Statscan - This was the seventh increase in nine months. The increases were widespread with six of eight sectors showing gains. In volume terms, retail sales increased 1.2% in September.

Retail sales have been rising since the beginning of 2009, following a sharp decline at the end of 2008. On a year-over-year basis, sales in September were 3.3% lower than in September 2008.

All components of the automotive sector (+1.0%) posted higher sales in September. The largest increase in the sector was a 2.0% gain at used and recreational motor vehicles and parts dealers, following two months of flat sales. Sales at new car dealers (+0.6%) rose for a fifth consecutive month, while gasoline stations registered a 1.1% increase.

Excluding the automotive sector, retail sales rose 1.1% in September, the largest gain since January 2009. The main contributor to this increase was the food and beverage stores sector, where sales rose 1.3%. Leading the way were supermarkets (+1.5%), following flat sales in August.

The largest increase was at general merchandise stores, where sales rose 1.9%. Sales at this store type had been stable for almost a year, changing by less than 0.5% each month since November 2008.

After four months of flat sales, miscellaneous retailers saw their sales rise 1.7%. This growth was led by sales at sporting goods, hobby, music and book stores (+1.9%), the largest increase at these store types since March 2008.

Sales in the furniture, home furnishings and electronics stores sector increased 1.2%, its largest increase since July 2008. Furniture stores led the sector with a 3.2% advance. This was the largest increase for this store type since January 2008, when sales rose 3.6% following a one percentage point drop in the Goods and Services Tax.

Sales at building and outdoor home supplies stores (-0.2%) and clothing and accessories stores (-0.1%) both edged down in September. These two sectors have had generally flat sales since a partial recovery at the beginning of 2009.

Sales up in eight provinces

Retail sales rose in eight provinces in September. Quebec (+2.2%) was the largest contributor to the increase with a fourth rise in the last five months.

Sales rose in all of the Atlantic provinces, led by Prince Edward Island (+4.1%). The majority of these gains came from higher sales at new car dealers.

British Columbia continued its upward trend of the last six months, increasing 1.8% in September.

The two provinces where retail sales did not increase were Saskatchewan and Alberta. Sales fell 0.9% in Saskatchewan in September, partially offsetting the increase in August. In Alberta sales were flat, following two months of declines.

Note to readers

Total retail sales by volume are measured by deflating values in current dollars of the various trade groups using consumer price indexes. This retail sales in chained dollars series (2002) is a chain Fisher volume index with 2002 as the reference year.