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In 2023, the retail trade sector registered a notable rebound, posting an average sales increase of 6.1 percent. This rise represents the strongest annual gain since the series began and marks a clear recovery trajectory after the slowdown seen in prior years. The surge was confirmed by the National Institute of Statistics, which reported the number this Wednesday. The profit rebound helped refresh confidence among merchants, suppliers, and consumers alike, signaling a healthier retail environment across the broader economy as documented by INE and corroborated by market observers in Canada and the United States who monitor cross border trade indicators.

Looking back to the broader context, the 2023 performance follows a three-year stretch of growth after the severe downturn of 2020, when the Covid crisis caused widespread disruption. That year saw a 6.8 percent decline in sales within the retail sector, underscoring how sharp and abrupt the hit was at the height of the pandemic. With the passage of time and the easing of restrictions, 2021 and 2022 laid the groundwork for recovery, but 2023 finally delivered a robust rebound that reflected both renewed consumer demand and improved operating conditions for retailers, wholesalers, and service providers connected to the trade ecosystem.

The inflation-adjusted or calendar-adjusted view also points to a solid year in 2023. When seasonal and calendar effects are removed, retail trade turnover rose by 6 percent, indicating that the underlying momentum was broad-based rather than driven solely by temporary factors. This healthy turnover aligns with other leading indicators in the sector, including consumer confidence surveys and job market data, which suggest households were willing to spend on both essential goods and discretionary items as the year progressed.

Retail sales in the final month of 2023 grew by 3.4 percent on an annual basis, a pace that, while slightly slower than the immediate previous month, continued the positive trend established over the prior months. The annual growth rate for the year as a whole stood at a robust level, and the sequence of positive readings extended into a 13th consecutive month of rising retail activity. This sustained momentum speaks to the resilience of the retail channel, the adaptability of retailers in pricing and assortment, and the continued easing of supply chain bottlenecks that had constrained flows in earlier years.

Employment within the retail sector also reflected the positive turnaround. In 2023, retail employment expanded by an average of 1.8 percent, a pace that is four-tenths of a percentage point slower than the 2022 increase of 2.2 percent. Nevertheless, the year marked the third consecutive year of employment growth in retail, underscoring a consistent demand for labor as stores expanded operations, opened new points of sale, and invested in customer service, logistics, and omnichannel capabilities that require staffing. The employment figure, when considered alongside rising sales, points to healthier wage dynamics and consumer spending power in a period of gradual normalization after the disruptions of the pandemic era. These labor gains also reflect the broader economic recovery underway in many regions, supported by government measures and private investment aimed at sustaining employment during transitioning times.