Table of Contents

1. Key Highlights:
2. Introduction
3. Canadian Consumers Focus on Value
4. Canada Outperforms the United States
5. Top Categories: Apparel and Beauty Lead in Canada
6. Economic Pressures Influence Behaviour
7. Holiday Outlook: Discount Strategies Will Be Key
8. Why Prime Day Matters for Canadian Retail

Key Highlights:

• Canadian retail experienced a remarkable 9% sales growth year-over-year during Amazon Prime Day 2025, surpassing the U.S. market, which saw only a 1% increase.
• The event's extended four-day duration from July 8 to 11 provided a significant boost in sales, particularly in the latter half, with some retailers reporting increases of up to 23%.
• Despite economic pressures, Canadian consumers actively sought value, with an average discount of 20% driving engagement in key categories such as apparel and beauty.

Introduction

The landscape of retail in Canada during Amazon Prime Day 2025 showcased resilience and adaptability amidst ongoing economic uncertainties. With the four-day shopping event running from July 8 to 11, Canadian retailers capitalized on the consumer demand for discounts, resulting in significant sales growth. This year, shoppers appeared more strategic in their spending, with a noticeable shift in purchasing patterns that favored local businesses and value-driven promotions. As the retail sector navigates through inflation and cautious consumer behavior, understanding the dynamics of this year's Prime Day can provide critical insights for upcoming holiday seasons and beyond.

Canadian Consumers Focus on Value

The engagement of Canadian consumers during Prime Day was marked by a compelling focus on value. Data from Salesforce revealed that the average discount rate was 20%, which, while slightly lower than the 22% seen in 2024, still led to robust sales figures. This trend indicates a growing consumer awareness of pricing, as shoppers turned to various retailers for better deals.

Caila Schwartz, Director of Consumer Strategy and Insights at Salesforce, noted, “What makes it even more impressive is that the average discount level being offered was down 2% from last year. Shoppers who were holding out for a bargain from Amazon clearly went elsewhere as the week went on.” This behavior aligns with a broader trend of consumers becoming increasingly discerning, leading to a competitive environment where retailers must effectively engage their audience beyond Amazon's platform.

Pre-event promotions played a crucial role in shaping consumer behavior. Non-Amazon retailers in Canada experienced sales gains of 9%, 3%, and 13% in the three days leading up to Prime Day. Schwartz emphasized the importance of this strategy, stating, “We definitely are seeing other players in the industry preempt Prime with their own deal events. That seems to be a really good strategy because it allows retailers to engage shoppers before the noise of Prime Day takes over.” This proactive approach not only helped retailers maintain visibility but also positioned them favorably for increased sales when Prime Day commenced.

Canada Outperforms the United States

While Canadian retailers enjoyed a commendable 9% growth during Prime Day, their counterparts in the United States saw only a modest increase of 1% in non-Amazon sales. This stark contrast highlights the unique dynamics of the Canadian retail market and its ability to adapt to challenging economic environments. Globally, non-Amazon retailers experienced an overall rise of 8%, with Europe witnessing double-digit growth attributed to recent interest rate cuts that boosted consumer confidence.

Schwartz observed, “What is happening in Europe in regards to interest rate cuts had a clear impact. We saw Q1 was pretty flat, but by Q2, every region across Europe saw strong growth, and that carried into Prime Day. It could indicate what might happen in North America if we see similar cuts.” This sentiment underscores the interconnectedness of global economic trends and the potential for shifts in consumer spending patterns based on macroeconomic factors.

Top Categories: Apparel and Beauty Lead in Canada

During Prime Day, certain categories emerged as clear frontrunners in Canada, with apparel and beauty leading the charge. Although Salesforce does not track Amazon-specific transactions, its data indicated a "halo effect" across the broader retail ecosystem, suggesting that Prime Day promotions had a positive spillover effect on various sectors.

Globally, categories like handbags and luggage saw remarkable growth of 30%, followed by food and beverage at 27%, and sporting goods at 25%. These trends illustrate a consumer preference for lifestyle and wellness purchases, indicating that shoppers are willing to invest in non-essential items when discounts are available.

The data also highlighted the ongoing rise of mobile commerce in Canada. In Q2 2025, 72% of Canadian traffic originated from mobile devices, with 67% of orders completed on mobile—an increase from 63% the previous year. Schwartz noted, “We appear to have reached a level of parity in terms of traffic penetration, but orders are still growing. The Canadian shopper is just getting even more comfortable transacting across mobile, and we attribute that to mobile wallet adoption.” The ease of payment solutions such as Apple Pay, PayPal, and Venmo has contributed to this trend, making it more convenient for consumers to finalize purchases on their phones.

Economic Pressures Influence Behaviour

Despite the positive sales growth during Prime Day, Canadian consumers remain cautious due to ongoing economic pressures. Concerns over inflation, high interest rates, and overall economic uncertainty have led to a more conservative approach to spending. Schwartz noted, “Our data shows that Canadians are feeling more pessimistic about the state of the economy compared to consumers in the U.S. and Europe. They are prioritizing savings and essentials, and 44% reported buying less now than they were six months ago.”

This cautious sentiment contrasts sharply with that of U.S. shoppers, who exhibit higher levels of optimism and a willingness to spend disposable income on goods. Only 14% of Canadians surveyed indicated they were buying more this year, highlighting a sustained pullback from discretionary purchases except during major promotional events. This behavioral shift underscores the need for Canadian retailers to adapt their strategies to meet the changing demands of consumers who are increasingly prioritizing value and essential purchases.

Holiday Outlook: Discount Strategies Will Be Key

As the retail sector looks ahead to the holiday season, the emphasis on discount-driven strategies will intensify. Salesforce anticipates a competitive landscape, with Canadian shoppers continuing to seek value amid inflationary pressures and cautious financial planning. Schwartz pointed out, “Canadian consumers have told us they are waiting for deals and discounts. Brands that show up strategically, similar to what we saw during Prime Day, will be best positioned to win.”

This forecast suggests that retailers should prepare for early promotions leading into Black Friday and Cyber Monday, leveraging insights gained from Prime Day to optimize inventory and consumer engagement. Retailers that can effectively communicate their value propositions and deliver compelling discounts will likely capture the attention of increasingly discerning consumers.

Why Prime Day Matters for Canadian Retail

Although Prime Day is primarily an Amazon event, its impact resonates well beyond the platform. The Salesforce report illustrates how Canadian retailers can harness the event's "halo effect," provided they time their promotions effectively and cater to value-driven shoppers.

As mobile shopping continues to accelerate and consumer price sensitivity intensifies, there is a growing interest in domestic products, with 31% of Canadians prioritizing items made at home. Retailers that embrace these trends and strategically position their offerings will gain a competitive edge in the evolving retail landscape.

Schwartz summarized the potential for Canadian retailers succinctly: “There’s space in these shopping events for every brand to show up. Using that space strategically, and cutting through the noise, can deliver strong results.” As retailers prepare for future events, understanding consumer behavior and adapting to changing market dynamics will be crucial for sustained success.

FAQ

Q: What was the sales growth during Amazon Prime Day 2025 in Canada?
A: Canadian sales grew by 9% year-over-year during Amazon Prime Day 2025, outpacing the United States, which saw only a 1% increase.

Q: How did Canadian consumers approach shopping during Prime Day?
A: Canadian consumers focused on value, seeking discounts and engaging with retailers beyond Amazon. The average discount offered was 20%, indicating a careful approach to spending.

Q: What were the top selling categories during Prime Day in Canada?
A: Apparel and beauty emerged as leading categories during Prime Day in Canada, reflecting consumer interest in discretionary purchases when discounts were available.

Q: How has mobile commerce influenced Canadian retail during Prime Day?
A: Mobile commerce has seen significant growth, with 72% of traffic coming from mobile devices and 67% of orders completed on mobile, making transactions more convenient for consumers.

Q: What economic factors are affecting Canadian consumer behavior?
A: Economic pressures such as inflation and high interest rates have led to more cautious spending habits among Canadians, with many prioritizing savings and essentials over discretionary purchases.