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Hudson’s Bay Liquidation Lifts Canadian Retail Traffic

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By J.C. Williams Group

April’s retail sales data brought a wave of optimism for Canadian retailers, with overall sales up 6.1% YOY. Even discretionary spending—a category often sensitive to economic uncertainty—showed a healthy 4.2% YOY growth.

The strong retail performance in April can be attributed to a mix of strategic marketing and opportunistic shopping. A growing sense of national pride seems to be influencing buying behavior, as “Made in Canada” and “Canada-Owned” labels are becoming a focal point for both retailers and consumers. Many stores are actively promoting Canadian-made products, and this push appears to resonate with shoppers eager to support local businesses.

Additionally, the liquidation sales at Hudson’s Bay played a surprising role in driving foot traffic to shopping centres. While customers initially flocked to capitalize on discounts at Hudson’s Bay, many likely extended their visits to other retailers in the same malls. This spillover effect underscores the importance of physical retail spaces in creating opportunities for incidental purchases, even in a predominantly digital shopping era.

Not all retail categories shared in April’s success. Convenience Store sales fell -0.8% YOY, continuing a troubling trend—down nearly -5% YTD. This decline reflects deeper structural challenges within the sector.

One major issue is the overreliance on alcohol sales, which often takes up valuable shelf space that could be used for more diverse or innovative product offerings. Compounding this, further competition from pharmacy (e.g., Shoppers Drug Mart, Rexall, etc.), dollar stores, and even grocery, are encroaching on convenience stores’ territory, offering similar products—often with a stronger focus on health and wellness.

The consumer shift toward healthier lifestyles is especially problematic for traditional convenience stores, which remain rooted in their legacy of chips, candy, and sugary drinks. Without adapting to these changing preferences, convenience stores risk falling further behind in a market that increasingly values fresh, nutritious, and functional products.

The health and wellness sector continues to thrive, reshaping consumer behavior across multiple retail categories. For instance, Health and Personal Care Stores saw sales grow 7.8% YOY in April, extending a years-long trend that began during the pandemic. Consumers are clearly prioritizing self-care, with demand surging for vitamins, supplements, skincare, and other health-focused products.

Interestingly, while Beer, Wine, and Liquor Stores posted a modest 2.6% YOY increase in April, their YTD growth is just 0.7%, reflecting the longer-term decline. Many Canadians continue to be cutting back on alcohol consumption, aligning with broader health trends.

Meanwhile, cannabis retailers are flourishing, with sales up an impressive 13.7% YOY. Cannabis is increasingly viewed as a healthier alternative to alcohol in certain formats, making it a strong contender in the evolving health-conscious landscape. This shift is forcing traditional alcohol retailers to rethink their strategies to stay relevant in a market that is clearly moving toward wellness-focused alternatives.

With these impressive April retail sales results, JCWG has been thinking about:

  • Will an increased focus on purchasing Made in Canada products become a long term change in Canadian consumer habits?
  • Where will we see spikes in retail sales as Canadians travel nationally throughout the summer to keep their dollars at home?
  • Will the exit of Hudson’s Bay have a major effect on foot traffic to shopping centres?
  • How are YOU changing your merchandise planning to include more Canadian products?

Retail Sales by Product Category, Same Month Comparison

Sales for the Month of AprilApr-25Apr-24YOY
All Stores70,720,89966,646,0536.11%
Motor Vehicle and Parts Dealers22,204,31819,714,57012.63%
Gasoline Stations5,824,2406,320,283-7.85%
All Stores Less Automotive42,692,34140,611,2005.12%
Food and Beverage Stores12,695,43112,010,6055.70%
Supermarkets and Other Grocery Stores*9,148,7498,660,0835.64%
Convenience Stores684,612689,913-0.77%
Specialty Food Stores956,603803,86219.00%
Beer, Wine and Liquor Stores1,905,4681,856,7472.62%
Health and Personal Care Stores5,995,5905,562,9317.78%
All Stores Less Automotive, Food, and Pharmacies24,001,32023,037,6644.18%
General Merchandise Stores9,249,3528,886,4424.08%
Furniture, Home Furnishings, Electronic and Appliance Stores3,520,6213,414,2943.11%
Furniture Stores1,152,9281,131,9601.85%
Home Furnishings Stores720,740696,7993.44%
Electronics and Appliance Stores1,646,9541,585,5363.87%
Clothing and Accessories Stores3,465,7173,213,0887.86%
Clothing Stores2,684,9642,481,1288.22%
Shoe Stores391,371393,625-0.57%
Jewellery, Luggage and Leather Goods Stores389,381338,33515.09%
Sporting Goods, Hobby, Book and Music Stores3,795,6063,512,8398.05%
Building Material and Garden Equipment3,970,0244,011,001-1.02%
Miscellaneous Store Retailers2,544,0492,260,66012.54%
Cannabis Retailers466,698410,51913.68%

Retail Sales by Store Category, Year to Date Comparison

Year-to-Date Sales Ending AprilApr-25Apr-24YTD
All Stores254,230,320242,694,5434.75%
Motor Vehicle and Parts Dealers72,775,47666,890,5358.80%
Gasoline Stations23,895,30824,281,482-1.59%
All Stores Less Automotive157,559,536151,522,5263.98%
Food and Beverage Stores49,106,79047,870,2372.58%
Supermarkets and Other Grocery Stores*35,912,20734,840,3853.08%
Convenience Stores2,521,8882,653,054-4.94%
Specialty Food Stores3,399,5693,151,9397.86%
Beer, Wine and Liquor Stores7,273,1277,224,8600.67%
Health and Personal Care Stores23,197,32821,607,3997.36%
All Stores Less Automotive, Food, and Pharmacies85,255,41882,044,8903.91%
General Merchandise Stores33,075,79631,929,8633.59%
Furniture, Home Furnishings, Electronic and Appliance Stores13,524,10013,165,0492.73%
Furniture Stores4,364,5434,268,0872.26%
Home Furnishings Stores2,670,3102,524,4395.78%
Electronics and Appliance Stores6,489,2486,372,5241.83%
Clothing and Accessories Stores12,122,96211,144,5918.78%
Clothing Stores9,415,7168,617,4969.26%
Shoe Stores1,259,9461,276,312-1.28%
Jewellery, Luggage and Leather Goods Stores1,447,2981,250,78215.71%
Sporting Goods, Hobby, Book and Music Stores13,948,19713,065,4146.76%
Building Material and Garden Equipment12,584,36212,739,972-1.22%
Miscellaneous Store Retailers9,440,9988,441,49011.84%
Cannabis Retailers1,718,1091,606,1336.97%

Ecommerce Sales

Apr-25Apr-24
Ecommerce Sales, YTD15,252,15214,013,1418.84%
Ecommerce Sales, YOY4,241,3843,867,8469.66%

Regional Sales, Year to Date Comparison

RegionYear-to-Date, 2025Year-to-Date, 2024YTD
British Columbia35,332,66033,259,1736.23%
Vancouver18,181,73816,911,7067.51%
Alberta33,278,50931,483,9985.70%
Prairies*16,965,92315,966,9266.26%
Ontario94,637,67890,931,4324.08%
Toronto42,193,82241,363,7462.01%
Québec55,791,29853,737,1653.82%
Montréal27,959,43426,873,4704.04%
Atlantic Canada17,268,62116,425,6295.13%
Territories955,632890,2207.35%

Thank you J.C. Williams Group for supplying this report.

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