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Retailers in Canada See First Sales Drop in Seven Months

  • Early estimate shows 2% decline in July, when gas prices fell
  • Desjardins blames consumer fatigue as inflation and rates bite
A shopper carries bags through a mall in Victoria, British Columbia on July 26.

A shopper carries bags through a mall in Victoria, British Columbia on July 26.

Photographer: James MacDonald/Bloomberg
Updated on

Canadian shoppers may be starting to pull back on their spending as inflation erodes their purchasing power.

An advance estimate suggests retail sales dropped 2% in July, Statistics Canada reported Friday in Ottawa. That’s after a 1.1% jump in June, the sixth straight increase, which was driven by higher sales at gas pumps and vehicle dealers.