"February 2025 witnessed a modest increase in Canadian retail sales, with All Stores growth pegged at 1.0% YOY. This growth extended to discretionary spending with All Stores Less Automotive, Food, and Pharmacies which also saw a 1.0% YOY increase. Several factors influenced these figures, most notably:
The Bank of Canada’s decision to maintain interest rates amidst global economic uncertainties,
The conclusion of the GST/HST break in mid-February, adding sales tax back to products such as food, beverages, alcohol, and children’s goods. Though we are not yet clear on the full effects of this, initial data findings indicate it had a limited effect, and
Emerging US tariff concerns. Announcements began on February 1, 2025 with tariffs of 25% on most Canadian goods, and 10% tariff on oil, gas, and potash. Additionally, on February 10, there was an announcement of a 25% tariff on steel and aluminum products. Canada has also retaliated with tariffs on numerous US goods which has further caused increased concerns to Canadians as this will also raise prices."
https://retail-insider.com/retail-insider/2025/04/canadian-retail-sales-rise-in-early-2025-amid-tariff-and-tax-changes/