Canadian Retail Sales (March 2026)

Canadian retail sales increased by 0.9 per cent to $72.7 billion in March compared to the previous month. Retail sales were 3.4 per cent higher compared to the same time last year. However, core retail sales, which exclude gasoline and automobile items, decreased by 0.1 per cent in March. In volume terms, adjusted for rising prices, retail sales were down 0.7 per cent in March. Taken together with previous months, retail sales were up 2.1 per cent in the first quarter of 2026.

Retail sales in British Columbia were up 0.5 per cent in March month-over-month and rose by 3.1 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were down 0.8 per cent from the prior month and were 0.7 per cent above the level of March 2025.

The first quarter of 2026 found the strongest quarterly retail growth since the final quarter of 2024, demonstrating resilience in Canadian consumption while the labour market and broader economy struggle. We hope this momentum permeates into Canada’s upcoming GDP report, as the Bank of Canada faces double-sided risks from local economic weakness and inflationary pressures stemming from the Iran conflict. That being said, we cautiously expect a fifth consecutive rate hold from the Bank of Canada next week, depending on how inflation evolves in relation to their projections.