Statistics Canada reports January retail sales up 1.1 per cent to $70.7B

Statistics Canada says retail sales were up 1.1 per cent at $70.7 billion in January, led by sales at motor vehicle and parts dealers.

Sales were up in six of the nine subsectors it tracks, as the motor vehicle and parts dealers subsector posted the largest increase in retail sales in January — up two per cent, the agency said on Friday.

Andrew Grantham, senior economist at CIBC, said retail sales appear to be starting the year strong.

“A solid start to the year for retail sales could be evidence that last year’s interest rate cuts, combined with the slight reduction in unemployment since mid-2025, is supporting an upturn in consumer sentiment and spending,” he said in a note on Friday.

Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, rose 0.9 per cent in January. It was led by higher sales at general merchandise retailers while sales at sporting goods, hobby, musical instrument, book, and miscellaneous retailers increased 2.6 per cent.

Food and beverage retailers posted the largest decline in core retail sales, down 0.6 per cent, while sales at supermarkets and other grocers, except convenience stores, fell 0.7 per cent.