Calgary retail overview

Calgary retail market trends

 

01. Consumer preferences evolving amid ongoing economic shifts

Calgary's economy remains resilient amid national economic headwinds, supported by a strong labour market, sustained population growth, and continued strength in the energy sector. In the retail sector, demand remains healthy, with grocery-anchored and service-based retailers performing well. New developments are limited, leading to tighter availabilities in desirable nodes, while evolving consumer preferences continue to drive demand for experiential and convenience-based retail formats.

 

02. Childcare demand reshapes retail real estate landscape

The rollout of federal–provincial childcare funding has provided relief of up to $30,000 for childcare programs through federal grants; however, it has fueled quick absorption of the available commercial real estate suitable for conversion. Market dynamics have shifted: there is a growing prevalence of non-profit and preschool-only operators over traditional full-day, for-profit models—especially those requiring outdoor space. From a leasing standpoint, inquiries and leads from traditional childcare tenants have noticeably declined due to provincial grant caps.

 

03. Lease provisions face new legal risks in light of competition act reforms

Recent enforcement trends by the Competition Bureau have placed increased scrutiny on exclusivity clauses and restrictive covenants in retail leases. These provisions are now considered presumptively anti-competitive, particularly when they involve broad geographic scope, indefinite terms, or protections favoring dominant tenants—conditions that may substantially lessen competition in local markets. While grocery anchors have been the primary focus, these guidelines apply across all retail sectors, signaling a broader shift in regulatory oversight impacting property controls and leasing strategies.