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Department Stores in Canada - Industry Market Research Report

Department Stores in Canada - Industry Market Research Report

  • February 2019
  • 34 pages
  • ID: 4564292
  • Format: PDF
  • By Ibisworld

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Maxed out: Competition from online outlets will continue to weaken industry revenue

Abstract

Department Stores in Canada
Despite macroeconomic growth, the Department Stores industry in Canada has declined over the five years to 2019 due to increased external competition from supercentres and e-commerce sites. Department stores sell a wide range of general merchandise, including apparel, cosmetics, home furnishings, appliances and toys. Comparatively, supercentres offer similar merchandise, along with groceries. Online companies are increasingly undercutting traditional department store prices since they save on operational costs. To better compete, industry operators have lowered selling prices, offered increased promotional deals and strengthened their marketing campaigns. Over the five years to 2024, the industry is forecast to continue contracting. Per capita disposable income and consumer confidence will increase as the economy continues to strengthen, providing consumers with more discretionary income for compulsory purchases at traditional department stores. However, these gains will be offset by ever-increasing competition from e-commerce sites.


This industry retails a broad range of general merchandise in one store, such as apparel, jewellery, cosmetics, home furnishings, general household products, toys, appliances and sporting goods. Discount department stores, which are also included in the industry, retail similar lines of goods at low prices. Big-box retailers and supercentres that offer fresh groceries in their stores and warehouse clubs that operate under membership programs, however, are not included in this industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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