Advertisement
Home Blog Page 10

RioCan says grocery, pharmacy and value retailers fuel leasing momentum

5th and THIRD East Village (Image: RioCan)

RioCan Real Estate Investment Trust says demand for retail space across its portfolio remains exceptionally strong as tight market conditions and limited new supply continue to fuel leasing momentum for the country’s largest retail-focused REIT. 

Occupancy rates are near historic highs, driven largely by grocery, pharmacy, value and necessity-based retailers looking to expand in major Canadian markets.

In an interview with Retail Insider, John Ballantyne, Chief Operating Officer, said the company is benefiting from a highly constrained retail real estate market, with few new developments coming online while retailer demand continues to accelerate. 

RioCan reported retail committed occupancy levels ranging from 97.5 per cent to 98.6 per cent over recent quarters, alongside double-digit leasing spreads and strong tenant retention. Ballantyne described the current environment as among the strongest seen in decades, particularly for grocery-anchored and transit-oriented retail centres in Canada’s largest urban markets.

Between new leasing and renewing existing leases, RioCan did about 1,100,000 square feet of leasing in its first quarter. 

John Ballantyne
John Ballantyne

“And across that leasing, we had blended leasing spreads of 25.8%, which kind of highlights the amount of growth that we’re pushing through our portfolio,” he explained. “Blended leasing spreads is basically the difference between the rent at the maturity of an expiring lease versus the new rent that you’re getting. For vacant space, it was the spread over the rents paid by the previous tenant, the increase that we’re getting from the new tenant.”

He described the blended leasing spread as a very strong number for RioCan.

It’s a trend that we’ve seen pretty consistently over the last 12 to 18 months. But I would say last quarter was actually a record quarter for us as far as spreads go,” he said.

Our portfolio is really essential-based retail. And where we’re seeing the most demand from is from essential-based retailers. So grocery, pharma, liquor, essential goods and services, and value. The Dollaramas of the world, the TJXs of the world, all of the national grocery chains, and even independent grocery chains are all looking for space.

“We’ve done a really good job over the last 10 years of optimizing our portfolio. So we’re really only located in primary markets. Our shopping centres are really strictly essential-based, so 86% of our centres have a grocery tenant in it. And we really provide space for these types of essential-based retailers.

“There’s a ton of demand for the space. No one’s building it, and no one has built it over the last five years. So there is a bit of a supply-demand imbalance, and it’s really driving retailers, anyone who wants to expand footprints, take on new store counts, or just retain existing stores, there is that upward pressure on rents right now.”

For the most part, he said, RioCan’s portfolio is fairly homogeneous. While it’s in different locations, the REIT really tries to push for the same type of merchandising mix which include grocery anchor, strong pharmacy, banks, dollar stores. 

“We actually have a merchandising mix score, and it really guides our decisions as to who we want in our centres and where we think we can push growth,” he said.

With retail occupancy reported in Q1 at 98.6%, Ballantyne said it’s pretty much a record for the REIT.

I’ve been with the company since it started 32 years ago. I haven’t experienced a market like this in demand for our type of retail product. It’s been a very encouraging last six to eight quarters,” he said. 

“We took a hard look at our portfolio 10 years ago, and we wanted to be focused on growth. To do that, we wanted to be where there was growth, either population growth or economic growth, which go hand in hand,” he said.

The Well in Toronto. Photo: The Well

“We made a very conscious effort to say, “Okay, any shopping centre that doesn’t meet those criteria and aren’t located in those locations, let’s sell them. Let’s part ways with them and focus on properties that we know will be resilient in tough times.” The pandemic proved that our portfolio was resilient. Our occupancy didn’t dip below our historic norms, and we were able to collect rent through those times as well.

“But also to have a position where it really benefits at times of growth. I would say the market right now, the capital markets and the world economy, is a little shaky. However, people are still going to want to buy those essential items. People have to buy groceries. They need pharma. They will still go to banks. They’re still looking for value. That’s really what our portfolio was built on. The magic is having something that is both resilient in hard times, but also can supersize growth in the good times. And I think we’ve hit upon that.”

More from Retail Insider:

What Canadian Retailers Should Actually Look for in a Payment Processor

A retailer who chose their payment processor five years ago and hasn’t revisited that decision is probably losing sales they don’t even know about. Consumer payment habits have changed fast, faster than most operators anticipated, and the back-end infrastructure that handles those transactions needs to keep pace.

This isn’t a comparison of POS hardware brands. It’s about the criteria that actually matter when you’re evaluating whether your current processor is serving your business, or quietly costing you customers and margin. For Canadian retailers in particular, the stakes are higher than they’ve ever been.

What to Actually Look for in a Payment Processor

Most retailers start the search for a payment processor by looking at hardware aesthetics and brand names. That’s the wrong starting point. The questions that matter more: Does the processor support unified reporting across your in-store and online channels? Can it handle digital wallets, BNPL options, and international transactions if you sell online? Are the fee structures transparent, or do you find out what you’re actually paying at month-end?

Cross-border capability matters more than it used to. Canadian e-commerce sales are projected to reach $96.7 billion by 2028, according to Payments Canada’s 2025 report. Any retailer with an online presence needs a processor that can handle international payments without hidden conversion charges eating into margins.

Fee structure is the issue operators care about most. According to GR4VY’s 2025 payment industry analysis, 50.8% of business owners cite lower transaction fees as the single improvement that would most change their payment experience. That’s not a minor preference – it’s a majority position. For retailers who want to understand what modern, flexible payment infrastructure looks like in practice, exploring payment processing with Unlimit is a useful reference point for how the criteria above can actually be met.

What the Numbers Tell Us About Canadian Shoppers

Canadian retail payments aren’t moving toward digital – they’ve already moved. According to Payments Canada’s Canadian Payment Methods and Trends Report, October 2025, Canada processed 22.5 billion retail payment transactions totalling $12.2 trillion in 2024, up 3% in both volume and value from the prior year. Digital payments made up 86% of that total volume. Contactless transactions alone accounted for 58% of all payments, with mobile contactless growing 28% to reach 3.4 billion transactions.

If your payment setup can’t handle tap-to-pay or digital wallets today, you’re not running behind the curve – you’re running behind the majority of your own customers. This isn’t a future-proofing argument. It’s a present-day operational gap.

The data also signals something about friction. Customers who prefer contactless aren’t just choosing it for convenience – they’re increasingly choosing to shop where it works reliably. A checkout experience that fumbles on digital wallet acceptance is one that shoppers remember.

The Hidden Cost of Staying With the Wrong Processor

Inertia is expensive in payment processing. Legacy processors often come with per-transaction fees that compound silently over high-volume periods, limited fraud tools that push chargeback liability back to the retailer, and reconciliation systems that don’t unify in-store and online sales into a single view.

A 2024 IBM Cost of Data Breach Report found the average cost of a retail data breach sits at $3.28 million. Fraud protection and data security aren’t add-ons to negotiate away in favour of a lower monthly rate – they’re core to what a processor should deliver without question.

According to Retail Insider’s Daily Synopsis from February 2026, 54% of retailers say payment modernization is crucial to their business future. That number suggests most operators already know the gap exists.

What Modern Payment Processing Should Do for You

A well-chosen processor does more than accept cards. In 2026, it should give you real-time fraud detection and dispute tools built into the platform, not bolted on. It should support multiple payment methods, including credit, debit, digital wallets, and BNPL, without requiring separate integrations for each. Reporting should pull together in-store and online transactions in one dashboard, not leave your accounting team reconciling across two systems.

Scalability matters too. A pricing structure that works at your current transaction volume shouldn’t penalise you when you grow. That’s a conversation to have explicitly before signing anything.

Canada’s Real-Time Rail (RTR) payment infrastructure is coming online, and retailers would do well to ask prospective processors directly whether their platform is ready for it. It’s the kind of detail that doesn’t come up in a standard sales pitch but will matter significantly once RTR becomes a consumer-facing reality.

The Decision Deserves More Than a Default

Payment processing has moved from back-office function to customer-facing differentiator. The retailers who win going forward won’t be the ones who found the cheapest option – they’ll be the ones who treated the selection process seriously enough to ask the right questions. Your payment infrastructure is now part of the customer experience. Evaluate it like one.

Robot Vacuum Cleaners for Canadian Homes: Carpet, Cold Drafts, and Pet Hair

Canadian homes present a specific cleaning profile that shapes which robot vacuum specs actually matter. A significant portion of the housing stock has carpet in at least some rooms. Forced-air heating systems circulate dust and pet dander more aggressively than radiant or hydronic systems. And the six-month winter cycle means tracked-in grit, road salt, and wet boot debris enter the home daily from November through April.

The right robot vacuum cleaners for these conditions share a specific feature set: high suction for carpet, anti-tangle brushes for pet hair, and LiDAR navigation accurate enough to cover complex floor plans reliably. Here’s what each of those means in practice.

Why Canadian Homes Need More Suction

Carpet holds debris differently than hard floors. On LVP or tile, a robot with moderate suction captures most surface debris in a single pass. On low-pile and mid-pile carpet, debris is worked into the fiber by foot traffic and pressing, particularly pet hair and fine grit. Extracting that embedded debris requires suction that pulls rather than skims.

The practical threshold is around 19,000 Pa for light-to-medium carpet coverage. Below that, a robot maintains appearance but doesn’t address what’s embedded in the pile. The Dreame L40s Ultra at 19,000 Pa and the Dreame L50 Ultra at 19,500 Pa are the floor of what performs genuinely well in mixed carpet-and-hardwood Canadian homes. For homes with a larger proportion of mid-pile carpet, the Dreame X60 Max Ultra Complete at 35,000 Pa removes debris that lower-suction models consistently miss.

Suction boost on carpet detection matters separately from headline suction. Robots that automatically increase suction when they detect a carpet transition clean more efficiently than those running fixed-power passes. This both improves cleaning depth on carpet and preserves battery for the rest of the route on hard floors.

If carpet is a significant part of your home’s floor coverage, it’s worth looking at models optimized specifically as a robot vacuum for carpet. The spec differences between a robot optimized for hard floors and one built for mixed carpet coverage are meaningful in daily cleaning results.

Cold Drafts and Fine Dust: A Canadian Heating Problem

Forced-air heating is the dominant heating system in Canadian new construction and in most homes built after the 1960s. It works by circulating heated air through ductwork, which also circulates dust, dander, and fine particulates through every room in the home. Homes with pets or multiple occupants accumulate a visible fine-dust layer on hard floors faster than the same size home heated by radiant or in-floor systems.

Older homes with drafty windows and doors add another source: cold outdoor air infiltrating around frames carries fine soil particles that settle near baseboards and in corners. These are the areas where robot navigation quality becomes a visible differentiator. A robot with accurate LiDAR mapping and an extending side brush consistently covers baseboard edges; a robot that wanders or avoids wall proximity leaves the exact areas where fine dust accumulates.

Daily scheduling is the most effective response to this problem. A robot running every day at a consistent time never lets the fine dust layer build to the point where it’s visible. This is also why frequency matters as much as suction for Canadian homes with forced-air heating: a robot with lower suction running daily outperforms a high-suction robot running twice a week in managing fine dust accumulation.

Pet Hair in Canadian Homes: The Shedding Season Problem

Canada has high pet ownership rates, and many popular breeds in Canada are cold-weather double-coated dogs: Siberian Huskies, Bernese Mountain Dogs, Golden Retrievers, German Shepherds, and Labrador Retrievers all shed heavily in spring coat blows and continuously throughout the winter heating season. Long shed hair is the primary mechanical failure point for robot vacuum brush rolls.

Standard bristle brush rolls trap long hair around the axle. Within a week of continuous use in a shedding household, a standard brush roll is functioning at reduced capacity, with hair wrap restricting rotation and the debris trapped in the wrap recirculating back onto the floor during cleaning. This requires regular scissors-and-fingers maintenance that most people eventually stop doing, at which point the robot becomes less effective over time without the owner understanding why.

The Dreame L50 Ultra’s HyperStream Detangling DuoBrush uses counter-rotating rubber rollers that guide hair through rather than winding it around the axle. It handles hair up to 11.8 inches (30 cm) long without tangling, which covers the shed fiber length of virtually every double-coated breed. This is not a minor convenience feature for heavy-shedding households — it’s the difference between a robot that stays effective for years and one that becomes a frustration within months.

Mopping in Canadian Homes: When It Adds Value

Most Canadian homes have tile in kitchens and bathrooms, with hardwood or LVP in living areas and carpet in bedrooms. For the tile and hard-floor areas, a robot with mopping capability adds genuine value if the mopping system is designed correctly.

The critical requirement is mop lifting on carpet detection. A robot that cannot lift its mop pad off the floor when it transitions to carpet wets the carpet fibers on every run, which causes both immediate moisture damage and long-term mildew odor in the padding. Modern Dreame robots lift the mop pad when the sensor detects carpet, clearing the transition cleanly.

Hot water mop washing between runs is a secondary but meaningful feature for Canadian kitchens. A cold-water mop pad carries grime from one pass to the next, redistributing rather than removing sticky residue from cooking and foot traffic. The Dreame L50 Ultra washes its mop pad at 167°F (75°C) between sessions, which keeps the pad clean enough to actually lift grime rather than push it around.

Navigation: Why It Matters More in Canadian Home Layouts

Canadian home layouts vary significantly by region and era of construction. Prairie bungalows tend to be single-level with open floor plans that most robots handle easily. Older central Canadian homes often have multiple small rooms connected by narrow hallways. Atlantic Canada has a high proportion of two-storey older homes with tight staircases and small room footprints. BC coastal homes range from compact urban condos to sprawling ranch-style layouts.

LiDAR-based navigation builds an accurate room map that handles doorways, furniture arrangements, and room-to-room transitions reliably across all of these layouts. Gyroscope-based or camera-only navigation robots tend to miss areas in complex layouts or repeat-clean some zones while leaving others uncovered. For homes with more than three or four rooms, LiDAR navigation is not a premium feature — it’s the baseline for consistent whole-home coverage.

The Bottom Line for Canadian Carpet Homes

For a Canadian home with any meaningful carpet coverage, the buying priority is: high suction with carpet boost detection, anti-tangle brush design for pet hair, LiDAR navigation for reliable room-by-room coverage, and a self-emptying dock so the robot can run daily without requiring your attention between sessions. Those four things, working together, produce consistently clean floors without becoming a maintenance project themselves.

Best POS Systems with Inventory Management

For many retailers, inventory is where the operational pressure builds fastest. Stock counts that drift between deliveries, bestsellers that run out mid-weekend, purchase orders raised too late or for the wrong quantities – these are not minor inconveniences. They are the kind of problems that compound daily on a system that was not built to handle them.

Not every POS system treats inventory management with the same seriousness. Some offer basic stock tracking as a secondary feature; others are built around it. The difference shows up in daily operations. Below is a look at five POS systems where inventory management is a meaningful part of what the platform offers, and what each one does well.


Before You Compare: What to Look for in POS Inventory Management

The inventory features that matter most vary by business type, but a few capabilities tend to separate genuinely capable systems from those that handle only the basics:

  • Real-time stock updates across all registers, locations, and channels – not overnight batch syncs.
  • Automated reordering and purchase order management built into the POS, not managed through a separate system.
  • Multi-location visibility with centralised reporting and the ability to transfer stock between sites.

1. Vibe Retail POS

Inventory verdict: Built around real-time stock control across every location and channel from a single back office.

Vibe Retail is a POS system with inventory management at its core – not a feature added to a payments platform. Every sale updates stock levels instantly across all connected registers and locations. Low-stock alerts fire automatically, purchase orders can be raised and tracked within the platform, and demand forecasting uses historical sales data to recommend reorder quantities – reducing both stockouts and overbuying.

For retailers managing more than one site, Vibe’s centralised inventory dashboard gives visibility across every location simultaneously, with the ability to request stock transfers between stores in a few taps. Supplier data including product descriptions, UPCs, and images can be synced automatically, removing manual upload errors when adding new products.

Key features:

  • Real-time inventory updates across all registers, locations, and online channels
  • Low-stock alerts with automatic purchase order creation
  • Demand forecasting based on historical sales and lead times
  • Barcode scanning for stocktakes via mobile device
  • Supplier management with purchase order tracking
  • Bulk pricing and discount management across multiple locations
  • Multi-location stock transfers from a centralised dashboard

Pricing: Vibe’s Essential plan starts at $19/month. The Pro plan is $97/month and includes the full inventory feature set, offline mode, e-commerce, and unlimited users. The Ultimate plan at $1,399/month covers enterprise retailers requiring multi-location real-time sync, full API access, and customisation.

Best for: independent retailers and growing chains where inventory accuracy across locations and channels is a daily operational priority. In G2’s retail POS satisfaction data, Vibe Retail holds the highest likelihood to recommend rating (100%) and ease of use score (99%) of any platform in this comparison.


2. Square for Retail

Inventory verdict: Practical inventory tools for single-location and entry-level retailers, with more advanced features available on paid plans.

Square for Retail is widely recognised as an accessible starting point for retailers who need inventory management without significant upfront investment. The free plan includes basic stock tracking, low-stock alerts, and barcode scanning. The Plus plan adds vendor management, purchase orders, cost of goods sold reporting, and multi-location stock transfers.

Square’s inventory tools are well-suited to retailers with straightforward catalogues. Where it is more frequently noted as a limitation is in depth of reporting and the complexity of variant management compared to more specialist platforms.

Key features:

  • Real-time inventory tracking with automatic stock adjustments at point of sale
  • Low-stock alerts and reorder point settings
  • Vendor management and purchase order creation on Plus plan
  • Multi-location stock transfers on Plus plan
  • Cost of goods sold and margin reporting on Plus plan
  • Barcode label printing

Pricing: Square for Retail’s free plan covers one location with basic inventory features. The Plus plan is $49/month per location, which adds vendor management, purchase orders, and advanced reporting. The Premium plan is $149/month per location.

Best for: new retailers and single-location independents looking for accessible inventory tools with a low cost of entry. Square scores 93% for likelihood to recommend and 95% for ease of use in G2’s retail POS satisfaction data.


3. Shopify POS

Inventory verdict: Strong omnichannel inventory sync for retailers with an established online presence, with in-store inventory tools available on Pro plans.

Shopify POS connects physical store inventory directly to a Shopify online store, maintaining a single unified stock pool across both channels in real time. When a product sells in-store, it adjusts online immediately – and vice versa. For retailers operating across both channels, this removes one of the most common sources of overselling and manual reconciliation.

In-store inventory features including purchase orders, stock adjustments, and multi-location transfers are available on Shopify POS Pro. Retailers whose primary channel is physical rather than online may find the toolset feels oriented toward e-commerce workflows.

Key features:

  • Unified inventory across online and in-store channels, updated in real time
  • Purchase orders and stock adjustments on POS Pro
  • Multi-location inventory transfers on POS Pro
  • Barcode printing and stock counts
  • Click-and-collect and local delivery management

Pricing: Shopify POS Lite is included with all Shopify plans (from $29/month). Shopify POS Pro – which unlocks the full inventory feature set – is an additional $89/month per location.

Best for: retailers who sell actively across both online and physical channels and want unified inventory management without maintaining two separate systems. Shopify POS holds an 87% likelihood to recommend rating and a 90% ease of use score in G2’s retail POS satisfaction data.


4. KORONA POS

Inventory verdict: Inventory automation tools with particular depth around multi-location management, loss prevention, and processor-agnostic flexibility.

KORONA POS is a cloud-based system that positions inventory management as one of its primary strengths. The Retail plan – specifically designed around inventory – includes stock management, barcode automation, supplier interface integration, real-time tracking, and order automation. The Plus plan adds advanced stock management, ABC analysis, movement reports, and order level optimisation.

KORONA positions itself as payment processor-agnostic, meaning retailers can choose their own processor rather than being tied to a proprietary arrangement. It is also notable for its loss prevention features, including cashier-level transaction reporting and tools for identifying stock discrepancies.

Key features:

  • Real-time inventory tracking across all locations
  • Automated reorder triggers and supplier interface integration
  • Barcode automation and label printing
  • ABC analysis and movement reporting on Plus plan
  • Loss prevention and cashier accountability tools
  • Processor-agnostic – works with any payment processor
  • 24/7 customer support on all plans, no long-term contracts

Pricing: KORONA POS Core starts at $59/month. The Retail plan, which includes inventory management, is $79/month. The Plus plan with advanced stock management and analytics is $99/month. No contracts are required.

Best for: retailers who want inventory automation depth – particularly around multi-location management and loss prevention – without being tied to a proprietary payment processor. KORONA POS holds an 89% likelihood to recommend rating and an 80% ease of use score in G2’s retail POS satisfaction data.


5. Lightspeed Retail

Inventory verdict: Frequently cited across independent retail POS comparisons as a strong option for complex, variant-heavy inventory management across specialty retail categories.

Lightspeed Retail is consistently noted across independent retail POS comparisons as a leading option for inventory management depth. Its product matrix handles complex variants – size, colour, material – across thousands of SKUs, and its preloaded supplier catalogue allows retailers to import product data directly rather than entering it manually. Purchase orders can be generated from within the platform based on low-stock triggers, and detailed inventory reporting includes forecasting, sales trend analysis, and supplier performance.

Lightspeed is positioned toward retailers with established operations and more complex inventory requirements. Its starting price reflects that positioning, and it is generally regarded as carrying more onboarding complexity than the other platforms in this comparison.

Key features:

  • Advanced product matrix for variants, bundles, and serialised items
  • Preloaded supplier catalogue with direct product import
  • Purchase order creation from low-stock alerts
  • Multi-location stock transfers and centralised inventory management
  • Inventory forecasting and sales trend reporting
  • 24/7 support included on all plans

Pricing: Lightspeed Retail starts at $89/month (Basic), with Core at $149/month adding e-commerce and multi-location tools, and Plus at $289/month for loyalty and advanced analytics. Retailers who do not use Lightspeed’s own payment processing face an additional monthly fee.

Best for: established retailers with large, complex product catalogues – particularly specialty categories with high SKU counts and variant-heavy stock – where inventory management depth is the primary selection criterion. Lightspeed holds an 80% likelihood to recommend rating and an 87% ease of use score in G2’s retail POS satisfaction data.


Questions Worth Asking Before You Choose

The right system depends on the specific inventory challenges the business faces. A few questions that tend to clarify the decision:

How many locations do you manage? Single-location retailers have different needs to those running three or more sites. Multi-location stock visibility and transfer capabilities become significantly more important as the number of sites grows. Vibe is designed around centralised multi-location inventory management; Lightspeed positions itself for larger operations with complex catalogue structures.

How complex is your product catalogue? Retailers with straightforward catalogues and a small number of SKUs have different requirements to those managing thousands of variants across multiple categories. Lightspeed positions itself for the latter; Square is designed for the former.

How important is payment processor flexibility? Most POS platforms have a preferred or required payment processor. KORONA POS positions itself as the exception on this list, designed to work with any processor, which may be relevant for retailers who have existing processing arrangements or who want to shop around on rates.

Do you need inventory to connect to an online store? If so, how tightly? Shopify POS is designed around connecting online and physical inventory within its own ecosystem. Other platforms offer e-commerce integrations of varying depth.

What does your team actually need on a daily basis? A system with extensive inventory features is only useful if staff can navigate it efficiently. Ease of use and the quality of onboarding support are practical considerations that affect how much of a platform’s inventory capability actually gets used.


Final Thoughts

Inventory management is one of the areas where the gap between POS systems is most visible in practice. The platforms on this list all offer inventory tools, but they differ considerably in depth, automation, and how well they handle the specific challenges of multi-location retail, complex catalogues, and omnichannel selling.

The most reliable way to assess whether a system’s inventory features will work for a particular business is to trial it with real product data – not a demo catalogue. A lot of platforms offer a free trial, and that trial period is where the practical differences between them tend to become clear.

The information in this article is based on publicly available product details from each provider’s website. Pricing and features are subject to change – always check the provider’s current information before making a decision.

The Core Role of Chinese Lantern Cultural Exhibitions in Enhancing the Economic Value of Commercial Spaces

Chinese lanterns carry thousands of years of folk cultural heritage and serve as a concrete expression of Chinese aesthetics. Today, lantern visual merchandising (VM) and cultural exhibitions have broken through the limitations of traditional festival decorations, deeply integrating into commercial spaces to become vital carriers for activating commercial vitality and enhancing economic value. They not only inject a cultural soul into commercial environments but also achieve dual empowerment of commercial and cultural value through paths such as scenario creation, traffic aggregation, and brand empowerment, injecting new momentum into the high-quality development of the commercial sector. 

Creating Traffic Gateways to Activate Commercial Space Vitality 

Scenario Attraction: Increasing Visit Frequency 

With their unique Chinese aesthetic scenarios, lantern VM exhibitions break the dilemma of homogenization in commercial spaces, becoming a core “hook” for attracting foot traffic. Unlike ordinary decorations, lantern VM integrates intangible cultural heritage craftsmanship with modern design to create immersive viewing scenes. This has been shown to drive a 30% increase in the turnover of surrounding shops, fully proving the powerful attraction of lantern displays for customer flow,FOREST PAINTING LANTERN has always been committed to the development of lantern-themed decorations.

Social Attribute Empowerment: Achieving Traffic Fission 

The high-aesthetic scenarios of lantern displays cater to the social needs of today’s youth, becoming “Instagrammable” hotspots. While viewing the exhibition, consumers spontaneously take photos and share them on social media, forming an “online promotion to offline check-in” traffic loop. By becoming new local landmarks through innovative design, these displays effectively expand the exposure of commercial spaces. This spontaneous dissemination requires no additional marketing costs yet achieves precise customer acquisition, bringing sustained traffic growth to the commercial space. 

Embedding Cultural Genes to Enhance Differentiated Competitiveness 

Binding Cultural IPs: Strengthening Brand Memory Points 

As a traditional Chinese cultural symbol, the folk connotations behind lanterns provide unique cultural identifiers for commercial spaces. By hosting lantern cultural exhibitions, commercial spaces combine lantern culture with their own brand philosophy to create a differentiated brand image. For example, the Shanghai Yuyuan Lantern Festival combines “Haipai” (Shanghai-style) culture with a theme of palace lanterns, forming an exclusive cultural IP that has enhanced the brand recognition of Yuyuan Mall and led to a 35% increase in average transaction value. This cultural binding allows commercial spaces to evolve from simple consumption carriers into windows for cultural dissemination, strengthening consumer brand loyalty. 

Improving Space Sophistication: Attracting Mid-to-High-End Customers 

The aesthetic craftsmanship and cultural depth of lantern VM effectively elevate the overall tone of a commercial space, helping it escape the trap of low-end and homogenized competition. Whether it is an exquisite display of palace lanterns in a high-end mall or an intangible heritage lantern exhibition in a cultural-tourism district, these displays create an elegant consumption atmosphere that attracts mid-to-high-end customer groups.

Consumer Conversion: Extending Scenarios to Close the Loop from Traffic to Revenue 

Extending Dwell Time: Mining Consumption Potential 

The immersive scenarios created by lantern cultural exhibitions can effectively extend the time consumers spend in a commercial space, creating conditions for consumption conversion. When lantern exhibitions are combined with Tang-style performances and intangible heritage experiences, visitors shift from “browsing” to “deep immersion,” significantly lengthening their stay and driving consumption upgrades in sectors such as catering, hospitality, and cultural-creative products. Data shows that in commercial spaces hosting lantern VM exhibitions, the average dwell time can increase by over 40%, indirectly boosting overall sales. 

Linking Diverse Business Formats: Broadening Consumption Paths 

A lantern exhibition is not an isolated cultural event but a force that can deeply link with catering, retail, and creative formats within the space. Through themed meal sets, limited-edition products, and non-heritage markets, a consumption closed-loop of “arriving for the aesthetics, staying for the business formats” is achieved. Meanwhile, the development of lantern-related cultural and creative products further extends the consumption chain, directly converting cultural value into economic profit and improving the overall profitability of the commercial space. 

Long-term Value Addition: Accumulating Cultural Assets for Sustainable Development 

Strong Reusability: Lowering Long-term Operating Costs 

High-quality lantern VM works are both ornamental and durable. Through modular design, they can be reused, reducing the long-term decoration and operating costs of commercial spaces. Utilizing anti-corrosion and wind-resistant materials, some displays can have a service life of up to 10 years, allowing them to be repurposed for various festivals. This reusability not only reduces resource waste but also enables commercial spaces to consistently leverage the traffic-drawing and empowering effects of lantern VM through simple adjustments. 

Accumulating Cultural Brands: Achieving Long-term Returns 

The long-term hosting of lantern cultural exhibitions allows a commercial space to accumulate a unique cultural brand asset, forming a sustainable competitive advantage. The economic value enhancement of Chinese lantern exhibitions is reflected across the entire chain of traffic attraction, brand empowerment, consumption conversion, and long-term appreciation. It deeply integrates traditional culture with commercial operations, allowing lantern culture to be revitalized in modern commercial settings while providing a new path for commercial spaces to break development bottlenecks and achieve high-quality growth. In the future, as lantern craftsmanship innovates and application scenarios expand, their economic empowerment role will become even more prominent. 

Intimates retailer Knix keeps expanding across Canada

Knix photo
Knix photo

Canadian intimates retailer Knix is accelerating its brick-and-mortar expansion across Canada with plans to open 10 new stores in 2026, including its first Atlantic Canada location in Halifax as the company pushes toward more than 30 stores nationally by year-end. 

The Toronto-based brand, which specializes in leakproof underwear, bras and shapewear, has already opened new locations this spring at Conestoga Mall in Waterloo and Devonshire Mall in Windsor, with additional stores scheduled for Masonville Place in London later this month and Halifax Shopping Centre in mid-June. The Halifax store will be the brand’s first in Atlantic Canada.

Nicole Tapscott, chief commercial officer at Knix, said the retailer’s expansion strategy is being driven by growing consumer demand and strong online brand penetration in key Canadian markets. The company, which opened its first retail store on Toronto’s Queen Street prior to the pandemic and now operates 21 locations across Canada, is targeting further growth in Ontario, Alberta and British Columbia while evaluating additional suburban and major urban markets. 

Nicole Tapscott
Nicole Tapscott

Tapscott said the retailer looks at customer concentration, shopping centre co-tenancies and opportunities to build community engagement when selecting new locations, adding that the Halifax store marks the company’s first expansion east of Ontario.

Store sizes range from 900 to 1,900 square feet. A store in Toronto on Queen Street  first opened in November 2019.

“We’re very choosy around where we expand. We try to be really thoughtful with where we go, and of course we need a minimum number of square feet for the stores for a couple reasons. One, we want a great merchandise floor plan, but we also design the stores for a really differentiated in-store experience, whether it’s inclusive fitting rooms,” said Tapscott.

“We make a lot of space for fitting rooms because we’re in the intimate space, and try-on and fit is really important. We also provide areas to have conversations with our stylists because often women are coming in to have quite personal conversations about whatever it is that they’re experiencing. People have different ranges of comfort.”

Tapscott said the brand has really started to scale in the last couple of years.

By the end of this year, we’ll be upwards of 30 locations. We’re looking to continue to open stores in Ontario, Alberta, and British Columbia. You’ll see our fleet continue to expand both in major metro areas as well as suburban locations,” she said.

We start with where the demand is. Where is the concentration of our customers? We have strong brand awareness for a 13-year-old business in Canada. We’re well penetrated online in most major cities. We look at where we have customers, community, influencers, and ambassadors. Then we look at which shopping centres we should be in, where we could have the most potential upside and impact. 

“Then we get very thoughtful about co-tenancies, who’s around us and how we position the brand. Then we look at the specific location within the centre. Does it have the right footprint and floor plan? At the end of the day, we choose locations where we feel we can really engage with community. Community is at the core of our business. Halifax is a great example. We saw a strong emotional connection there, and when a great location became available, we jumped at the opportunity.

Knix photo
Knix photo

Tapscott said retail will continue to be a huge lever for Knix, and it will follow the market. 

“Canada remains a priority. There’s still a lot of room to grow. When we look at new markets, we’re very thoughtful. Expansion into new regions and provinces is done strategically to ensure we can deliver a consistent, high-quality experience. We’re definitely looking at the U.S. for store expansion, but we’re being very choiceful,” she said. 

The brand is 13 years old, and when it was founded, it entered a category where there was real white space, especially in the intimate space, there weren’t many brands speaking to inclusivity or empowerment. Knix really spoke to the majority of women, saying, “We see you, and we’re going to talk about things that matter to you that others don’t.” We’ve been extraordinarily consistent with that message. In our most recent brand awareness study, the number one association was “a brand that gets me.” That’s incredibly powerful. The second was women’s health. Through consistency, our tone, who we cast, the people we support, and products that solve real problems, we’ve developed real trust with our customer base.”

Tapscott said there are brands that make and sell things, and that’s great. Then there are brands that respond to culture, and others that shape culture. 

Knix photo
Knix photo

“You have to decide which you want to be. Sometimes you react to what matters to your customer, but other times you help push culture forward. I think Knix does that. For example, perimenopause, one of the top podcast topics recently, barely registered in search trends a couple years ago. Knix launched a campaign in December 2023 called “The Invisible Period.” It was a double entendre. We’re not a massive company, but we punch above our weight by talking about what matters to our customers. That’s a great example of how we help shape conversations.

The customer today is smarter than ever, more informed, with more access to information. If you haven’t treated her like a smart person, she’ll figure it out. Knix has always respected its customer, and that shows through in the service. I think that’s good for consumers. They have the power to be discerning. Wallets are tight, so I really appreciate that people continue to buy and trust our products.”

More from Retail Insider:

Canadian luxury beauty retailer Rennaï launches e-commerce platform across Canada

Rennaï photo
Rennaï photo

Canadian self-care destination, Rennaï, has its new e-commerce website, marking an exciting evolution for the Montreal-based brand.

As a curated beauty and wellness destination, Rennaï brings together leading global brands, alongside expert services and immersive experiences. Inspired by the idea of Renaissance, meaning renewal and rebirth, it reimagines everyday rituals through a holistic ecosystem where products, treatments, and expertise come together seamlessly, it said.

Rennaï said the website introduces a refined and intuitive experience, allowing users to explore a carefully selected range of brands including Victoria Beckham Beauty, Diptyque, Hermès, Maison Francis Kurkdjian, Jo Malone London, Aesop, Augustinus Bader, and Biologique Recherche, among others. It also offers an educational beauty experience featuring expert insights, virtual consultations, premium brand discovery, and added services such as engraving. In parallel, it streamlines booking for in-store services, including makeup experience, skincare treatments, and nail services.

The flagship store is in ROYALMOUNT in Montreal.

Valérie Guilmette, Senior Director, Marketing & Digital, spoke about the new initiative.

Question: What strategic role does e-commerce play in Rennaï’s overall growth plan, and how does it complement the physical retail experience?

A: E-commerce plays a complementary yet strategic role in Rennaï’s customer journey by extending the brand well beyond the physical store and reinforcing its positioning as a 360° self-care destination.

The in-store experience is where discovery, consultation, and education come together, allowing customers to engage with products in a highly curated and guided environment.

E-commerce then serves as a natural extension of this experience, enabling customers to access the same elevated assortment from anywhere in Canada. This seamless connection helps Rennaï remain part of the customer’s routine well beyond a single visit.

Valérie Guilmette
Valérie Guilmette

Q: How does the new platform differentiate itself in an increasingly crowded online beauty and wellness market, particularly at the luxury end?

A: The platform differentiates itself in the luxury beauty and wellness space by focusing on a curated, educational, and service-led experience rather than traditional e-commerce. It brings together expert advice, virtual consultations, and a tightly edited selection of premium brands to guide discovery in a more intentional way. Added services such as engraving, which will be launching soon, further elevate the experience and reinforce its luxury positioning.

Q: What criteria does Rennaï use to curate its mix of global brands, and how do you balance established luxury names with emerging or niche labels?

A: Rennaï’s curation is rooted in a deliberate and highly intentional approach. Every fragrance, skincare, haircare, and makeup product is carefully selected for its quality, integrity, and impact, with a strong emphasis on craftsmanship, innovation, and a clear point of view. Products are meant to be experienced and integrated into a routine, not simply collected.

In terms of balance, established luxury brands act as trusted anchors, bringing credibility and familiarity, while emerging and niche labels introduce a sense of discovery and modernity.

Q: How important are services like virtual consultations and educational content in driving customer engagement and conversion online?

A: Services are essential. In premium beauty, customers aren’t just buying products—they’re seeking guidance and expertise. Virtual consultations, coming soon, and educational content extend the in-store experience online by bringing the same level of personalization and trust.

They also play a key role in driving engagement and conversion, making the journey more interactive while reducing uncertainty. When customers understand how a product fits into their routine, how to use it, and why it’s been selected for them, they feel far more confident in their choice.

Through masterclasses, consultations (soon available), and expert-led guidance, every discovery becomes intentional and lasting. We will also soon be launching engraving services, further enhancing the personalization offering. At Rennaï, every step of the self-care journey is shaped by precise, informed recommendations, reinforcing our role as a trusted beauty authority.

Q: What early performance indicators or customer feedback have you seen since launch, and how will that shape the platform’s evolution going forward?

A: Since launch, the response to Rennaï has been overwhelmingly positive and strongly validating of our vision. Beyond strong engagement across retail, services, and digital platforms, one of the clearest indicators of success has been how customers are engaging with the space not simply as a store, but as a true destination for beauty, wellness, and community.

We’ve received particularly positive feedback on our curated brand assortment, elevated in-store experience, and personalized approach to beauty. Strong social engagement, along with interest in our events and educational content, further confirms that customers are seeking more immersive and meaningful beauty experiences.

Moving forward, customer feedback will continue to play a central role in shaping the evolution of the platform as we refine our offerings, expand experiences, and build an even more modern, community-driven approach to beauty, fragrance, and self-care.

Rennaï photo
Rennaï photo

Q: What are the plans for expansion this year and beyond?

A: Looking ahead, our focus is on continuing to grow both our e-commerce business and the Rennaï community in a meaningful and intentional way. As the brand evolves, we see a strong opportunity to further expand our digital presence while continuing to create immersive experiences that deepen customer connection both online and in-store.

We also plan to continue growing our community through events, partnerships, educational content, and personalized beauty and fragrance experiences that reflect the evolving needs of today’s consumer.

More from Retail Insider:

Everist looks to next phase of growth

Everist photo
Everist photo

Everist recently celebrated its five-year anniversary and the haircare brand is entering its next phase with a continued focus on “beauty, undiluted,” alongside new packaging and expanded distribution across North America.

Jayme Jenkins and Jessica Stevenson, Co-Founders of the brand, discussed its growth and its future.

Question: Looking back over five years, what were the biggest inflection points that shaped Everist’s growth and brand positioning?

Answer: The first one was our launch in 2021. From day one, we knew that we didn’t want to create products that were not a joy to use. We wanted to create products that felt like an upgrade — better performance, better ingredients, better design — while dramatically reducing waste. Introducing a completely new format to the category was a risk, but it immediately differentiated Everist and helped define our identity as a true innovation-led brand.

The second big moment was the industry and consumer validation we received early on. Being named as one of the year’s best inventions, alongside recognition from major beauty editors and retailers, gave us credibility far beyond our size and helped position Everist as a leader in the emerging concentrated beauty space.

Most recently, one of the biggest strategic shifts has been evolving our messaging to lead with the unique consumer benefits of Everist for supporting hair and scalp health. That shift has significantly accelerated both sales and brand momentum for us.

Jayme Jenkins (left) and Jessica Stevenson
Jayme Jenkins (left) and Jessica Stevenson

Q: You’ve said innovation takes time. What were the biggest challenges in getting consumers to understand and adopt concentrate-based haircare?

A: One of our biggest advantages (as well as our biggest challenges) was creating a totally novel product, no one has ever created shampoo, conditioner and body wash concentrates before. A major unlock in our growth was finding a way to explain the product in a way that people could easily understand. Explaining our cream concentrates as a hybrid of haircare and skincare and messaging the benefits of this for hair, scalp and skin, encouraged trial and led to our exponential growth over the last few years

Q: Can you walk through the “unsexy” realities of scaling a beauty brand and how those challenges influenced your strategy?

A: On the product side it was complex to scale up the production of a totally new form factor with no blueprint of how it was supposed to be done. Lots of failed batches, gritty textures, etc figuring out the right temperatures and mixing speeds. Then there is also the operations of scaling. We have gone out of stock on core products more than a dozen times over the last few years as we try to pair managing our cash flow with growing consumer demand. The results of all of these challenges on the formulation and operations side is a discipline in product innovation, fewer, better launches that are highly differentiated. We never want to launch a ‘me too’ product without a unique point of view. 

Everist photo
Everist photo

Q: How has your partnership as founders, and with your community, directly shaped product development and decision-making?

A: Our partnership as founders, and our partnership with the Everist community, has shaped nearly every aspect of product development and decision-making from the very beginning. Internally, we’ve always approached the brand collaboratively, balancing creative vision with deep customer listening and long-term brand building. At the same time, our community has played a direct role in helping shape the evolution of Everist. They’ve been involved in everything from product feedback and innovation to packaging. They are very vocal about packaging! We wouldn’t want it any other way. The answers are there if you’re willing to listen. 

Q: As Everist enters its next phase with new packaging and broader distribution, what are the key priorities and risks you’re focused on over the next 12–18 months?

A: One of our biggest priorities over the next 12 to 18 months is ensuring that we evolve the brand without losing the ethos that made customers connect with Everist in the first place. As we introduce new packaging and expand distribution, we’re very focused on building Everist into its full potential as a premium beauty player while staying deeply aligned with our core values and customer experience.

There’s naturally a lot of operational complexity that comes with scaling, from packaging transitions to retail expansion and maintaining supply chain excellence, but the lens we apply to every decision is the customer. We want to make sure that the Everist community feels included in the evolution of the brand, and that we continue listening closely to their feedback as we grow.  

More from Retail Insider:

Everist photo
Everist photo

Flying Tiger Copenhagen Enters Canada with GTA Expansion

Construction signage for Flying Tiger at CF Toronto Eaton Centre. Photo: Eithne Lavin

One of Europe’s most recognizable discovery-driven retailers is officially entering Canada, as Danish chain Flying Tiger Copenhagen prepares to launch a major Greater Toronto Area expansion across several of the country’s busiest and most productive shopping centres.

Known for its colourful stores, affordable Scandinavian-inspired merchandise, and constantly changing assortment of impulse-oriented products, Flying Tiger Copenhagen has built an international following around a retail concept that blends value shopping with entertainment and exploration. The retailer’s stores feature a range of products from home décor and kitchenware to stationery, toys, crafts, seasonal products, gifts, and novelty merchandise presented through highly visual displays and curated pathways designed to encourage browsing and repeat visits.

The company’s first Canadian store is scheduled to open at CF Toronto Eaton Centre at the end of June 2026. Additional GTA locations are planned for Vaughan Mills, Scarborough Town Centre, Square One Shopping Centre, and CF Markville later this year.

The Canadian expansion is being operated through a partnership with Fox Group, the international retail and franchise operator overseeing the brand’s Canadian rollout.

Flying Tiger Copenhagen’s arrival comes at a time when consumers are increasingly gravitating toward affordable “small indulgences” and shopping environments that feel immersive, entertaining, and visually engaging. As economic pressures continue influencing discretionary spending, many retailers are seeing stronger consumer interest in browse-driven concepts that combine affordability with novelty and experience.

Flying Tiger store, image: Flying Tiger Copenhagen

Canada Marks Flying Tiger Copenhagen’s 45th Global Market

Founded in Copenhagen in 1995, Flying Tiger Copenhagen has expanded into more than 1,000 stores across 45 global markets. The retailer first entered Asia with a Japanese store opening in 2012 and has steadily expanded internationally over the past decade.

“We’re thrilled to bring Flying Tiger Copenhagen to Canada, marking an exciting new chapter in our international growth,” said Jens Aarup Mikkelsen, CEO of Flying Tiger Copenhagen, in a statement.

“We see strong alignment with Canadian consumers who appreciate design-led products at accessible prices. Our stores are built to surprise and inspire, and we look forward to becoming part of the Canadian retail landscape.”

Inside a Flying Tiger Copenhagen Store. Photo: Flying Tiger

In an interview with Retail Insider, Eithne Lavin, General Manager of Flying Tiger Copenhagen Canada, said the Greater Toronto Area was selected because of both its scale and diversity, as well as its openness to new retail concepts.

Eithne Lavin, General Manager of Fox Group Canada

“The GTA is a natural place to begin because it’s a diverse and dynamic retail market with a strong appetite for new experiences,” Lavin said.

The selection of shopping centres reflects a carefully targeted Canadian market-entry strategy. The rollout combines downtown Toronto office and tourism traffic at CF Toronto Eaton Centre with several of Canada’s busiest suburban regional malls serving large multicultural and family-oriented trade areas.

Retail Concept Focuses on Browsing, Discovery, and Impulse Purchases

Flying Tiger Copenhagen’s retail model differs from many traditional value-oriented chains by emphasizing exploration, visual merchandising, and constantly refreshed assortments rather than purely transactional shopping.

Stores are intentionally designed as guided pathways that move shoppers through colourful displays, rotating seasonal collections, novelty merchandise, and limited-time products intended to encourage spontaneous purchases and repeat traffic.

“Our stores are designed as guided journeys where customers follow a curated path through the space,” Lavin said. “The experience is immersive and encourages exploration and surprise.”

The retailer occupies a distinctive space within the market, blending elements of value retail, Scandinavian lifestyle branding, gifting, and novelty merchandising into a highly curated shopping environment.

Products range from stationery and toys to kitchenware, crafts, party supplies, and home décor, with colourful shelving and rotating displays helping create a sense of urgency and discovery throughout the stores.

“Our products are designed in-house, and we place a strong focus on seasonal collections and ranges that evolve quickly throughout the year,” Lavin said.

The company regularly introduces hundreds of new products in order to maintain freshness and encourage repeat visitation.

The concept also aligns with broader post-pandemic consumer behaviour shifts that have seen many shoppers increasingly treat physical retail as a form of entertainment and escapism rather than simply a transactional activity.

Inside a Flying Tiger Copenhagen Store. Photo: Flying Tiger

Physical Retail Experience Prioritized Over E-Commerce

While many international retailers entering Canada have prioritized omnichannel expansion and digital commerce, Flying Tiger Copenhagen is initially placing its focus heavily on physical retail.

Lavin said the company’s immediate priority is building a strong in-store customer experience before evaluating broader e-commerce opportunities in Canada.

“At the moment, we’re focused on the in-store experience,” Lavin said. “As we evaluate future opportunities, we’ll look at how the brand grows in Canada and in what format.”

That strategy reflects the tactile and visually driven nature of the retailer’s merchandising model, which relies heavily on browsing behaviour, impulse discovery, and physical interaction with products.

Lavin indicated that the CF Toronto Eaton Centre location will exceed approximately 250 square metres (about 2,700 square feet), and other store footprints will vary depending on individual shopping centre layouts.

Shopping Centres Continue Expanding Experiential Retail Mixes

Flying Tiger Copenhagen’s Canadian arrival also highlights broader changes taking place across Canada’s shopping centre industry.

Over the past decade, major landlords have steadily diversified tenant mixes beyond traditional apparel retailers by introducing more entertainment concepts, food halls, luxury brands, off-price chains, experiential tenants, and browse-driven retail concepts designed to increase dwell time and repeat visitation.

The addition of Flying Tiger Copenhagen to several major GTA malls reflects how shopping centres are increasingly blending value-oriented retail with experiential and premium offerings within the same properties.

Consumers also continue demonstrating strong interest in stores that combine affordability with novelty, social-media-friendly merchandising, and visually engaging environments. One example is Miniso and its IP-heavy offerings.

Lavin said Flying Tiger has already seen strong engagement across its Canadian social media channels ahead of the first opening, particularly from consumers already familiar with the retailer through international travel.

Flying Tiger store, image: Flying Tiger Copenhagen

Long-Term Canadian Growth Potential

Although Flying Tiger Copenhagen is not publicly discussing long-term Canadian store targets, company executives repeatedly emphasized that they see substantial long-term growth potential in Canada.

“We see strong long-term potential in Canada and absolutely plan to grow over time,” Lavin said.

Flying Tiger Copenhagen’s Canadian launch reinforces broader retail industry trends showing that international retailers continue viewing Canada as an attractive expansion market, particularly for concepts that combine affordability, strong branding, and experience-driven shopping.

More from Retail Insider:

Deloitte report warns rising trade tensions and labour disruptions reshaping Canadian supply chains

Deloitte photo
Deloitte photo

Deloitte’s new report, Designed for stability, exposed by chaos: The new reality of global supply chains, finds that rising trade tensions, labour disruptions, and shifting sourcing strategies are pushing Canada’s supply chains into a more volatile phase.

In this environment, advantage will come less from efficiency alone and more from smarter design. The report also points to a clear upside: a chance to rebuild supply chains that are more competitive and value-creating. 

Key findings include: 

  • Global disruptions are up 38% year over year: Canada’s supply chains have faced more than 70 labour related major disruptions since 2022, revealing the risks of single‑region, lowest‑cost sourcing. 
  • Risk exposure is higher because of trade concentration: Dependence on a small number of trade routes and imported finished goods leaves Canada more exposed to shocks and cascading disruptions. 
  • Supply chain diversification delivers real upside: A mix of onshore, nearshore, friendshore, and selective offshore sourcing is driving 133% procurement ROI, up to 30% higher margins, and 20–30% shipping savings. 

SME ecosystem scaling is the unlock. Strengthening supplier ecosystems by enabling Canadian SMEs to scale, with access to technology, capital, and predictable demand translates diversification into tangible economic impact: job creation and stronger domestic capacity, not just intent. 

Mahendra Dedasaniya
Mahendra Dedasaniya

Mahendra Dedasaniya, National Supply Chain & Network Operations Leader, discussed the issue.

Question: Your report suggests supply chain resilience is now more important than pure efficiency. What specific changes are Canadian retailers and businesses making today to balance cost control with stability and risk management? 

Answer: Canadian businesses are rethinking a category based sourcing strategy and that is not a retreat from cost discipline but it’s an upgrade to total cost of ownership under volatility. Business leaders are recognizing that the ‘cheapest unit price’ can be the most expensive outcome once you factor in total landed cost and cost attributable to stockouts, expediting, lost customers, and reputational damage during volatility and disruptions. 

Hence there is an increased focus on mission‑critical or high‑visibility categories being pulled closer to home i.e. onshore where continuity and compliance matter most while lower‑risk, high‑volume categories still leverage offshore scale, but with more deliberate diversification across regions to avoid single‑point failures.

We are seeing businesses typically adopting three practices in their updated sourcing playbooks i.e. (1) dual‑sourcing and regionalization to reduce dependency risk (2) supply chain visibility through multi-tier illumination, robust business planning and supply chain risks identification to monitor the business disruption beyond tier 1 supplier and create a competitive differentiator and (3) targeted buffers, not blanket inventory through more inventory everywhere’ to smarter buffers in the right nodes.

In the bottom line, Canadian businesses are not abandoning cost control but they are upgrading it into total cost of ownership under volatility where resilience spending is justified by avoided stockouts, avoided expediting, and reduced revenue-at-risk during shocks.

Q: The report cites a 38 per cent increase in global disruptions and more than 70 labour-related disruptions affecting Canada since 2022. Which sectors or product categories in Canada are currently the most vulnerable, and where are companies feeling the greatest pressure? 

A: The vulnerability is concentrating where three forces overlap: dependence on imported inputs, tight service‑level expectations, and exposure to supply chain related risks. That’s why the highest pressure shows up in sectors that cannot tolerate interruptions and where substitutes are limited.

We are seeing two pressure points i.e. (1) Transportation chokepoints (ports/rail/seaway/air), where Canada has seen repeated work stoppages and disruptions across the network and (2) Deep-tier supplier blind spots, because risk often originates beyond Tier 1 and visibility beyond Tier 1 remains a recognized weakness.

At a sector level, the risk signal is strongest in advanced manufacturing and electronics‑intensive supply chains, automotive and industrial production networks, and life sciences/healthcare because those sectors are structurally more exposed to foreign production shocks, and disruptions propagate quickly through multi‑tier supply chains.

In Canada, labour actions across ports and rail create economy‑wide ripple effects: exporters lose shipment windows, importers face backlogs, and recovery can take days or weeks. That’s particularly acute for agri‑food exports and time‑sensitive replenishment categories in retail.

Deloitte photo
Deloitte photo

Q: Deloitte found that diversification strategies — including onshoring, nearshoring and friendshoring — can significantly improve margins and procurement ROI. What industries in Canada are moving fastest on diversification, and what practical barriers still stand in the way? 

A: The economics are increasingly compelling. Our analysis highlights that supplier diversity programs can deliver strong procurement ROI and that nearshoring can materially lift gross margins. The point is not that every category should move, but that the right categories can create both resilience and economic upside.

There are three barriers that explain why execution lags intent and those are (1) Cost and complexity of reconfiguring networks when moving production or shifting sourcing strategies that requires large capital investment and ability to manage operations disruption (2) Multi‑tier visibility gaps since many organizations still lack deep-tier transparency beyond their tier 1 supplier and (3) Regulatory and talent constraints to manage the multiple trade offs between innovation, speed to the market, market volatility, regulatory requirements and constantly changing country’s competitiveness.

Canadian industries are moving quickly where continuity risk is existential however the winners will be those who treat diversification as disciplined ‘right‑shoring’ by category customised based on their business need.

Deloitte photo
Deloitte photo

Q: The report highlights Canada’s dependence on a small number of trade routes and imported finished goods. In light of ongoing geopolitical tensions and tariff uncertainty, how exposed is Canada compared with other developed economies?

A: We are exposed for two structural issues: trade intensity and concentration. Two‑way trade is roughly 67% of Canada’s GDP, which is comparatively higher so external shocks transmit faster into Canadian prices, availability, and growth.

As we know, our export relationship is heavily anchored with the U.S. market which is a strength in stable periods, but a vulnerability when tariffs, border friction, or demand shifts change the rules of the game. That’s why diversification is not just an operational issue; it’s a Canada’s competitiveness issue.

We also face a ‘self‑inflicted’ exposure premium since labour and logistics disruptions undermine corridor reliability and that can increase the total delivery costs regardless of what’s happening geopolitically.

Deloitte photo
Deloitte photo

Q: You describe scaling Canadian SMEs as a key “unlock” for stronger domestic supply chains. What role should governments, large retailers, and major suppliers play in helping smaller Canadian businesses gain the technology, capital, and predictable demand needed to compete at scale?

A: Scaling SMEs requires a coordinated ‘runway and pull‑through’ model: government builds the runway, and anchors create demand and capability lift. If we do only one side, we won’t get scale. Our government’s priorities and recent announcements are very strategic to improve the invest in trade through infrastructure and corridor resilience, early approvals so capacity can come online faster. This will also improve interoperable traceability and compliance standards so SMEs can qualify for large procurement ecosystems rather than being screened out.

For large retailers and major corporates, the single biggest unlock is predictable demand. Multi‑year volume commitments or ‘banded’ contracts give SMEs the confidence to invest in AI, floor automation, quality systems, and capacity. They will run the supplier development program so that local SMEs meet tier 1 performance expectations and quality requirements.

Canadian businesses are now more focused on integrating SMEs into their end to end supply chains through modularizing work packages that SMEs can win and give them an option of using dual‑sourcing to make supplier resilience a growth pathway. This transition requires some handholding by large organizations and working capital investment but helps to reduce the risk across their supply chain. That’s how we will turn ‘Buy Canadian’ intent into scalable Canadian capability.

More from Retail Insider: