Well, its that time of year when we say goodbye to 2025 in the world of retail. It certainly was a year of change for Canada. I thought I would briefly discuss some of the stories that I thought were important to the industry. The list below is far from exhaustive as so much happened in 2025.
Top Stories
HBC says Goodbye
It was hard to imagine a Canada without Hudson’s Bay but that’s exactly what we got in 2025. There were strong rumours for quite a while but the 355-year-old company finally went down. 8,000 + people lost their jobs. Creditors were owed almost $1 billion and malls had gaping holes in them. From the ashes we saw Canadian Tire buy the HBC IP portfolio for $30 million, while Les Ailes de la Mode Inc. bought the Zellers trade mark – with both companies launching the brands in the fall. Ruby Liu was a household name for a few months before her attempt to buy 25 Bay stores to launch her own chain ended.
Growth of Hard Discount
In February Loblaw announced a 5-year $10 billion capital plan which included building 80 stores in 2025. A big part of this plan was to add 50 “hard discount” or in their case No Frills and Maxi stores. Why? More Canadians are having trouble making ends meet & discount banners sell for less than full-service grocers. The retailer also tested its pcogo program in 3 Toronto No Fills stores.
Tariffs & Counter Tariffs
When President Trump took office at the end of January, we soon saw the world’s trade order upended. Canada was suddenly looking at significant tariffs on our export product shipping to the US, including steel, aluminum and automotive parts. Once this happened the Canadian government added counter-tariffs on the US which made our imports more expensive for select categories including orange juice, peanut butter, coffee & cosmetics. This increased inflation on shelf for select groceries, consumer products & other commodities. The elimination of the US de minimis exemption made it harder for small Canadian exporters to sell to the US market.
Buy Canadian
Once Canadians saw that our trade dispute with the US was on, consumers voiced their desire to buy Canadian made items. Grocers reported an increase of Canadian made products while US products declined. We had to look deeper than what was on the label though as numerous American companies employ millions of Canadians and our supply chains are intertwined. We didn’t want to throw the baby out with the bath water.
Canadian Tire’s $ 2 billion Restructuring
The “Tire” launched its True North strategy which included plans on enhancing digital capabilities, more data driven customer relationships, a leaner more centralized operating model & the expansion of the Triangle Rewards program. I think the retailer realizes the Canadian retail landscape has become significantly more competitive and they must change with the times or be left behind. Canada’s demographics & purchasing habits have changed considerably since the decades when CTC dominated retail.
Retail Theft
We were flooded with videos on social media that showed thieves stealing from stores. Whether it was a jewelry store or a liquor store, robbers became more brazen. Retail workers were sometimes put in harms way, while police tracked these criminals down after the fact. The cost of retail theft in Canada is estimated at about $9 billion per annum and increases the prices we pay on shelf.
Continued rise of Recommerce
More and more research showed thrifting as a legitimate channel of sale. Reports from PWC, the RCC & Angus Reid talked to this trend. From Facebook Marketplace to Value Village and web platforms, consumers embraced this trend. Why Not? Save money, save the planet & find something unique to wear to that party. Even branded stores started carving out sections for resale. The category is anticipated to have reached over $6 billion in Canada in 2025.
AI Dials it Up
Since ChatGPT launched three years ago, AI has become mainstream. Used mostly for search, shoppers can use a variety of apps from Perplexity to Rufus, Amazon’s in house AI agent, to get help coming up with gifts ideas & compare prices. OpenAI has partnered with a number of retailers in the US to enable purchase while in ChatGPT. This has the potential to disrupt how consumers buy, who owns the relationship with shoppers and who gets paid.
Same-Day-Delivery+
Do you remember when online orders took a week to get to you? Then 2 days was the benchmark. Now you can get e-commerce orders in the same day and in some cities within a few hours of ordering. Amazon recently launched Same-Day-Delivery in several major cities in Canada, where you can get overnight, extended daytime, afternoon or evening delivery. The service is offered in Toronto (GTA), Hamilton & Ottawa. Amazon has been expanding its presence in Canada & now has 46,000 employees, 70 facilities & spent about $ 65 billion in Canada since 2010. If you’re a Prime member you can get 20 million items delivered free of charge. You now have no excuse if you forgot to get uncle Eddie a gift & he’s coming over this evening.
Lululemon CEO Leaves
In December, Lulu announced that CEO Calvin McDonald was leaving in January. This sent shockwaves through the industry as the retailer’s fortunes had turned for the worse over the last year or so. With the stock down about 50% in the last 12 months, founder Chip Wilson made his displeasure well known. McDonald leaves behind a legacy of tripling sales at Lululemon, while growing their international business & launching new categories. At the time of writing, Elliot Investment Management, an activist investor, has allegedly taken a $1 billion USD stake in the retailer & has its own CEO replacement in mind.
OK that’s it.
I hope you enjoyed this walk down memory lane.
What stories would you add to this list & why?
Thanks,
Bruce
Simons opened new locations in Eaton Centre and Yorkdale. It is exciting because it carries the hope of Canadian retail fashion and also provides more shopping options for the customers in the GTA specifically.