Canada’s retail market is increasingly polarized, with higher-income shoppers still spending while others pull back under cost pressures. The White House delayed tariff hikes on certain home furnishings for one year, keeping the 25% duty in place amid ongoing trade talks. Canadian retailers are balancing selective expansion with consolidation as consumer behaviour shifts. The global multimodal transport market is projected to grow sharply through 2032 as trade routes become more complex. Meanwhile, Canada’s unemployment rate rose to 6.8% in December despite little change in overall employment.
Canada’s K-Shaped Economy Redefines Retail Outlook for 2026
Canada’s retail market is increasingly polarized, with higher-income consumers still spending while middle- and lower-income households pull back under inflation, housing costs, and job uncertainty. Convenience, fast delivery, and early AI-driven tools are reshaping shopping behaviour, while physical stores perform best when they offer experiences or immediate value. Luxury retail and prime locations are emerging as winners, while retailers slow to adapt to face mounting pressure.
Source: Retail Insider
U.S. Delays Furniture Tariff Hikes for One Year
The White House has postponed planned tariff increases on upholstered furniture, kitchen cabinets, and vanities for one year, keeping the 25% duty in place amid ongoing trade talks. The delayed hikes would have raised tariffs as high as 50% on some products and were paused to allow further negotiations with partners including the U.K., Japan, and the EU. While the delay offers near-term relief, retailers continue adjusting pricing and sourcing as tariff uncertainty lingers.
Source: Supply Chain Dive
Early 2026 Signals a Strategic Reset for Canadian Retail
Canadian retailers enter 2026 with a mix of selective expansion and consolidation as brands refine store networks and respond to shifting consumer behaviour. Luxury and premium players are focusing on experiential, city-centre formats, while AI adoption, Gen Z spending patterns, and labour dynamics reshape operations. Together, these moves reflect a sector adjusting to uneven demand, tighter margins, and more targeted growth strategies.
Source: Retail Insider
Multimodal Transport Market Set for Steady Growth Through 2032
The global multimodal transport market is projected to grow from US$98.6 billion in 2025 to US$159.3 billion by 2032, driven by rising shipment volumes and more complex trade routes. Shippers are increasingly combining road, rail, sea, and air to manage capacity swings, support just-in-time production, and improve visibility, with retail the fastest-growing end-use sector. Infrastructure investment, sustainability initiatives, and logistics providers expanding integrated networks are supporting long-term growth.
Source: Inside Logistics
Canada Unemployment Rises to 6.8% in December
Statistics Canada reported little change in employment in December, but the unemployment rate rose to 6.8% as more Canadians entered the job market. Job gains were concentrated among workers aged 55 and older and in health care and personal services, while youth employment and accommodation and food services declined. Wages continued to rise year over year, though regional and sector performance remained uneven.
Source: Retail Insider
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