Canada’s retail sales increased 1.2% mom to CAD 74.6 billion in August, with gains recorded across all nine retail subsectors. Motor vehicle and parts dealers made the largest contribution to the increase, but the recovery extended well beyond automobiles. Core retail sales, excluding motor vehicles and gasoline, rebounded from -0.7% to +1.1%, supported by stronger food, general merchandise and health-related spending. More importantly, inflation-adjusted retail volumes also rose 1.2%, indicating that the improvement reflected higher quantities purchased rather than simply rising prices.
The broad-based recovery was evident across several consumer categories. New car dealers recorded a 1.5% increase, while food and beverage retailers rose 1.1% and general merchandise sales gained 1.0%. Health and personal care sales increased 1.6%, extending their growth streak to ten consecutive months. Meanwhile, gasoline station sales rose 1.7% in value terms, but volumes declined 0.5%, indicating that higher fuel spending was driven by prices rather than stronger consumption. Regional performance was less uniform, with Ontario and British Columbia leading gains while Alberta recorded a marginal decline.
The recovery may have extended into September, with Statistics Canada’s preliminary estimate pointing to another 0.7% increase in retail sales. The advance reading is based on responses from 58.5% of surveyed businesses and remains subject to revision, but it suggests that August’s rebound may not have been an isolated improvement. Taken together, the widespread sectoral gains, stronger inflation-adjusted volumes and positive September estimate provide encouraging evidence of consumer spending resilience through Q3. Nevertheless, confirmation of the preliminary figures will be needed to assess whether the stronger momentum is being sustained.
Data Summary
Headline Retail Sales
| Indicator | Previous | Current |
|---|---|---|
| Retail Sales M/M | -0.7% | +1.2% |
| Retail Sales Ex-Autos M/M | -0.7% | +1.2% |
| Core Retail Sales M/M | -0.7% | +1.1% |
| Retail Sales Volume M/M | — | +1.2% |
| Retail Sales Y/Y | — | +5.4% |
| Retail Sales Volume Y/Y (Chained Dollars) | — | +1.8% |
| September Advance Estimate M/M | — | +0.7% |
Total retail sales reached CAD 74.6 billion in August. Core retail sales exclude motor vehicle and parts dealers and gasoline stations and fuel vendors.
Retail Sales by Sector
| Indicator | August M/M |
|---|---|
| Furniture, Electronics and Appliances | +2.3% |
| Gasoline Stations and Fuel Vendors | +1.7% |
| Building Materials and Garden Supplies | +1.6% |
| Health and Personal Care | +1.6% |
| Motor Vehicle and Parts Dealers | +1.2% |
| Food and Beverage Retailers | +1.1% |
| General Merchandise | +1.0% |
| Clothing and Accessories | +0.4% |
| Sporting Goods and Miscellaneous | +0.3% |
Additional Details
| Indicator | August Development |
|---|---|
| Retail Subsector Performance | All nine subsectors recorded gains |
| New Car Dealers | +1.5% M/M |
| Gasoline Sales Volume | -0.5% M/M |
| Real Core Retail Sales | +1.3% M/M |
| Ontario Retail Sales | +2.2% M/M |
| British Columbia Retail Sales | +2.1% M/M |
| Alberta Retail Sales | -0.1% M/M |
| Retail E-commerce Sales | +1.1% M/M |
| September Advance Estimate | +0.7% M/M, preliminary and subject to revision |
Key Takeaways
- Retail sales recover strongly: Canadian retail sales rebounded from -0.7% to +1.2% mom in August, reaching CAD 74.6 billion. All nine retail subsectors recorded gains, indicating broad-based improvement.
- Core spending strengthens beyond automobiles and fuel: Core retail sales recovered from -0.7% to +1.1%, supported by food and beverage retailers, general merchandise stores, and health and personal care businesses.
- Real sales confirm stronger purchasing activity: Inflation-adjusted retail volumes rose 1.2% mom, while real core sales increased 1.3%. The improvement was therefore not simply a reflection of higher retail prices.
- Automobiles and household-related spending contribute: New car sales rose 1.5%, while furniture, electronics and appliances retailers gained 2.3%. Health and personal care retailers recorded their tenth consecutive monthly increase.
- Gasoline spending rises despite lower volumes: Nominal gasoline sales increased 1.7%, but actual fuel volumes declined 0.5%. The divergence indicates that higher prices contributed to the increase in spending.
- Regional performance remains uneven: Ontario and British Columbia recorded gains of 2.2% and 2.1%, respectively, while Alberta experienced a marginal 0.1% decline.
- September estimate points to continued momentum: Statistics Canada’s preliminary estimate suggests retail sales increased another 0.7% mom in September. However, the reading is based on responses from 58.5% of surveyed businesses and remains subject to revision.
- Consumer resilience is encouraging but not yet firmly established: The broad sectoral recovery and stronger real volumes indicate improving retail demand, while the positive September estimate suggests the rebound may have continued through Q3. Further data are needed to confirm a sustained improvement.
