Canada Retail Sales Extend Gains Into March on Broad-Based Consumer Spending

Canadian retail sales are estimated to have risen 0.6% month-over-month in March 2026, marking a potential third consecutive monthly increase and signaling continued resilience in consumer demand despite a mixed macro backdrop.

The preliminary figure follows a revised 0.7% gain in February, slightly below the initial estimate of 0.9%, with sales increasing across seven of nine subsectors, according to data from Statistics Canada.

Motor vehicle and parts dealers led February’s gains, with sales rising 1.0%. The increase was driven by new car dealers, up 0.7%, alongside a sharper 4.0% jump in used vehicle sales. In contrast, gasoline stations and fuel vendors reported flat sales for the month.

Core retail sales—which exclude gasoline stations and motor vehicle and parts dealers—rose 0.6% in February, extending gains for a second consecutive month. The increase was supported by stronger activity at general merchandise retailers, where sales advanced 1.2%, and food and beverage retailers, which posted a 0.9% rise.

Additional strength was observed in discretionary segments, including clothing, accessories, footwear, jewelry, luggage, and leather goods, where sales increased 1.1%. Meanwhile, building material and garden equipment retailers recorded the steepest decline, with sales falling 0.6%.

The data points to a steady, though uneven, expansion in household spending, with gains concentrated in consumer staples and select discretionary categories, while interest rate-sensitive segments continue to face pressure.

Source: Statistics Canada