Canadian retail sales post record decline

OTTAWA — Canadian retail sales plummeted 26.4 per cent in April, posting a record decline for a second consecutive month, as the coronavirus pandemic continued to wallop the economy, Statistics Canada data showed on Friday.

Officials shut most nonessential businesses across Canada, beginning in midmarch, to slow the spread of the coronavirus and urged people to stay home.

Sales were down in all 11 subsectors for the first time in 27 years, with motor vehicle and parts dealers taking the largest hit in April. Food and beverage stores and gasoline stations also contributed to the decline.

Analysts in a Reuters poll had forecast a 15.1 per cent decline for April, while a Statistics Canada flash estimate released last month predicted a 15.6 per cent decline. The statistical agency revised March’s record decline to 9.9 per cent from an initial 10 per cent.

“It’s a long road back from these April lows,” said BMO Chief Economist Doug Porter in a note.

All 10 Canadian provinces posted double-digit slumps, with the largest drops occurring in Ontario and Quebec, Canada’s two most populous provinces. Retail sales plunged 32.8 per cent in Ontario, while Quebec posted a 27.8 per cent decline.

“Retailers were devastated by the shutdowns and physical distancing measures employed in April,” said Royce Mendes, senior economist at CIBC Capital Markets.

“It wasn’t all bad news in the report though. Retailers who had an online presence were able to capitalize on some of the shifts in buying patterns,” he said.

Online sales surged to a record high, representing 9.5 per cent of the total retail market, Statscan said, while on a year-over-year basis, retail e-commerce more than doubled.