Canada's retail trade saw a significant upswing in November, reversing a previously sluggish performance throughout the autumn. Total retail receipts reached $70.4 billion, representing a 1.3% increase compared to October, as consumers returned to shopping across a broad array of categories, according to figures released by Statistics Canada on Friday.
The growth was especially notable within core retail sectors, excluding typically volatile automotive and fuel sales, which themselves demonstrated a 1.6% rise. A major contributor to this expansion was the food and beverage segment, which surged 3.0%, largely supported by British Columbia liquor stores returning to normal service following earlier labor disruptions.
Discretionary retail segments also experienced a rebound. Clothing and accessory outlets posted a 2.4% increase following declines in previous months, indicating renewed consumer interest. Additionally, dealers of building materials and garden equipment registered their second consecutive monthly growth, reflecting rejuvenated home improvement expenditures.
Despite the optimistic trend in November, early estimates for December signal a reversal. Statistics Canada's advance indicator points to a 0.5% decline in retail sales during the last month of 2025, hinting that the holiday shopping season may not have sustained its vigor over the final weeks of the year.
Senior economist Andrew Grantham from CIBC reflected on these developments, stating, "Canadian retail sales picked up in November, but failed to hold onto those gains in December." He emphasized the enduring pattern of volatility that has dominated Canadian consumer spending throughout the current fiscal year.
Analysts interpret the November sales increase as primarily driven by temporary pent-up demand rather than a fundamental change in consumer spending habits. Grantham added that "the November gain hasn’t altered the broadly sideways trend in retail spending seen since early 2025," underscoring the cautious and inconsistent nature of recent retail activity.