Friday, September 5, 2025

Canada’s Core Retail Sales Crater 1.4% In May

Canadian retail sales fell by 0.8% in May to C$66.1 billion, according to Statistics Canada, marking a significant decline led by decreased spending at food and beverage retailers. This drop exceeded economists’ expectations of a 0.6% decrease, indicating a more pronounced slowdown in consumer spending than anticipated.

The decline was broad-based, affecting eight out of nine retail subsectors. Core retail sales, which exclude gasoline stations, fuel vendors, and motor vehicle and parts dealers, experienced an even steeper decline of 1.4%. This follows a 1.2% increase in April, suggesting a notable shift in consumer behavior.

Food and beverage retailers were hit particularly hard, with sales dropping 1.9%. Supermarkets and grocery stores saw a 2.1% decrease, while beer, wine, and liquor retailers experienced a 3.3% decline. Other sectors feeling the pinch included building material and garden equipment suppliers (-2.7%) and general merchandise retailers (-1.0%).

The automotive sector provided the only bright spot, with motor vehicle and parts dealers reporting a 0.8% increase, driven primarily by new car dealers (+1.6%) and used car dealers (+1.8%)[4]. However, this was partially offset by declines in other motor vehicle dealers and automotive parts retailers.

Geographically, the downturn was widespread, with nine out of ten provinces reporting decreased sales. Alberta led the provincial declines with a 2.5% drop, while British Columbia saw a 1.3% decrease. Nova Scotia was the sole province to buck the trend, posting a 0.6% increase.

E-commerce also felt the impact, with seasonally adjusted online sales falling 3.6% to C$3.9 billion, accounting for 5.9% of total retail trade, down from 6.1% in April.

Looking ahead, Statistics Canada’s advance estimate suggests a further 0.3% decline in June, though this figure is subject to revision. This preliminary data, based on responses from just over half of surveyed companies, hints at a potentially prolonged period of retail weakness as Canadian consumers grapple with economic uncertainties.


Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Canada’s Inflation Levels Accelerate by Most Since Beginning of Pandemic

It appears that Canadians are beginning to experience some of the price pressures associated with...

Thursday, December 17, 2020, 10:01:00 AM

Freeland Resigns As Finance Minister Ahead Of Fall Economic Statement Release

Chrystia Freeland has resigned from Justin Trudeau’s Liberal Cabinet, announcing this morning that Trudeau on...

Monday, December 16, 2024, 09:32:07 AM

Canadian Military Faces Growing Challenges in the Face of Global Instability

In a recent interview with The Canadian Press, Vice Admiral Bob Auchterlonie, the commander of...

Wednesday, January 3, 2024, 03:14:00 PM

Universities Canada Warns of Enrollment Collapse But Won’t Release Specific Numbers

International student enrollment in Canada has plunged far below government targets, with new arrivals projected...

Thursday, August 28, 2025, 08:25:45 AM

CRA Shies Away From Full Review Of $15 Billion In Ineligible Payments

The Commissioner of Canada Revenue Agency (CRA), Bob Hamilton, has stated that it is not...

Monday, January 30, 2023, 02:23:00 PM