A last minute rush to qualify for the Home Renovation Tax Credit pushed retail sales up 0.7% in January, according to government data released Friday.
Home improvement stores were the largest contributor to the month’s $35.7 billion in retail sales, Statistics Canada said. The deadline to qualify for a maximum HRTC rebate of $1,350 was Feb. 1. The popular temporary program was part of the federal government’s Economic Action Plan designed to boost spending.
Sales at building and outdoor home suppliers were up 7.4% marking the highest monthly growth rate for this retail segment since Aug. 2003. Meanwhile sales growth at furniture and home furnishing stores topped previous records set back in the early 1990s.
In all, six of eight retail categories posted gains during the month. Supermarkets led the growth in food and beverage sales, which rose by 1.9%, effectively erasing December’s losses for the sector. Sales at wine, beer and liquor stores also rebounded.
Clothing and miscellaneous retailers selling sporting goods, hobby, music and books also saw gains.
Sales in the automotive sector however fell 1.5%. New car dealers have seen sales slip for three months in row after a mostly positive 2009.
Retail sales volumes were up 0.1% in January. Large prices increases in new cars and gas at the pumps restrained overall sales volumes, StatsCan said. Still, retail sales volumes have been steadily climbing since the beginning of 2009.
Shoppers in Ontario and Newfoundland led the January buying spree after two months of slight declines in each of those provinces. Retailers in seven provinces saw improved numbers during the month.
