Canadian Retail Sales (May 2025) – July 24, 2025

Canadian retail sales decreased by 1.1 per cent to $69.2 billion in May compared to the previous month. Compared to the same time last year, retail sales were up by 4.9 per cent. Furthermore, core retail sales, which exclude gasoline and automobile items, were relatively unchanged month-over-month. In volume terms, adjusted for rising prices, retail sales decreased by 1.4 per cent in May.

Retail sales in British Columbia were down 0.4 per cent in May from the previous month and rose by 7.1 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were down 1.1 per cent from the prior month and were 9.0 per cent above the level of May 2024.

May's report largely nullified previous momentum in retail activity over the last 3 months, with sales falling to their lowest level since February of this year. Tariffs continue to hinder Canadian business operations, with over 30 per cent of respondents reporting impact through changes in price and demand for both their raw materials and final products. With core inflation nearing its upper limit, the Bank of Canada appears braced for another rate hold, pending May’s GDP report—the final key data point for the Bank to consider before its meeting.