DAVIDsTEA has returned to Durham Region with a new store at Oshawa Centre, re-establishing its presence in a market that the company says has been eager for the brand’s return as it accelerates a broader store expansion strategy across Canada.
The new location marks DAVIDsTEA’s sixth store in Ontario and comes as the Montreal-based tea retailer pursues plans to open four stores nationally in 2026, bringing its network to 25 locations by year-end. The Oshawa opening follows several years of transformation for the company, which has rebuilt its business around a combination of retail stores, e-commerce and wholesale distribution.
“There’s nothing like the joy of connecting with our community in person, bringing personalized recommendations and in-store tastings, and seeing tea bring people together,” said Sarah Segal, Chief Executive Officer and Chief Brand Officer of DAVIDsTEA. “Oshawa asked us to come back, and we’re proud to bring the full DAVIDsTEA experience home to Durham.”
The store is located at Oshawa Centre, Durham Region’s dominant enclosed shopping centre and one of Ontario’s largest retail destinations. The property is owned by Primaris REIT, which acquired Oshawa Centre in 2025 as part of a major portfolio transaction that expanded its ownership of leading regional shopping centres across Canada.
The opening adds another national retailer to Oshawa Centre’s merchandising mix at a time when shopping centre owners continue to focus on experiential retail concepts that encourage customer engagement and repeat visitation. For DAVIDsTEA, physical stores provide an opportunity to introduce customers to new products, offer personalized recommendations and create experiences that cannot be replicated online.
Customers visiting the new Oshawa store will find DAVIDsTEA’s assortment of loose-leaf teas, tea sachets, teaware, gifts and seasonal collections, along with the company’s growing Tea Bar concept. The beverage menu includes TeaPop lemonades and a dedicated organic matcha selection, including the Organic Cherry Swirl Matcha beverage highlighted in the company’s launch announcement.
The expanded Tea Bar and matcha offerings align with broader consumer demand for specialty beverages and wellness-focused products, categories that DAVIDsTEA believes will continue to drive growth in the years ahead.
Store-Led Growth Strategy Gains Momentum
While the Oshawa opening marks a return to a familiar market, it also represents one component of a broader national expansion strategy that management says is moving from planning into execution.
“Our store-led growth strategy is no longer a plan. It is gaining in momentum and on track,” Segal told investors during DAVIDsTEA’s recent first-quarter earnings call.
The company plans to open four stores this year, including locations at Oshawa Centre, Square One Shopping Centre in Mississauga, Southgate Centre in Edmonton and Metropolis at Metrotown in Burnaby, British Columbia.
Collectively, the four centres rank among Canada’s leading regional shopping destinations, providing DAVIDsTEA with access to substantial foot traffic in major urban markets. The Square One location is expected to open in July, further expanding the company’s presence within the Greater Toronto Area.
Management views the new stores as more than traditional retail locations.
“Each new store represents a high-traffic, high-profile location that will serve as both a brand billboard and a demand driver across our online and wholesale channels,” Segal said.
That approach reflects how DAVIDsTEA’s retail strategy has evolved in recent years. Rather than viewing stores solely as four-wall businesses, the company increasingly sees physical locations as a way to introduce customers to products, build brand awareness and support growth across e-commerce and wholesale channels.
Expansion Supported by Strong Store Economics
The expansion is being supported by what management describes as a disciplined and highly targeted store model.
According to company executives, a typical new DAVIDsTEA store occupies approximately 750 square feet and requires an investment of between $400,000 and $475,000. The company is targeting annual sales of between $1.2 million and $1.4 million per location, with a four-wall contribution margin of roughly 25 per cent and a projected payback period of 15 to 18 months.
The strategy is already being tested through the company’s recently opened location at Laurier Québec in Quebec City, which opened in December 2025. Management says the store is performing in line with expectations and is serving as a proof point for the broader expansion program.
Executives also told investors that incremental cash flow generated by new stores is expected to help fund future growth, creating what management describes as an increasingly self-financing expansion model.
The economics represent a different approach from DAVIDsTEA’s earlier era of rapid expansion. Today’s strategy centres on a smaller fleet of highly productive stores in premier retail destinations that complement the company’s digital and wholesale businesses.
Building the Next Phase of Growth
DAVIDsTEA’s renewed focus on physical retail represents another step in the company’s evolution following its restructuring and transformation into a more diversified omnichannel business.
In an interview with Retail Insider last year, Segal described a disciplined approach to expansion, focusing on markets where customer engagement remained strong and where stores could complement online and wholesale operations. The Oshawa opening appears to align closely with that strategy.
During the recent earnings call, Segal noted that prior to the pandemic DAVIDsTEA operated more than 190 stores across Canada. She said management believes the Canadian market can support a significantly larger footprint than the company’s current network, though the company is taking a more measured approach to growth than in the past.
“Our near-term objective is to double our current store count from that base,” Segal said.
Today, DAVIDsTEA operates stores across several Canadian markets while also selling through its e-commerce platform and an extensive wholesale network that includes thousands of grocery stores, pharmacies and convenience stores throughout Canada and the United States.
With additional openings planned in Mississauga, Edmonton and Burnaby later this year, DAVIDsTEA’s store network remains a fraction of its historical peak. Management believes there is substantial room for further growth, and the Oshawa opening provides another indication that the retailer’s next chapter will be defined as much by physical stores as by e-commerce and wholesale distribution.
