From the resilience of local grocers to the surge of online shopping, Canada's retail landscape in 2022 was a story of remarkable growth, strategic shifts, and evolving consumer habits, as shown by its record $802.4 billion in total sales.
Key Takeaways
- In 2022, total retail sales in Canada reached $802.4 billion, marking a 6.5% increase from 2021
- Canadian retail e-commerce sales grew by 15.2% year-over-year in Q4 2022, accounting for 4.8% of total retail sales
- Grocery store sales in Canada totaled $128.9 billion in 2022, representing 16.1% of total retail sales
- The retail sector employed 2.1 million people in 2022, representing 10.7% of total employment
- Retail employment grew by 3.2% year-over-year in December 2022 to 2.15 million
- Average hourly wage in retail trade was $21.45 in 2022, up 5.8% from 2021
- E-commerce sales in Canada reached $55.7 billion in 2022, up 15% from 2021
- Online retail penetration was 6.9% of total retail sales in 2022
- Mobile commerce accounted for 52.3% of e-commerce sales in 2022
- Total consumer spending on retail goods was $645 billion in 2022 excluding housing
- 82% of Canadians shopped in physical stores monthly in 2022
- Average household retail spend was $42,800 in 2022
- Retail sales projected to grow 3.2% in 2023 nominally
- E-commerce expected to reach 10% of total retail by 2025
- Retail inflation forecasted at 4.1% for 2023
Canadian retail sales grew significantly in 2022, driven by e-commerce and inflation.
Consumer Insights
- Total consumer spending on retail goods was $645 billion in 2022 excluding housing
- 82% of Canadians shopped in physical stores monthly in 2022
- Average household retail spend was $42,800 in 2022
- Inflation drove 62% of shoppers to trade down to cheaper brands in 2022
- 71% of consumers prioritized price over brand in 2022 retail purchases
- Grocery spending per household averaged $12,400 in 2022, up 9.2%
- Clothing expenditure per capita was $1,056 in 2022
- 54% of shoppers used loyalty programs weekly in 2022
- Online price comparison done by 67% before purchase in 2022
- Sustainable products influenced 48% of purchases in 2022
- Gen Z spent 23% more on experiences but 15% less on goods in 2022
- 39% reduced discretionary spending due to inflation in 2022
- Urban consumers spent 28% more on retail than rural in 2022
- 76% of millennials used BNPL services for retail in 2022
- Food delivery apps used by 45% weekly in 2022
- 61% prefer in-store for groceries, 52% online for electronics in 2022
- Average shopping trip frequency was 12.4 per month in 2022
- Impulse buys accounted for 28% of retail sales volume in 2022
- 53% of boomers shop alone, 34% of Gen Z with family in 2022
- Health products spending up 22% to $4,200 per household in 2022
- 44% abandoned carts due to high shipping costs in 2022 e-retail
- Regional disparity: Prairies spent 12% more per capita on autos in 2022
- 69% influenced by social media in fashion buys 2022
- Household debt servicing ratio impacted 31% to cut retail spend 2022
- 58% of consumers returned items in-store post-online buy in 2022
- Vegan/plant-based food sales influenced 19% of grocery baskets 2022
Consumer Insights Interpretation
While inflation has Canadians hunting for deals and trading down, our enduring love for in-store shopping and a dash of impulse buying proves that even a thrifty nation still finds joy in the tangible, often financed by BNPL and soothed by loyalty points, as we navigate a retail landscape where grocery bills sting, health is a priority, and social media whispers what to wear.
Digital Transformation
- E-commerce sales in Canada reached $55.7 billion in 2022, up 15% from 2021
- Online retail penetration was 6.9% of total retail sales in 2022
- Mobile commerce accounted for 52.3% of e-commerce sales in 2022
- Amazon.ca generated $12.4 billion in Canadian e-sales in 2022
- Shopify-powered stores contributed $42 billion to Canadian e-commerce in 2022
- Food and beverage e-sales grew 28.4% to $8.2 billion in 2022
- Fashion e-commerce sales hit $14.1 billion in 2022, 25% of category total
- Electronics online sales were $10.3 billion in 2022, up 18.7%
- 62% of Canadians shopped online weekly in 2022
- Average online order value was $112 CAD in 2022
- Digital payment adoption in retail reached 78% in 2022
- Contactless payments used in 85% of retail transactions in 2022
- Retail apps downloads grew 22% to 45 million in 2022
- Omnichannel retailers saw 30% higher sales growth in 2022
- Buy-online-pickup-in-store (BOPIS) orders up 45% to 12 million in 2022
- 41% of retail SMBs adopted AI chatbots in 2022
- Cybersecurity incidents in retail e-stores rose 19% to 2,400 in 2022
- Ontario e-commerce sales were $22.1 billion in 2022, 39.7% national share
- Quebec online retail hit $13.4 billion in 2022
- BC e-sales totaled $8.9 billion in 2022, up 17.2%
- Average e-commerce growth rate 2017-2022 was 18.4%
- Social commerce sales reached $4.2 billion in 2022 via Instagram/FB
- Voice commerce in retail projected at 1% but grew 150% in 2022
- AR/VR used in 15% of fashion e-retail trials in 2022
- 73% of consumers used retailer apps for loyalty in 2022
- Pandemic accelerated e-commerce by 5 years in 2022 metrics
- 55% of Gen Z prefer online-only shopping in 2022 surveys
- 68% of Canadian households have high-speed internet supporting e-retail in 2022
- Grocery e-commerce penetration reached 12.4% in 2022
- 47% of consumers expect same-day delivery in urban retail 2022
Digital Transformation Interpretation
While Canada’s e-commerce sales surged to a hearty $55.7 billion in 2022—fueled by everything from Shopify’s $42 billion empire to our collective craving for clickable groceries—the real story is that we've officially wired our wallets to our phones, embraced omnichannel convenience with a side of cybersecurity anxiety, and, quite frankly, made 'add to cart' the national pastime.
Financial Performance
- In 2022, total retail sales in Canada reached $802.4 billion, marking a 6.5% increase from 2021
- Canadian retail e-commerce sales grew by 15.2% year-over-year in Q4 2022, accounting for 4.8% of total retail sales
- Grocery store sales in Canada totaled $128.9 billion in 2022, representing 16.1% of total retail sales
- Clothing and clothing accessories stores reported $32.4 billion in sales in 2022, up 8.7% from the previous year
- General merchandise stores saw sales of $52.1 billion in 2022, a 10.2% rise driven by inflation
- Building material and garden equipment sales hit $47.6 billion in 2022, fueled by home renovation trends
- Automotive parts and accessories sales reached $15.3 billion in 2022, increasing 12.4%
- Food and beverage stores accounted for 25.3% of total retail sales in December 2022 at $20.1 billion
- Health and personal care stores sales were $28.7 billion in 2022, up 7.9%
- Electronics and appliance stores generated $18.2 billion in sales in 2022, a 5.6% growth
- Sporting goods stores sales totaled $9.4 billion in 2022, rising 14.3% post-pandemic
- Book stores and news dealers had $2.1 billion in sales in 2022, down 2.5% due to digital shift
- Furniture and home furnishings sales were $21.5 billion in 2022, up 9.1%
- Gasoline stations sales reached $112.4 billion in 2022, 14% of total retail
- Pharmacies and drug stores sales hit $35.6 billion in 2022, growing 11.2%
- Department stores sales were $14.8 billion in 2022, declining 3.4% amid closures
- Beer and wine-making supplies stores saw $1.2 billion in 2022, up 6.8%
- Florists sales totaled $1.8 billion in 2022, increasing 4.2%
- Used merchandise stores generated $3.4 billion in 2022, up 18.7% thrift trend
- Retail sales per capita in Canada averaged $20,456 in 2022
- Ontario accounted for 37.2% of national retail sales in 2022 at $298.5 billion
- Quebec retail sales were $169.4 billion in 2022, 21.1% of total
- British Columbia's retail sales hit $102.3 billion in 2022, up 7.8%
- Alberta retail sales totaled $94.7 billion in 2022, growing 5.3%
- Manitoba's retail sales were $28.1 billion in 2022, 3.5% share
- Saskatchewan retail sales reached $22.4 billion in 2022, up 6.1%
- Retail trade GDP contribution was 5.8% or $132 billion in 2022
- Average retail sales growth rate 2018-2022 was 4.7% annually
- Inflation-adjusted retail sales grew 2.1% in 2022
- Retail sales excluding autos rose 4.3% in 2022
Financial Performance Interpretation
The Canadian retail landscape in 2022 painted a picture of a nation cautiously celebrating our re-emergence—spending robustly on groceries, home projects, and sprucing up our wardrobes, all while inflation quietly picked our pockets, e-commerce grew like a weed, and the humble department store sadly waved from the shore as the tide of change rolled in.
Market Outlook
- Retail sales projected to grow 3.2% in 2023 nominally
- E-commerce expected to reach 10% of total retail by 2025
- Retail inflation forecasted at 4.1% for 2023
- 1,200 new retail stores planned for 2023 openings
- Grocery sector to grow 4.5% annually to 2027
- 25% of physical stores to close by 2030 due to e-commerce shift
- Sustainability to drive 35% sales premium by 2025
- AI adoption in retail to reach 65% by 2025, boosting efficiency 20%
- Labour shortage to persist, needing 150,000 new retail workers by 2025
- Omnichannel sales to comprise 50% of total by 2025
- BNPL market to grow to $10B by 2025 in Canada
- Food delivery market projected at $15B by 2027, CAGR 12%
- Fashion retail recovery to 5% growth in 2024 post-2023 slowdown
- Vacant retail space to drop to 3% by 2025 with repurposing
- Ontario retail sales forecast $320B in 2023
- Western Canada retail growth 3.8% in 2023 on population boom
- Supply chain disruptions to ease, reducing costs 8% by 2024
- Personalization tech to increase basket size 15% by 2025
- Thrift/second-hand market to hit $12B by 2027, CAGR 11%
- EV charging retail integration in 40% of new stores by 2030
- Gen Alpha to influence 20% of family purchases by 2025
- Retail real estate investment up 12% to $8B in 2023
- Cross-border e-commerce from US to Canada $25B projected 2023
- Health retail to grow 6.2% CAGR to 2028 on aging population
- Pop-up stores to increase 30% as testing model by 2024
- Recession risk: Retail sales flat in real terms 2023 Q1 forecast
- Luxury retail sales up 8% in 2023 on affluent recovery
Market Outlook Interpretation
While Canadian retail is frantically building brick-and-mortar stores and chasing shiny digital growth, it’s simultaneously bracing for a reality where inflation eats the gains, a quarter of those very stores will be shuttered, and survival will depend on pleasing both bargain-hunting thrifters and premium-seeking luxury shoppers—all while desperately trying to hire enough humans to keep the whole precarious show running.
Workforce
- The retail sector employed 2.1 million people in 2022, representing 10.7% of total employment
- Retail employment grew by 3.2% year-over-year in December 2022 to 2.15 million
- Average hourly wage in retail trade was $21.45 in 2022, up 5.8% from 2021
- Women comprised 52.3% of retail workforce in 2022, with 1.1 million employed
- Youth aged 15-24 made up 28.4% of retail employees in 2022, totaling 596,000
- Part-time workers accounted for 42.7% of retail employment in 2022
- Retail managers numbered 112,000 in 2022, earning average $48,200 annually
- Retail salespersons and clerks totaled 912,000 in 2022, 43.5% of sector jobs
- Cashiers employment was 214,000 in 2022, down 1.2% from peak
- Store shelf stockers numbered 156,000 in 2022, up 4.5%
- Food counter attendants employed 198,000 in retail in 2022
- Labour turnover rate in retail was 18.6% in 2022, highest among sectors
- Retail vacancy rate averaged 4.2% in 2022, improved from 6.1% in 2021
- Ontario had 890,000 retail workers in 2022, 42.3% of national total
- Quebec retail employment was 512,000 in 2022, 24.4% share
- BC retail jobs totaled 312,000 in 2022, up 2.8%
- Alberta employed 278,000 in retail in 2022, 13.2% of total
- Training hours per retail employee averaged 28 hours annually in 2022
- Unionized retail workers were 15.2% of workforce in 2022
- Remote work in retail offices was 12% in 2022, low due to in-store needs
- Retail employee satisfaction score averaged 68/100 in 2022 surveys
- Average retail workweek was 27.4 hours in 2022
- Immigrant workers comprised 32.1% of retail employment in 2022
- Indigenous employment in retail was 4.3% or 90,000 in 2022
- Disability employment rate in retail was 22.5% in 2022
Workforce Interpretation
While young, part-time, and often underpaid cashiers and clerks form the resilient, predominantly female spine of Canadian retail—a sector hungry for staff yet quick to churn them—their labor is what keeps the shelves stocked and the nation's shopping carts moving.
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