Retail activity in Canada increased in January 2026, with sales rising 1.1% from the previous month to reach C$70.7bn ($51.54bn), according to Statistics Canada.

The country’s statistical agency reported that six of the nine retail subsectors expanded during the month.

Measured by volume, retail sales increased by 1%. Motor vehicle and parts dealers posted the largest month-to-month gain, up 2% in January after a 1.6% drop in December.

The increase was mainly attributed to new car dealers, where sales advanced 2.5%, alongside a 5.6% rise at other motor vehicle dealers.

Used car dealers moved in the opposite direction, down 3%.

Gasoline stations and fuel vendors recorded a 0.4% decline in January, following two straight months of growth.

Volumes in this category also fell 0.4%. Core retail sales, excluding both motor vehicle and parts dealers and gasoline stations and fuel vendors, rose 0.9% in January, after decreasing 0.4% in December.

General merchandise retailers led the gains, with sales up 3%, extending the subsector’s streak of monthly increases to four.

Sporting goods, hobby, musical instrument, book and miscellaneous retailers also expanded, rising 2.6% for a second consecutive month.

The steepest drop within core categories came from food and beverage retailers, which slipped 0.6%.

Statistics Canada linked the decline to lower sales at supermarkets and other grocery retailers (excluding convenience retailers), down 0.7% after a 0.1% increase in December.

It said retail sales rose in every province in January.

Alberta saw the biggest increase in dollar terms, up 3.5%, supported by stronger sales at motor vehicle and parts dealers.

Ontario reported a 0.9% rise, again helped by vehicle dealers.

In the Toronto census metropolitan area, retail sales increased 0.6%.

Quebec’s sales were up 0.6%, while the Montréal census metropolitan area recorded a 1.7% increase.

Seasonally adjusted e-commerce sales grew 1.5% to $4.4bn in January and accounted for 6.2% of total retail trade.

The agency also issued an early estimate pointing to a 0.9% rise in retail sales in February, cautioning that the figure is subject to revision.

The estimate was derived from responses from 53.4% of surveyed businesses; over the past 12 months, the average final survey response rate was 87.3%.