Canadian retail sales edge higher as jewellery outperforms

Core Insights - The Canadian retail sector is experiencing muted overall sales growth, with jewellery and related categories outperforming the broader market [1][2][3] Retail Performance Overview - Overall Canadian retail sales saw a minimal year-on-year increase of 2.4% in October 2025, with a month-on-month rise of 4.3% [2] - The slow growth is attributed to cautious consumer sentiment and macroeconomic challenges, with expectations for partial recovery in 2025 and gradual strengthening through 2026 [3] Jewellery Sector Analysis - The jewellery segment reported a significant year-on-year growth of 12.8% and a month-on-month increase of 5.3% in October 2025, indicating strong demand for premium goods [4] - Revenue for Canadian jewellery stores was estimated at approximately C$3.6 billion in 2025, despite a slight decline over the past five years, highlighting structural market shifts [5] Retail Challenges - There has been a decline in foot traffic in retail stores through October 2025, indicating a shift towards reliance on conversion rates and basket size for sales [6] - The lack of updated online traffic data for the jewellery segment limits the ability to analyze e-commerce performance effectively [7]