Retail sales in Canada bounced back in June as brick-and-mortar stores reopened nationwide after months of COVID-19 shutdowns.
The value of retail sales rose 4.2% in June, according to Statistics Canada. However, that bounce-back was quickly reversed in July with a preliminary estimate showing a 1.7% decline for that month.
The report suggests that consumers were initially eager to buy goods when businesses reopened, though the weakness in July could reflect a shift in consumption spending to services. That kind of change has been expected by economists, who anticipate more spending on things such as restaurant meals and haircuts now that they’re reopened.
The retail gains in June were broad-based, with eight of 11 categories posting increases. Clothing and accessories stores led, rising 49.1% as they reopened after months of lockdowns. Furniture stores and sporting goods stores also posted double-digit increases.
