Canada Retail Sales Seen Sharply Lower

Retail sales in Canada are expected to have fallen by 0.8% from the previous month in July, according to flash estimate. Such a decrease would be the sharpest in ten months, erasing the 0.6% jump from June, which was in turn revised higher from the flash estimate of 0.4%. Sales turnover surged for general merchandise retailers (2.7%) and stores selling clothing, accessories, shoes, jewelry, and luggage (3.1%). Meanwhile, sales for motor vehicle and parts dealers, which are commonly volatile and have a large impact from credit conditions, rose by 1%. Conversely, turnover at gasoline stations sunk 4.1%, the first decline in four months, despite a 4.2% increase in volumes as the momentary respite in the war in the Middle East had lowered fuel prices in global wholesale markets. From the previous year, Canadian retail turnover expanded by 5.2%.

Retail sales in Canada increased by 0.4% from the previous month in June 2026, according to a preliminary estimate. If confirmed, it would mark a sixth straight increase in retail sales. In May, retail turnover rose by 1% to C$73.7 billion, in line with earlier estimates. Sales were up in all nine subsectors, led by increases at gasoline stations and fuel vendor (+3.1%). Sales at motor vehicle and parts dealers were up 0.7% in May, rising for a second consecutive month. All four store types within this subsector posted increases in May, with higher sales at new car dealers (+0.5%) leading the gain. Following a decrease of 0.7% in April, core retail sales rose 0.9% in May. The increase was led by higher sales at general merchandise retailers (+1.0%), which posted its first increase in three months. Retail sales increased in nine provinces in May, in particular British Columbia (+2.1%).

Retail sales in Canada surged by 1% from the previous month in May of 2026, according to a preliminary estimate. If confirmed, it would mark a fifth straight increase in retail sales. In April, retail turnover rose by 0.5% to C$73 billion, revised slightly lower from the initial estimate of 0.6%. Sales soared by 5.1% to C$7.51 billion for gasoline stations and fuel vendors, as the continued increase in fuel costs due to the war in the Middle East magnified a 0.8% increase in volume of sales. Meanwhile, turnover also rose for health and personal care retailers (1.2% to C$6.58 billion), building supplies and materials (3.3% to C$3.81 billion), and furniture, electronics, and appliances retailers (0.7% to C$3.4 billion). On the other hand, retail turnover fell for food and beverage stores (-2% to C$13.27 billion).