most provinces and territories in June, except for Ontario (+0.3%), Alberta (+0.5%) and Nunavut (+0.5%).

Retail sales in British Columbia fell 1.4% in June after gains of 1.4% in both April and May. In general, sales in this province have been growing steadily since 2004 after a period of relative flatness.

The Atlantic provinces all posted lower sales in June compared to May. The largest decline was in Nova Scotia (-3.8%), partly due to lower sales in the automotive sector. Sales in Prince Edward Island fell by 2.6%, in part due to lower sales at gasoline stations. Gasoline prices in Prince Edward Island posted the largest decline in June (-4.9%), according to the Consumer Price Index. Sales were down 1.2% in both Newfoundland and Labrador and New Brunswick.

Related indicators for July

Employment was unchanged for the second consecutive month in July, as gains in full-time employment were offset by similar declines in part-time employment. There was a jump in the number of people entering the labour force in search of work in July. This pushed the unemployment rate up 0.3 percentage points to 6.4%, still among the lowest in 30 years.

The seasonally adjusted annual rate of housing starts was 236,500 units in July, up a marginal 100 units from June, according to the Canada Mortgage and Housing Corporation.

Based on preliminary sales figures from the auto industry, the number of new motor vehicles sold rebounded by about 3% in July. These preliminary estimates indicate the increase was the result of truck sales rising after several months of declines. New passenger car sales, on the other hand, are estimated to have declined slightly in July.