Statistics Canada says retail sales fell for the second consecutive month in January as many non-essential retailers were forced to restrict in-person shopping due to the pandemic. THE CANADIAN PRESS/Chris Young

Statistics Canada says retail sales fell for the second consecutive month in January as many non-essential retailers were forced to restrict in-person shopping due to the pandemic. THE CANADIAN PRESS/Chris Young

Retail sales fall 1.1% in January to $52.5 billion: StatsCan

Sales at clothing and clothing accessories stores dropped 17.8%, furniture and home furnishings stores lost 15.1%

Canadian retail sales fell for a second consecutive month in January as many non-essential retailers were forced to restrict in-person shopping due to the pandemic, but early indications point to a rebound in February as the restrictions eased.

Statistics Canada said Friday retail sales fell 1.1 per cent to $52.5 billion for the first month of the year, however its preliminary February estimate pointed to a gain of 4.0 per cent for the month.

“The recovery in February retail sales adds to the evidence suggesting that GDP growth continued into the second month of the year,” CIBC senior economist Royce Mendes wrote in a report suggesting the bank’s forecast for the first quarter might have been too conservative.

“That being said, the risks to the economy from the third wave of the virus are now greater than they were at the time those forecasts were made. As a result, the second quarter might begin on weaker footing than previously envisioned.”

Recent economic data has suggested a stronger-than-expected start to the year.

Statistics Canada reported last week that the economy added 259,000 jobs in February, outpacing the net gain of 75,000 jobs that had been expected and the Bank of Canada said earlier this month that it now expects the economy to grow in the first quarter compared with its earlier expectation that there would be a contraction to start the year.

TD Bank economist Ksenia Bushmeneva said credit and debit card data show spending staged a solid rebound as provinces began to gradually lift restrictions last month.

“All in all, the Canadian economy has shown relative resilience in the face of the second wave of the pandemic, and the recent economic reopening ushers optimism about the days ahead,” Bushmeneva wrote.

“That being said, the slow pace of vaccination-to-date and the recent uptick in cases continue to pose uncertainty to consumers and businesses alike about what the next few months could hold.”

The drop in January retail sales came as core retail sales — which exclude gas stations and motor vehicle and parts dealers — fell 1.4 per cent.

Sales at clothing and clothing accessories stores dropped 17.8 per cent and furniture and home furnishings stores lost 15.1 per cent. Sales at sporting goods, hobby, book and music stores fell 16.8 per cent.

Meanwhile, higher gasoline prices helped boost sales at gasoline stations which saw an increase of 0.9 per cent in January.

In volume terms, overall retail sales fell 1.6 per cent in January.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

In a feature article published April 10, 2021 in The Times of London, ‘headlined British Columbia has what it takes to rival Napa Valley,’ the valley is praised extensively for its natural beauty and wine. (File photo)
From the U.K. with love: Okanagan wine, scenery receives international praise

The Times of London newspaper recently featured the valley in a wine and travel piece

FILE — In this March 31, 2021 file photo, a nurse fills a syringe with a dose of the Johnson & Johnson’s one-dose COVID-19 vaccine at the Vaxmobile, at the Uniondale Hempstead Senior Center, in Uniondale, N.Y. The U.S. is recommending a “pause” in administration of the single-dose Johnson & Johnson COVID-19 vaccine to investigate reports of potentially dangerous blood clots. In a joint statement Tuesday, the Centers for Disease Control and Prevention and the Food and Drug Administration said it was investigating clots in six women in the days after vaccination, in combination with reduced platelet counts. (AP Photo/Mary Altaffer, File)
72 new COVID-19 cases in Interior Health

This brings the total number of cases in the region to 9,666 since the pandemic began

Conservation officers caught three men over fishing bull trout in Kinbasket Lake. (Facebook)
B.C. men fined $1.7K for overfishing near Revelstoke, Golden

The seized fish were donated to the Golden Food Bank

Kootenay-Columbia MP Rob Morrison. Photo courtesy Conservative Party of Canada.
MP Morrison hopes for economic recovery plan in upcoming federal budget

Kootenay-Columbia Conservative looking for post-pandemic recovery plan in next week’s Liberal budget

The airport was one of several to receiving funding for its medevec services. (Columbia Valley Airport photo)
Fairmont airport receives $90,000 in Provincial funding

It’s one of several airports to receive provincial funding

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has restricted indoor dining at all restaurants in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 indoor dining, drinking ban extending into May

Restaurant association says patio rules to be clarified

Marylou Jensen. (Contributed)
Kelowna RCMP searching for missing senior

Marylou Jensen left her Grenfell Road home on foot at 5 p.m.

A dumpster was on fire behind a residential complex in downtown Penticton Tuesday afternoon. (Brennan Phillips Western News)
Dumpster fire extinguished in downtown Penticton

There has been a string of dumpster fires lately

Skogie’s Express Tunnel Wash on Anderson Way in Vernon. (Submitted photo)
Lawsuit dismissed after vehicle damaged while inside Okanagan car wash

Civil Resolution Tribunal dismisses driver’s claim following a collision inside Skogie’s car wash in Vernon

The future of the Eagle Pass Lookout cabin is being discussed. (File photo)
Options presented for future of former Eagle Pass fire lookout in Shuswap

Stakeholders met in 2020 to discuss the restoration, or possible removal of the cabin

(Mayor Cindy Fortin - Peachland)
Peachland mayor declines early vaccination offer

Mayor Cindy Fortin said she wants seniors, immunocompromised individuals to get the shot first

B.C. Premier John Horgan speaks at the B.C. legislature. (B.C. government)
Tougher COVID-19 restrictions in B.C., including travel, still ‘on the table’: Horgan

John Horgan says travel restrictions will be discussed Wednesday by the provincial cabinet

NorKam secondary student Karis Wilson in the outfit that got her sent home from school on Feb. 23, 2021. (Kamloops This Week photo)
Clothing that ‘detracts from learning process’ removed from SD73 student dress code

Policy change underway after student in knee-length dress, long-sleeve turtleneck sent home

A shop up on Grand Oro Road near Twin Lakes burned down on Monday. (Facebook)
Fire rips through shop in small South Okanagan town

The building was destroyed despite community efforts to fight the fire

Most Read