Posted April 21, 2019 11:08:13Canadian consumers will spend $160 million on home items and furniture this year, the federal government announced Tuesday.
Homegoods and furniture makers, meanwhile, will spend up to $50 million on new products and services.
The federal government is spending $150 million on a $100 million initiative to bring home goods to the doorstep.
The move follows months of debate in Ottawa over how best to ensure the country can remain competitive in a global economy that’s also shifting toward mass consumerism.
“It’s a very good first step,” said Carolyn Drennan, chief executive officer of Canadian Manufacturers and Exporters Association.
“The good news is we are seeing very strong growth in the home furnishings industry.
Canada’s overall home furnishing market was $1.3 trillion in 2018, up from $1 trillion in 2016, according to the latest numbers from the Canadian Home Furnishings Association.”
We’re still at a point where the demand for home goods in the United States is growing.”
Canada’s overall home furnishing market was $1.3 trillion in 2018, up from $1 trillion in 2016, according to the latest numbers from the Canadian Home Furnishings Association.
The biggest increase was seen in the furniture category, which grew from $86 billion in 2016 to $105 billion in 2018.
The number of new furniture products in Canada rose from 1,547 to 1,857 between 2016 and 2018.
Home goods makers also saw an increase of $10 million from last year to this year.
Home goods, meanwhile are a relatively small part of the overall Canadian furniture market.
Overall, Canadian home goods sales grew by $4.6 billion in the last three years, according the Association of Canadian Home Builders.
That compares to a $5.3 billion growth rate for all Canadian products.
“Home furniture is growing at a really strong rate, and there are a lot of great Canadian brands that are doing great work in this space,” said Drenna.
“They’re bringing home goods into the home, and it’s a really positive story.”
A key issue for Canadians is how to keep up with rising home prices.
While the average Canadian family has spent $1,200 on home furnishments and accessories, the average homeowner spent $9,300 in the past year, according a recent Bank of America Merrill Lynch report.
The average Canadian household spent $2,400 in the first quarter of this year on home furniture and accessories.
That’s an increase from $2.1 billion in 2017.
Canada’s median annual income rose to $56,300, up $1 per cent from the year before.