Downtown Vancouver’s retail sector is undergoing a significant transformation, shaped by shifting consumer behaviours, economic headwinds, and new investments. The recently released State of Downtown 2025 report by Downtown Van provides a comprehensive picture of the city core’s retail landscape and outlines both the opportunities and challenges ahead for the district that remains Canada’s most densely populated downtown.
From increasing storefront vacancies to standout performance in apparel spending, the report illustrates a dynamic market adapting to evolving conditions. The document underscores that while retail in downtown Vancouver has not fully recovered to pre-pandemic levels, it continues to show signs of resilience—particularly in select corridors and categories.
Retail Sales and Spending Patterns
Retail spending in the Downtown Van district declined in 2024, with average weekly sales volume falling by 1.9% year-over-year. Over half of the weeks in 2024 registered negative annual growth. Yet, despite the broader softness, apparel emerged as a bright spot.
Apparel retail sales grew by an average of 7.3% year-over-year, outperforming general retail. Black Friday 2024 was a particularly strong period for the category, with an 85% spike in sales compared to the previous year. This signals strong consumer interest in fashion, even as broader discretionary spending remains cautious.
While the total number of retail transactions increased by 1.2%, the average transaction size declined, pointing to a more value-conscious shopper. After adjusting for inflation, average retail transaction size in downtown Vancouver fell by 10.9% between 2023 and 2024. However, apparel again bucked the trend, with transaction count rising by 3.0% and transaction size increasing by 2.3%.
Retail Foot Traffic by Corridor
Visitor data shows that foot traffic trends were uneven across downtown’s major retail corridors. In 2024, overall visitation to the Downtown Van district declined by 7.8%—the first drop since the onset of the COVID-19 pandemic. This decrease was most pronounced among Vancouver residents, whose visits to the downtown core fell by 12%, the sharpest drop among regional municipalities.
That said, some corridors did show growth. Granville Street experienced an 11.6% year-over-year increase in visits, while Robson Street rose modestly by 2.1%. Alberni Street, known for its luxury retail mix, saw a sharp 11.7% decline in traffic, attributed in part to the departure of key tenants like Brooks Brothers and Michaels. West Hastings Street similarly declined by 3.3%.
These divergent trends highlight the importance of location strategy for retailers. Corridors with a growing entertainment or nightlife presence, such as Granville, are seeing stronger footfall, particularly in the evenings. In fact, evening and late evening visits to downtown surged in 2024—rising by 19.6% and 37.1%, respectively—indicating a growing nighttime economy.
Storefront Vacancy and Leasing Trends
Despite the pockets of success, the overall retail environment remains fragile. Downtown Vancouver’s storefront vacancy rate rose from 13.7% to 14.9% in 2024. This marked a 9% year-over-year increase and reversed gains made in 2023. The downtown vacancy rate also remains well above the citywide average of 9.9%.
Granville Street was particularly hard hit. The retail vacancy rate on the once-bustling strip jumped from 22.1% to 29.3%, with over one in four storefronts sitting empty. Notable closures included Cinema Public House and 8th & Main. Vacancies have clustered on the 800, 900, and 1000 blocks—areas targeted by the City of Vancouver’s ongoing Granville Street planning process, which aims to revive daytime activity in the entertainment district.
Yet there are signs of recovery on Granville. The Rec Room opened in late 2024, Winners moved into a new space north of Hudson’s bay, and five food and beverage tenants have been secured in the newly redeveloped 900-block project by Bonnis Properties. These openings were not yet reflected in the year-end storefront count, suggesting early momentum for 2025.
Hudson’s Bay Uncertainty Looms Large
A major headline affecting downtown retail in 2025 is the uncertain future of the Hudson’s Bay Company’s flagship location at Granville and Georgia. HBC filed for creditor protection in March 2025, a development that could reshape the city’s retail core. RioCan, part-owner of the flagship property, has indicated that redevelopment or re-tenanting could be options should the space become vacant.
While the outcome remains to be seen, other retailers are actively expanding downtown. Adidas opened a new Brand Centre at Robson and Burrard, and Marshalls is expected to open on Granville in 2025. Roots is also relocating its store to Robson and Hornby (construction finishes in the summer), signalling continued confidence in the downtown market from prominent national retailers.
Economic Pressures on Retailers
According to a LOCO BC study commissioned by Downtown Van and the Vancouver BIA Partnership, local businesses are under significant cost pressure. Between 2019 and 2024, the average cost of doing business in Vancouver rose by 25%, driven by surging expenses in payroll, leases, insurance, and property taxes.
- Lease costs increased by 70%
- Property tax burdens surged by 133%
- Employment-related costs rose by 40%, while employment grew just 14%
- Insurance premiums nearly doubled due to inflation and rising claims
These cost pressures are compounded by economic uncertainty and the escalation of a trade dispute with the United States. New U.S. tariffs on Canadian goods, and Canada’s retaliatory tariffs, are expected to squeeze retail margins further by increasing wholesale costs and complicating supply chains.
Consumer Shifts and Price Sensitivity
Retailers are also contending with shifting consumer behaviour. According to the report, 83% of Canadians have changed their financial plans and 66% are reducing expenses. In downtown Vancouver, this trend has translated into smaller purchases per visit.
While transaction volume was up, average transaction size across the retail sector declined. This shift is evident not only in general retail but also in dining, with restaurant spending dropping even as visitation increased. Moneris data showed a 6.5% average year-over-year decrease in weekly restaurant sales in 2024.
Still, retail experiences that combine value and quality continue to appeal to consumers. Apparel retailers in particular have shown resilience, perhaps benefiting from pent-up demand and ongoing interest in fashion and brand experiences.
The Role of Tourism and Events
Tourism remains a key driver of retail activity downtown. In 2024, 1.32 million cruise passengers docked at Canada Place—a 7% increase year-over-year—and downtown hotel occupancy rose to 80.4%. The average hotel room rate climbed to $335 per night, with demand peaking in December thanks to Taylor Swift’s The Eras Tour, which injected an estimated $157 million into the local economy.
Downtown is also seeing a growing share of out-of-province visitors. In 2024, visits from other Canadian provinces rose by over 50%, and Calgary accounted for 1.2% of all downtown visits—higher than many nearby municipalities.
Major upcoming events such as the 2025 JUNO Awards, Web Summit, and the 2026 FIFA World Cup are expected to boost tourism further and create legacy benefits for retail, public space, and urban activation.
The Nighttime Economy
One of the report’s emerging themes is the growing role of downtown Vancouver’s nighttime economy. Evening and late-night visits grew significantly in 2024, and there is potential to transform the downtown core into a vibrant 24-hour district.
The Granville Plan, currently in development, aims to reimagine the street as a revitalized entertainment destination that serves residents and visitors alike. This includes upgrading public space, streamlining event permitting, and encouraging food, beverage, and cultural uses that extend beyond traditional business hours.
Real Estate and Office Market Outlook
Retail’s performance is also shaped by adjacent sectors such as office leasing and residential development. Office vacancy in downtown Vancouver stood at 12.0% at the end of 2024—still the lowest of any major North American downtown—following a wave of new office completions.
While some major tenants like Microsoft and WeWork returned space to the market, demand for AAA office space remains strong. Leasing activity was driven by sectors including tech, financial services, and law, suggesting continued strength in the employment base that supports retail.
Residential density also remains a key asset. Downtown Vancouver is home to nearly 141,000 residents, making it the most densely populated downtown in Canada. This local population continues to support restaurants and retail, even as tourist numbers fluctuate.
Outlook for 2025 and Beyond
Looking ahead, the downtown Vancouver retail market is poised at a crossroads. While economic challenges persist, the city core’s density, transit connectivity, and role as a cultural and commercial hub provide a strong foundation.
Targeted investment—in both public infrastructure and retail revitalization—will be essential to maintaining momentum. The shift toward a more experiential, evening-oriented retail environment offers opportunities for operators that can adapt to changing consumer patterns.
With a mix of new developments, an influx of major events, and growing interest from out-of-town visitors, downtown Vancouver remains a critical piece of the region’s retail ecosystem.
