Navigating Structural Shifts and Emerging Trends
Following a temporary acceleration in early 2025, Canada’s retail trade industry is now entering a phase of more moderate expansion. With underlying momentum in the sector softening, structural trends will likely play a more prominent role in shaping the retail sector’s medium-term trajectory.
Although household disposable income has shown signs of improvement, what factors continue to restrain household spending? Will cost pressures, particularly in labour and logistics, be sufficient to inhibit retail profit margins currently buoyed by steady revenue growth? What impact will slower population growth and an aging population have on retail demand, and how will the retail trade industry need to adjust?
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