Canada retail sales slide 0.8% in July, but rebound expected in August

Canada’s economy shrank 1.6% in Q2, its first contraction in nearly two years, driven by weaker trade. [https://invezz.com/wp-content/uploads/2025/05/canada-coreprices-invezz.png] According to data issued by Statistics Canada on Friday, Canada’s retail industry saw a largely anticipated dip in July, with shoppers pulling back in most categories. Retail sales fell 0.8% to C$69.6 billion ($50.36 billion), reversing most of June’s estimated 1.6% increase. The downturn was widespread, with sales declining in eight out of nine subsectors. Clothing and accessory stores experienced the steepest loss, down 2.9%, while food and grocery merchants down a 2.5%. In total, decreasing subsectors accounted for 72.2% of all retail activity. In volume terms, which exclude the impact of price increases, sales declined 0.8%. The decline showed the strain on household spending due to rising living costs and deteriorating labour market conditions. MOTOR VEHICLES REPRESENTED A RARE BRIGHT SPOT Amidst the widespread slump, one category stood out. Sales at motor vehicle and parts dealers, representing over 27% of total retail sales, rose 0.2%. In July, it was the only segment to record growth. Retail sales, excluding motor vehicles and…