Department Stores in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 45211CARevenue
$28.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
89,865
Businesses
17
Wages
$X.Xbn
Department Stores in Canada industry analysis
Despite macroeconomic growth in recent years, revenue for Canadian department stores has declined in response 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. Supercentres offer similar merchandise, along with groceries. Consumers increasingly opt to shop at supercentres and other mass retailers because of the convenience of a one-stop shop for groceries, clothing and other merchandise. Revenue for department stores is expected to slump at a CAGR of 0.9% to $28.5 billion through the end of 2024, despite a jump of 1.6% in 2024 alone.
Trends and Insights
- Growing competition has caused a slump in sales. Consumers have increasingly used e-commerce platforms to satisfy their shopping needs, reducing foot traffic for department stores.
- Most revenue is generated from clothing, furniture and household appliances. Mounting competition from e-commerce platforms has threatened sales of some products.
- Locations largely follow population trends. More populous provinces have increased demand for products, which makes it more attractive for department stores to establish locations.
- Brick-and-mortar locations are struggling to compete with online retailers. Companies big and small have been forced to exit the industry or find new ways to compete.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.9 % over the past five years, to reach an estimated $28.5bn in 2024.
Trends and Insights
E-commerce becomes increasingly important for success
- E-commerce has become increasingly popular since the start of the pandemic. E-commerce saves consumers time and can also be less expensive than department stores. Consumers also prefer the added convenience of doing their shopping at home.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Investments in e-commerce begin to bear fruit
- As consumers continue to buy products from online retailers like Amazon at an increasing rate, recent investments in department stores' e-commerce platforms will fuel growth.
Biggest companies in the Department Stores in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Canadian Tire Corporation Limited | 6,771.8 | N/A | N/A |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Department Stores in Canada
Products & Services
Industry revenue is measured across several distinct product and services lines, including Clothing for adults and children, Furniture and household appliances and Toys and hobby items. Clothing for adults and children is the largest segment of the Department Stores in Canada.
Trends and Insights
Growing competition for clothing products
- The growing popularity of e-commerce sites has lowered clothing purchases from department stores. Consumers have increasingly relied on e-commerce retailers to find the lowest price on fast fashion styles. As competition continues to intensify, this segment will continue to slump.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Men's Clothing Stores in Canada
- Women's Clothing Stores in Canada
- Children's & Infants' Clothing Stores in Canada
- Family Clothing Stores in Canada
- Shoe Stores in Canada
- Warehouse Clubs & Supercentres in Canada
- Used Goods Stores in Canada
Complementors
- Clothing & Clothing Accessories Wholesaling in Canada
International industries
- Department Stores in Australia
- Department Stores in New Zealand
- Department Stores in the UK
- Department Stores in Ireland
- Department Stores & Shopping Malls in China
Table of Contents
About this industry
Industry definition
The 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.
What's included in this industry?
Retailing women's wearRetailing men's wearRetailing children's wearRetailing footwearRetailing furniture and household appliancesRetailing toys and hobbiesRetailing drugs and cosmetic productsCompanies
Canadian Tire Corporation LimitedPurchase this report to view all 1 major companies in this industry.
Related Terms
BRICK-AND-MORTARBIG-BOX RETAILERPOINT-OF-SALE (POS)RADIO-FREQUENCY IDENTIFICATION (RFID)Industry Code
NAICS 452110 - Department Stores in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Growing competition has caused a slump in sales. Consumers have increasingly used e-commerce platforms to satisfy their shopping needs, reducing foot traffic for department s...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Most revenue is generated from clothing, furniture and household appliances. Mounting competition from e-commerce platforms has threatened sales of some products.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Locations largely follow population trends. More populous provinces have increased demand for products, which makes it more attractive for department stores to establish loca...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Brick-and-mortar locations are struggling to compete with online retailers. Companies big and small have been forced to exit the industry or find new ways to compete.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Canadian Tire has a strong position. The brand operates more than 500 retail locations across Canada and has continued to boost revenue through investments in e-commerce and ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Canadian Tire Corporation Limited's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Canadian Tire Corporation Limited, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The size of the Canadian population is a key driver for department stores. If more consumers are in Canada, more people will potentially shop at a department store.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Physical locations require costly upkeep. Operating brick-and-mortar stores is labour-intensive and being located in a high-traffic area can contribute to higher rent.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Department Stores industry in Canada in 2024?
The market size of the Department Stores industry in Canada is $28.5bn in 2024.
How many businesses are there in the Department Stores in Canada industry in 2024?
There are 17 businesses in the Department Stores industry in Canada, which has declined at a CAGR of 2.2 % between 2019 and 2024.
Has the Department Stores industry in Canada grown or declined over the past 5 years?
The market size of the Department Stores industry in Canada has been declining at a CAGR of 0.9 % between 2019 and 2024.
What is the forecast growth of the Department Stores industry in Canada over the next 5 years?
Over the next five years, the Department Stores industry in Canada is expected to grow.
What are the biggest companies in the Department Stores market in Canada?
The biggest company operating in the Department Stores market in Canada is Canadian Tire Corporation Limited
What does the Department Stores in Canada include?
Retailing women's wear and Retailing men's wear are part of the Department Stores industry.
Which companies have the highest market share in the Department Stores in Canada?
The company holding the most market share in Canada is Canadian Tire Corporation Limited.
How competitive is the Department Stores industry in Canada?
The level of competition is high and increasing in the Department Stores industry in Canada.
