Shoppers Postponed Purchases at Start of Summer: Report

Canadian retail sales dropped in June, with all stores experiencing a decline of three per cent year-over-year.

This is according to J.C. Williams Group’s (JCWG) most recent national retail report, which attributes the falling numbers to ongoing challenges in the sector, as consumers continue to grapple with economic uncertainties and changing spending habits.

Furniture and home furnishings stores saw sales fall further than overall retail sales during the same time period, dropping 4.85 per cent and 4.1 per cent, respectively.

Electronics and appliance stores sales fared better albeit still down 2.93 per cent from June 2023.

While all regions of Canada experienced a decline in retail sales, British Columbia and Alberta felt it most. This could be attributed to the wildfires that ravaged both provinces, says the report, disrupting normal business activities and consumer behaviour.

June closed the country’s second consecutive quarter of weak retail sales since the onset of the pandemic, signalling potential economic headwinds or shifts in consumer spending patterns.

E-commerce sales also faced a downturn. The retail consulting firm reports many consumers held off on making large purchases in June, until Amazon’s prime day the following month, and in anticipation of a second Bank of Canada interest rate cut, which occurred July 24, and helped ease financial conditions.