Canadian Consumers Refuse to Cut Back Amid Weakening Economy

Despite the weakening labour market and high household debt in Canada, consumers are still spending. Recent results from major retailers show Canadian sales holding up well and even growing faster than their U.S. counterparts.

Walmart Canada's net sales increased by 4.3% in the quarter ended July 31, outpacing Walmart U.S.'s 3.5% growth. Over the first six months of the fiscal year, Canadian sales reached US$12.1 billion, up 7.5% from a year earlier.

TJX Canada, which operates Winners, Marshalls, and HomeSense, posted a 6% comparable-sales increase in its latest quarter, while Marmaxx's U.S. division saw only a 1% gain.