Canadian Retail Sales Dip 0.4% in December 2025

Retail sales in Canada decreased 0.4% to $70.0 billion in December, with three of nine subsectors reporting lower sales. Motor vehicle and parts dealers led the decline, dropping 1.6% as new car dealers fell 1.8% for a second consecutive month. Core retail sales, excluding gasoline stations and fuel vendors and motor vehicle and parts dealers, edged down 0.3% due to lower sales at building material and garden equipment dealers. Despite the December dip, retail sales rose 0.1% in the fourth quarter of 2025, marking a seventh consecutive quarterly gain. For the year, retail sales increased 4.0% to $837.2 billion, led by gains at motor vehicle and parts dealers (4.7%) and core retail sales (4.7%). E-commerce sales jumped 3.6% to $4.3 billion in December, accounting for 6.1% of total retail trade.