Canada retail sales rise 1.1% in January to C$70.7 billion, led by auto sales

By Tahani Elghazaly
Published March 21, 2026

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Retail sales in Canada rose 1.1% in January to C$70.7 billion, pointing to a stronger start for consumer spending in the first month of 2026. Statistics Canada said the increase was recorded across six of nine subsectors, led by motor vehicle and parts dealers.

The agency said motor vehicle and parts dealers were the main driver of the monthly gain, with sales in that subsector rising 2.0% after a decline in December. Core retail sales, which exclude gasoline stations and fuel vendors as well as motor vehicle and parts dealers, increased 0.9% in January, while retail sales volumes were up 1.0%.

The increase was geographically broad-based, with all provinces posting gains in January. Alberta recorded the largest rise in dollar terms, up 3.5%, also supported by higher sales at motor vehicle and parts dealers. In Ontario, retail sales rose 0.9% during the month.

Among major metropolitan areas, retail sales in Montréal rose 1.7% in January, while Toronto posted a 0.6% increase. The figures suggest stronger consumer activity in two of Canada’s largest urban markets, with Montréal outpacing Toronto for the month.

Retail e-commerce sales in Canada also increased 1.5% to C$4.4 billion on a seasonally adjusted basis, representing 6.2% of total retail trade in January. Statistics Canada also said its preliminary estimate suggested retail sales may have risen a further 0.9% in February, although that figure remains subject to revision.