Source: The Canadian Press

Canadian shoppers spent less money but purchased more items in June, which pushed retail sales in current dollars ahead a meagre 0.1% to $35.9 billion.

Statistics Canada said Tuesday that lower prices at gasoline stations and new-car dealers were a key factor in the mild dollar increase, though in volume terms sales were up 0.9 with price changes factored in.

Retail sales rose in five of 11 subsectors in June, but were down overall in six provinces. The largest increase in dollar terms was a 2.1% rise at motor vehicle and parts dealers.

New-car dealers reported gains of 2%, reflecting higher sales of new motor vehicles, while sales at used car dealers were up 4.5% and automotive parts, accessories and tire stores rose 1.8.

“A steady decline in prices is making Canadian retail activity look even softer than the moderate underlying slowdown in consumer spending,” said BMO Capital Markets deputy chief economist Doug Porter in a note.

“Retail prices have actually declined over the past year, masking a solid 4.5% year-over-year rise in sales volumes. Of course, both prices and volumes matter for retailers, so it’s cold comfort that volumes are rising partly because prices are falling.”

Breaking down the sectors for June, sales rose 5.1% at electronics and appliance stores, which some analysts said could be linked to Canadians buying big screen TVs in preparation for the World Cup.

Furniture and home furnishing stores sales increased 2.3%, marking a “strong gain” for the second month in a row, as it was called by Krishen Rangasamy of CIBC World Markets.

“However, that uptrend is likely to pace down a bit in coming months given the flagging housing market,” Rangasamy added.

Sales at building material and garden equipment and supplies dealers increased half a per cent.

The largest decline was at gasoline stations, which fell 2.7%.

General merchandisers were down 1.7%, and sales at clothing and clothing accessories stores fell 1.1.

Retail sales declined in all of the Atlantic provinces except Nova Scotia, where sales rose 3.1%.

Sales increased 0.3% in Ontario and dropped 0.2 in Quebec.