Canada's retail sales increased 3.2% to $58.9 billion in January, according to Statistics Canada figures released on Friday.
While the market expectation was a gain of 2.4%, retail sales in the North American country fell 2% in December 2021.
Sales were up in nine of 11 subsectors, representing 85.5% of retail trade, according to the agency.
The increase was led by higher sales at motor vehicle and parts dealers with 5.3%, as sales at new car dealers rebounded with a 5.5% gain in January following a decline in the previous month.
Core retail sales, which exclude gasoline stations and motor vehicle and parts dealers, increased 2.9%, the agency said.