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Pandemic: record increases in e-commerce

Online retail sales nearly doubled (+ 99.3%) in Canada, between February and May, due to the COVID-19 pandemic, according to data released Friday by Statistics Canada.

The federal agency noted that over the same period, total retail sales fell 17.9%, due to various measures put in place to slow the spread of the coronavirus disease.

As stores closed or people avoided leaving their homes, e-commerce retail sales hit an all-time high of $ 3.9 billion in May.

This represents an increase of 2.3% compared to April and an increase of 99.3% compared to February ($ 2.0 billion).

“Year over year, e-commerce sales have more than doubled, posting an increase of 110.8% compared to May 2019,” said Statistics Canada in its analysis.

All this craze for e-commerce and delivery caused retail sales in April, from the previous month, to drop 29.1% to $ 33.9 billion. Compared with April 2019, the decrease is 26.4%.

“While e-commerce grew 63.8% monthly in April, in-store sales fell 25.3%,” the federal agency said.

In May, total retail sales began to rebound to $ 39.3 billion.

The big winner, the food and beverage sub-sector

It should be noted that the 11 retail trade sub-sectors experienced a jump in their online sales at the height of the health crisis. But from February to April, only one sub-sector, the food and beverage sector, recorded an increase in both in-store sales (+ 3.3%) and online commerce (+ 107.0%).

In the second week of March, food stores, considered essential services, enjoyed a 38% growth in their food sales compared to the same period of the previous year, as well as an increase in sales of certain personal care products, Statistics Canada noted.

On the other hand, sub-sectors suffered severe shocks from February to April, such as furniture and home furnishings stores (-69.6%), sporting goods stores, hobby shops time, music and book items (-79.0%) as well as clothing and clothing accessories stores (-84.2%).

“Will the COVID-19 pandemic have lasting impacts on the retail sector? asks Statistics Canada. Small businesses are increasingly turning to e-commerce platforms and using them in innovative ways. The structure of the retail industry in Canada could change, depending on the extent to which Canadians continue to choose e-commerce purchasing options or revert to traditional purchasing methods. Obviously, the retail landscape will change. ”

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