Jeans recorded a healthy retail current value increase in 2018, despite the challenge posed by the shifting consumer preference towards casual and athletic styles such as yoga trousers and joggers. Jeans are a core wardrobe staple for many consumers and a key product for brands and retailers in Canada.
Standard jeans saw the fastest current value increase in 2018. The category’s strong results were driven by robust sales from value players Old Navy, Zara and American Eagle Outfitters.
Super premium jeans is projected to see the highest current value growth over the forecast period, driven by the continued surge in sales of luxury goods in Canada. Supported primarily by tourism and an increase in affluent immigrants, the luxury segment has grown strongly since US luxury retailer Nordstrom opened its first Canadian store in 2014.
Jeans remains a highly competitive category in Canada, with a broad range of small and large domestic and international manufacturers retailing products through diverse retail channels at different price points. Leading players include jeans specialists such as Levi Strauss & Co and VF Corp, apparel brands such as Gap, American Eagle Outfitters and H&M, and private label lines from retailers including Wal-Mart Canada.
Loblaw Cos was second in jeans in value terms in 2018, with its Joe Fresh label. Joe Fresh maintains its competitive position through budget-friendly but fashionable jeans, and distribution through the company’s Canada-wide network of grocery and pharmacy stores, as well as stand-alone outlets.
The bankruptcy and departure of Sears Canada from the retail market in 2017 disrupted economy jeans and standard jeans in 2017. The struggling department store chain filed for bankruptcy in June 2017, closing its final store in January 2018.
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This industry report originates from Passport, our Apparel and Footwear market research database.