Canada Retail Sales Rise for 2nd Month

Retail sales in Canada likely increased 0.7% month-over-month in September 2026, extending a 1.2% rise in August, according to preliminary estimates. Meanwhile, data for August was revised down from a preliminary estimate of a 1.3% increase. In August, the largest gain in retail sales was observed at motor vehicle and parts dealers (+1.2%), led by new car dealers (1.5%). In August, gains at automotive parts, accessories and tire retailers (+1.4%) were offset by lower sales at other motor vehicle dealers (-1.4%) and used car dealers (-0.5%). Also, sales at gasoline stations and fuel vendors increased 1.7%, up for the first time in three months. In volume terms however, sales at gasoline stations and fuel vendors decreased 0.5%. Sales also increased at food and beverage retailers (+1.1%), general merchandise retailers (+1%) and health and personal care retailers (1.6%).

Retail sales in Canada likely increased 1.3% month-over-month in August 2026, rebounding from a 0.7% fall in July, according to preliminary estimates. It would mark the strongest gain in retail sales since January. Meanwhile in July, sales at motor vehicle and parts dealers were down 0.8%, posting their first decline in four months, led by lower sales at new car dealers (-1.3%). Also, sales at gasoline stations and fuel vendors declined 0.9%, sales at general merchandise dropped 1.9% and lower sales were also recorded at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (-1.2%). In contrast, sales went up for building material and garden equipment and supplies dealers (+0.8%) and used car dealers (+2.9%). Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were also down 0.7% in July. Year-on-year, retail sales increased 5.1%.

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%.