“A retailer is a business that finds, buys and gathers products or services from multiple suppliers and sells them to consumers.” (Business Development Bank of Canada)
While many people think of the retail industry as clothing stores and consumer products, it’s really much more broad. In fact, within franchising, retail includes sectors such as florists, photography, catering, cannabis sales, and more. The industry offers diverse opportunities and has proven to be resilient even during economic downturns, playing a crucial role in Canada’s economy.
Key Statistics of Canada’s Retail Sector
When it comes to the retail industry and franchising in Canada, two statistics stand out.
- Annual sales are $632 billion in the Canadian retail sector (IBISWorld)
- Franchise businesses account for 45% of these sales (Franchise101 Inc.)
Not only is retail a booming industry in Canada, but retail franchises are an integral part of the economy.
Additionally, Ontario is the leading province for retail locations and revenue at 24,729,098 total retail sales in August, 2024 (Statistics Canada). Quebec, British Columbia, and Alberta are also among the leaders in Canadian retail. Prospective franchisees thinking about joining the retail industry should consider these provinces due to their established consumer bases and thriving local economies.
Leading Retail Industries in Canada
Food and grocery remains the top sector in Canada’s retail market, attracting a steady stream of customers due to its essential nature.
Other key sectors include:
- Clothing & Footwear – Trends in sustainable and ethical fashion shape consumer preferences, and create opportunities for eco-friendly brands and niche franchises.
- Home – Notably, this sector saw significant growth during the pandemic as remote work encouraged investments in home offices and living spaces.
- Electrical – This sector is driven by rapid advancements and consumer demand for the latest gadgets.
- Health & Beauty – The wellness trend continues to push demand for natural and organic beauty products, opening doors for specialized health and beauty franchises.
3 Consumer Trends Shaping the Canadian Retail Market
While the retail market is multifaceted, there are a few consumer trends having a significant impact in various sectors.
- Increased bargain hunting – Uncertain economic times have led consumers to prefer value-driven shopping, increasing the demand for fixed-price retailers, warehouse clubs, and discount stores.
- Digital transformation – The emergence of e-commerce and mobile-friendly shopping platforms have significantly transformed the retail industry. Consumers can shop from the comfort of their homes with the click of a button. While brick-and-mortar stores are still relevant, they’ve had to adopt an omni-channel strategy to adapt to the technological landscape.
- Foreign retailers – Global brands have brought more foot traffic to the retail space. While this is certainly a benefit to many retail businesses, the increased competition has led to the need to innovate in order to remain competitive.
Interested in Buying a Retail Franchise in Canada?
Franchises in essential goods (grocery, health products) and emerging sectors (cannabis, e-commerce) offer stability and growth potential. If you’re thinking about franchise ownership, the retail industry is an opportunity to tap into current trends and position yourself for long-term success.
Wondering which retail sector you should join? The answer is different depending on each individual. FranNet is here to help! Our expert franchise consultants will assess your skills and goals and match you with the right brand for you. We’ll walk you through the process of buying a franchise from start to finish. Schedule your free consultation today!