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SOMBA K'E/YELLOWKNIFE - Some auto dealerships in Yellowknife say their sales are still strong, despite a report from Statistics Canada that says the NWT has had a massive drop in sales.

According to Statistics Canada's study of retail trade, released April 23, overall retail sales in the Northwest Territories dropped 15 per cent between February 2008 and 2009, the largest drop in Canada.

Vanessa Jordan, a salesperson with Autotech, poses with some of the dealership's vehicles. She said business is booming - despite a recent study from Statistics Canada stating the auto sector's sales are plummeting. - Cara Loverock/NNSL photo

"Almost 80 per cent of the drop was the automotive sector," said Mark Switzer with Statistics Canada Distributive Trades Division.

The automotive sector reported a decrease of 29.6 per cent in sales, meaning a dollar value of $6.8 million.

"The general merchandise stores also went down a bit," he said, stating a drop of 13.4 per cent.

The automotive sector, including gas stations, makes up the biggest portion of the retail industry, accounting for 33 per cent.

The food and beverage industry, which accounts for 30 per cent of overall retail sales, increased 2.3 per cent in the territory.

Brent Stevens, general manager of Kingland Ford, said sales may be down a bit from last year, but said the number from Statistics Canada seems high.

"We certainly are feeling it, but I don't believe it to be as high as they're saying," said Stevens.

"It seems like a lot of folks are downsizing ... People are buying more fuel efficient and maybe are buying smaller vehicles."

Vanessa Jordan of Autotech said the dealership has had a "phenomenal" year for sales.

"Our car sales are up 15 per cent," she said. "The fuel-efficient vehicles are selling the most."

Greg Boucher at Yellowknife Chrysler said the reported drop in the auto sector is "not the case for us."

He said the large drop came as a surprise as their sales numbers are "pretty strong and pretty robust."

Boucher said pick-up trucks are still popular with Yellowknifers as well as smaller cars.

Statistics Canada also reported an increase in sales of 20.4 per cent in the building and outdoor home supply sector over the last year.

But Chuck Corothers with the Home Building Centre said there has definitely been a drop in sales - starting in November 2008.

"Last year was a very busy year," he said. "Things started to change about November."

"The biggest decrease was in the commercial sector (due to) a severe decrease in spending and exploration with the mining companies," he said.

Corothers said cutbacks at the mines also have a "ripple effect," meaning people who would usually make a large purchase or do renovations on their house, for instance, won't be spending that money.

"Those things get put off until people have more certainty in their jobs," he said.

Corothers said retail sales were "off a little" but are expected to pick up once the summer weather arrives.

As for the decrease in sales at general merchandise stores, which would include department stores, Sears general manager for Yellowknife, Michelle Lucas, said sales had gone up for appliances.

"But we're a bigger store than we were last year, so I don't know if it's really comparable," said Lucas.

She added catalogue sales seem to have dropped "a bit."