Canada Retail National Report

Canada’s retail sector delivered strong performance last year. In 2024, amid still-elevated population growth, falling interest rates boosted consumer spending, driving net absorption above completions for the fourth consecutive year. As a result, the vacancy rate fell to a record low of 1.5 per cent. Entering 2025, consumers planned to increase both essential and discretionary spending, setting the stage for another year of expansion for retailers. With trade risks rapidly emerging, however, this once seemingly assured recovery now faces renewed doubt. Trade threats may be less severe than initially feared, but lingering uncertainties will weigh on business and consumer confidence. While the previously optimistic retail outlook for 2025 has been dampened, Canada’s retail sector is expected to stay resilient. The vacancy rate is projected to stay below 2.0 per cent by year-end.