Canada: No surprise from the worst monthly drop in retail sales on record – NFB

Data released on Friday showed retail sales tumbled in April but likely rebounded sharply in May. According to Kyle Dahms, analysts at National Bank of Canada, the fact that April was the worst monthly drop in retail spending on record, it should not be a surprise. 

Key Quotes:

“Canada’s retail sales cratered (-26.4%) in April, much worse than the print expected by consensus (-15.1).”

“In real terms, Canada’s retail sales were down a record 25.2% in April.”

“It should come as no surprise that April was the worst monthly drop in retail spending on record. Combined with March, retail sales have dropped a cumulative 33.6% since the beginning of the crisis.”

“The country as a whole was on government-mandated lockdown for the month of April. As a result, non-essential retailers shuttered their doors while those open dealt with a vastly reduced clientele.”

“It should be noted that April was the first time in 27 years that every subsector posted a decline.”

“The month of May will see a pick up in retail spending (+19.1%) according to an early estimate from Statistics Canada. This comes as no surprise due to pent-up demand and the reopening of many areas.”