According to a Mastercard report released on Friday, Canadians have resumed spending outside the home, favoring more experiential activities.
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While online sales fell 11.1% between January 2022 and January 2023, in-store sales would have increased 3.5% over the same period, according to Mastercard SpendingPulse’s report, which ranked sales for the year by analyzed the payment methods.
The restaurant sector has benefited the most from this renewed enthusiasm for experiences, with a 55% increase for this new year that begins “without pandemic-related restrictions,” the company said in a press release.
This data also shows a 24.6% increase over pre-pandemic spending in January 2020 on hospitality.
At the same time, the gasoline and raw materials sector also recorded an increase of 11.2% compared to January 2022.
“Retail sales in Canada are stabilizing as consumers continue to spend on passions like travel, entertainment, food and other experience-based activities,” said Steve Sadove, senior advisor at Mastercard and former CEO of Saks Incorporated.
The return to travel also impacted spending in the DIY, home furnishings and electronics sectors, which fell by 11.9%, 6.5% and 7.8% over the 12-month period, respectively.
The jewelery and apparel sectors were particularly popular this year with growth of over 13% each.
Total retail sales excluding the auto sector increased by 0.1% compared to January 2022.