How has the pandemic changed the Canadian e-commerce market? How have category trends changed?

It is learned that the latest data from Statistics Canada shows that although the epidemic blockade began to be lifted in 2022 and consumers returned to offline physical stores for shopping, the Canadian e-commerce market still maintained a strong growth momentum. At the same time, the change in consumption habits during the epidemic also had a long-term impact on the online consumption trends of some categories.

E-commerce growth slowed down, but still higher than before the epidemic

Data shows that from February 2020 to July 2022, Canadian e-commerce sales increased by 67.9%, and then fell back in July 2022, but remained higher than pre-epidemic levels. The proportion of e-commerce sales in total retail sales also increased from 3.9% in 2019 to 6.2% in 2022.

During the peak of the pandemic in 2020 and 2021, Canadian e-commerce sales accounted for 6.6% and 6.9% of the retail market, respectively. This share peaked in 2021 as retailers were affected by the second wave of store closures in the first half of that year.

The latest data released by Statistics Canada shows that on an unadjusted basis, retail e-commerce sales fell 2.4% year-on-year to $4.4 billion in December, accounting for 6.5% of total retail trade. Compared with December 2021, the share of e-commerce sales in total retail sales fell by 0.6 percentage points.

E-commerce sales in some categories remain strong

Research shows that during the pandemic, most industries in the Canadian retail market saw an increase in online sales and a decrease in physical store sales. In 2022, e-commerce sales in some categories continued to remain high, while in other categories, they were closer to pre-pandemic consumption habits.

Some non-essential retail categories, such as clothing accessories, furniture and home furnishings, electronic appliances, sporting goods, hobbies, books and music playing equipment, have seen an increase in e-commerce sales during the pandemic.

However, after the lockdown was lifted, e-commerce sales in these categories declined, but remained above pre-pandemic levels, which could indicate a structural shift in consumer preferences and retailers’ business models in these categories.

E-commerce sales of building materials and gardening equipment and supplies increased significantly during the pandemic, peaking in the first quarter of 2021 before falling sharply for the rest of the year. Entering 2022, e-commerce retail sales in this category are still higher than pre-pandemic levels.

Compared with other categories, e-commerce sales of health and personal care have seen a significant slowdown in growth this year, with most consumers continuing to return to in-store shopping, but the gap between physical store and e-commerce sales is narrowing.

Editor✎ Ashley/

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