December, not so good for food retailers in Canada

The last month of 2010 wasn't a merry one for food and beverage retailers in Canada. Sales at supermarkets and grocery stores declined 1.5% from the previous month to $6.1 billion.

The fall was in line with retail sales overall, which dropped 0.2% in December versus November to $37.2 billion. The only sector to experience healthy growth was gas stations. Buoyed by soaring fuel prices, their sales grew 7.6%.

In the food sector all areas, except specialty food stores, saw a decline, including convenience stores (down 3.7%) and beer, wine and liquor (down 2.5%). Specialty stores saw a 1.5% gain.

Specialty stores were up double digits (13.5%) when comparing December 2010 to December 2009. Grocery and supermarket sales were up 2.8% in the same period.