FX.co ★ Canada Retail Sales Seen Dropping in December

Retail sales in Canada are projected to have decreased by 0.5% in December 2025 on a month-over-month basis, marking what would be the most significant monthly drop in three months, pending confirmation from advance estimates. In contrast, November experienced a 1.3% rise in retail sales, driven by strong rebounds following declines over the previous two months. In November, eight out of nine subsectors saw gains. The increase was chiefly driven by food and beverage retailers, which posted a substantial 3.0% rise, particularly among beer, wine, and liquor retailers, which surged by 14.3% as labor disruptions impacting sales in British Columbia in October subsided. Additionally, sales improved in sectors like clothing, footwear, accessories, jewelry, luggage, and leather goods, as they saw a 2.4% rise, along with a 1.6% uptick at health and personal care retailers. Gasoline stations and fuel vendors also experienced growth with a 2.0% increase. Conversely, there was a minor decline of 0.2% in sales at sporting goods, hobby, musical instruments, books, and miscellaneous retailers. Year-on-year, retail sales in November increased by 3.1%.