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Canada Retail Sales Retreat in May as Early Data Suggest June Rebound

Flash June figures hint at a rebound even as U.S.-Canada tariff uncertainty burdens nearly a third of retailers.

People shop for fruits and vegetables at a supermarket in Ottawa, Ontario, Canada , March 27, 2023.  REUTERS/Patrick Doyle/File photo

Overview

  • Retail sales fell 1.1% to C$69.2 billion in May, marking a 1.4% decline on a volume basis.
  • Motor vehicle and parts dealers led the downturn with sales down 3.6%, including a 4.6% drop at new car dealerships.
  • Sales at food and beverage retailers declined 1.2% while gasoline station revenues slipped by 1.4%.
  • Building material and garden equipment outlets posted a 1.9% gain, the strongest performance among major subsectors.
  • A Statistics Canada survey showed 32% of retailers faced disruptions from U.S. tariffs in May, down from 36% in April.