Retail sales in Canada rose 0.3% to C$70.1 billion in April, driven mainly by growth in the motor vehicles and parts subsector, according to data released by Statistics Canada on Friday. Six of nine subsectors posted increases, while retail e-commerce sales jumped 3.6%.
The surge also translated into a 0.5% increase in volume, signaling stronger real activity. However, retailers reported growing pressure from trade tensions between Canada and the United States, with 36% citing challenges such as rising prices, supply chain disruptions and weaker demand.
Vehicle and parts dealers were the main contributors to the monthly increase, rising 1.9%, as new and used vehicle sales grew by more than 2%. In contrast, sales at gas stations fell 2.7%, although volume-adjusted figures rose slightly by 0.4%. Core retail sales excluding automotive and gasoline rose just 0.1%, reflecting sluggish non-essential spending. The biggest decline came from clothing and accessories stores, which fell 2.2%, offsetting modest gains in the sporting goods, electronics and grocery categories.
Five of the ten provinces posted growth. British Columbia led the way with a 1.7% increase, supported by strong vehicle sales in the Vancouver area. Ontario rose 0.2% overall, with Toronto posting a larger 2.7% jump. New Brunswick suffered the biggest drop of 3.1% due to weak automotive-related sales.
Despite the increase in April, preliminary data for May suggests a possible contraction. The preliminary estimate showed a 1.1% decline in retail sales, based on 53.8% of survey responses. Although still subject to revision, the data signaled a dismal start to the summer for Canada’s retail sector.
