The Canadian retail market in 2024 has seen a mix of challenges and growth across various sectors, reflecting the evolving impact of inflation on consumer spending habits. As economic pressures influence how and where consumers spend, we’ve observed significant shifts that continue to shape the retail landscape.
Key Trends in the Canadian Retail Market
- Inflation’s Impact on Spending Habits:
Inflation has driven noticeable changes in consumer behaviour, with a growing preference for smaller, local grocers and warehouse centres like Costco over large chain grocery stores. These shifts highlight the prioritization of value and accessibility among Canadian shoppers. - Retail Vacancy Trends:
While retail vacancy rates have steadily decreased since their peak of 2.6% in Q3 2020, net absorption remains below pre-pandemic averages as of mid-2024. Enclosed malls, in particular, continue to face challenges stemming from softer consumer spending on discretionary goods such as fashion and accessories. - Neighbourhood and Strip Centres on the Rise:
The shift in spending habits has benefited neighbourhood and strip centres, which house sectors experiencing growth, including specialty food retailers and health and personal care. These categories have shown stronger performance in 2024 compared to the first half of 2023, reflecting the demand for convenience and essential goods.
Explore the Full Market Report
For a deeper dive into these trends and a comprehensive analysis of the Canadian retail landscape, we encourage you to review the Cushman & Wakefield Market Report 2024. This detailed report offers valuable insights into how retailers and landlords can adapt to the shifting dynamics of consumer behaviour and market conditions.
Cushman & Wakefield Waterloo Region: Your Partner in Retail Real Estate
Understanding these trends and navigating the challenges of the evolving retail market requires local expertise paired with global insights. At Cushman & Wakefield Waterloo Region, we combine in-depth market knowledge with the resources of a global leader in real estate to help our clients make informed decisions.
Whether you’re looking to invest, lease, or reposition your retail property, our team is here to provide the insights and strategies you need to succeed in today’s market. Contact us to learn more about how we can support your retail real estate goals.
