Personal Accessories in Canada

Personal accessories is a challenging retail environment in a slow growth economy

If one were to characterise the Canadian personal accessories market in one word, it would be: challenging. Luxury remained a bright spot in changing and evolving Canadian retail that saw retail e-commerce record strong double-digit growth in 2017, the bankruptcy of Sears Canada and closure of some 130 stores, the entry and expansion of multiple international brands and retailers, from upmarket retailers Saks Fifth Avenue and Nordstrom and luxury brands such as Hublot, to more accessible Japanese retailers Uniqlo and Muji.

Changing retail environment continues to present fresh challenges

2018 is expected to see a continuation of the challenging and polarised retail environment that characterised 2016 and 2017. Retail e-commerce growth in 2017 showed that Canadian consumers have embraced online shopping.

Personal accessories in four words: competitive, fragmented, mature and diverse

The personal accessories mix includes foreign and domestic retailers and manufacturers, branded and private label manufacturers, international retail chains and independent “mom and pop” retailers, along with a wide range of distribution channels. In recent years, the entry and expansion of high-end department stores such as Saks Fifth Avenue and boutiques from luxury brands such as Breitling and Hublot into the large urban centres of Toronto, Montreal and Vancouver enhanced the differences in the retail landscape between these large cities and the rest of Canada.

Retail e-commerce delivers strong growth in Canada

Retail e-commerce recorded strong double-digit growth in 2017. The personal accessories category in Canada saw a strong shift from in-store to digital purchases and internet retailing continued to seize value share in all categories of personal accessories.

Sluggish economy and competitive environment present a challenging outlook

The outlook for personal accessories in Canada remains challenging. The shift to e-commerce in personal accessories will gain momentum as will the “digitisation” of shopping behaviour as Canadian consumers continue to research products and compare prices in order to get the best product at the best price.

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