It was another busy week for Canadian retail, with expansion, new store concepts and shifting real estate strategies continuing to reshape the market.
One thing that stood out was how differently retailers are approaching growth. Some are expanding through new locations and franchising, while others are investing more heavily in existing stores, relocating to stronger spaces or experimenting with smaller formats. For landlords, that is also changing how space is being leased and repurposed, particularly as larger vacancies create opportunities for new uses and different combinations of tenants.
There were also some interesting signals in the broader economy. Retail employment has remained relatively resilient in parts of the market, even as consumers continue to be selective with spending and retailers contend with higher operating and supply-chain costs. That makes the investment we’re seeing in new stores and expansion particularly noteworthy.
Food and grocery were part of the conversation as well, including continued growth among health-focused and plant-based brands. Taken together, this week’s stories show a Canadian retail market that remains active, but where growth is increasingly being approached on a brand-by-brand and market-by-market basis.
Here are some of the stories and developments that caught our attention this week.
Retailer News
Starbucks is closing about 250 stores in North America while updating more than 1,000 locations with cozier seating, warmer designs and neighbourhood-inspired elements to improve customer experience and operational flow. This move reflects a focus on optimizing their retail and real estate portfolio to strengthen community connections and support long-term growth rather than simply expanding square footage.
Tommy Gun’s Original Barbershop plans to add over 80 new stores globally through franchising, addressing skilled labour shortages by emphasising career development and technology-driven customer experience. MEC is testing a smaller 2,200-square-foot format in Whistler with a curated inventory tailored to local outdoor activities, relying on its larger online assortment to meet demand, signalling a new direction in how retailers serve regional markets. These developments signal how Canadian retailers and franchise brands are adjusting physical formats and operational models to address labour challenges and meet regional customer needs more precisely.
Retailer Financials / Trends / Reports
Payroll employment in Canadian retail increased by 1.3% between February and July 2026, adding 25,300 jobs driven by clothing, motor vehicle, general merchandise, and food and beverage retailers. This employment gain contrasts with declines in wholesale trade and reflects a labour market recovery in essential retail segments that supports ongoing consumer access despite economic uncertainty.
Retail sales dipped 0.7% in July as eight of nine subsectors posted declines, including a 1.9% drop in general merchandise sales after a strong June, indicating softer consumer spending in some areas. However, RBC reports broadening consumer spending growth in August across discretionary and essential categories, suggesting resilience amid inflationary pressures like higher gasoline prices and trade uncertainties. This mix of weakening monthly sales data and expanding spending patterns points to uneven consumer demand that retailers and landlords must monitor carefully when planning inventory and leasing strategies.
Retailer People News
Tara Tomulka, founder of Rawcology, has transformed her personal health journey into a growing business that meets rising consumer interest in plant-based, organic, low-sugar snacks. Her background in holistic nutrition informs the brand’s focus on healthier, fibre- and protein-rich packaged foods, helping Rawcology expand into major retailers including Costco while navigating the challenges of scaling better-for-you offerings across Canadian and international markets.
Retailer Op-Eds
The rise in diesel costs across Canada is adding new pressure to the grocery supply chain, which could prompt retailers to reconsider pricing strategies in the near term. Retailers and suppliers will need to monitor fuel prices closely as these cost increases ripple through distribution networks, potentially eroding margins or transferring expenses to consumers.
Editor’s Take
Canadian retail investment hasn’t stopped, but it is becoming more targeted. Tommy Gun’s, Osmow’s and DAVIDsTEA are expanding, while retailers including Starbucks and MEC are experimenting with different store sizes and formats. The common thread is less about expansion for its own sake and more about putting the right concept into the right market.
Retail real estate is going through a similar adjustment. Some of the most interesting activity is happening in former department store spaces, where landlords have an opportunity to introduce several tenants instead of finding another single large-format replacement. Central Walk’s plans for former Hudson’s Bay space and Cadillac Fairview’s redevelopment of the former Nordstrom at CF Rideau Centre illustrate how dramatically these properties can change. Grocery, restaurants, entertainment and specialty retail can also generate traffic differently than the department stores they replace.
The economic picture remains mixed. Retail employment has increased in several categories even as Statistics Canada reported a modest decline in July retail sales. At the same time, higher transportation costs and tariff uncertainty are creating additional pressure for some retailers and suppliers.
What I find particularly interesting is that none of this points to a Canadian retail market moving uniformly in one direction. Some retailers are opening stores, others are shrinking formats, and landlords are breaking apart some of the largest spaces in the country. Capital is still being deployed, but increasingly with a closer eye on location, format and operating economics.
This Week’s Articles
Retailer News
- Starbucks undertakes massive refresh of North American locations and closing 250 stores — Mario Toneguzzi — Sep 25
- Tommy Gunn’s Original Barbershop has ambitious growth plans in Canada and internationally — Mario Toneguzzi — Sep 25
- MEC to Open Small-Format Whistler Store as Retailer Tests New Concept — Craig Patterson — Sep 25
- Lavazza Targets Canadian Growth as It Moves to Double North American Business by 2028 — Craig Patterson — Sep 25
- Guac Mexi Grill Marks 10 Years With 56 Locations, Eyes U.S. Expansion — Mario Toneguzzi — Sep 25
- AI transforming retail pricing, from dynamic discounts to personalized offers — Mario Toneguzzi — Sep 25
- Retailers face growing trust challenge as AI reshapes customer personalization — Mario Toneguzzi — Sep 25
- Natural, organic and wellness sector facing growing pressure from tariffs — Mario Toneguzzi — Sep 24
- Central Walk Details Redevelopment of Former Bay Spaces at Woodgrove and Mayfair — Craig Patterson — Sep 24
- 8 in 10 Canadians cutting back on restaurants: Restaurants Canada — Mario Toneguzzi — Sep 24
- 7-Eleven Brings Korean Bestsellers to Canada as Global Food Strategy Expands — Lee Rivett — Sep 24
- Osmow’s reaches 250 locations as family-run restaurant marks 25 years — Mario Toneguzzi — Sep 24
- KaleMart24 preparing for rapid expansion in the coming months — Mario Toneguzzi — Sep 24
- Altea leases 51,000 square feet for new wellness club in Toronto’s Leaside — Mario Toneguzzi — Sep 24
- Gallery Streetwear brings exclusive streetwear brands to Downtown Kelowna — Mario Toneguzzi — Sep 24
- Oatly turned Toronto’s Ossington Avenue into a monochromatic Matcha Hotel Suite — Mario Toneguzzi — Sep 24
- Packaging, EPR and ZEVs: Inside This Year’s RCC Retail Sustainability Conference — Retail Insider — Sep 24
- Healthy Planet launches $1M grant for emerging Canadian health and wellness brands — Mario Toneguzzi — Sep 23
- Harry Rosen Opens New Yorkville Flagship in Toronto — Craig Patterson — Sep 23
- Cineplex to consider potential sale of company in Strategic Review, appoints new CEO — Mario Toneguzzi — Sep 23
- Four wellness trends to watch in 2027: CHFA — Mario Toneguzzi — Sep 23
- Yorkdale Retail Shakeup Includes Zara Expansion, Indigo Move and New Luxury Stores — Craig Patterson — Sep 23
- Unique retail concept Makers expands with location in Saskatoon’s Midtown shopping centre — Mario Toneguzzi — Sep 23
- Spruce Meadows gears up for another record-breaking International Christmas Market — Mario Toneguzzi — Sep 23
- DAVIDsTEA Eyes Further Canadian Expansion as Store Sales Gain Momentum — Lee Rivett — Sep 23
- Grocery-anchored retail strong in Calgary market: CBRE — Mario Toneguzzi — Sep 23
- Toronto-based Airifai Real Estate sees potential in Saskatchewan retail properties — Mario Toneguzzi — Sep 23
- Canadian food and beverage manufacturers will need 173,000 new workers by 2034: report — Mario Toneguzzi — Sep 23
- Arc’teryx Opens Montreal Alpha Store 20 Years After Entering the Market — Craig Patterson — Sep 22
- Competition Bureau reaches agreement with Empire over grocery property controls — Mario Toneguzzi — Sep 22
- Adopt Parfums plans five new stores as Canadian expansion continues — Mario Toneguzzi — Sep 22
- AI Virtual Try-On could transform fashion e-commerce beyond static product photos — Mario Toneguzzi — Sep 22
- UNIQLO Expands Canadian Footprint While Reworking Montreal Flagship — Lee Rivett — Sep 22
- Jaybird to open third Toronto studio in Midtown — Mario Toneguzzi — Sep 22
- Roku expands NFL Zone to Canada, Mexico and Brazil — Mario Toneguzzi — Sep 22
- Dupray brings part of air purifier production back to Canada amid U.S. tariff uncertainty — Mario Toneguzzi — Sep 22
- Poshmark launches new brand campaign focused on fashion discovery — Mario Toneguzzi — Sep 22
- It’s Not Too Late to Attend CHFA NOW Toronto This Weekend — Retail Insider — Sep 22
- Big League Food Company targets $100 million revenue as Ontario expansion accelerates — Mario Toneguzzi — Sep 21
- Absolutely Fabrics Opens Grand Summerhill Flagship in Toronto — Craig Patterson — Sep 21
- Reitmans’ Store Investments Show Gains as Flagships Post Double-Digit Growth — Craig Patterson — Sep 21
- Williams Sonoma, Pottery Barn and West Elm to Open in Former Nordstrom at CF Rideau Centre — Craig Patterson — Sep 21
- One in five small business owners describe their business as “weak” or “critical”: CFIB — Mario Toneguzzi — Sep 21
- Tourisme Montréal launches free guided tours aimed at local residents — Mario Toneguzzi — Sep 21
- Tim Hortons teams up with adidas with a new footwear and apparel collection — Mario Toneguzzi — Sep 21
- Dunkin’ has room to grow in Canadian market: SATOV report — Mario Toneguzzi — Sep 21
- Naturium expands Sephora presence in Canada and Mexico — Mario Toneguzzi — Sep 21
- Egg Club, Gryfe’s team up for Toronto bagel breakfast sandwich collaboration — Mario Toneguzzi — Sep 21
- Jumbo to Open First Canadian Store at Vaughan Mills in Former Toys “R” Us — Lee Rivett — Sep 21
- Empire Plans ‘E-Commerce 2.0’ as Voilà Strategy Enters New Phase — Craig Patterson — Sep 18
- Flight Centre Canada expands physical retail footprint with two new stores — Mario Toneguzzi — Sep 18
Retailer Financials / Trends / Reports
- Payroll employment increases in retail trade: Statistics Canada — Mario Toneguzzi — Sep 24
- Retail sales dip in July: Statistics Canada — Mario Toneguzzi — Sep 24
- RBC: Canadian Consumer Spending Broadens as Cardholder Purchases Rise in August — Mario Toneguzzi — Sep 21
Retailer People News
- Rawcology Founder Tara Tomulka turns personal health journey into growing plant-based food business — Mario Toneguzzi — Sep 25
Retailer Op-Eds
- Grocery Prices Face New Pressure as Diesel Costs Rise Across Canada — Sylvain Charlebois — Sep 21
