February 2025 witnessed a modest increase in Canadian retail sales, with All Stores growth pegged at 1.0% YOY. This growth extended to discretionary spending with All Stores Less Automotive, Food, and Pharmacies which also saw a 1.0% YOY increase. Several factors influenced these figures, most notably:
- The Bank of Canada’s decision to maintain interest rates amidst global economic uncertainties,
- The conclusion of the GST/HST break in mid-February, adding sales tax back to products such as food, beverages, alcohol, and children’s goods. Though we are not yet clear on the full effects of this, initial data findings indicate it had a limited effect, and
- Emerging US tariff concerns. Announcements began on February 1, 2025 with tariffs of 25% on most Canadian goods, and 10% tariff on oil, gas, and potash. Additionally, on February 10, there was an announcement of a 25% tariff on steel and aluminum products. Canada has also retaliated with tariffs on numerous US goods which has further caused increased concerns to Canadians as this will also raise prices.
Recently, alcohol consumption in Canada has seen a decline, often attributed to shifting preferences towards alternatives like cannabis. However, February defied this trend with a 0.6% YOY growth in Beer, Wine, and Liquor Stores sales. This unexpected increase might be linked to the looming threat of American alcohol being pulled from shelves—a reality that materialized on March 4. Throughout February, consumers may have engaged in precautionary stockpiling, anticipating the removal of American brands. This behavior underscores how geopolitical tensions and trade policies can ripple through consumer habits, prompting temporary shifts in purchasing patterns.
February is synonymous with Valentine’s Day, a period typically marked by heightened jewellery sales, and sales for Jewellery, Luggage, and Leather Goods increased by 11.2% YOY. However, the growth in this sector likely extends beyond romantic gestures. With less travel to the US, Canadians are increasingly favoring local destinations, bolstered by Air Canada’s extensive coast-to-coast representation. Furthermore, Air Canada’s recent alteration to its carry-on policy for domestic flights may have spurred consumers to invest in smaller luggage options. This scenario illustrates how changes in travel policies and preferences can catalyze sales in related retail segments, reflecting a broader shift towards Canadian-centric consumption.
As we dissect February’s retail sales landscape, several questions emerge for JCWG and industry stakeholders:
- In the context of tariffs and economic uncertainty, how does prioritizing Canadian goods impact consumer sentiment and spending?
- With the “Buy Canadian” movement gaining traction, are consumers sufficiently informed about which brands are Canadian?
- What will be the impact of the Hudson’s Bay liquidation, and what ripple effects might this have on the Clothing and Accessories Stores category?
- How will shopping centres respond to limit the effects of these new large Hudson’s Bay vacancy?
- In what ways can national tourism bolster Canadian retailers amidst global travel uncertainties?
- What steps are YOU taking to embrace and promote Canadian products?
Retail Sales by Product Category, Same Month Comparison
| Sales for the Month of February | Feb-25 | Feb-24 | YOY |
|---|---|---|---|
| All Stores | 56,894,172 | 56,341,072 | 0.98% |
| Motor Vehicle and Parts Dealers | 15,132,775 | 15,068,122 | 0.43% |
| Gasoline Stations | 5,845,318 | 5,766,786 | 1.36% |
| All Stores Less Automotive | 35,916,079 | 35,506,164 | 1.15% |
| Food and Beverage Stores | 11,549,143 | 11,518,909 | 0.26% |
| Supermarkets and Other Grocery Stores* | 8,457,310 | 8,373,316 | 1.00% |
| Convenience Stores | 571,782 | 635,286 | -10.00% |
| Specialty Food Stores | 779,186 | 780,179 | -0.13% |
| Beer, Wine and Liquor Stores | 1,740,864 | 1,730,128 | 0.62% |
| Health and Personal Care Stores | 5,422,484 | 5,211,567 | 4.05% |
| All Stores Less Automotive, Food, and Pharmacies | 18,944,452 | 18,775,688 | 0.90% |
| General Merchandise Stores | 7,689,179 | 7,428,019 | 3.52% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 3,001,998 | 3,084,749 | -2.68% |
| Furniture Stores | 935,492 | 980,689 | -4.61% |
| Home Furnishings Stores | 578,884 | 601,861 | -3.82% |
| Electronics and Appliance Stores | 1,487,622 | 1,502,199 | -0.97% |
| Clothing and Accessories Stores | 2,599,696 | 2,527,001 | 2.88% |
| Clothing Stores | 1,978,565 | 1,924,514 | 2.81% |
| Shoe Stores | 246,318 | 265,370 | -7.18% |
| Jewellery, Luggage and Leather Goods Stores | 374,813 | 337,117 | 11.18% |
| Sporting Goods, Hobby, Book and Music Stores | 3,141,867 | 3,011,167 | 4.34% |
| Building Material and Garden Equipment | 2,511,712 | 2,724,752 | -7.82% |
| Miscellaneous Store Retailers | 2,182,781 | 1,956,600 | 11.56% |
| Cannabis Retailers | 404,708 | 386,806 | 4.63% |
Retail Sales by Store Category, Year to Date Comparison
| Year-to-Date Sales Ending February | Feb-25 | Feb-24 | YTD |
|---|---|---|---|
| All Stores | 116,721,221 | 112,569,512 | 3.69% |
| Motor Vehicle and Parts Dealers | 30,910,120 | 29,494,051 | 4.80% |
| Gasoline Stations | 11,984,285 | 11,675,307 | 2.65% |
| All Stores Less Automotive | 73,826,816 | 71,400,154 | 3.40% |
| Food and Beverage Stores | 23,668,746 | 23,096,673 | 2.48% |
| Supermarkets and Other Grocery Stores* | 17,470,485 | 16,998,290 | 2.78% |
| Convenience Stores | 1,184,335 | 1,270,166 | -6.76% |
| Specialty Food Stores | 1,560,989 | 1,482,241 | 5.31% |
| Beer, Wine and Liquor Stores | 3,452,937 | 3,345,976 | 3.20% |
| Health and Personal Care Stores | 11,183,098 | 10,566,656 | 5.83% |
| All Stores Less Automotive, Food, and Pharmacies | 38,974,972 | 37,736,825 | 3.28% |
| General Merchandise Stores | 15,436,262 | 14,704,212 | 4.98% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 6,394,472 | 6,351,813 | 0.67% |
| Furniture Stores | 2,029,345 | 2,023,943 | 0.27% |
| Home Furnishings Stores | 1,219,934 | 1,180,286 | 3.36% |
| Electronics and Appliance Stores | 3,145,194 | 3,147,585 | -0.08% |
| Clothing and Accessories Stores | 5,330,840 | 4,949,190 | 7.71% |
| Clothing Stores | 4,140,855 | 3,814,294 | 8.56% |
| Shoe Stores | 514,957 | 536,249 | -3.97% |
| Jewellery, Luggage and Leather Goods Stores | 675,028 | 598,646 | 12.76% |
| Sporting Goods, Hobby, Book and Music Stores | 6,442,220 | 6,203,773 | 3.84% |
| Building Material and Garden Equipment | 5,371,178 | 5,527,836 | -2.83% |
| Miscellaneous Store Retailers | 4,392,553 | 4,027,004 | 9.08% |
| Cannabis Retailers | 823,033 | 788,767 | 4.34% |
Ecommerce Sales
| Feb-25 | Feb-24 | ||
|---|---|---|---|
| Ecommerce Sales, YTD | 7,097,605 | 6,397,073 | 10.95% |
| Ecommerce Sales, YOY | 3,442,175 | 3,090,378 | 11.38% |
Regional Sales, Year to Date Comparison
| Region | Year-to-Date, 2025 | Year-to-Date, 2024 | 2025/2024 |
|---|---|---|---|
| British Columbia | 16,375,803 | 15,471,013 | 5.85% |
| Vancouver | 8,446,852 | 8,007,905 | 5.48% |
| Alberta | 15,437,602 | 14,604,702 | 5.70% |
| Prairies | 7,813,527 | 7,371,082 | 6.00% |
| Ontario | 43,400,146 | 42,420,166 | 2.31% |
| Toronto | 19,481,132 | 19,200,345 | 1.46% |
| Québec | 25,233,527 | 24,606,743 | 2.55% |
| Montréal | 12,608,319 | 12,329,652 | 2.26% |
| Atlantic Canada | 8,016,581 | 7,675,993 | 4.44% |
| Territories | 444,035 | 419,814 | 5.77% |
Thank you JC Williams Group for this report.
