'Cautious' Vancouver shoppers spending less as retail and restaurants struggle
Weekly spending at restaurants and retail businesses fell in downtown Vancouver in 2025, as consumers remained wary of their spending.
The Downtown Van, the business improvement association for downtown Vancouver, released its State of Downtown 2026 report his month, highlighting some of the challenges downtown businesses, including restaurants, dealt with in 2025.
It found that weekly retail sales went down an average of 1.65 per cent year-over-year.
The report states that spending on apparel “fluctuated dramatically [in 2025], suggesting apparel shoppers are increasingly strategic, concentrating purchases during sales events while pulling back during regular-price periods.”
For example, January saw nearly a 27 percent growth, August 36 percent, while June dropped by a whopping 47 percent.
Retail sales were flat in the first quarter of 2025 at 0.06 per cent, down by 1.19 per cent in Q2, and down 6.69 per cent in Q3.
In 2025, shoppers spent more on apparel but less on other retail categories.
From 2022 to 2025, average apparel transactions increased by 32 per cent — from $156.80 to $207.38. Meanwhile, general retail transactions fell by 26 per cent, from $45.40 to $33.49.
“When consumers feel uncertain about the economy, they become more selective, opting
to spend their dollars on items they value most while seeking deals elsewhere,” the report reads.
There were still several large retail openings in 2025, including a flagship Roots store on Robson and Hornby, Peak Performance on Burrard and Robson, and Marshalls on Granville Street.
In 2026, clothing store A Bathing Ape opened its first Canadian store on Alberni Street.
A challenging year for restaurants
Weekly spending at restaurants fell 5.7 per cent year-over-year in 2025, with only seven weeks having positive spending growth.
“Downtown restaurants continued to navigate challenging conditions in 2025 as consumers
maintained cautious spending habits,” reads the report.
The nearly two-month BC General Employees Union strike “strained” liquor-serving establishments, as job action impacted import logistics, liquor licence processing, and official liquor distribution centres. Restaurants were short of some imported spirits and alcoholic beverages.
The report added that the tariffs from the U.S.-Canada trade war “added to rising costs and supply chain volatility in the restaurant sector.”
“With low customer tolerance for cost pass-through measures such as customer surcharges, operators face a challenge in balancing operational cost increases with foot traffic retention.”
However, the average transaction size still rose by over 10 per cent year-over-year (from $21.22 to $23.41), indicating that restaurants are increasing prices. From 2023 to 2025, this went up by a 20 per cent (from $19.35 to $23.41).
“Overall, the broader trend points to continued consumer restraint amid price pressures,” reads the report.
While the report focused on 2025 statistics, some indicators from 2026 are pointing towards a similar trend. For example, B.C.’s consumer spending data fell by nearly one per cent in the first quarter of 2026. If the two per cent inflation (meaning that everything costs about two per cent more than it did last year at the same time) is accounted for, this is closer to a three per cent decline in spending compared to last year.