Canada Retail Sales Research Brief

Retail sales soften as underlying momentum stabilizes. Canada’s retail sales edged down 0.2 per cent monthly in October, marking a modest pullback after recent volatility. The headline decline was driven by weakness across core retail categories, which fell 0.5 per cent for a second consecutive monthly decrease. Lower sales at food and beverage retailers were the primary drag, partly reflecting temporary labour disruptions in British Columbia, while clothing and health-related categories also softened. In volume terms, retail sales declined 0.6 per cent, underscoring continued pressure on discretionary spending amid elevated household costs and ongoing uncertainty. That said, retail sales were still up 2.0 per cent year-over-year, and early indications point to a 1.2 per cent rebound in November. As consumer confidence appears to be stabilizing, this may signal that the recent weakness was short-lived.