Ottawa Business Journal

Canadian retailers rang up record sales in January, thanks to warm temperatures and the growing popularity of holiday gift cards.

Statistics Canada says retail sales reached $31.8 billion in January, a 1.4-per-cent gain that exceeded economists' forecasts for 1.2 per cent. The January increase was the strongest in six months, and represented the fourth straight monthly increase in retail sales.

Shoppers increased their spending in all sectors in January, with the exception of food and beverages. New car sales rebounded 1.4 per cent in January after falling in December. For a second consecutive month, new car dealers were not the sole driver of the increase in retail sales.

Sales increased by at least three per cent in furniture, home furnishings and electronics stores, miscellaneous retailers, building and outdoor home supplies stores and general merchandise stores.

Besides gift cards, unseasonably warm temperatures and the increasing observance of certain religious and cultural days in January also contributed to the retail sales gain, Statscan says.