# Canada's retail sales fall 0.7% to $73.7 billion in July, led by general merchandise and clothing

> Statistics Canada said sales fell in eight of nine subsectors in July, close to its earlier advance estimate of a 0.8% drop. An early reading points to a 1.3% rebound in August.

- Canonical URL: https://forextradingcommunity.com/news/canada-retail-sales-fall-0-7-percent-july-2026/
- Type: Data
- Published: 2026-09-26
- Updated: 2026-09-26
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: CAD

Statistics Canada reported on 24 September 2026 that retail sales fell 0.7% to $73.7 billion in July, close to the 0.8% decline its advance estimate had pointed to the week before ([preview](/news/canada-retail-sales-july-2026-preview/)). It follows a 0.6% rise to $74.3 billion in June.

## The July numbers

- **Total retail sales**: down 0.7% to $73.7 billion; in volume terms, sales fell 1.1%
- **Subsectors**: eight of nine subsectors declined, led by general merchandise retailers, down 1.9% after rising 2.5% in June
- **Clothing, accessories, shoes, jewellery, luggage and leather goods**: down 1.2%
- **Motor vehicle and parts dealers**: down 0.8%, their first decline in four months, led by new car dealers (down 1.3%); used car dealers rose 2.9%
- **Gasoline stations and fuel vendors**: down 0.9% for a second straight monthly decline; down 3.5% in volume terms
- **Building material and garden equipment dealers**: the only subsector to rise, up 0.8% for a fourth consecutive month
- **Core retail sales** (excluding gasoline stations, fuel vendors, and motor vehicle and parts dealers): down 0.7%, following a 1.2% rise in June

## By province

Retail sales fell in five provinces. Ontario had the largest decline in dollar terms, down 2.0%, driven by general merchandise retailers; in the Toronto census metropolitan area, sales fell 4.7%. British Columbia was down 1.4%, led by motor vehicle and parts dealers, with Vancouver down 1.6%. Alberta had the largest increase, up 1.4%, led by general merchandise retailers.

## E-commerce and the outlook

Retail e-commerce sales fell 3.5% to $5.5 billion, or 7.5% of total retail trade, down from 7.7% in June. Statistics Canada's advance estimate for August points to a 1.3% rebound, based on responses from 57.8% of companies surveyed; the average final response rate over the previous year was 87.1%, so the estimate is likely to be revised.

## What it means for the Canadian dollar

The Bank of Canada held its policy rate at 2.25% on 2 September for a seventh straight decision, citing uncertainty from the Middle East conflict and the breakdown of trade talks with the United States ([report](/news/bank-of-canada-holds-2-25-september-2026/)). A soft July for retail sales, alongside inflation holding at 3.0% in August ([report](/news/canada-cpi-august-2026/)) and home sales edging down ([report](/news/canada-home-sales-august-2026/)), fits a picture of a economy the Bank isn't in a hurry to tighten further. Oil prices remain the other big driver of [USD/CAD](/markets/usd-cad/) ([oil and the Canadian dollar](/news/oil-prices-and-the-canadian-dollar/)). The Bank's next decision is 28 October, and August retail sales follow on 23 October 2026.

## Sources

- [Statistics Canada: The Daily — Retail trade, July 2026](https://www150.statcan.gc.ca/n1/daily-quotidien/260924/dq260924a-eng.htm)

## Common questions

### How much did Canadian retail sales fall in July 2026?

0.7%, to $73.7 billion, Statistics Canada reported on 24 September 2026. In volume terms sales fell 1.1%. It follows a 0.6% rise to $74.3 billion in June.

### Which retailers led the decline in July 2026?

General merchandise retailers, down 1.9%, and clothing, accessories, shoes, jewellery, luggage and leather goods retailers, down 1.2%. Eight of nine subsectors fell; building material and garden equipment dealers were the exception, up 0.8%.

### What is Canada's core retail sales figure?

Core retail sales, which exclude gasoline stations, fuel vendors and motor vehicle and parts dealers, fell 0.7% in July 2026, after rising 1.2% in June.

### Which Canadian province had the biggest retail sales drop in July 2026?

Ontario, down 2.0% in dollar terms, with Toronto down 4.7%. Alberta had the largest increase, up 1.4%.

### What does Statistics Canada expect for August 2026 retail sales?

Its advance estimate points to a 1.3% increase, based on responses from 57.8% of surveyed companies; the figure is preliminary and subject to revision.

---

This article is for information only and is not financial advice. Trading forex and CFDs carries a high risk of losing money.