Retail sales in Canada are expected to have risen 1.3% month-over-month in August 2026, according to preliminary estimates, recovering from a 0.7% decline in July. If confirmed, this would represent the strongest monthly increase in retail sales since January.
In July, sales at motor vehicle and parts dealers fell 0.8%, their first decline in four months, driven primarily by a 1.3% drop in sales at new car dealers. Sales at gasoline stations and fuel vendors also decreased, down 0.9%. General merchandise sales fell 1.9%, and declines were likewise recorded among retailers of clothing, clothing accessories, footwear, jewelry, luggage, and leather goods, where sales slipped 1.2%.
By contrast, sales rose for building material and garden equipment and supplies dealers, up 0.8%, and for used car dealers, where sales increased 2.9%. Core retail sales—excluding gasoline stations and fuel vendors as well as motor vehicle and parts dealers—fell 0.7% in July. On a year-on-year basis, overall retail sales were up 5.1%.
