Retail sales in Canada rose 0.8 percent to $69.8 billion in March, driven by a rebound in the automotive sector. Motor vehicle and parts dealers posted a 4.8 percent gain, marking the first rise in three months.
Core retail sales, which exclude gas stations and motor vehicle-related businesses, increased by 0.2 per cent. In volume terms, retail sales rose 0.9 per cent in March, indicating that much of the growth came from higher demand rather than price changes.
Sales were up in six of nine subsectors, with the largest gains seen at new car dealerships, which rose 5.2 per cent. Building material and garden supply stores and clothing retailers also posted gains of 2.6 per cent each. Furniture and electronics stores saw sales rise 2.1 per cent.
However, not all sectors experienced growth. General merchandise stores, which include department stores and warehouse clubs, reported a 2.7 per cent decline. Gas stations saw a sharp 6.5 per cent drop in sales, ending five months of increases. Lower crude oil prices and concerns about global economic growth and tariffs contributed to a 1.6 per cent year-over-year drop in gasoline prices, leading to weaker demand.
Retail sales increased in eight provinces. Quebec saw the largest gain, up 1.6 per cent overall and 3.1 per cent in the Montréal region. Ontario posted a 0.6 per cent increase, though sales fell 1.0 per cent in Toronto. Manitoba recorded the largest decline, with sales down 1.6 per cent, mainly due to weaker fuel sales.
Online retail declined in March. E-commerce sales dropped 2.1 per cent to $4.2 billion, making up six per cent of total retail trade, down slightly from 6.2 per cent in February.
For the first quarter of 2025, retail sales rose 1.2 per cent overall, marking a fourth straight quarterly gain. In volume terms, growth was more modest at 0.2 per cent.