Canadian Industrial Profile: Furniture and Appliance Stores—2020
The Conference Board of Canada,
February 19, 2020
This industry profile provides a five-year forecast for Canada’s furniture and appliance stores industry.
- The industry is highly fragmented, with close to 90 per cent of stores relying on fewer than 20 employees. The total number of furniture, electronics, and appliance stores has fallen by almost 25 per cent since 2015; there are 4,000 fewer businesses today.
- Despite numerous store closures and industry consolidation, the industry had a good performance over the past five years, with GDP growth significantly outpacing the Canadian average. Together with home improvement stores, furniture and appliance stores were the top-performing retail trade segments in recent years thanks to robust growth in the housing sector.
- Quebec and Ontario were behind the bulk of industry growth in recent years, thanks to strong GDP and job growth in Canada’s two largest provinces.
- Unsurprisingly, oil-dependent provinces have performed poorly since the oil price collapse
in 2014, with GDP in the sector shrinking in Alberta, Saskatchewan, and Newfoundland
- Retail prices at furniture and appliance stores tend to closely mirror fluctuations in the Canadian–United States exchange rate, since the sector imports the bulk of the products sold in stores.