Canada Retail Sales Seen Rebounding in January

Canada’s retail sales are estimated to have increased 1.5% month over month in January 2026, which, if confirmed, would mark a rebound after a 0.4% decline in December and sharpest increase since December 2024 according to advance estimates. In December retail sales fell 0.4% to C$70.0 billion with sales down in three of nine subsectors led by motor vehicle and parts dealers which dropped 1.6%. Core retail sales excluding gasoline stations and motor vehicle dealers fell 0.3%. Gains in December were concentrated at gasoline stations and fuel vendors up 2.8% and at sporting goods hobby musical instrument book and miscellaneous retailers up 1.0% while building material and garden equipment and furniture home electronics retailers posted the largest declines. Retail sales fell in seven provinces with Alberta the largest decline at 2.1% while Quebec rose 0.6%. Year on year retail sales were essentially unchanged in December.

Retail sales in Canada are estimated to have fallen 0.5% month over month in December 2025, which, if confirmed, would mark the sharpest monthly decline in three months, according to advance estimates. In November however, retail sales rose 1.3%, rebounding strongly after declines in the prior two months, with gains recorded in eight of nine subsectors. Sales were led by food and beverage retailers (+3.0%), notably beer, wine and liquor retailers (+14.3%) as labour disruptions in British Columbia that had weighed on sales in October eased. Sales also increased at clothing, clothing accessories, shoes, jewellery, luggage and leather goods retailers (+2.4%) and health and personal care retailers (+1.6%). Sales also rose at gasoline stations and fuel vendors (+2.0%). On the other hand, sales edged down at sporting goods, hobby, musical instrument, book and miscellaneous retailers (-0.2%). Year on year, retail sales rose 3.1% in November.

Retail sales in Canada jumped 1.2% month-over-month in November 2025, the biggest gain in five month, rebounding from a 0.2% fall in October, preliminary estimates showed. In October however, sales were down in four of nine subsectors, led by decreases at food and beverage retailers (-2.0%), namely beer, wine and liquor retailers (-10.6%), coinciding with labour disruptions in British Columbia. Sales were also down at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (-0.7%) and health and personal care retailers (-0.3%). Sales also fell at gasoline stations and fuel vendors (-0.8%). On the other hand, sales rose at furniture, home furnishings, electronics and appliances retailers (+1.1%) and motor vehicle and parts dealers (+0.6%). Year-on-year, retail sales rose 2% in October.