According to Mastercard SpendingPulseTM, which measures in-store and online retail sales across all forms of payment. Canadian consumer retail spending excluding automotive increased +5.7% year-over-year (YOY)* in June, indicating consistent growth compared to May. In-store spending was up +9.0% YOY in June. As consumers returned to in-person shopping, e-commerce decreased (-7.1% YOY), but sales for e-commerce compared to pre-pandemic continued to experience strong growth (+90.5% YO3Y).
While inflation persists, discretionary spending in June continued to drive growth across leisure sectors including Restaurants +21.9% YOY/ +7.7% YO3Y, Jewelry +35.9% YOY/ +10.8% YO3Y, and Apparel +35.2%/ +13.2% YO3Y. Canadians also continued to spend on Home Improvement with increased growth of +7.3% YOY/ +33.5% YO3Y while Home Furniture and Furnishings slowed -1.3% YOY but remains elevated compared to pre-pandemic +15.1% YO3Y.
“While discretionary spending is up, sector by sector, we will see inflation impact consumer spending as prices for essentials increase,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “With dollars being stretched, retailers should look for ways to personalize and customize offers accordingly.”
*Mastercard SpendingPulse is not adjusted for inflation.
