Retail Conditions Report – Winter 2025

Retailers started 2025 strong, but February’s deep freeze—both in weather and sales—wiped out early momentum.

Only 35% of retailers reported year-over-year gains. Discretionary spending had been rising, driven by easing inflation and better housing affordability, supported by a “normal” Canadian winter. But a double hit of harsh winter storms and fresh U.S. trade threats quickly cooled consumer confidence.

Despite these headwinds, 75% of retailers remain cautiously optimistic for 2025, with the year holding steady or seeing slight gains over 2024. They’re adjusting strategies, bracing for volatility, and closely monitoring consumer behaviour.

To find out more about how to participate in Retail Conditions Reports and receive advanced information, please contact mleblanc@retailcouncil.org.