Canada’s retail sales are estimated to have increased 1.5% month over month in January 2026, which, if confirmed, would mark a rebound after a 0.4% decline in December and sharpest increase since December 2024 according to advance estimates. In December retail sales fell 0.4% to C$70.0 billion with sales down in three of nine subsectors led by motor vehicle and parts dealers which dropped 1.6%. Core retail sales excluding gasoline stations and motor vehicle dealers fell 0.3%. Gains in December were concentrated at gasoline stations and fuel vendors up 2.8% and at sporting goods hobby musical instrument book and miscellaneous retailers up 1.0% while building material and garden equipment and furniture home electronics retailers posted the largest declines. Retail sales fell in seven provinces with Alberta the largest decline at 2.1% while Quebec rose 0.6%. Year on year retail sales were essentially unchanged in December.