Canada Retail Sales Research Brief

Spending holds amid uncertainties. Retail sales have been resilient, despite lingering trade risks. While down in the first two months of the year amid annexation threats and direct tariff attacks curbing consumer confidence, retail sales edged up 0.3 per cent monthly in April, translating into a 5.0 per cent year-over-year increase. This marked the second consecutive monthly jump in sales, with the measure now up 1.0 per cent year to date. Sales were also broad-based; core receipts – which exclude gasoline and fuel vendors, as well as motor vehicle and parts dealers – saw a 0.1 per cent monthly gain. Meanwhile, spending was up in six of nine sub-sectors. It is important to note, however, that tariff risks are impacting the sector. Roughly 36 per cent of retail businesses reported they were directly impacted by trade tensions, with the most common effects being price increases, a change in product demand and supply chain disruptions.