Canadian

National Retail Bulletin

April experienced 3.2% YOY growth across All Stores and 2.2% YOY across All Stores Less Automotive, Food, and Pharmacies. While overall retail sales remained positive, the underlying picture suggests consumer spending is being increasingly shaped by rising prices rather than stronger purchasing activity. Elevated fuel and transportation costs, alongside broader inflationary pressures, continued to constrain household budgets, encouraging consumers to prioritize essential purchases while delaying discretionary spending.

April retail sales reflect a consumer environment increasingly shaped by the economic consequences of the Iran War. Although the conflict began in late February/early March, the disruption to global energy markets continued to ripple through the economy in April, keeping fuel, transportation, and broader inflationary pressures elevated. This dynamic is most clearly reflected in Gasoline Stations, which recorded 23.0% YOY growth. However, this increase was likely driven almost entirely by higher fuel prices rather than stronger consumer demand. As households absorbed these higher everyday costs, consumers increasingly prioritized essential spending while delaying discretionary purchases, reinforcing a market that is becoming progressively more price-driven than volume-led.

This pressure on household budgets is clearly evident across discretionary retail, especially larger ticket items. Electronics and Appliance Stores declined -7.3% YOY, Furniture Stores fell -3.0% YOY, Home Furnishings Stores declined -1.3% YOY, and Building Material and Garden Equipment Stores decreased -2.7% YOY. These categories all share one characteristic: purchases can generally be postponed. As households absorb higher fuel, transportation, and everyday living costs, consumers appear increasingly willing to repair, delay, or defer major purchases rather than replace them.

The inflationary backdrop also continues to influence how consumers choose to shop. Ecommerce sales increased just 0.9% YOY, while YTD growth reached 3.3%. Rather than shifting online in search of lower prices, shoppers appear to be maintaining a preference for physical stores, where they can better compare products, evaluate value, and consolidate purchases into fewer shopping trips.

Overall, April’s retail performance reflects a consumer environment increasingly defined by economic adaptation. Rising fuel costs are reducing disposable income, inflation continues to reshape purchasing priorities, and discretionary spending remains under sustained pressure.

As we move further into 2026, JCWG is thinking about:

• If geopolitical tensions begin to ease and energy markets stabilize, how quickly will discretionary retail categories recover, or has consumer confidence weakened enough to delay a meaningful rebound?
• How should retailers balance pricing, promotions, and inventory planning in a market where growth is increasingly supported by inflation rather than expanding consumer demand?
• How are YOU adapting your strategy as households become increasingly selective with discretionary spending?

For support with your 2026 retail strategy, reach out to the team at JCWG!

Retail Sales by Product Category, Same Month Comparison

Retail Sales by Store Category, Year to Date Comparison

Ecommerce Sales

Regional Sales, Year to Date Comparison