Canada Retail Market Report and Forecast 2025-2034

According to this report, the Canada retail market size reached around USD 795.57 billion in 2024. Aided by the rapid growth of e-commerce and omnichannel shopping experiences, alongside a strong shift towards personalised, sustainability-focused consumer offerings, the market is projected to grow at a CAGR of 4.90% between 2025 and 2034 to attain nearly USD 1.28 trillion by 2034.

The Canada retail market growth is being driven by evolving consumer preferences, technological advancements, and economic factors shaping purchasing behaviour. The increasing digitalisation of retail, coupled with rising consumer demand for convenience, has led to significant transformations across various segments, including grocery, apparel, electronics, and home goods. The expansion of e-commerce and omnichannel strategies has further fuelled the retail sector, as businesses invest in online platforms, digital payment solutions, and seamless shopping experiences to meet changing customer expectations.

The rise of e-commerce has significantly impacted the Canada retail market landscape, with consumers embracing online shopping for its convenience, variety, and competitive pricing. The growing preference for direct-to-consumer (DTC) brands and subscription-based models has reshaped traditional retail structures, prompting established brands to enhance their digital presence.

Retailers are integrating advanced technologies such as artificial intelligence, augmented reality, and data analytics to personalise shopping experiences and optimise supply chain operations. The increasing adoption of mobile commerce and contactless payments has further accelerated the digital transformation of the retail sector, ensuring a seamless and efficient customer journey.

Brick-and-mortar retail continues to play a crucial role in aiding the Canada retail market expansion, with experiential retail concepts gaining popularity. Shopping malls, flagship stores, and pop-up experiences are being designed to offer interactive and immersive environments that attract foot traffic and enhance customer engagement. Retailers are focusing on hybrid models that combine physical and digital shopping experiences, including click-and-collect services and virtual try-on technologies. The emphasis on customer experience, store design, and brand storytelling has become paramount in retaining consumer interest and driving sales in an increasingly competitive market.

The grocery retail sector remains a vital component boosting the Canada retail market revenue, with supermarkets, hypermarkets, and convenience stores catering to the diverse needs of Canadian consumers. The demand for organic, locally sourced, and sustainable products has surged, prompting retailers to expand their product offerings and strengthen relationships with local suppliers.

The integration of digital grocery shopping, home delivery services, and curbside pickup options has enhanced accessibility and convenience, reshaping consumer habits and expectations. As health-conscious trends continue to grow, retailers are focusing on functional foods, plant-based alternatives, and personalised nutrition solutions to meet evolving dietary preferences.

The apparel and fashion retail segment is undergoing a transformation, with sustainability, inclusivity, and digital innovation driving Canada retail market trends. Consumers are increasingly prioritising ethical fashion, eco-friendly materials, and transparent supply chains, leading to a shift in production practices and brand messaging. The influence of social media, influencer marketing, and fast fashion continues to shape purchasing decisions, with retailers leveraging digital platforms to engage with customers and drive brand loyalty. The adoption of virtual fitting rooms, AI-driven styling recommendations, and direct-to-consumer fashion lines further enhances the customer experience, ensuring that brands remain competitive in a rapidly changing industry.

As per the Canada retail market analysis, the electronics and home goods retail segment is witnessing steady growth, fuelled by the rising demand for smart devices, home automation, and sustainable living solutions. Consumers are investing in energy-efficient appliances, connected home systems, and high-performance electronics, driving innovation and product diversification.

The increasing reliance on online reviews, influencer endorsements, and comparison shopping has influenced purchasing behaviour, prompting retailers to enhance their digital strategies and customer support services. The emphasis on product sustainability, durability, and after-sales services is also shaping consumer preferences, with brands focusing on long-term value and responsible consumption.

The role of sustainability in the Canada retail market continues to expand, with businesses implementing eco-friendly initiatives, circular economy models, and waste reduction strategies to align with consumer values. The demand for reusable packaging, ethical sourcing, and carbon-neutral supply chains is influencing product development and marketing approaches.

Retailers are investing in green technologies, sustainable logistics, and corporate social responsibility initiatives to differentiate themselves in a competitive market. As environmental awareness grows, the adoption of zero-waste stores, refill stations, and second-hand marketplaces is gaining traction, reflecting the shift toward mindful consumption and sustainable shopping practices.

Government policies and economic conditions play a crucial role in shaping the Canada retail market dynamics, with trade regulations, taxation policies, and consumer protection laws influencing market dynamics. The impact of inflation, interest rates, and employment levels on consumer purchasing power remains a key consideration for retailers. The support for small businesses, innovation grants, and digital transformation programs are contributing to the growth and resilience of the market. The ongoing investment in infrastructure, logistics, and supply chain efficiency further enhances the market’s ability to adapt to changing demands and economic fluctuations.

The future of the Canada retail market is poised for continued growth in the coming years, driven by digital innovation, evolving consumer preferences, and sustainability-focused initiatives. The integration of artificial intelligence, data-driven decision-making, and personalised shopping experiences will further shape the market, ensuring that businesses remain agile and responsive to market trends.

The emphasis on omnichannel strategies, ethical consumption, and technological advancements will be pivotal in sustaining growth and maintaining consumer engagement. With a focus on adaptability, innovation, and customer-centric approaches, the retail sector remains a cornerstone of economic development, offering opportunities for businesses to thrive in an increasingly interconnected and dynamic marketplace.

Market Segmentation

The market can be divided based on product, sector, distribution channel, and region.

Market Breakup by Product

• Food, Beverage and Grocery
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture and Home Décor
• Toys, Hobby, and Household Appliances
• Industrial and Automotive
• Electronic, Consumer Durables and IT
• Pharmaceuticals
• Others

Market Breakup by Sector

• Organised
• Unorganised

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• British Columbia
• Alberta
• The Prairies
• Central Canada
• Atlantic Canada

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Canada retail market.

Some of the major players explored in the report are as follows:

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