Canada

CANADIAN ECONOMIC & RESALE FACTS & STATS  

 GDP real growth rate: with real GDP rising by 1.1 percent in 20231  

Ease of doing business: Very Easy, ranked 23 with a general score 79.6 *as of 2020, published in 20242 

Consignment stores stats: 1,400 stores est. (2022)3 

Market Size of Used Goods Stores industry: $3.0 Billion (2023)4 

Used Goods businesses: 1,619 (2023)5  

The resale or used goods in Canada market offers products and services including pre-owned sneakers and streetwear, art and antiques, vintage collectibles and novelty items, furniture, home decor and kitchenware, women’s, men’s and children’s clothing, jewelry, shoes, handbags, luxury goods and watches, kids’ gear and toys, electronics, books, sporting goods, horse saddlery and tack, among others. 

Market share concentration is low for the Used Goods Stores industry in Canada, with the top four companies generating 32% of market revenue in Canada in 2023. The level of competition is low overall, but is highest among smaller industry players. 

Sneaker resale stats:  

In 2024, the Sneakers segment in Canada is projected to generate a revenue of US$1.47bn. 

A steady growth rate of 3.24% annually (CAGR 2024-2028) is anticipated. Canada accounts for 26% of the international resale market on StockX. 

HISTORY OF RESALE IN CANADA  

Resale and consignment have played significant roles in Canada’s retail landscape, offering alternative avenues for both buyers and sellers. In the 19th and early 20th centuries, second-hand stores emerged as a way for individuals to sell or exchange used items.  

In recent decades, the resale and consignment industry in Canada has experienced significant growth and evolution. Furthermore, environmental and sustainability concerns have spurred interest in thrift shopping and consignment as eco-friendly alternatives to traditional retail. Many Canadians now view second-hand shopping as a way to reduce waste and minimize their environmental footprint while also enjoying unique finds and affordable prices. 

Today, resale and consignment continue to thrive in Canada, with a diverse array of businesses catering to various tastes and preferences with the help of the best consignment software and inventory management tool. From vintage boutiques to online marketplaces, the industry remains an integral part of the retail landscape, offering both economic opportunities and sustainable shopping options for consumers.  

WHY CANADA IS A GREAT PLACE TO OPEN A CONSIGNMENT RESALE BUSINESS  

As Canadians become increasingly environmentally conscious, consumers’ shopping habits and requirements are shifting.   

Resale is a recession proof business, and particularly strong in Canada as it has been around and survived for hundreds of years. The Canadian resale market supports a very important part of Canadian culture around sustainability, reuse and recycling. Nationwide, Canada has strong green cities initiatives and consignment resale stores play a big part in the success of those programs.  

The used and second-hand goods industry, which involves the transfer of pre-owned items to a secondary consumer, has likewise increased in popularity in recent years. Specifically, the global second-hyears.pparel market was valued at approximately 33 billion U.S. dollars, a figure that is projected to nearly double in the next few years. 

Benefits of Consignment

Consignment reselling, compared to traditional retail where items are paid for upfront then resold, has many advantages:  

Advantages for consignment retailers-

• Low financial risk: Because retailers don’t pay for products until they’re sold, purchasing surplus stock and losing capital on inventory costs isn’t a concern. Consignment inventory allows retailers with tight margins to take on new products and to avoid assuming financial risk for products that don’t sell. 
• Higher potential for sales: Consigned goods can help diversify retail inventory, which can increase sales and profits. 
• Fewer storage needs: New stock can be brought in whenever there is customer demand for products. Retailers don’t need to make special storage arrangements for excess stock and can return any products that don’t sell. 

Consignment inventory advantages for suppliers- 

• Visibility: Consignment inventory gives suppliers an opportunity to reach new audiences by selling their products through retail stores. This enables suppliers to generate revenue without renting or owning their own retail space or hiring employees to run a store. 
• Testing: Consignment inventory enables suppliers to test new products in new markets, which can help them evaluate the product’s performance, based on the number of sales generated. 
• Reduced inventory costs: If large amounts of the goods are stored in warehouses, consigning inventory can help reduce some of those carrying costs by placing the goods with retail partners until they sell.
  

Used goods export and import in Canada 

Canada is a wealthy country and one of the largest global traders of worn clothing and other worn articles. Ghana, Pakistan, and Kenya were some of the key destinations for used clothing exported from Canada, with a combined trade value of roughly 28 million U.S. dollars. When importing used clothing items, Canada acquired over 27 million U.S. dollars’ worth of second-hand clothes from the United States, making it the country’s leading import partner by far. 

Canadian consumer attitudes towards used goods 

Canada was home to an estimated 1,400 used merchandise stores, many of which were located specifically in larger provinces, such as Ontario, British Columbia, and Quebec. In other words, no matter where the used items originally came from, many Canadian consumers generally did buy second-hand products. When asked whether they had bought second-hand at all in the past 12 months, approximately half of Canadians confirmed that they had. Some of the most common items purchased were clothing, various media, e.g., books and games, as well as furniture and household goods. About three-quarters of the country’s second-hand shoppers said that saving money was their reason for buying used goods, making it by far the leading motivating factor.

Sources:
1 https://budget.canada.ca/2024/report-rapport/overview-apercu-en.html 
2 https://www.statista.com/statistics/1226184/ease-of-doing-business-in-canada-by-topic/#:~:text=As%20of%202020%2C%20Canada’s%20ease,across%20borders%2C%20and%20paying%20taxes. 
3 https://www.statista.com/topics/2838/second-hand-goods-in-canada/ 
4 https://www.statista.com/topics/2838/second-hand-goods-in-canada/ 
5 https://www.statista.com/topics/2838/second-hand-goods-in-canada/