July Retail Sales Decline
Canadian Retail Sales Fall 0.7% in July Following Broad Decline Across Most Subsectors
Anonymous
Key Points
1
Sales had risen 0.6% to $74.3 billion in June before July’s decline.
2
Motor vehicle and parts dealer sales fell 0.8% in July, while sales at gasoline stations and fuel vendors dropped 0.9%; gasoline sales were down 3.5% in volume terms.
3
Sales at clothing and related retailers—including clothing, footwear, jewelry and luggage—declined 1.2% in July.
Canadian retail sales fell 0.7% in July to $73.7 billion, marking the first monthly decline since December 2025 Wealth Professional. The drop came after a 0.6% gain in June and spread across eight of nine retail subsectors, signaling a slowdown in consumer spending across the country.
General merchandise retailers led the declines with a 1.9% drop, while motor vehicle sales and gasoline stations also weakened Wealth Professional. Statistics Canada's preliminary estimate suggests retail sales could rebound 1.3% in August, though the agency warned that figure may be revised.
General Merchandise Stores Drive Retail Weakness
General merchandise retailers suffered the steepest losses, dropping 1.9% in July Wealth Professional. Clothing and apparel stores also struggled, with sales falling 1.2% across clothing, footwear, jewelry, and luggage categories. Only building materials and garden supplies posted growth during the month.
Weakness Spreads Across Motor and Fuel Sales
Motor vehicle and parts dealers saw sales decline 0.8% in July, while gasoline stations and fuel vendors dropped 0.9% Wealth Professional. Gasoline volume fell more sharply, down 3.5% for the month. These declines suggest softer demand for both vehicles and fuel.
Core Retail Sales Also Decline 0.7%
Core retail sales, which exclude motor vehicles and fuel to show underlying consumer demand, fell 0.7% in July Wealth Professional. This broad-based weakness across core categories indicates the slowdown isn't limited to specific sectors. The decline follows June's 0.6% increase, suggesting momentum has stalled.
August Flash Estimate Points to Possible Recovery
Statistics Canada's preliminary estimate for August suggests retail sales may rebound 1.3% from July's levels Wealth Professional. However, the agency cautioned that advance estimates are often revised as more complete data comes in. If confirmed, the August bounce would partly offset July's weakness.
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