Retailers posted their highest monthly sales gain in nine years in December, with widespread increases in all eight retail sectors, Statistics Canada reported today.

The year-end flourish, combined with hot sales in Alberta, pushed sales for 2006 as a whole to their strongest annual growth rate since 1997.

Total retail sales jumped 2.3% in December to an estimated $33.5 billion, the fastest monthly growth rate since December 1997, StatsCan said.

This gain more than offset losses in September and October and a lacklustre 0.3% increase in November.

For 2006 as a whole, retailers sold $391.4 billion worth of goods and services, up 6.4% from 2005 and the highest rate in nine years.

The automotive sector led the pack in December with a 3.7% increase in sales, which accounted for over half the month’s overall gains. Sales at clothing and accessories stores (+4.9%) picked up after two months of declines, as did sales at general merchandise stores (+2.6%). Combined, these two retail sectors accounted for over a quarter of the retail sales increase in December.

Excluding the automotive sector (which includes gasoline station sales), retail sales rose 1.6%.

Almost all provinces and territories experienced sales gains in December with the exception of Nunavut (-5.0%). Sales in Ontario (+2.9%) and Quebec (+1.8%) climbed for a second month in a row after a weak start to the quarter.

Retail sales picked up in British Columbia (+2.4%) and Alberta (+2.0%) in December. However, retailers in both provinces have been experiencing a slowdown in sales in recent months, resulting in negative fourth quarter growth rates for both provinces, after exceptionally strong quarters earlier in 2006.

Retail sales in Alberta grew at their fastest pace ever in 2006, pushing Canadian retail trade to its strongest growth rate since 1997.