Luxury Apparel Market in Canada to See Continuous Gains into 2023: Report

Date:

Share post:

A new report estimates that the Canadian luxury apparel market over the next five years will increase by 5.8 per cent in 2019 and by 18 per cent from 2019 to 2023 to $3.2 billion.

“Over the period 2019-2023 the Canadian luxury apparel market will increase at an average annual rate of 3.6 per cent, while the overall yearly growth rate for the Canadian total apparel market during the same period will average between 1.6 per cent and 1.9 per cent,” said the 2019 Canadian Luxury Apparel Market report by Trendex North America, a marketing research and consulting firm.    

“The growth of the Canadian luxury apparel market will be driven in 2019 by a 7.8 per cent increase in luxury women’s apparel sales while men’s luxury apparel will increase by 5.2 per cent. As purse suppliers will be introducing fewer styles in 2019, the growth in the luxury purse market should increase by a maximum of 4.8 per cent in 2019.”

PHOTO: RETAIL INSIDER (BOTTEGA VENETA, YORKDALE)

The report said the competitive intensity in the Canadian luxury apparel retail market over the next five years will continue to increase and will be driven by a number of developments including:                                       

●     An increase in the number of luxury apparel retailer doors, both in A malls and on “High Streets”;

●     An increase in luxury apparel brands flagship stores on High Streets and in A malls;

●     An expansion of the traditional boundary for High Street areas in both Toronto and Montreal

●     Increased presence of luxury apparel retailers in Canada’s better off-price malls (e.g. Toronto Premium Outlets)                                       

●     Additional luxury mono apparel brand specialty retailers entering Canada for the first time;                            

●     Growth of luxury apparel e-commerce sales. To what degree will the increase expand luxury apparel sales or simply replace traditional luxury apparel sales in brick and mortar stores cannot be determined; and                                      

●     Luxury apparel mono brand apparel/accessories retailers upgrading/expanding the size of their existing Canadian stores.

PHOTO: MICHAEL MURAZ (VALENTINO, TORONTO)

Randy Harris, president and owner of Trendex North America, said it’s important to note that the luxury apparel market grew by 6.5 per cent last year versus the 1.8 per cent growth for the total apparel market.

“The first reason for the market growing is the unprecedented boom in luxury apparel retail, meaning both the increase in the number of stores and the size of the stores,” he said. “That is partially due to the fact that Canadian malls have been reconfigured to host luxury apparel brands including their flagship stores and the expansion of the luxury zones, primarily in Toronto and Montreal.

“In addition to that we have a growth in ecommerce purchasing for luxury apparel which historically has not been a big factor but is becoming increasingly more so. We have an increase in foreign tourism too . . . Then lastly we have an increase in Millennial purchasing and those are the people that are buying a lot of aspirational luxury brands.”

PHOTO: CHANEL (TORONTO)

The key is the accessibility. Quite simply, today there are more luxury retail stores in Canada which exposes many more Canadians to that segment of the retail market.

But Harris has a couple of concerns regarding the luxury market which include a potential decline in tourism which could really happen if the Chinese economy slows down significantly. There are signs that is happening although it’s a gradual decrease versus a big drop.

“The second concern I have is a decrease in Canada’s economy. The forecast for the next couple of years is lukewarm at best. I don’t think anybody believes that the economy is really going to take off. On the other hand, it could slip back depending on what eventually happens with the revised NAFTA agreement that has yet to be signed,” said Harris.

PHOTO: KRISTEN PELOU (DIOR, TORONTO)

“The third thing I’m worried about is I believe we’re getting to the point that there’s going to have to be a shake out in the market as far as retailers grow because the amount of luxury buildings and outlets that are coming into play far exceeds the rate of which demand is increasing. So if you will, supply is probably growing at a rate that is 50 per cent greater than demand which means that the market is very vulnerable if all of a sudden there is any kind of a downward trend in the growth of the market.”

It’s also aggravated by the growth of luxury apparel retailers in the better outlet malls which never existed five years ago.

“At some point you’ve got to be almost Pollyannish not to think that the market is going to take a hit at some point. So at one hand we’re crowing about all the influx of new luxury retailers in the market for the first time. That’s good news. Always more choices are better for the consumer and you will note when these new people come in they only open one store,” said Harris.

PHOTO: EVAN DION (HERMES)

“But I’m worried about it long term if this keeps happening. Bottom line no curve goes up all the time. There’s got to be a downward move. I’m waving a red flag and saying that people need to be cautious.”

The report said the Canadian luxury retail apparel market over the next few years will become more competitive. There will be a slow but steady decrease in the number of Canadian-owned better independent apparel specialty retailers. Flagship store development will continue as the larger stores will be seen as providing a competitive advantage. Premium outlet malls will continue to gain share of the luxury apparel/accessories market.

Gucci – Toronto, ON – Holt Renfrew Yorkdale

A number of secondary luxury apparel mono brand retailers will either leave Canada entirely, or will relocate from “high streets” to less expensive locations. Holt Renfrew will continue to invest in its stores in order to retain its position as Canada’s preeminent luxury apparel retailer. Simons will come to define a unique niche of luxury apparel retailing. Luxury apparel retailers will develop separate marketing programs targeted to affluent foreign tourists, Improvements in technology will allow for greater customization of the services that luxury apparel retailers provide their customers.

The report said luxury apparel retailers will increasingly compete on both the in-store experience they provide their customers along with their marketing campaigns targeted in some cases, to specific demographic niches (e.g. Asians, Millennials, etc.). The battle for luxury apparel market share will increasingly equally be fought in Canada’s A malls, on expanding “High Street” areas in Vancouver and Toronto and to a lesser degree in Calgary and Montreal.
                                                     

1 COMMENT

  1. The luxury apparel market in Canada is gaining a lot of traction, and this report confirms it. I am glad this market is becoming better because that is what I wanted to see. I will tell my friends about this now.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From The Author

Luxury Brand Concessions at Nordstrom in Canada Shutter Ahead of Retailer’s Exit

Several major brands leased space within Nordstrom stores and the boutique spaces shuttered over the weekend.

Nordstrom to Exit Canada Discussion: Craig Patterson & Lee Rivett [Podcast]

Craig and Lee talk about the closure announcement of Nordstrom shutting its Canadian stores. Included in the discussion is how we found out, what might be done with Nordstrom's stores in Canada, and why the retailer made the shocking move.

Why Nordstrom Failed in Canada: Interview with Lisa Hutcheson of J.C. Williams Group

The retail industry expert also discusses learnings on retail innovation from EuroShop 2023.

Vancouver-Based Brand DUER to Double Store Count in 2023 [CEO Interview]

Stores act as a community hub for the brand which is seeing rapid growth across its channels.

Uniqlo to Enter Ottawa Market with Ongoing Canadian Store Expansion

The Japanese fast-fashion retailer is targeting major cities across the country as it enters new markets with stores.

SAXX Underwear Launches 1st Immersive Shop-in-Store at Hudson’s Bay Flagship in Toronto [Interview/Photos]

The pandemic put an earlier launch on hold for the brand which is now looking to open more retail locations in Canada.

Holt Renfrew to Relocate Standalone Men’s Store on Toronto’s Bloor Street Back into Flagship

The standalone Holt Renfrew Men opened in 2014 in a former Roots location, about 500 feet west of the 50 Bloor flagship. Big changes are in store according to the retailer.

Canadian Women’s Undergarment Brand Knix Expanding Further with Stores and Significant Growth [Founder Interview]

Joanna Griffiths discusses the expansion of her brand which includes product innovation and physical stores as well as robust e-commerce.

Upscale Women’s Retailer Andrews Relocated Yorkville Village Store to New Space [Interview]

The relocation follows Andrews' opening of a store in Oakville as it curates fashion lines catering to a range of female customers.

CrossIron Mills Near Calgary Sees Strong Leasing Activity with New Tenants Added [Interview]

It's been an incredibly active year according to James Moller of JLL, noting that the next space to deal with is a soon to be vacated Bed Bath & Beyond.

Birks Investing in Stores Including Relocating CF Chinook Centre Location in Calgary [Interview]

CEO Jean-Chrisophe Bédos tells Retail Insider that the jeweller sees an upside to luxury retail in Canada, particularly in five major markets.

Badass Fitness Experience With A FightClub Meets NightClub Vibe [Interview]

Cissy Chen, founder of Rumble Boxing Studio, discusses her growing business at a time when fitness studios struggle following the pandemic.

Zellers Reveals Opening Dates for Alberta and Ontario Stores

Zellers will be opening its first locations in Ontario and Alberta and launching its ecommerce platform later this month.

Grace Yan Discusses the Future of Calgary’s Nordstrom Space with Craig Patterson [Video Interview]

Craig sits down with Grace Yan, Commercial Consultant at Blackstone Commercial, to discuss the departure of Nordstrom store in CF Chinook Centre in Calgary.

Midtown Centre in Downtown Saskatoon Seeing New Retailers Opening [Interview]

The dominant shopping centre for the Saskatoon market saw several new retailers opening, with more to come including some not currently in Saskatchewan.

Competition in Eyewear in Canada Unprecedented with Fallout Expected Following Specsavers Entry [Op-Ed]

A former CEO of Luxottica describes a vastly changing Canadian retail landscape which includes UK-based Specsavers which grabbed 40% of Australian market share following its entry.

Canadian Cosmetic Chain Dermapure Expanding Locations Rapidly After L’Oreal/LVMH Investment [Interview]

The popular clinic concept will more than double its Canadian store count with big plans for a global expansion.

Holt Renfrew Extends Lease in Downtown Calgary while CF Chinook Centre Flourishes [Podcast]

Craig and Lee talk about some recent retail news in Calgary. That includes Holt Renfrew extending its lease in downtown Calgary at The CORE while adding new brands including a 'World of' Gucci concession. They also discuss CF Chinook Centre which is seeing new retailers being added such as Nike and Uniqlo.

Mobile App ‘A Safer Walk’ Launches to Help Women Safely Connect with Other Women in Public Spaces

The free app developed in Canada connects women with other women to walk together safely in places of potential concern, including in or near retail centres.

Brazilian Restaurant Concept Fogo de Chão Secures 1st Canadian Location as it Announces Expansion [Interview]

Vancouver is the first city in Canada for the popular restaurant, with a second set to open in Toronto's Entertainment District soon after.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

RECENT articles

Luxury Brand Concessions at Nordstrom in Canada Shutter Ahead of Retailer’s Exit

Several major brands leased space within Nordstrom stores and the boutique spaces shuttered over the weekend.

Nordstrom to Exit Canada Discussion: Craig Patterson & Lee Rivett [Podcast]

Craig and Lee talk about the closure announcement of Nordstrom shutting its Canadian stores. Included in the discussion is how we found out, what might be done with Nordstrom's stores in Canada, and why the retailer made the shocking move.

Why Nordstrom Failed in Canada: Interview with Lisa Hutcheson of J.C. Williams Group

The retail industry expert also discusses learnings on retail innovation from EuroShop 2023.

Vancouver-Based Brand DUER to Double Store Count in 2023 [CEO Interview]

Stores act as a community hub for the brand which is seeing rapid growth across its channels.

Uniqlo to Enter Ottawa Market with Ongoing Canadian Store Expansion

The Japanese fast-fashion retailer is targeting major cities across the country as it enters new markets with stores.

SAXX Underwear Launches 1st Immersive Shop-in-Store at Hudson’s Bay Flagship in Toronto [Interview/Photos]

The pandemic put an earlier launch on hold for the brand which is now looking to open more retail locations in Canada.

Holt Renfrew to Relocate Standalone Men’s Store on Toronto’s Bloor Street Back into Flagship

The standalone Holt Renfrew Men opened in 2014 in a former Roots location, about 500 feet west of the 50 Bloor flagship. Big changes are in store according to the retailer.

Canadian Women’s Undergarment Brand Knix Expanding Further with Stores and Significant Growth [Founder Interview]

Joanna Griffiths discusses the expansion of her brand which includes product innovation and physical stores as well as robust e-commerce.

Upscale Women’s Retailer Andrews Relocated Yorkville Village Store to New Space [Interview]

The relocation follows Andrews' opening of a store in Oakville as it curates fashion lines catering to a range of female customers.

CrossIron Mills Near Calgary Sees Strong Leasing Activity with New Tenants Added [Interview]

It's been an incredibly active year according to James Moller of JLL, noting that the next space to deal with is a soon to be vacated Bed Bath & Beyond.

Birks Investing in Stores Including Relocating CF Chinook Centre Location in Calgary [Interview]

CEO Jean-Chrisophe Bédos tells Retail Insider that the jeweller sees an upside to luxury retail in Canada, particularly in five major markets.

Badass Fitness Experience With A FightClub Meets NightClub Vibe [Interview]

Cissy Chen, founder of Rumble Boxing Studio, discusses her growing business at a time when fitness studios struggle following the pandemic.

Zellers Reveals Opening Dates for Alberta and Ontario Stores

Zellers will be opening its first locations in Ontario and Alberta and launching its ecommerce platform later this month.

Grace Yan Discusses the Future of Calgary’s Nordstrom Space with Craig Patterson [Video Interview]

Craig sits down with Grace Yan, Commercial Consultant at Blackstone Commercial, to discuss the departure of Nordstrom store in CF Chinook Centre in Calgary.

Midtown Centre in Downtown Saskatoon Seeing New Retailers Opening [Interview]

The dominant shopping centre for the Saskatoon market saw several new retailers opening, with more to come including some not currently in Saskatchewan.

Competition in Eyewear in Canada Unprecedented with Fallout Expected Following Specsavers Entry [Op-Ed]

A former CEO of Luxottica describes a vastly changing Canadian retail landscape which includes UK-based Specsavers which grabbed 40% of Australian market share following its entry.

Canadian Cosmetic Chain Dermapure Expanding Locations Rapidly After L’Oreal/LVMH Investment [Interview]

The popular clinic concept will more than double its Canadian store count with big plans for a global expansion.

Holt Renfrew Extends Lease in Downtown Calgary while CF Chinook Centre Flourishes [Podcast]

Craig and Lee talk about some recent retail news in Calgary. That includes Holt Renfrew extending its lease in downtown Calgary at The CORE while adding new brands including a 'World of' Gucci concession. They also discuss CF Chinook Centre which is seeing new retailers being added such as Nike and Uniqlo.

Mobile App ‘A Safer Walk’ Launches to Help Women Safely Connect with Other Women in Public Spaces

The free app developed in Canada connects women with other women to walk together safely in places of potential concern, including in or near retail centres.

Brazilian Restaurant Concept Fogo de Chão Secures 1st Canadian Location as it Announces Expansion [Interview]

Vancouver is the first city in Canada for the popular restaurant, with a second set to open in Toronto's Entertainment District soon after.