Retail trade weakness is proving to be a slightly moderating influence on Canada’s economic growth.
Fresh data from Statistics Canada indicated that the GDP fell by 0.1% in October. While minimal, this was the first downward movement in eight months, real estate analysis hub Better Dwelling reported.
“This isn’t terrible news, but it’s a dramatic shift from the growth story told in the first half of . Of particular concern is the decline of activity in consumer related industries, such as retail.”
October saw retail trade declining by 1.1%, the largest decrease since March 2016. “Retail trade dropped 1.1% in October, the largest decline since March 2016. That was around the energy market crash, so this is a significant event.”
In the era of e-commerce, retail has remained particularly relevant in the Canadian commercial property segment. A survey by commercial brokerage JLL found that during the recent holiday season, roughly two-thirds of Canadians intended to visit and shop on actual store locations.
“The biggest takeaway is that Canadian consumers are leveraging both physical and online stores,” JLL retail research manager Heli Brecailo told the Vancouver Sun at the time.
More than 30% of respondents also said that they buy from both online sources and physical stores.