According to Mastercard SpendingPulseTM, which measures in-store and online retail sales across all forms of payment, Canadian retail sales, excluding automotive, increased +12.3% YOY, (+29% YO3Y) in September indicating spending has well surpassed pre-pandemic levels. Mastercard SpendingPulse accounts for nominal spending and is not adjusted for inflation. E-commerce sales continue to grow, up 78% since pre-pandemic (1.1% YOY), highlighting the ongoing demand for the convenience of digital commerce.
Spending growth in September 2022 compared to the pre-pandemic levels seen in September 2019, reflect a strong increase in experiential spending. Of note:
- Back-to-school season continues with new tech: As students continue to settle into the school year, the Electronics sector saw sales increase +8.6% YOY (23.8% YO3Y).
- Consumers are looking for experiences: With most covid-19 restrictions easing and Canadians venturing outside of their homes again, consumers are prioritizing experiential spending on eating out with Restaurant sales up 6.4% YOY.
- Canadians are returning to pre-pandemic routine: The Apparel sector is seeing strong continued growth (34.3% YOY) as consumers return to office, attend parties, weddings and events once again.
