Retail clothing sector of Canada is expected to slow down in the coming years, predicts industry experts. Moreover, it is expected that sales will surge to a mere 1 per cent in 2018, says Trendex North America, a marketing research company specializing in the apparel industry.
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Trendex, in its 2016 Retail Apparel Market Forecast, envisages that sales will grow by 2.4 per cent this year against 3.8 per cent last year, dropping to 1.7 per cent growth in 2017 before regaining surge to 2.1 per cent in the year 2020. However, Bank of Canada’s forecasts the outlook for economic growth at 1.4 per cent for the same year.
The low Canadian dollar will put pressure on retailers’ profits and force them to equipoise higher costs by increasing prices, possibly by 3 per cent to 5 per cent. Despite the fact that retail sales will be under pressure, experts believe that e-commerce segment will continue to grow, as the millennials today prefer to shop online than to visit brick-and-mortar stores.
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But the industry insiders also say that the luxury segment will help ease the lethargy in the retail sector as many fashion retailers are making their way to Canada – US retailer Nordstrom expands its presence with three new locations in Toronto this year and next; Saks Fifth Avenue will too be opening two stores in the capital.
