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Experiential and Essential Retail Outperforming
Amid Uncertain Macro Backdrop
Higher gasoline prices weigh on retail sales volumes. Canada’s retail sector lost momentum in March, as rising gasoline prices and softer discretionary demand weighed on household spending activity. While headline retail sales increased 0.9 per cent to $72.7 billion, much of the gain was driven by a 12.4 per cent surge in gasoline station sales following the supply shock tied to the ongoing Middle East conflict. In volume terms retail sales declined 0.7 per cent, suggesting consumers purchased fewer goods despite spending more in nominal figures. Excluding gasoline stations and motor vehicle dealers, core retail sales edged down 0.1 per cent, reinforcing signs that underlying consumer demand softened during the month despite retail receipts posting a seventh consecutive quarterly increase overall.