Canada Retail Market Outlook

According to the report by Expert Market Research (EMR), the Canada retail market attained a value of USD 795.57 billion in 2024. Aided by rising consumer spending, growing urbanisation, and the rapid expansion of e-commerce platforms, the Canada retail market size is projected to grow at a CAGR of 4.90% between 2025 and 2034 to reach a value of approximately USD 1283.61 billion by 2034.

The Canadian retail sector plays a vital role in the nation’s economy, serving as one of the largest employment generators and contributing significantly to GDP. The industry encompasses a wide array of segments, including food and beverages, apparel, home furnishings, health and beauty, electronics, and automotive retail. Supported by a stable economy, high disposable incomes, and an evolving consumer landscape, the sector continues to experience steady growth across both traditional and digital channels.

The growing influence of digital transformation, increasing adoption of omnichannel strategies, and rising focus on sustainability are redefining the Canadian retail landscape. Retailers are increasingly embracing innovative technologies such as artificial intelligence (AI), big data analytics, and automation to enhance customer experience, improve operational efficiency, and strengthen brand loyalty.

Canada Retail Market Size and Share

The Canada retail market, valued at nearly USD 795.57 billion in 2024, represents a highly diversified and mature industry. The food and grocery segment holds the largest share, driven by strong demand for everyday essentials and the growing preference for convenient, ready-to-eat options. Major supermarket chains such as Loblaw Companies, Sobeys, and Metro dominate this segment, with increasing competition from discount stores and online grocery platforms.

The non-food retail sector, encompassing fashion, consumer electronics, home improvement, and personal care products, also commands a significant market share. The fashion and apparel sector is particularly influenced by seasonal trends, sustainability concerns, and the increasing penetration of international brands. Meanwhile, the electronics and home appliance segment continues to benefit from consumer demand for smart devices and connected home technologies.

E-commerce has emerged as a rapidly growing component of the Canadian retail landscape. Online retail sales have witnessed double-digit growth in recent years, supported by increasing internet penetration, improved digital payment infrastructure, and the convenience of doorstep delivery. Leading e-commerce platforms such as Amazon, Walmart Canada, and Shopify-based retailers are capturing a growing share of consumer spending.

Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/canada-retail-market/requestsample

Canada Retail Market Trends

Several key trends are shaping the trajectory of the Canadian retail industry:

• Omnichannel Retailing
  Retailers in Canada are increasingly adopting omnichannel strategies to provide a seamless shopping experience across physical stores, online platforms, and mobile applications. Consumers now expect flexibility in their purchasing journeys, including options such as click-and-collect, same-day delivery, and easy returns.

• Rise of E-Commerce and Digital Transformation
  The expansion of online retail, accelerated by the COVID-19 pandemic, has permanently altered consumer behaviour. Retailers are investing heavily in e-commerce platforms, digital marketing, and logistics infrastructure to enhance reach and efficiency. The integration of AI-powered chatbots, personalised product recommendations, and augmented reality (AR) try-on features is further enriching online experiences.

• Sustainability and Ethical Consumption
  Environmental awareness and social responsibility are becoming increasingly important factors influencing consumer purchasing decisions. Brands that prioritise sustainability—through eco-friendly packaging, responsible sourcing, and carbon footprint reduction—are gaining traction among Canadian shoppers. The shift towards second-hand marketplaces and circular retail models is also becoming more pronounced.

• Experiential Retailing
  To counter the growing dominance of e-commerce, brick-and-mortar retailers are focusing on enhancing in-store experiences. Interactive displays, immersive brand events, and personalised customer service are key strategies aimed at increasing foot traffic and customer engagement.

• Adoption of Advanced Technologies
  The integration of digital tools such as data analytics, Internet of Things (IoT), and robotics is revolutionising retail operations. Predictive analytics enable demand forecasting, while automated checkouts and smart shelves enhance efficiency. Retailers are also leveraging blockchain technology for supply chain transparency.

Drivers of Growth

The growth of the Canada retail market is being driven by several key factors:

• Strong Consumer Confidence and Spending: Canada’s relatively stable economy and high standard of living are bolstering consumer confidence. Rising household incomes and low unemployment rates continue to drive expenditure on both essential and discretionary goods.

• Urbanisation and Demographic Shifts: With over 80% of Canadians living in urban areas, urbanisation is fostering demand for modern retail formats, shopping malls, and online convenience. Moreover, the growing influence of younger, tech-savvy consumers is reshaping retail preferences toward digital platforms and experiential shopping.

• Evolving Retail Infrastructure: The expansion of shopping centres, retail parks, and logistics networks has improved product accessibility and distribution efficiency. Retailers are investing in modern warehouses, cold storage facilities, and last-mile delivery systems to support growing e-commerce demand.

• Innovation in Product Offerings: Continuous innovation in product design, packaging, and marketing is stimulating consumer interest. The rise of local brands, private labels, and premium product lines is contributing to market diversification and competitiveness.

• Government Support for Small Businesses: Various government initiatives and funding programs aimed at supporting small and medium-sized enterprises (SMEs) are strengthening Canada’s retail ecosystem. These efforts are helping retailers digitise operations and reach wider audiences through online platforms.

Canada Retail Market Segmentation

Some of the major players explored in the report by Expert Market Research are as follows:

• Walmart Inc.
• Amazon.com Inc.
• Costco Wholesale Corporation
• The Home Depot, Inc. 
• George Weston Limited
• Empire Company Limited 
• Metro Inc. 
• Others

Challenges and Opportunities

Despite positive growth prospects, the Canada retail market faces several challenges.

Rising operational costs, including real estate, logistics, and labour expenses, are placing pressure on profit margins. Additionally, intense competition from both domestic and international players, as well as from online marketplaces, is forcing retailers to continually innovate and differentiate their offerings.

Supply chain disruptions, particularly those related to global logistics and raw material shortages, have created challenges in maintaining inventory levels and pricing stability. Furthermore, cybersecurity risks associated with increasing digitalisation pose a significant threat to consumer trust and data protection.

However, the market also presents numerous opportunities. The continued expansion of e-commerce, growth of sustainable and eco-conscious retail, and rising demand for personalised shopping experiences are opening new avenues for innovation. Retailers that successfully combine physical and digital channels while maintaining strong customer relationships will be well-positioned for success.

The increasing participation of international brands and the growing influence of multicultural demographics also present opportunities for product diversification and cross-cultural marketing. Additionally, the adoption of data-driven decision-making and advanced analytics will enable retailers to respond swiftly to changing consumer trends and market dynamics.

Canada Retail Market Forecast

Looking ahead, the Canada retail market is expected to maintain steady growth during the forecast period of 2025–2034, reaching a value of approximately USD 1283.61 billion by 2034. The market will continue to evolve under the influence of digitalisation, innovation, and sustainability initiatives.

Retailers are likely to focus on customer-centric strategies, offering personalised services, loyalty programs, and seamless omnichannel experiences. The integration of AI, automation, and data analytics will play a pivotal role in improving efficiency and enhancing competitiveness.

As consumer expectations evolve and technological innovation accelerates, the Canadian retail industry is set to witness a new era of transformation—marked by smarter operations, sustainable practices, and deeper customer engagement.

Media Contact:

Company Name: Claight Corporation
Email: sales@expertmarketresearch.com
Toll Free Number: +1–415–325–5166 | +44–702–402–5790
Address: C-130 Sector 2 Noida, Uttar Pradesh 201301
Website: https://www.expertmarketresearch.com