Retail markets continue to thrive well into the year and there is no sign of them slowing down at any time. While certain niche markets may not be able to content, there are those that keep the industry afloat. One retail market in the retail sector is thriving despite the hardships it has faced in the last 12 months.
The luxury retail market has been flourishing across Canada and consumers are receptive to this new wave. Take a walk in the downtown core of Vancouver or the hustle-and-bustle in the heart of Toronto and you will find a superfluous amount of luxury retailers. The luxury clothing sector, in particular, amasses for a large portion of success the retail markets are seeing.
What is influencing this growth within the luxury retail market?
Canadians have proven to have an appreciation for European fashion which is most notably crafted by high-end designers. The appreciation accumulated from the fashion market overseas has seen vast success in Canadian markets. Canada boasts a high sense of trust when it comes to this market. While there are places scattered around the country to obtain counterfeit goods, law enforcement is working to eliminate them. The hefty price tags associated with luxury goods, the certificate of authenticity, and the overall atmosphere of a shop are key indicators that goods within are 100% authentic.
Luxury goods are purchased for two reasons: high quality and social status. Certain luxury goods utilize materials of higher quality, increasing the longevity of the item, thus, being grounds for hiking up the price. Social status is also a major contributor to the growth of luxury good sales. Many believe boasting luxury goods entails and reiterates their wealth and status.
What areas are luxury retailers prevalent in?
Luxury retailers are strategic when it comes to their placement in order to optimize profit. Typically, luxury retailers will look at the jobs and average incomes in the surrounding neighbourhood where they are considering allocating their business. Luxury retailers are most prevalent in Affluent areas such as Bloor Street West, Yorkville Village, Yorkdale, and the downtown core of Vancouver City.
Aside from affluent areas, luxury retail shops are also prominent in the downtown core of major cities. Because the downtown core of these popular cities (Toronto, Vancouver, Edmonton, Calgary, and Montreal) are hot spots for tourists, there is a greater probability to generate business with those foreign to the country.
What does the future of luxury retailers in Canada look like?
Although the luxury market has had rough patches, it has continued to make an upward trajectory. As long as the demand remains high, luxury retailers will continue to dominate and make a substantial profit. With more luxury shops opening their doors all across Canada, it comes to no avail that there is certainly a high demand for these goods. This retail market speaks to, not only Canadian citizens but to tourists as well, who deem Canada as a safe and trustworthy place to purchase luxury goods.
Want to learn more about the luxury retail market and real estate opportunities surrounding it? Read more here!