It was a sluggish start to the year for retailers.

According to new Statistics Canada data, retail sales* in Alberta retreated by 0.6% in January to $8.5 billion, mainly reversing December’s gain.

Sales were down 1.4% from January 2023’s record high level.

The aggregate year-over-year (y/y) decrease was mostly driven by a sharp pullback at gasoline stations (partially due to lower prices). Core sales (exclude gasoline and vehicle sales) fared better (up 2.9% y/y), but have also slowed. 

It was a slow start to the year for Canada as well with monthly sales easing by 0.3% largely due to contractions in BC (-2.2%) and Quebec (-1.0%).

Last year, Alberta retail revenues rose by 4.3% —the strongest among provinces after PEI. 

Looking ahead, strong population growth should continue to put upward pressure on retail sales. However, consumers are expected to scale back spending on more discretionary purchases against the backdrop of elevated borrowing costs and the cumulative impact of high inflation. Consequently, we forecast retail revenues in Alberta to rise by only 3.6% in 2024.

*adjusted for normal seasonal variation

Answer to the previous trivia question: Now in its 45th season, the PBS series “This Old House” premiered on February 20, 1979.

Today’s trivia question: When did the game show The Price is Right premiere?