Canada's Economic Comeback: Five Years After COVID-19
Reflecting on Canada's five-year economic recovery post-pandemic: retail shifts, lasting habits, and signs of resilience in 2025.
Canada Economy
By Elke Porter | WBN News Vancouver | April 26, 2025
On April 26, 2025, Canadians pause to reflect on the past five years — a half-decade that has reshaped daily life and the economy in ways few could have imagined. We look back to 2020, when the world changed overnight, and measure how far we have come, as well as how far we still need to go to regain the stability and confidence we knew in 2019.
While life has largely returned to normal, reminders of the pandemic linger all around us. Many storefronts, restaurants, and brick-and-mortar shops still display faded signs urging customers to stay 2 metres apart or wear masks — even though these measures have not been officially required for years. These leftover warnings serve as a visible reminder of how deeply COVID-19 disrupted our communities, businesses, and everyday routines.
The economic toll was historic. In April 2020, Canada's GDP fell by 11.6% and unemployment surged to 13%, the highest level recorded since the Great Depression. Sectors like retail, hospitality, and tourism were hit the hardest, with thousands of businesses closing their doors permanently. Entire downtown cores in cities like Vancouver, Toronto, and Calgary sat empty for months.
Recovery efforts began cautiously in the summer of 2020 as provinces launched phased reopening plans. Employment numbers started to climb back, but challenges quickly followed. Inflation pressures grew in 2022, driven by broken supply chains and rising energy costs, putting even more strain on households and businesses.
By 2023, major retailers like Hudson’s Bay, Bed Bath & Beyond, Nordstrom, Target Canada, Zellers, Home Outfitters, The Body Shop Canada, Le Chateau, and the already-defunct Sears Canada faced significant challenges, with closures or downsizing reflecting their struggles to adapt to a shifting retail landscape. Hudson’s Bay closed select stores and laid off staff, while Bed Bath & Beyond shuttered all Canadian locations amid bankruptcy. Nordstrom closed all 13 Canadian stores in 2023, citing unprofitability.
Target Canada’s 133 stores were liquidated in 2015 after a failed expansion. Zellers, largely closed by 2013, saw its final stores shut by 2020. Home Outfitters, an HBC subsidiary, closed all 37 stores in 2019. The Body Shop Canada closed 33 of its 105 stores in 2024 during restructuring. Le Chateau shut all 123 stores in 2020 following creditor protection. Sears Canada, liquidated by 2018, exemplified earlier department store failures.
In contrast, other brands, such as luxury retailer Holt Renfrew thrived by focusing on high-end fashion, and Quebec-based Simons expanded successfully. The rise of e-commerce (e.g., Shein, Amazon), technology, and remote work services, accelerated by the COVID-19 pandemic, drove permanent changes in consumer habits, favoring online shopping, discount retailers, and specialty stores over traditional department stores.
In late December 2020, British Columbia’s restaurant industry prepared for a subdued but hopeful New Year’s Eve 2021, expecting to operate under existing COVID-19 protocols that allowed dining with liquor sales until 10 p.m. Restaurants, from small establishments to high-end venues like Vij’s and Seasons in the Park, invested heavily in premium ingredients, champagne, and party supplies, with some estimating costs in the thousands per outlet and millions collectively across the sector.
As an example, a single downtown Vancouver restaurant reported $25,000 in planned sales for 500 reservations. However, on December 30, 2020, Provincial Health Officers announced a last-minute order banning liquor sales after 8 p.m. on New Year’s Eve, citing concerns over alcohol-fueled gatherings. This abrupt change, made without industry consultation, forced restaurants to scramble, with many canceling reservations or closing early, as customers opted for private gatherings instead.
The financial blow was severe, exacerbating existing pandemic-related losses. While no direct evidence ties this specific order to widespread bankruptcies, Restaurants Canada later reported a 116% spike in food service bankruptcies by 2023, driven partly by such unpredictable restrictions, with 62% of restaurants operating at a loss or breaking even by 2024. The lack of notice and consultation also contributed to industry-wide frustration and financial strain that pushed some toward insolvency.
Five years later, Canada's economy is in a fragile but hopeful state. With a forecasted GDP growth of 4.9% for 2025, cautious optimism is in the air. However, Canadians have adopted more careful spending habits, especially when it comes to dining out and non-essential purchases. Government supports were critical, but the full journey back to a 2019-style economy is still ongoing. The future will depend on balancing innovation, resilience, and lessons learned from a world forever changed. And, of course, the upcoming Federal Election on Monday, April 28.
#Canada Economy #Post Pandemic Recovery #Canadian Business #Retail Trends #Economic Growth #Five Year Reflection #Pandemic Impact #Future Of Retail #WBN News Vancouver #Elke Porter
Connect with Elke at Westcoast German Media or on LinkedIn: Elke Porter or contact her on WhatsApp: +1 604 828 8788
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