Canadian Retail Sales Rise 0.3% in April, but a Drop to be Expected in May

Canadian retail sales increased 0.3% to $70.1 billion in April 2025, fueled by gains in six of nine subsectors. Motor vehicle and parts dealers led the increase with a 1.9% rise, due to higher sales at new car dealers (2.9%) and used car dealers (2.1%). Core retail sales, excluding gasoline stations and motor vehicle dealers, edged up 0.1%. In volume terms, retail sales rose 0.5%. Retail e-commerce sales jumped 3.6% to $4.4 billion, accounting for 6.2% of total retail trade. However, Statistics Canada's advance estimate suggests retail sales decreased 1.1% in May. Trade tensions between Canada and the US impacted 36% of retail businesses in April, resulting in price increases, changes in demand, and supply chain disruptions. Sales increased in five provinces, with British Columbia (1.7%) and Ontario (0.2%) seeing notable gains.