The Financial Post reports in its Saturday edition that a drop in food and beverage sales led a 0.2 per cent decline in retail sales in October, to $69.4-billion, according to Statistics Canada. The Post's Denise Paglinawan writes that Statcan said core retail sales, which exclude gas stations, fuel vendors and motor vehicle and parts dealers, were down for the second straight month, dropping 0.5 per cent. Sales of beer, wine and liquor posted the biggest decline, at 10.6 per cent.
However, the drop in alcohol sales coincided with labour disruptions by public-sector workers in British Columbia.
Supermarkets and other grocery retailers across the country reported lower receipts in October, down 0.7 per cent. Statscan added that its advance estimates suggest a rebound in November, with sales increasing 1.2 per cent. In a note, CIBC economist Andrew Grantham said retail sales volumes likely remained below their average from the summer, even after accounting for the rebound suggested by Statscan's November advance estimate, signalling a slowdown. Canada's weakening population growth may partly to blame, but there also seems to be some caution among Canadian households when it comes to spending, Mr. Grantham said.
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