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

Nurse Vicki Niemi administers a dose of the Pfizer-BioNTech COVID-19 vaccine to Joyce, 88, on Mar. 23, 2020 at the Terrace Sportsplex. All adults in Terrace are now eligible to register for a COVID-19 vaccination. (Ben Bogstie/Terrace Standard)
All adults in Terrace can now register for a COVID-19 vaccine appointment

Community members can register by calling 833-838-2323 or visiting getvaccinated.gov.bc.ca

April 2020 to March 2021 was the second wettest year on record since at least 1969, according to Environment Canada. (Ben Bogstie/Terrace Standard)
VIDEO: Terrace records wettest spell in over a half-century

Terrace saw close to 1,500 millimetres of precipitation between April 2020 and March 2021

Terrace fire department responded to a call from Skeena Saw Mills at the early hours of Friday morning. (Binny Paul/ Terrace Standard)
UPDATE: Fire crews respond to early morning incident at Skeena Sawmills

No injuries were reported as mill workers immediately alerted the fire department after seeing smoke

Terrace Tim Hortons on Keith Ave. experienced a fire during the morning of April 4, 2021. (Ben Bogstie/Terrace Standard)
Nature of Tim Hortons fire made it difficult to detect: Deputy fire chief

Fire likely burned undetected inside a wall, resulting in extensive damage

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has suspended indoor dining at restaurants and pubs until at least April 19 in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C. sets new COVID-19 daily record with 1,293 cases Thursday

New order allows workplace closures when infections found

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

People walk past the Olympic rings in Whistler, B.C., Friday, May 15, 2020. Whistler which is a travel destination for tourists around the world is seeing the effects of travel bans due to COVID-19. THE CANADIAN PRESS/Jonathan Hayward
Adults living, working in Whistler, B.C., eligible for COVID-19 vaccine on Monday

The move comes as the province deals with a rush of COVID-19 and variant cases in the community

RCMP crest. (Black Press Media files)
UPDATE: RCMP investigating after child, 6, dies at motel in Duncan, B.C.

The BC Coroners Service is conducting its own investigation into the circumstances around the child’s death

RCMP display some of the fish seized from three suspects who pleaded guilty to violating the Fisheries Act in 2019, in this undated handout photo. THE CANADIAN PRESS/HO - RCMP
3 banned from fishing, holding licences after overfishing violations near Vancouver Island

Mounties seized the group’s 30-foot fishing vessel and all equipment on board at the time

B.C. Premier John Horgan responds to questions during a postelection news conference in Vancouver, on Sunday, October 25, 2020. British Columbia’s opposition Liberals and Greens acknowledge the COVID-19 pandemic has presented huge challenges for Horgan’s government, but they say Monday’s throne speech must outline a coherent plan for the province’s economic, health, social and environmental future. THE CANADIAN PRESS/Darryl Dyck
Horgan’s NDP to bring in throne speech in B.C., Opposition wants coherent plan

Farnworth said the budget will include details of government investment in communities and infrastructure

FILE - An arena worker removes the net from the ice after the Vancouver Canucks and Calgary Flames NHL hockey game was postponed due to a positive COVID-19 test result, in Vancouver, British Columbia, in this Wednesday, March 31, 2021, file photo. As vaccinations ramp up past a pace of 3 million a day in the U.S, the NHL is in a tougher spot than the other three major North American professional sports leagues because seven of 31 teams are based on Canada. (Darryl Dyck/The Canadian Press via AP, File)
Vancouver Canucks scheduled to practice Sunday, resume games April 16 after COVID outbreak

Canucks outbreak delayed the team’s season by eight games

Two-year-old Ivy McLeod, seen here on April 9, 2021 with four-year-old sister Elena and mom Vanessa, was born with limb differences. The family, including husband/dad Sean McLeod, is looking for a family puppy that also has a limb difference. (Jenna Hauck/ Chilliwack Progress)
B.C. family looking for puppy with limb difference, just like 2-year-old Ivy

Ivy McLeod born as bilateral amputee, now her family wants to find ‘companion’ puppy for her

Most Read