Canadian retail sales in May paint an intriguing picture of consumer behaviour and economic trends, with All Stores rising 4.4% YOY, and All Stores Less Automotive, Food, and Pharmacies, growth was an even more robust 7.1% YOY. This performance comes against the backdrop of significant shifts in the retail landscape, including the closure of the last Hudsonโs Bay stores on June 1, which may have drawn nostalgic shoppers and increased traffic in surrounding areas. Meanwhile, the ongoing conversation on tariff tensions continues to loom over consumer sentiment.
Supermarkets and other Grocery Stores saw a healthy 6.9% YOY increase, with Loblawโs reporting particularly strong Q2 results, including a 5.4% rise in revenue and 3.5% same-store sales growth. This performance is notable given that May 1, 2024, marked the start of a Loblawโs boycott. Ironically, the boycott may have inadvertently boosted YOY comparisons, as consumers returned to normal shopping patterns this year. Itโs also possible that inflationary pressures and higher food prices contributed to the revenue growth, though this isnโt necessarily a sign of increased consumer purchasing power.
Conversely, Convenience Stores continue to struggle, with sales down -7.7% YOY and -5.6% YTD. Changing consumer behaviour is at the heart of this decline. Reports suggest that sales of traditional convenience store staples like tobacco and lottery tickets are falling, which, while positive from a public health perspective, presents challenges for the businesses reliant on these categories. Additionally, inflation has made convenience store pricing less attractive compared to larger retailers. As consumers tighten their belts, they appear to be prioritizing value over convenience.
The standout performer in May was the Jewellery, Luggage, and Leather Goods category, which soared 20.4% YOY. While this growth is eye-catching, itโs likely inflated by the addition of new retailers or operators to the category, rather than a genuine surge in consumer spending. Given the economic uncertainty and the post-pandemic travel boom that already occurred, itโs hard to imagine consumers suddenly splurging on these discretionary items.
In fact, current travel trends may be dampening demand for luggage. With ongoing travel boycotts to the U.S. and rising costs of international travel, many Canadians are opting for domestic vacations or canceling trips altogether. This would naturally limit the need for new luggage. The growth in this category, therefore, raises questions on whether it reflects structural changes in the retail landscape rather than true consumer behaviour.
As we proceed into the final month of summer, several questions come to mind for the retail sector and for JCWG:
- What impact will vacant Hudsonโs Bay spaces have on foot traffic in shopping centres?
- What innovative experiences can shoppers expect from the new Ruby Liu stores?
- Will the trend of summer staycations continue to drive growth in Canadian retail?
- How are YOU adapting to the challenges of major anchor tenant vacancies in shopping centres?
Retail Sales by Product Category, Same Month Comparison
| Sales for the Month of May | May-25 | May-24 | YOY |
|---|---|---|---|
| All Stores | 76,479,464 | 73,246,319 | 4.41% |
| Motor Vehicle and Parts Dealers | 22,027,393 | 21,105,126 | 4.37% |
| Gasoline Stations | 6,322,578 | 7,022,737 | -9.97% |
| All Stores Less Automotive | 48,129,493 | 45,118,456 | 6.67% |
| Food and Beverage Stores | 14,041,424 | 13,420,965 | 4.62% |
| Supermarkets and Other Grocery Stores* | 10,089,075 | 9,448,356 | 6.78% |
| Convenience Stores | 722,890 | 783,489 | -7.73% |
| Specialty Food Stores | 988,608 | 929,333 | 6.38% |
| Beer, Wine and Liquor Stores | 2,240,852 | 2,259,787 | -0.84% |
| Health and Personal Care Stores | 6,210,307 | 5,658,393 | 9.75% |
| All Stores Less Automotive, Food, and Pharmacies | 27,877,762 | 26,039,098 | 7.06% |
| General Merchandise Stores | 10,386,334 | 9,846,684 | 5.48% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 3,782,880 | 3,495,373 | 8.23% |
| Furniture Stores | 1,322,693 | 1,175,700 | 12.50% |
| Home Furnishings Stores | 774,949 | 742,438 | 4.38% |
| Electronics and Appliance Stores | 1,685,238 | 1,577,235 | 6.85% |
| Clothing and Accessories Stores | 4,009,893 | 3,630,648 | 10.45% |
| Clothing Stores | 3,072,312 | 2,775,750 | 10.68% |
| Shoe Stores | 457,251 | 455,778 | 0.32% |
| Jewellery, Luggage and Leather Goods Stores | 480,330 | 399,120 | 20.35% |
| Sporting Goods, Hobby, Book and Music Stores | 4,321,478 | 3,963,343 | 9.04% |
| Building Material and Garden Equipment | 5,377,178 | 5,103,049 | 5.37% |
| Miscellaneous Store Retailers | 2,915,920 | 2,613,910 | 11.55% |
| Cannabis Retailers | 485,421 | 434,457 | 11.73% |
Retail Sales by Store Category, Year to Date Comparison
| Year-to-Date Sales Ending May | May-25 | May-24 | YTD |
|---|---|---|---|
| All Stores | 330,709,784 | 315,940,862 | 4.67% |
| Motor Vehicle and Parts Dealers | 94,802,869 | 87,995,661 | 7.74% |
| Gasoline Stations | 30,217,886 | 31,304,219 | -3.47% |
| All Stores Less Automotive | 205,689,029 | 196,640,982 | 4.60% |
| Food and Beverage Stores | 63,148,214 | 61,291,202 | 3.03% |
| Supermarkets and Other Grocery Stores* | 46,001,282 | 44,288,741 | 3.87% |
| Convenience Stores | 3,244,778 | 3,436,543 | -5.58% |
| Specialty Food Stores | 4,388,177 | 4,081,272 | 7.52% |
| Beer, Wine and Liquor Stores | 9,513,979 | 9,484,647 | 0.31% |
| Health and Personal Care Stores | 29,407,635 | 27,265,792 | 7.86% |
| All Stores Less Automotive, Food, and Pharmacies | 113,133,180 | 108,083,988 | 4.67% |
| General Merchandise Stores | 43,462,130 | 41,776,547 | 4.03% |
| Furniture, Home Furnishings, Electronic and Appliance Stores | 17,306,980 | 16,660,422 | 3.88% |
| Furniture Stores | 5,687,236 | 5,443,787 | 4.47% |
| Home Furnishings Stores | 3,445,259 | 3,266,877 | 5.46% |
| Electronics and Appliance Stores | 8,174,486 | 7,949,759 | 2.83% |
| Clothing and Accessories Stores | 16,132,855 | 14,775,239 | 9.19% |
| Clothing Stores | 12,488,028 | 11,393,246 | 9.61% |
| Shoe Stores | 1,717,197 | 1,732,090 | -0.86% |
| Jewellery, Luggage and Leather Goods Stores | 1,927,628 | 1,649,902 | 16.83% |
| Sporting Goods, Hobby, Book and Music Stores | 18,269,675 | 17,028,757 | 7.29% |
| Building Material and Garden Equipment | 17,961,540 | 17,843,021 | 0.66% |
| Miscellaneous Store Retailers | 12,356,918 | 11,055,400 | 11.77% |
| Cannabis Retailers | 2,203,530 | 2,040,590 | 7.98% |
Ecommerce Sales
| May-25 | May-24 | ||
|---|---|---|---|
| Ecommerce Sales, YTD | 19,696,136 | 18,158,138 | 8.47% |
| Ecommerce Sales, YOY | 4,443,984 | 4,144,997 | 7.21% |
Regional Sales, Year to Date Comparison
| Region | Year-to-Date, 2025 | Year-to-Date, 2024 | YTD |
|---|---|---|---|
| British Columbia | 45,551,640 | 42,777,341 | 6.49% |
| Vancouver | 23,291,223 | 21,549,603 | 8.08% |
| Alberta | 43,111,567 | 40,830,068 | 5.59% |
| Prairies* | 22,131,907 | 20,894,908 | 5.92% |
| Ontario | 122,965,009 | 118,355,499 | 3.89% |
| Toronto | 54,495,262 | 53,635,315 | 1.60% |
| Quรฉbec | 73,214,061 | 70,490,472 | 3.86% |
| Montrรฉal | 36,491,370 | 35,123,032 | 3.90% |
| Atlantic Canada | 22,521,635 | 21,457,502 | 4.96% |
| Territories | 1,213,968 | 1,135,074 | 6.95% |
NATIONAL RETAIL BULLETIN
Thank you J.C. Williams Group for this report.
