Retail spending picked up in November, offering a brief lift after two months of decline. Retail sales rose 1.3% to $70.4 billion.
Stripping out gasoline stations and motor vehicle dealers, core retail sales increased 1.6% in November. In volume terms, sales rose 1.1%, indicating that higher activity, not just prices, contributed to the monthly rebound.
Food and beverage retailers led the increase, with sales up 3.0%. A sharp rebound at beer, wine and liquor stores followed steep declines in October linked to labour disruptions in British Columbia that had restricted distribution. Grocery store sales also rose, pointing to steady consumer demand for essentials despite broader cost pressures.
Health and personal care retailers posted another solid gain, while clothing and accessory stores rebounded after two consecutive monthly declines. Building material and garden equipment dealers also recorded a second straight monthly increase.
The lone weakness came from sporting goods, hobby, book and miscellaneous retailers, which edged down slightly. The pullback was modest but underscored uneven consumer demand outside essential and seasonal categories.
Gasoline stations and fuel vendors recorded a 2.0% increase in sales, recovering from an October decline. In volume terms, fuel sales rose more modestly, reflecting lower energy prices rather than a sharp increase in consumption.
Provincially, retail sales increased in seven provinces. Alberta posted the largest gain, driven by higher sales at motor vehicle and parts dealers. Ontario also recorded growth, led by health and personal care retailers, with sales in the Toronto area rising slightly faster than the provincial average.
New Brunswick was the only province to report a notable decline, weighed down by weaker food and beverage sales. The divergence across provinces highlights how consumer spending remains sensitive to local economic conditions.
Online sales moved in the opposite direction. Retail e-commerce fell 2.8% to $4.0 billion in November, reducing its share of total retail activity to 5.7%. The drop suggests some spending shifted back to in-store purchases rather than reflecting a broad pullback in demand.
Early indicators point to renewed weakness heading into December. An advance estimate suggests retail sales fell 0.5% in the final month of the year, though the figure remains subject to revision. If confirmed, it would reinforce the view that November’s rebound was a pause rather than a turning point in a slowing consumer environment.