TORONTO — Canadian retail is looking at a strong year, according to a new forecast from Desjardins Securities. Growth in the GDP and employment will be a boon to retailers, and incursions from American competitors are less likely. “The spectacular failure of Target in Canada and the collapse of oil prices are, in our view, the two primary reasons for this change in perception about Canadian retailing,” says the report by Desjardins’ Keith Howlett. “A few new retailers continue to enter Canada, such as Nordstrom, Saks, and Uniqlo, but generally in a tightly controlled and measured manner.”
At the same time, Sears’ continuing weakness will benefit an array of retailers, including Home Depot, Lowe’s, Canadian Tire, Sleep Country, Ikea, Leon’s, Brault Martineau, and Home Hardware for appliances. Likewise, the report says, its clothing business will likely be eaten into by Winners, Reitmans, Mark’s, Hudson’s Bay, Shoppers Drug Mart, Sephora, Walmart, and Real Canadian Superstore.
