Canada’s retail sector ended the year on a weaker note, with retail sales slipping into negative territory in December on a month-over-month basis. According to data updated on 20 February 2026, retail sales declined by 0.4% in December 2025 compared with the previous month, reversing the 1.2% month-over-month increase recorded earlier in the same period.
The latest reading marks a notable loss of momentum after the prior month’s solid gain, suggesting that consumer demand cooled sharply at year-end. On a month-over-month comparison, the “actual” figure for December reflects the change versus November, while the “previous” figure captures November’s change versus October. The swing from a 1.2% rise to a 0.4% decline may raise concerns among analysts about the resilience of household spending heading into 2026, given retail activity’s central role in Canada’s broader economic performance.
