Apparel and Footwear Specialist Retailers in Canada

PROSPECTS

Channel growth boosted by rising performance of menswear

Men’s apparel has outperformed women’s apparel in the last two years, with men showing a greater interest in fashion and personal appearance. Stronger growth has been observed in almost every category of men’s apparel.

Outlet closures are common, with high rent and e-commerce playing a role

Store closures across multiple brands, including premium names such as Hugo Boss and Enda B, continued in 2019, partially as a result of higher rents. Some brands chose to close their stores, even flagships, and relocate in potentially more profitable areas.

Demand for second-hand items rises

Canadian consumers are increasingly turning to second-hand purchases of apparel and footwear, for both money-saving and ethical consumption reasons. Kijiji and eBay are popular platforms for buying and selling such products, and online thrift shop thredUP also began accepting sales from Canada in 2018.

COMPETITIVE LANDSCAPE

Expansion and closures typify a dynamic landscape

Fifth-ranked brand Lululemon Athletica is delivering strong performances in Canada with continual expansion, benefiting from the athleisure trend as well as its successful branding, which resonates with consumers. Over the review period, its store number in the country went up by 15, helping the brand increase its value share and ranking in apparel and footwear specialist retailers.

Brands increasingly look to go solo

Canada has healthy interest in high-end department stores, including retailers such as Holt Renfrew and Saks Fifth Avenue. A growing number of luxury players across all categories, including apparel and footwear specialist retailers, have therefore been opening their own freestanding stores in Canada, often in addition to their presence in department stores.

TJX is the Winners

Apparel and footwear specialist retailers was led by The TJX Cos Inc in value sales terms in 2019. It was the only player to hold a double-digit value share in the channel.

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