Statistics Canada reported that retail sales in Canada rose 0.9% in March, reaching $72.7 billion. The increase reflected gains in four of nine retail subsectors, with gasoline stations and fuel vendors registering the largest rise among those categories.
Gasoline stations and fuel vendors saw receipts jump 12.4% in March. Statistics Canada linked that surge to higher gasoline prices associated with a supply shock stemming from conflict in the Middle East.
Not all retail categories participated in the advance. Motor vehicle and parts dealers posted a 0.5% decline in March, while used car dealers recorded a 4.0% drop. When gasoline stations and motor vehicle dealers are excluded, core retail sales edged down 0.1% for the month.
Several other subsectors moved lower in March. Building material and garden equipment dealers fell 2.9%, and general merchandise retailers declined 0.5%. On the other hand, food and beverage retailers increased 0.5%, driven in part by a 0.8% gain at supermarkets and other grocery retailers.
Geographic differences were apparent across the provinces. Retail sales increased in nine provinces in March. Ontario recorded the largest dollar gain at 1.4%, with Toronto alone up 1.5%. Alberta posted a 2.6% rise. Quebec was the only province to register a decline, down 0.8%, with retail activity in Montreal falling 2.0%.
On a quarterly basis, retail sales rose 2.1% in the first quarter of 2026, marking the seventh consecutive quarterly increase. In terms of volumes, retail sales were up 1.2% for the quarter, although volumes fell 0.7% in March.
An advance estimate based on responses from 52.1% of surveyed companies indicates retail sales increased 0.6% in April.
Commenting on the March results, CIBC economist Andrew Grantham said, "Overall, it appears that higher gasoline prices may already be limiting sales in other areas, which will see inflation-adjusted consumer spending growth decelerate again in Q2 following a solid first quarter."
The March figures show how a substantial rise in fuel spending can lift headline retail sales while core measures of consumer demand show weakness or moderation. The data highlight contrasts across retail subsectors and provinces as policymakers and market participants assess near-term consumer momentum.