Canadian luxury apparel sales will increase 4.2 per cent in 2024 and by 18.8 per cent in 2027, according to the latest 2023/2024 Canadian Luxury Apparel Market report by Trendex North America.
“In developing Trendex’s forecast, the effect of the opening of two new high-end Canadian malls could be speculated but not quantified with any degree of certainty. Royalmount which opened in September this year and Oakridge opening in April 2025 have a number of luxury apparel specialty stores but still far less than Yorkdale. It is just not the number of luxury apparel stores in each mall but also whether they will add to the luxury pie in each trade area or will they simply divide the existing pie in more slices. Only time will tell the effect on total luxury apparel sales by each mall,” said the report.
Trendex said its review of the current status of the Canadian luxury apparel market comes coincidentally with Royalmount’s recent opening. In 2023, Trendex estimates that Canadian luxury apparel sales increased 10.9 per cent to C$2.78 billion. The increase came on top of a 7.4 per cent increase in 2022. During 2023 luxury apparel accounted for 7.4 per cent of total Canadian apparel sales.
According to the report, last year’s increase in luxury apparel sales was attributable to a number of factors, including:
- A 52 per cent increase in foreign tourism;
- The expansion of luxury apparel zones in Toronto and Vancouver;
- An increasing presence of luxury apparel retailers in better malls generally and Yorkdale specifically;
- The success of Holt Renfrew’s concession model;
- Premium outlet malls adding luxury brands/retail stores;
- Growth of men’s luxury casual apparel;
- Generation X, Y and Alpha purchasing.
Trendex said insights to be noted about the 2023 luxury apparel market include:
- Women’s apparel accounted for 57.2 per cent of sales, while men’s apparel (27.9 per cent) and purses (14.9 per cent) accounted for the balance of sales;
- The “Big Three” of luxury apparel retailing (i.e. Holt Renfrew, Harry Rosen, and Saks) accounted for 46.1 per cent of sales;
- The “all other” channel (x– luxury specialty chains, HBC and Simons) accounted for 32.0 per cent of sales;
- Holt Renfrew was the country’s largest luxury retailer followed by Harry Rosen. The seven largest luxury retailers accounted for 49.9 per cent of luxury apparel sale.
Trendex said luxury apparel e-commerce sales increased by only 5.1 per cent as consumers were increasingly attracted to upgraded luxury stores/malls. It said 49 per cent of luxury apparel mono-brand doors were in Ontario, while only nine per cent were in Quebec. Only three new luxury apparel retailers entered Canada during 2023.
“Trendex’s original exuberant forecast for the 2024 Canadian luxury apparel market completed in early March 2024 had to be revised significantly downward when it was updated in mid-July 2024. The primary reason for the revision was the 1.6 per cent decrease in Canadian apparel specialty store sales in the first half of 2024. The decrease due to macro-economic pressures including inflationary pressures on consumers along with high interest rates resulted in a decreasing share of consumer spending going to discretionary non-experiential purchases,” said the report.
Additionally these metrics also influenced Trendex’s forecast, according to the company:
- Foreign tourism increased 52 per cent in 2023. However in 2024 foreign tourism is forecasted to increase by only 28 per cent over 2023 levels;
- First half 2024 sales figures for the major luxury apparel suppliers, although not specific to Canada detailed a slowdown in luxury sales in the United States;
- First half apparel imports from Italy (-12.0 per cent), France (-12.4 per cent), UK (-27.0 per cent) and Germany (-9.3 per cent) fell greater than the overall 7.8 per cent decrease in total Canadian apparel imports.
Related Trendex Article: International Retailers And Their Success In Canada: Interview With Randy Harris Of Trendex
