Canadian Retail Thrives during Amazon Prime Day 2025: A Deep Dive

Table of Contents

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

Key Highlights:

• Amazon Prime Day 2025 saw Canadian retail sales grow by 9%, significantly outperforming the United States, where sales only increased by 1%.
• The longest Prime Day event to date, running from July 8 to 11, allowed retailers to capitalize on a spike in consumer spending, particularly in the final days.
• Canadians remain value-driven shoppers, seeking discounts as economic pressures influence their purchasing behaviors, with apparel and beauty leading sales categories.

Introduction

Amazon Prime Day has established itself as a prominent event in the retail calendar, not just for the online giant but for retailers across the globe. In 2025, this annual shopping phenomenon, which took place from July 8 to 11, yielded impressive results for Canadian retailers, showcasing their resilience amidst economic uncertainties. As consumers increasingly seek value, the event became a pivotal opportunity for non-Amazon retailers to capture attention and sales. This article explores the key findings from the event, highlighting consumer behavior, sales performance, and implications for the future of retail in Canada.

The Impact of the Extended Event

The 2025 iteration of Prime Day was notably longer, extending over four days, which is the most extended period since the event's inception. This expansion was strategic, allowing retailers to drive incremental sales, particularly as the event drew to a close. Reports from Salesforce indicate that Canadian sales surged by 16% and 23% respectively on the last two days of the event. Caila Schwartz, Director of Consumer Strategy and Insights at Salesforce, noted, “Sales growth for North American non-Amazon retailers increased 1% year-over-year during last week’s Prime Day events and by 9% in Canada.” This remarkable growth illustrates how a well-timed promotional strategy can yield dividends for retailers.

The longer timeframe not only encouraged shopping but also allowed consumers more time to compare deals across various platforms, leading to a more competitive retail environment. The results suggest that many shoppers strategically waited for the event to take advantage of the best offers, which reflects a growing trend of cautious spending and deal-hunting behavior.

Canadian Consumers Focus on Value

Despite the ongoing economic challenges, Canadian consumers demonstrated strong engagement with promotional events, with Salesforce reporting an average discount rate of 20%. This figure is a slight decrease from the 22% observed in 2024, yet sales continued to exceed expectations. Schwartz remarked, “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.”

The pre-event promotional strategies employed by retailers also played a crucial role in sales performance. In the three days leading up to Prime Day, non-Amazon retailers showcased notable sales gains of 9%, 3%, and 13% respectively. Schwartz emphasized the effectiveness of engaging consumers prior to the event, 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 focus on value reflects a broader trend among Canadian consumers, who are increasingly prioritizing affordability and discounts. As inflation continues to impact household budgets, the demand for strategic pricing and special offers will likely remain paramount in the retail landscape.

Canada Outperforms the United States

While Canadian retailers enjoyed a robust 9% growth during Prime Day 2025, their counterparts in the United States reported a mere 1% increase in sales for non-Amazon retailers. This disparity highlights the unique position of the Canadian market, which demonstrated resilience in the face of economic challenges. Globally, non-Amazon retailers saw an overall rise of 8%, with Europe leading the way with double-digit growth, attributed to recent interest rate cuts that bolstered consumer spending power.

Schwartz pointed out the potential implications for North America, noting, “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 commentary underscores the interconnectedness of global markets and the influence of macroeconomic factors on consumer behavior.

Top Categories: Apparel and Beauty Lead in Canada

Sales data from Salesforce highlighted that apparel and beauty products were significant drivers of sales during Prime Day in Canada. While the company does not track Amazon-specific transactions, the "halo effect" of such a large retail event clearly influenced consumer purchasing patterns across the industry. The standout categories, which saw high levels of consumer interest, reflect a broader trend toward discretionary purchases, particularly when discounts are offered.

Globally, categories such as handbags and luggage experienced exceptional growth at 30%, followed closely by food and beverage (+27%) and sporting goods (+25%). These trends indicate that consumers are prioritizing lifestyle and wellness categories alongside essential goods, showcasing a shift in purchasing priorities.

Moreover, the rise of mobile commerce has been a significant factor in retail performance. In the second quarter of 2025, 72% of Canadian traffic originated from mobile devices, with 67% of orders completed on mobile—a notable increase from 63% in the previous year. Schwartz explained, “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.” Payment solutions like Apple Pay, PayPal, and Venmo have streamlined the purchasing process, making it more convenient for consumers to shop on their devices.

Economic Pressures Influence Behavior

Despite the positive outcomes from Prime Day, macroeconomic pressures are shaping consumer sentiment in Canada. High inflation rates, elevated interest rates, and overall economic uncertainty are prompting Canadians to adopt more cautious spending habits. Salesforce's data revealed that Canadians are increasingly pessimistic about the economy, with 44% reporting they are buying less than six months prior. This contrasts sharply with U.S. shoppers, who report more optimism and a willingness to spend.

The findings indicate that only 14% of Canadians surveyed expressed intentions to increase their purchases this year, highlighting a significant pullback from discretionary spending outside of major sales events. Schwartz emphasized the importance of understanding these consumer sentiments, as they will play a crucial role in shaping retail strategies moving forward.

Holiday Outlook: Discount Strategies Will Be Key

As retailers look ahead to the holiday season, the importance of discount strategies cannot be overstated. The competitive landscape suggests that Canadian consumers will continue to seek value-driven offerings, making it essential for brands to adopt proactive pricing strategies. Schwartz predicted, “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.”

Retailers are advised to prepare for early promotions leading into key shopping events like Black Friday and Cyber Monday. By leveraging the insights gained from Prime Day, brands can optimize inventory and engagement strategies to attract price-sensitive consumers.

Why Prime Day Matters for Canadian Retail

Although Prime Day is primarily an Amazon event, its impact extends far beyond the platform itself. The Salesforce report illustrates how Canadian retailers can harness the “halo effect” associated with Prime Day by timing their promotions effectively and catering to the value-driven mindset of consumers.

With the ongoing acceleration of mobile shopping, intensified price sensitivity among consumers, and a growing preference for domestic products—31% of Canadians reported prioritizing items made at home—retailers that align with these trends are more likely to succeed. Schwartz concluded, “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.”

FAQ

What is Amazon Prime Day? Amazon Prime Day is an annual sales event exclusively for Amazon Prime members, offering significant discounts across various product categories. It has evolved to influence retail strategies beyond Amazon, impacting sales for non-Amazon retailers as well.

How did Canadian retailers perform during Prime Day 2025? Canadian retailers experienced a 9% growth in sales during Prime Day 2025, significantly outpacing the 1% growth seen in the United States for non-Amazon sales.

What factors influenced consumer behavior during Prime Day? Economic pressures such as inflation and high interest rates have led consumers to become more value-driven, prioritizing discounts and essential purchases over discretionary spending.

What are the top-selling categories in Canada during Prime Day? Apparel and beauty products were the leading categories in Canada during Prime Day, reflecting consumers' willingness to indulge in discretionary purchases when discounts are available.

How can retailers prepare for the upcoming holiday season? Retailers should focus on discount-driven strategies and consider early promotions to align with consumer demand for value, leveraging insights from Prime Day to optimize their offerings during key shopping events.