CoStar

The Hudson's Bay closures had a significant impact on Canada's retail market in 2025, with vacancy at shopping malls rising from three per cent to eight per cent in the second quarter of that year.

Many households already face high housing costs and limited income growth, which increases the likelihood of more selective spending.

Fewer people have been buying homes over the past few years, and consumer surveys increasingly show that Gen Z, the age cohort born between approximately 1997 and 2012, and the large Millennial demographic are increasingly giving up their aspirations for homeownership, and instead turning to luxury goods.

Research is showing significant growth in e-commerce which has retailers and landlords rethinking space for new uses.