The data, published by Statistics Canada on Friday, showed that Canadian retail sales fell 0.6% to CAD69.40 billion in January 2025, after rising 2.6% in December (revised from +2.5%). Economists had forecast a decrease of 0.4%.
According to the report, sales were down in three of nine subsectors. The largest decrease was observed at motor vehicle and parts dealers (-2.6%). The decrease was led by lower sales at new car dealers (-3.2%) and automotive parts, accessories and tire retailers (-2.8%). The largest increase in the motor vehicle and parts dealers subsector came from used car dealers (+1.6%). Sales at gasoline stations and fuel vendors (+3.2%) increased for a fourth consecutive month. In volume terms, sales at gasoline stations and fuel vendors increased 0.1%.
Excluding auto, retail sales rose 0.2% after an increase of 2.9% in December (revised from +2.7%). Consensus estimates suggested a decrease of 0.2%. Sales at food and beverage retailers (-2.5%) were down mainly on lower sales at supermarkets and other grocery retailers (except convenience retailers), which fell 3.4% in January. To a lesser extent, beer, wine and liquor retailers (-2.0%) also contributed to the decline.
In y-o-y terms, Canadian retail sales surged 4.2% in January, following a 3.9% increase in December. That represented the strongest annual increase in retail sales since January 2023 (+5.5%). Economists had expected an increase of 4%.
Statistics Canada also revealed its preliminary estimates suggest that Canada's retail sales declined 0.4% m-o-m in February 2025.