{"id":16319,"date":"2025-11-29T08:54:05","date_gmt":"2025-11-29T08:54:05","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/discretionary-spending-leads-canadas-september-retail-growth\/"},"modified":"2025-11-29T08:54:05","modified_gmt":"2025-11-29T08:54:05","slug":"discretionary-spending-leads-canadas-september-retail-growth","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/discretionary-spending-leads-canadas-september-retail-growth\/","title":{"rendered":"Discretionary Spending Leads Canada\u2019s September Retail Growth"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<p>September\u2019s Canadian retail picture reflects shifting consumer psychology as much as economics. With All Stores up 5.7% YOY and discretionary (All Stores less Automotive, Food, Pharmacies) up 7.7% YOY, we see three significant forces: the September 17 Bank of Canada rate cut nudged confidence and big-ticket intent; the September 1 removal of retaliatory tariffs eased price pressure on select imports; and a warmer-than-usual month extended late-summer spending. Together, these factors favoured categories where consumers perceive value, novelty, or seasonal utility.<\/p>\n<p>Despite more back-to-office mandates that should boost daypart trips, Convenience Stores (and Gas Stations) are the only categories down YTD, which are intertwined. Our view hasn\u2019t changed: the ongoing alcohol integration is cannibalizing margin and space. Valuable cooler\/shelf real estate has been reallocated to low-margin alcohol, crowding out higher-margin, higher-frequency items (single-serve beverages, snacks, grab-and-go). Add sizable, sunk investments in fixtures and compliance, and reversibility is low, so we don\u2019t see a near-term rebound.<\/p>\n<p>This stance seems at odds with the Convenience Industry Council of Canada\u2019s reported\u00a012% sales\u00a0increase from member surveys, touted as a win for alcohol. We think that\u2019s a revenue-mix story, not an earnings or productivity story. Survey gains can reflect price\/mix from alcohol without improving gross profit dollars per square foot or trip frequency. In short: dollars up in a survey can coexist with weaker profitability and softer non-fuel comps.<\/p>\n<p>Foodservices and Drinking Places grew 5.2% YOY in September\u2014modest, but logical. Domestic tourism stayed elevated into late summer\/early fall, and warmer weather extended patios, which meaningfully supports beverage and occasion-led sales. That said, our foodservice expert flags a caution: higher cheques, not more patrons, are doing the work. Price increases, add-ons, and mix are carrying topline, but traffic remains fragile. As weather normalizes and promotional intensity rises into Q4, operators should watch guest counts and margin dilution closely.<\/p>\n<p>On discretionary spend, Canada (7.7% YOY) is outpacing the US (5.7% YOY). Meanwhile, the US is showing comparatively stronger growth in essential categories. There are two potential reasons for this: First, the US may simply be performing better in staples. Second, tariff pass-through from importers to consumers could be inflating essential spend as importers push costs to consumers.<\/p>\n<p>As we move further into the holiday season, JCWG is thinking about:<\/p>\n<ul class=\"wp-block-list\">\n<li>Will Black Friday remain the highest revenue day for retailers in 2025, or will other days (post-Black Friday weekend, Cyber Monday, etc.) surpass it?<\/li>\n<li>With Cyber Monday falling into December, will Canadian retailers experience lower November sales?<\/li>\n<li>Beyond Foodservices &amp; Drinking Places, which categories benefit most (Clothing &amp; Accessories, fan gear, TV\/home-entertainment adjacencies, etc.) from the Blue Jays playoff run?<\/li>\n<li>How are YOU preparing for the upcoming new year and preparing your 2026 strategy?<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\" id=\"h-retail-sales-by-product-category-same-month-comparison\">Retail Sales by Product Category, Same Month Comparison<\/h2>\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<thead>\n<tr>\n<th>Sales for the Month of September<\/th>\n<th>Sep-25<\/th>\n<th>Sep-24<\/th>\n<th>YOY<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>All Stores<\/td>\n<td>69,500,204<\/td>\n<td>65,727,725<\/td>\n<td>5.74%<\/td>\n<\/tr>\n<tr>\n<td>Motor Vehicle and Parts Dealers<\/td>\n<td>19,447,312<\/td>\n<td>18,302,355<\/td>\n<td>6.26%<\/td>\n<\/tr>\n<tr>\n<td>Gasoline Stations<\/td>\n<td>6,253,377<\/td>\n<td>6,180,563<\/td>\n<td>1.18%<\/td>\n<\/tr>\n<tr>\n<td>All Stores Less Automotive<\/td>\n<td>43,799,515<\/td>\n<td>41,244,807<\/td>\n<td>6.19%<\/td>\n<\/tr>\n<tr>\n<td>Food and Beverage Stores<\/td>\n<td>12,854,920<\/td>\n<td>12,543,748<\/td>\n<td>2.48%<\/td>\n<\/tr>\n<tr>\n<td>Supermarkets and Other Grocery Stores*<\/td>\n<td>9,074,485<\/td>\n<td>8,877,193<\/td>\n<td>2.22%<\/td>\n<\/tr>\n<tr>\n<td>Convenience Stores<\/td>\n<td>691,299<\/td>\n<td>728,582<\/td>\n<td>-5.12%<\/td>\n<\/tr>\n<tr>\n<td>Specialty Food Stores<\/td>\n<td>965,394<\/td>\n<td>888,849<\/td>\n<td>8.61%<\/td>\n<\/tr>\n<tr>\n<td>Beer, Wine and Liquor Stores<\/td>\n<td>2,123,743<\/td>\n<td>2,049,125<\/td>\n<td>3.64%<\/td>\n<\/tr>\n<tr>\n<td>Health and Personal Care Stores<\/td>\n<td>5,811,014<\/td>\n<td>5,358,694<\/td>\n<td>8.44%<\/td>\n<\/tr>\n<tr>\n<td>All Stores Less Automotive, Food, and Pharmacies<\/td>\n<td>25,133,581<\/td>\n<td>23,342,365<\/td>\n<td>7.67%<\/td>\n<\/tr>\n<tr>\n<td>General Merchandise Stores<\/td>\n<td>9,110,911<\/td>\n<td>8,643,359<\/td>\n<td>5.41%<\/td>\n<\/tr>\n<tr>\n<td>Furniture, Home Furnishings, Electronic and Appliance Stores<\/td>\n<td>3,814,637<\/td>\n<td>3,526,680<\/td>\n<td>8.17%<\/td>\n<\/tr>\n<tr>\n<td>Furniture Stores<\/td>\n<td>1,222,179<\/td>\n<td>1,198,469<\/td>\n<td>1.98%<\/td>\n<\/tr>\n<tr>\n<td>Home Furnishings Stores<\/td>\n<td>772,592<\/td>\n<td>722,152<\/td>\n<td>6.98%<\/td>\n<\/tr>\n<tr>\n<td>Electronics and Appliance Stores<\/td>\n<td>1,819,865<\/td>\n<td>1,606,059<\/td>\n<td>13.31%<\/td>\n<\/tr>\n<tr>\n<td>Clothing and Accessories Stores<\/td>\n<td>3,847,886<\/td>\n<td>3,422,497<\/td>\n<td>12.43%<\/td>\n<\/tr>\n<tr>\n<td>Clothing Stores<\/td>\n<td>3,041,710<\/td>\n<td>2,667,384<\/td>\n<td>14.03%<\/td>\n<\/tr>\n<tr>\n<td>Shoe Stores<\/td>\n<td>391,226<\/td>\n<td>392,197<\/td>\n<td>-0.25%<\/td>\n<\/tr>\n<tr>\n<td>Jewellery, Luggage and Leather Goods Stores<\/td>\n<td>414,950<\/td>\n<td>362,916<\/td>\n<td>14.34%<\/td>\n<\/tr>\n<tr>\n<td>Sporting Goods, Hobby, Book and Music Stores<\/td>\n<td>4,189,768<\/td>\n<td>3,712,797<\/td>\n<td>12.85%<\/td>\n<\/tr>\n<tr>\n<td>Building Material and Garden Equipment<\/td>\n<td>4,170,378<\/td>\n<td>4,037,031<\/td>\n<td>3.30%<\/td>\n<\/tr>\n<tr>\n<td>Miscellaneous Store Retailers<\/td>\n<td>2,767,933<\/td>\n<td>2,425,655<\/td>\n<td>14.11%<\/td>\n<\/tr>\n<tr>\n<td>Cannabis Retailers<\/td>\n<td>474,974<\/td>\n<td>443,935<\/td>\n<td>6.99%<\/td>\n<\/tr>\n<tr>\n<td>Foodservices and Drinking Places<\/td>\n<td>8,664,030<\/td>\n<td>8,234,287<\/td>\n<td>5.22%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading\" id=\"h-retail-sales-by-store-category-year-to-date-comparison\">Retail Sales by Store Category, Year to Date Comparison<\/h2>\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<thead>\n<tr>\n<th>Year-to-Date Sales Ending September<\/th>\n<th>Sep-25<\/th>\n<th>Sep-24<\/th>\n<th>YTD<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>All Stores<\/td>\n<td>618,929,048<\/td>\n<td>589,782,807<\/td>\n<td>4.94%<\/td>\n<\/tr>\n<tr>\n<td>Motor Vehicle and Parts Dealers<\/td>\n<td>175,412,784<\/td>\n<td>163,170,097<\/td>\n<td>7.50%<\/td>\n<\/tr>\n<tr>\n<td>Gasoline Stations<\/td>\n<td>55,970,679<\/td>\n<td>58,161,981<\/td>\n<td>-3.77%<\/td>\n<\/tr>\n<tr>\n<td>All Stores Less Automotive<\/td>\n<td>387,545,585<\/td>\n<td>368,450,729<\/td>\n<td>5.18%<\/td>\n<\/tr>\n<tr>\n<td>Food and Beverage Stores<\/td>\n<td>117,400,392<\/td>\n<td>114,193,611<\/td>\n<td>2.81%<\/td>\n<\/tr>\n<tr>\n<td>Supermarkets and Other Grocery Stores*<\/td>\n<td>83,962,336<\/td>\n<td>81,218,078<\/td>\n<td>3.38%<\/td>\n<\/tr>\n<tr>\n<td>Convenience Stores<\/td>\n<td>6,216,806<\/td>\n<td>6,509,122<\/td>\n<td>-4.49%<\/td>\n<\/tr>\n<tr>\n<td>Specialty Food Stores<\/td>\n<td>8,389,907<\/td>\n<td>7,851,209<\/td>\n<td>6.86%<\/td>\n<\/tr>\n<tr>\n<td>Beer, Wine and Liquor Stores<\/td>\n<td>18,831,345<\/td>\n<td>18,615,204<\/td>\n<td>1.16%<\/td>\n<\/tr>\n<tr>\n<td>Health and Personal Care Stores<\/td>\n<td>52,977,028<\/td>\n<td>49,187,359<\/td>\n<td>7.70%<\/td>\n<\/tr>\n<tr>\n<td>All Stores Less Automotive, Food, and Pharmacies<\/td>\n<td>217,168,165<\/td>\n<td>205,069,759<\/td>\n<td>5.90%<\/td>\n<\/tr>\n<tr>\n<td>General Merchandise Stores<\/td>\n<td>81,777,651<\/td>\n<td>78,209,978<\/td>\n<td>4.56%<\/td>\n<\/tr>\n<tr>\n<td>Furniture, Home Furnishings, Electronic and Appliance Stores<\/td>\n<td>32,224,819<\/td>\n<td>30,656,099<\/td>\n<td>5.12%<\/td>\n<\/tr>\n<tr>\n<td>Furniture Stores<\/td>\n<td>10,697,686<\/td>\n<td>10,218,256<\/td>\n<td>4.69%<\/td>\n<\/tr>\n<tr>\n<td>Home Furnishings Stores<\/td>\n<td>6,434,212<\/td>\n<td>6,029,681<\/td>\n<td>6.71%<\/td>\n<\/tr>\n<tr>\n<td>Electronics and Appliance Stores<\/td>\n<td>15,092,921<\/td>\n<td>14,408,163<\/td>\n<td>4.75%<\/td>\n<\/tr>\n<tr>\n<td>Clothing and Accessories Stores<\/td>\n<td>31,886,845<\/td>\n<td>28,902,794<\/td>\n<td>10.32%<\/td>\n<\/tr>\n<tr>\n<td>Clothing Stores<\/td>\n<td>24,820,219<\/td>\n<td>22,355,064<\/td>\n<td>11.03%<\/td>\n<\/tr>\n<tr>\n<td>Shoe Stores<\/td>\n<td>3,457,167<\/td>\n<td>3,420,324<\/td>\n<td>1.08%<\/td>\n<\/tr>\n<tr>\n<td>Jewellery, Luggage and Leather Goods Stores<\/td>\n<td>3,609,457<\/td>\n<td>3,127,406<\/td>\n<td>15.41%<\/td>\n<\/tr>\n<tr>\n<td>Sporting Goods, Hobby, Book and Music Stores<\/td>\n<td>35,086,789<\/td>\n<td>32,428,668<\/td>\n<td>8.20%<\/td>\n<\/tr>\n<tr>\n<td>Building Material and Garden Equipment<\/td>\n<td>36,192,060<\/td>\n<td>34,872,217<\/td>\n<td>3.78%<\/td>\n<\/tr>\n<tr>\n<td>Miscellaneous Store Retailers<\/td>\n<td>23,552,625<\/td>\n<td>21,141,175<\/td>\n<td>11.41%<\/td>\n<\/tr>\n<tr>\n<td>Cannabis Retailers<\/td>\n<td>4,142,417<\/td>\n<td>3,796,044<\/td>\n<td>9.12%<\/td>\n<\/tr>\n<tr>\n<td>Foodservices and Drinking Places<\/td>\n<td>75,750,552<\/td>\n<td>71,319,811<\/td>\n<td>6.21%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading\" id=\"h-ecommerce-sales\">Ecommerce Sales<\/h2>\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<thead>\n<tr>\n<th\/>\n<th>Sep-25<\/th>\n<th>Sep-24<\/th>\n<th\/><\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Ecommerce Sales, YTD<\/td>\n<td>35,785,164<\/td>\n<td>33,551,835<\/td>\n<td>6.66%<\/td>\n<\/tr>\n<tr>\n<td>Ecommerce Sales, YOY<\/td>\n<td>4,067,762<\/td>\n<td>4,203,314<\/td>\n<td>-3.22%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading\" id=\"h-regional-sales-year-to-date-comparison\">Regional Sales, Year to Date Comparison<\/h2>\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<thead>\n<tr>\n<th>Region<\/th>\n<th>Year-to-Date, 2025<\/th>\n<th>Year-to-Date, 2024<\/th>\n<th>YTD<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>British Columbia<\/td>\n<td>85,000,432<\/td>\n<td>79,388,838<\/td>\n<td>7.07%<\/td>\n<\/tr>\n<tr>\n<td>Vancouver<\/td>\n<td>42,834,106<\/td>\n<td>39,607,961<\/td>\n<td>8.15%<\/td>\n<\/tr>\n<tr>\n<td>Alberta<\/td>\n<td>80,323,663<\/td>\n<td>76,284,170<\/td>\n<td>5.30%<\/td>\n<\/tr>\n<tr>\n<td>Prairies*<\/td>\n<td>40,956,831<\/td>\n<td>39,274,948<\/td>\n<td>4.28%<\/td>\n<\/tr>\n<tr>\n<td>Ontario<\/td>\n<td>229,704,750<\/td>\n<td>219,233,785<\/td>\n<td>4.78%<\/td>\n<\/tr>\n<tr>\n<td>Toronto<\/td>\n<td>101,444,125<\/td>\n<td>98,225,191<\/td>\n<td>3.28%<\/td>\n<\/tr>\n<tr>\n<td>Qu\u00e9bec<\/td>\n<td>138,235,752<\/td>\n<td>132,698,758<\/td>\n<td>4.17%<\/td>\n<\/tr>\n<tr>\n<td>Montr\u00e9al<\/td>\n<td>68,293,918<\/td>\n<td>65,902,241<\/td>\n<td>3.63%<\/td>\n<\/tr>\n<tr>\n<td>Atlantic Canada<\/td>\n<td>42,478,360<\/td>\n<td>40,780,716<\/td>\n<td>4.16%<\/td>\n<\/tr>\n<tr>\n<td>Territories<\/td>\n<td>2,229,266<\/td>\n<td>2,121,593<\/td>\n<td>5.08%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<p><strong>NATIONAL RETAIL BULLETIN<\/strong><\/p>\n<p>Stay up to date with JCWG\u2019s monthly analysis on U. S. and Canadian retail sales.<\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>September\u2019s Canadian retail picture reflects shifting consumer psychology as much as economics. With All Stores up 5.7% YOY and discretionary (All Stores less Automotive, Food, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16320,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-16319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/16319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=16319"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/16319\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/16320"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=16319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=16319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=16319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}