‘Data for Business’ is an effort of the Langley Chamber, in partnership with the Canadian Chamber’s Business Data Lab, to bring our members reports, stats, and analysis on economic and business data to help inform business and investment decisions. Read our latest update below:

Canadian retail sales continued to gain ground in May, rising 1.0% to $73.7 billion and marking a fifth straight monthly increase. The encouraging signal for businesses is that this was not just a price story: core retail sales rose 0.9%, and sales volumes were up 0.3%, meaning consumers were buying more overall, not simply paying more.

BC stood out with the strongest provincial increase in dollar terms, with retail sales up 2.1%, led by higher sales at motor vehicle and parts dealers. Vancouver also saw a notable 3.4% increase. The data suggests consumer spending entered the summer with broader momentum, with all nine retail subsectors posting gains.

Still, the details show some caution: gasoline sales were boosted by higher prices rather than stronger demand, and real spending per person grew more modestly than total spending.

For businesses, May’s numbers point to a consumer market that is improving, but still sensitive to inflation, energy prices and uncertainty around tariffs.

Key Takeaways

• Overall performance: Retail sales increased 1.0% to $73.7 billion in May, marking a fifth consecutive monthly increase. More importantly, core retail sales rose 0.9% and real volumes increased 0.3%, indicating consumers have started purchasing more goods overall rather than simply paying higher prices.
• Strengths: Consumer spending became considerably broader in May, with all nine retail subsectors posting gains. Motor vehicle and parts dealers rose 0.7% for a second consecutive month, with all four store types advancing. Meanwhile, gasoline station sales increased 3.1%, though volumes fell 2.7%, indicating higher prices—not stronger fuel demand—boosted nominal sales. General merchandise retailers (+1.0%) and sporting goods and miscellaneous retailers (+1.8%) both recorded their first increase in three months, pointing to broader and more balanced consumer spending heading into the summer.
• Consumer behavior:   Nominal spending rose 5.9% year over year in May, while real spending increased 2.7% and real spending per person grew 1.9%. The more modest per-person gain suggests underlying demand remains measured despite improving overall spending.
• Regional trends: Retail sales increased in nine provinces, led by British Columbia (+2.1%), while Ontario, Alberta and Quebec also posted gains. Nova Scotia was the only province to record a monthly decline, highlighting the broad-based nature of consumer spending across much of the country.
• Advance estimate: Looking ahead, Statistics Canada’s advance estimate points to another increase in retail sales in June, suggesting consumer spending remains an important pillar of economic growth heading into the second half of the year. The key question is whether households can sustain this momentum as uncertainty surrounding tariffs, global energy prices and inflation expectations continues to shape spending decisions.