Childrenswear in Canada

2020 IMPACT

Consumer caution leads retailers to offer promotions

After seeing slow but stable retail volume and current value growth rates during most of the review period, childrenswear turned to strong decline in 2020. The closure of non-essential store-based retailers during the lockdown in the first half of the year to control the spread of COVID-19 had a strong negative impact on sales.

Second-hand childrenswear sees rising popularity despite some safety concerns

The closure of many bricks-and-mortar retailers during the lockdown phase and the shift to e-commerce increased the sales of online second-hand childrenswear retailers such as Beeja May, despite the perception amongst some that second-hand clothing may be less safe due to COVID-19. The growth of second-hand sales also hampered growth for childrenswear in 2020.

New launches despite a difficult environment

Despite the negative impact of COVID-19 in 2020, brands released new products which catered to popular trends in the post-lockdown phase. For example, during autumn 2020, Canadian fast fashion private label Joe Fresh capitalised on the family matching trend with its launch of the limited edition Mini Jilly Jacket for girls, alongside the Jilly Jacket for women.

RECOVERY AND OPPORTUNITIES

Slow recovery as parents will remain price-conscious and purchase second-hand

Childrenswear is expected to see a rebound to strong growth in 2021. COVID-19 is likely to have less of an impact on store-based retailing during this year, as less disruption is seen to retailers’ operations, whilst the rollout of vaccines will lead to a return of consumer confidence.

Outdoor play initiatives will help outdoor clothing see a better performance

Children’s outdoor clothing is expected to see the best performance during the forecast period. Children will play outside more to protect them contracting COVID-19 in indoor spaces, whilst experts also recommend that children spend more time on outdoor physical activity.

Sustainability increasingly sought by those who can afford to pay the higher price

Maintaining the trend seen towards the end of the review period, sustainable and organic childrenswear is expected to continue to become increasingly popular, despite generally higher price points. Those households which have been relatively unaffected by the economic impact of COVID-19 will remain interested in eco-friendly and organic childrenswear, as well as parents who are concerned with climate change and therefore seek out sustainable childrenswear.