Mounting Competitive Pressures—The recent increase to Canada’s de minimis threshold will give Canadian consumers a break on lower-cost goods that are purchased from U.S. retailers. This will continue to drive stronger competition throughout Canada’s retail landscape.
The E-Commerce Edge—Sales of furniture and appliances are growing more than nine times faster online than at walk-in stores. Retailers that ignore this trend are at risk of being left behind.
Consumers Remain Highly Indebted—With interest rates already starting to rise, consumers will be paying more to finance their debt going forward. This will weaken their ability to spend on discretionary items, including furniture and appliances.