Canadian consumers went on spending spree in January, Statistics Canada reported today. Retail sales across the country jumped 1.6% to $26.4 billion, after dropping 1.3% in December.

Retail trade got a boost from some department store openings and the increasing popularity of gift cards, which are predominantly redeemed in January, StatsCan said.

Excluding sales by motor and recreational vehicle dealers, retail sales advanced 2.2% in January, reaching a new record high of $20.1 billion.

Sales by motor and recreational vehicle dealers declined 0.4%, but overall sales in the automotive sector advanced 1.1% in January, mainly due to gains at gasoline service stations and automotive parts and services stores.

Consumer spending at department stores soared 5.9% during January, following a 1.3% drop in December. Prior to January’s gain, sales in department stores had been relatively flat since May 2003.

While retail sales boasted healthy gains, wholesale sales declined in January.

Wholesalers saw a drop of 3.2% in January from December as they sold goods and services worth $35.8 billion, StatsCan said.

“The drop in January was largely attributable to the motor vehicles, parts and accessories sector,” the statistical agency said. “Excluding that sector, sales fell 0.4%.”

Seven of 11 trade groups surveyed, accounting for 60% of total sales, posted decreases.

In addition to the automotive sector, which was down 15.2%, industrial machinery was off by 2.3% and lumber and building materials fell by 3.3%.

Some sectors, such as food and beverages, drugs and tobacco products, saw gains.

Seven provinces contributed to the decrease in wholesale sales, with the largest declines in British Columbia at 5.3%. Newfoundland and Labrador, and Ontario, both saw 4% declines.