In December, retail sales in Canada fell by 0.4%, totaling $70.0 billion. The main reason for this decline was reduced spending on high-priced goods during the holiday season. The largest impact came from a 1.6% drop in sales at automobile and auto parts dealers, marking the second consecutive month of decline in this segment.

Core retail sales, which exclude fluctuations in the automotive and fuel sectors, decreased by 0.3% after significant growth in November. The most noticeable declines were seen in the building materials and home goods categories, where revenues fell by 4.0% and 1.7%, respectively.

Despite the year-end downturn, total retail sales for 2025 increased by 4.0%, reaching $837.2 billion. The automotive sector contributed most to this annual growth, with sales rising by 4.7% despite the December decrease.

Regional results varied: Alberta recorded the largest drop at 2.1% due to weak demand for vehicles, while Quebec saw sales rise by 0.6%, standing out against the overall trend.

E-commerce sales continued to grow, increasing by 3.6% in December to reach $4.3 billion. The share of online transactions in total retail trade rose to 6.1%, up from 5.8% the previous month.

Preliminary data suggests that the December decline was temporary. According to Statistics Canada, retail sales could grow by 1.5% in January.