Retail Sales Fall 0.7%, First Drop Since December

Canadian retail sales fell 0.7% to $73.7 billion in July, their first monthly decline since December 2025, after rising in June. Sales declined in eight of nine subsectors, led by a 1.9% drop at general merchandise retailers; building materials and garden supplies were the only category to post an increase. Core sales, excluding motor vehicles and fuel, also fell 0.7%. Statistics Canada’s preliminary estimate pointed to a 1.3% rebound in August, though the agency cautioned that figure could be revised.