Sales slipped 1.1 per cent to $69.2 billion, marking a downturn after gains earlier this year.
Motor vehicle and parts dealers led the decline, falling 3.6 per cent. Sales at new car dealers dropped 4.6 per cent, the first decline since February, while parts, accessories and tire retailers saw a 1.7 per cent increase. Gasoline stations and fuel vendors also struggled, with sales down 1.4 percent, marking the third consecutive monthly decrease. When adjusted for volume, total retail sales were down 1.4 per cent.
Core retail sales were largely unchanged for a second consecutive month. Food and beverage retailers posted a 1.2 percent drop. Beer, wine and liquor stores were down 2.9 per cent, while grocery stores dipped 0.6 per cent. Building material and garden equipment dealers recorded a 1.9 per cent increase, rebounding from April’s decline. Health and personal care retailers rose 0.7 per cent, extending an 11-month streak of gains.
Retail sales fell in nine provinces. Ontario saw the largest decline in dollar terms, down 2.1 per cent, driven by weaker auto sales. Toronto’s retail activity dropped 2.8 per cent. Alberta was down 1.0 per cent, while Nova Scotia was the lone province to post an increase, up 0.3 per cent due to stronger building material and garden supply sales.
Online sales also slowed. E-commerce sales decreased 1.7 per cent to $4.3 billion, accounting for 6.2 per cent of all retail trade, slightly lower than 6.3 per cent in April.
The data highlight the fragile state of Canada’s retail sector as it contends with global trade strains, shifting consumer behaviour and rising costs. While some segments continue to grow, overall spending remains subdued.