Statistics Canada reports retail sales down 0.8% in July at $69.6 billion

Customers shop for produce at T&T Supermarket's location in Toronto's Fairview Mall. THE CANADIAN PRESS/Chris Young

OTTAWA — Retail sales fell 0.8 per cent to $69.6 billion in July as shoppers spent less at supermarkets and grocery stores, Statistics Canada said Friday.

However, the agency said its advance estimate for August pointed to an increase of one per cent, though it cautioned the figure would be revised.

Statistics Canada said retail sales in July were down in eight of the nine subsectors it tracks with motor vehicle and parts dealers as the only group to increase with a gain of 0.2 per cent.

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TD Bank economist Maria Solovieva said volatility in the data remains exceptionally high.

“Cooling employment and softer wage gains are likely to catch up with consumers in Q3, reinforcing a more frugal mindset,” Solovieva wrote in a report.

“While wealth effects could continue to buoy services spending among higher-income households, another leg up in domestic tourism and related spending appears unlikely. Goods demand, meanwhile, looks set for a sizable contraction, with vehicle sales likely to pull back in the third quarter.”

For July, sales at food and beverage retailers fell 1.3 per cent as sales at supermarkets and other grocery retailers fell 2.5 per cent.

Sales at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers also dropped 2.9 per cent.

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Core retail sales — which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers — fell 1.2 per cent in July.

In volume terms, retail sales dropped 0.8 per cent in the month.

The retail sales figures followed a pair of reports by Statistics Canada earlier this week that said both manufacturing and wholesale sales climbed in July.

However, the Bank of Canada cut its key interest rate on Wednesday by a quarter of a percentage point to 2.5 per cent as it raised concerns about a weakening economy.

Canada lost 66,000 jobs in August, adding to a loss of 41,000 jobs in July.

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This report by The Canadian Press was first published Sept. 19, 2025.