Data for Business: Retail Sales Decline; 32% of Retail Businesses Feeling Tariff Impacts
Data for Business: Retail Sales Decline; 32% of Retail Businesses Feeling Tariff Impacts

‘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:
The latest data from Statistics Canada released today shows a 1.1% decline in national retail sales, falling to $69.2 billion, as compared to April 2025, led by decreases in motor vehicles, car parts, gasoline, and food and beverage sales. Stats Can is reporting 32% of retail businesses were impacted by the trade tensions in May, with the most common impacts being price increases, change in demand for product and increased costs for materials, shipping or labour.
Key Takeaways
- Overall performance: Retail sales declined 1.1% in May to $69.2 billion and fell 1.4% in volume terms, with three of nine subsectors posting losses — consistent with consumers pulling forward purchases ahead of looming U.S. tariffs.
- Autos lead the downturn: Motor vehicle and parts dealers saw sales drop 3.6% (new car dealers down 4.6%), reversing about half of the combined 7.0% increase over March and April. Automotive parts and tire retailers bucked the trend with a 1.7% gain.
- Core sales steady: Retail sales excluding motor vehicles and gas stations were essentially flat. Building material and garden equipment dealers rose 1.9%; furniture and home furnishings +0.5%; health and personal care +0.7% (marking an 11th consecutive monthly gain). Food and beverage retailers dipped 1.2%, led by lower beer, wine and liquor sales (-2.9%).
- Fuel sales ease: Gasoline station and fuel vendor receipts fell 1.4% in dollar terms (– 2.1% in volume), the third straight monthly decline as price effects unwind.
- Provincial trends: Nine provinces recorded lower sales in May. Ontario led with a – 2.1% (Toronto – 2.8%), followed by Alberta at – 1.0%. Only Nova Scotia bucked the trend with a 0.3% gain.
- E-commerce pullback: Online retail sales eased 1.7% to $4.3 billion, trimming the e-commerce share of total retail trade to 6.2% from 6.3% in April.
- June rebound anticipated: The advance estimate of a 1.6% month-over-month rise—just below our 1.7% nowcast—reinforces that May’s downturn largely reflected normalization after tariff front-running waned.
Commentary:
“Canadian retail sales fell 1.1% in May to $69.2 billion, reversing roughly half of the gains seen over March and April as tariff-related front-running dissipated. Core sales were essentially flat, indicating concentrated weakness in autos and fuel rather than a broad pullback. With June’s flash estimate pointing to a 1.6% rebound (just shy of our 1.7% nowcast) and consumer confidence on the rise, we expect the Bank of Canada to hold rates next week as it awaits clarity on U.S. trading terms.” - Canadian Chamber of Commerce