Canadian retail sales hit $79.9 billion in May as fuel costs surge
Food and beverages also posted solid growth, rising 3.1 per cent year-over-year. Fresh food led the category, climbing 3.9 per cent, with fresh meat and poultry recording the largest dollar-value gains at 7.2 per cent, a figure that will resonate with Canadians who have felt the continued pressure of grocery costs in their household budgets.
Not all categories fared as well. Hardware, tools, renovation, and lawn and garden products declined 2.4 per cent compared to May 2025, with lumber and renovation materials falling 3.5 per cent. The pullback suggests that Canadians are continuing to scale back discretionary home improvement spending amid elevated borrowing costs.
Looking ahead, Statistics Canada’s advance estimate from its Monthly Retail Trade Survey points to unadjusted total retail sales in June 2026 rising 7.0 per cent year-over-year, though the agency cautioned that preliminary figure is subject to revision.
The divergence between fuel-driven headline growth and softer discretionary categories such as home renovation points to a consumer who is managing costs carefully rather than spending freely.
