Canada Retail MarketBeat

After a grim 2020, where lockdowns led to a drop in retail spending nationwide, 2021 rebounded strongly with decade-high growth; retail sales are forecasted to be up 12.9% from the prior year, and overall sales reached record highs in nominal terms. While certain segments of the economy have seen decreased spending, growth was especially strong in home-related areas such as furniture, garden supplies and pets. 

The labour market has been a surprising positive, with Canada exceeding the U.S. in job growth during the pandemic. While overall employment in the U.S. still lags after two years, Canada has more employed people and a lower unemployment rate than before the start of restrictions. Job growth was very uneven, with strong growth in professional services, government and technology, while sectors such as hospitality and food/beverage continue to be hit very hard. The low unemployment rate, combined with growth in high-income professions, has created a positive environment for retail spending.