Home Blog Page 104

Quebec’s New Weekend Store Hours Win Support and Criticism

By
Lee Rivett
-
Shoppers in downtown Montreal. Photo: Montréal centre-ville

Beginning March 11, 2026, Quebec will allow eligible non-food retail stores across the province to open from 6:00 AM to 9:00 PM, seven days a week, under a new one-year voluntary pilot program that will run until March 2027. The initiative ends the decades-old requirement for most retailers to close at 5:00 PM on Saturdays and Sundays, while also allowing broader flexibility during the rest of the week.

Participation in the pilot is optional, giving merchants the choice to extend their operating hours rather than imposing a mandatory change. The initiative, announced by Samuel Poulin, Minister for the Economy and Small and Medium-sized Businesses, marks one of the most notable adjustments to Quebec’s retail-hour regulations in decades. Provincial officials have framed the policy as a modernization effort designed to give retailers greater operational flexibility and help physical stores compete in a marketplace where online shopping is available around the clock.

The expanded hours primarily apply to non-food retailers such as apparel, electronics, hardware, and department stores. Grocery stores and pharmacies already operate under separate exemptions that allow more flexible schedules and are not affected by the new pilot.

The End of Quebec’s 5:00 PM Weekend Tradition

Quebec has long maintained one of the only regulatory frameworks in North America that broadly governs retail opening hours. The requirement for many stores to close by 5:00 PM on weekends became a defining feature of the province’s retail environment.

These rules are often linked to a mix of historical religious traditions and labour protections, including the idea of preserving Sundays for rest and family time. Over time, the regulations became embedded in the province’s retail culture.

The Quebec weekend store hours pilot signals a shift away from that longstanding framework. The provincial government argues that the retail environment has changed significantly in recent years, particularly with the rapid growth of e-commerce and changing consumer expectations.

Supporters say the previous restrictions no longer reflected the realities of modern retail operations.

Supporters Point to Competition and Consumer Convenience

Advocates of extended hours argue that Quebec’s traditional weekend closing rules had become outdated in a retail environment shaped by digital commerce.

Online marketplaces such as Amazon, Shein, and Temu operate continuously, allowing consumers to shop at any time of day. Retail observers note that this constant availability has changed expectations around convenience and accessibility.

Industry organizations and retail associations have long argued that merchants should have greater autonomy to determine their own hours based on local demand. The new pilot gives retailers the option to extend operating times if they believe later hours will benefit their business.

Later evening hours may also ease the traditional “weekend rush.” Many consumers working weekday schedules previously had limited time to shop before stores closed.

Supporters believe the Quebec weekend store hours pilot brings the province more in line with retail practices common elsewhere in North America.

Labour and Small Business Concerns Remain

Despite these arguments, the policy has sparked debate among retailers, labour advocates, and economists.

One concern involves staffing. Quebec is currently experiencing relatively low unemployment, reflecting a tight labour market. Retailers already face challenges recruiting workers for evening and weekend shifts.

Some researchers have warned that extending operating hours could intensify competition for part-time workers, particularly students who often fill retail positions. Businesses may need to expand staffing levels to cover the additional evening hours.

Some small retailers are also skeptical that longer operating hours will significantly increase overall revenue.

Several economists note that extending hours does not necessarily increase total consumer spending. Instead, purchases may simply occur later in the day. Some economists describe this as a “dilution effect,” where operating costs rise because of additional payroll and energy expenses, while overall sales remain relatively unchanged.

Mall Tenants May Not Have a Choice

Although the new framework is voluntary, not every retailer will have complete control over whether they participate.

In many shopping centres, operating hours are determined by the landlord. Commercial leases often require tenants to follow the official hours set by the property owner.

Some mall operators are already preparing to align their schedules with the expanded operating window. Andrew Lutfy, who leads the Royalmount retail development in Montreal, has indicated that while individual properties may determine their own schedules, once a shopping centre adopts extended hours, tenants are generally expected to follow them.

For smaller retailers, this dynamic can create a practical dilemma. Even if evening traffic is limited, stores may still need to remain open in order to comply with lease requirements.

Mixed Results From Earlier Trials

The province-wide rollout follows smaller pilot projects conducted in 2025 in Gatineau, Laval, and Saint-Georges. Those trials allowed participating retailers to extend weekend hours on a voluntary basis, generally permitting stores to remain open later in the evening.

Results were mixed. Some footwear and apparel retailers in Laval reported that extended hours did not always generate enough additional sales to offset the extra staffing costs required to stay open later.

Some economists have suggested that extended hours may shift when consumers shop rather than increase how much they spend overall. This dynamic has been cited as a key factor in the ongoing debate surrounding the Quebec weekend store hours pilot.

Parallel Pilot Signals Broader Deregulation

Quebec is also running a separate pilot project that allows adult and erotic product stores to remain open until 11:00 PM daily.

While narrower in scope, the initiative reflects a broader effort by the provincial government to revisit traditional retail-hour regulations. In some cases, policymakers appear to be moving toward treating retail more similarly to hospitality and entertainment sectors, where extended hours are common.

Supporters argue that these changes better reflect modern consumer habits. Critics worry that loosening restrictions could place additional pressure on workers and smaller businesses.

One Year to Evaluate the Results

The Quebec weekend store hours pilot will run for one year, ending in March 2027.

The provincial government has framed the initiative as a test period and is expected to review its economic and labour impacts before deciding whether the policy should become permanent. Officials will examine whether consumers take advantage of later shopping hours and how the changes affect retailers and workers.

For Quebec’s retail sector, the pilot introduces a meaningful shift in how store hours are regulated. Over the next year, the results will help determine whether expanded operating hours strengthen physical retail or simply spread the same consumer spending across more time.

More from Retail Insider:

One year into the trade war, half of Canadian small businesses no longer feel the U.S. is a reliable trading partner: CFIB

By
Mario Toneguzzi
-
Kampus Production photo
Kampus Production photo
Dan Kelly
Dan Kelly

One year after the United States (U.S.) imposed tariffs on Canadian goods, half (52%) of Canadian small businesses no longer consider the U.S. a reliable trading partner, according to new data from the Canadian Federation of Independent Business (CFIB).

“Small businesses have faced massive uncertainty since the trade battle began last year,” said Dan Kelly, CFIB president. “Small business owners have been dealing with the whiplash of trying to keep up with sudden changes and threats, including many that don’t happen or are revised within hours. With CUSMA coming up for review in the months ahead, the stakes are even higher.”

The CFIB said three-quarters (75%) of small businesses say the tariff fight has strained their relationships with U.S. partners or clients, up sharply from 49% in March 2025. The recent U.S. Supreme Court decision on tariff rates does not change the situation for most Canadian exports, it will bring some much-needed relief to the 27% of businesses hurt by tariffs on non-CUSMA compliant goods. Steel and aluminum tariffs imposed by both countries remain a major challenge for many small businesses, with 44% affected. Overall, more than two-thirds (68%) of Canadian small business owners continue to report being negatively affected by U.S. tariffs.

CFIB said research also found that few small businesses are accessing the federal Regional Tariff Response Initiative (RTRI). Fewer than 1% have applied and 77% are entirely unaware the program exists. Restrictive eligibility rules make the program inaccessible to many of the small businesses most affected by tariffs. For example, in British Columbia, businesses must employ at least 10 full-time workers to qualify, while in Quebec – where eligibility is now closed – applications were limited to manufacturing firms with annual revenues of $2 million or more.

CFIB recently sent a letter to Prime Minister Mark Carney, Finance Minister Champagne, and Canada’s Regional Development Agencies (RDA), questioning the program’s design and effectiveness.

Corinne Pohlmann
Corinne Pohlmann

“We keep hearing the same things from small business owners: they’re too small to qualify, they didn’t know about the program, or that the required paperwork isn’t worth the time and resources,” said Corinne Pohlmann, CFIB executive vice-president of advocacy. “Many retailers and wholesalers were hit hard by counter-tariffs, but they still didn’t qualify. The program was poorly designed for the very small businesses it was supposed to help.”

CFIB is calling on Ottawa to:

  • Provide broad tax relief measures, such as a reduction in the small business tax rate from 9% to 6%.
  • Implement a rebate program for tariff-impacted SMEs and ensure government rebates and refunds are not treated as taxable income.
  • Stay focused on maintaining the CUSMA agreement to restore stability, reduce trade uncertainty, and protect the cross‑border supply chains small businesses rely on.
Michelle Auger
Michelle Auger

“Small business owners are telling us they feel abandoned in dealing with tariff costs,” said Michelle Auger, CFIB director of trade and marketplace competitiveness. “With fewer people starting businesses, we can’t afford to overlook the ones we have. Ottawa needs to step up and find better ways to help.”

The CFIB is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.

More from Retail Insider:

Iran Tensions Could Push Canadian Grocery Prices Higher

By
Sylvain Charlebois
-
A grocery store in Quebec. Photo: Vergo Construction

President Trump seems to prefer launching major geopolitical moves when markets are closed — for a simple reason: markets react. The United States abducted Venezuelan President Nicolás Maduro on January 3 — a Saturday. The joint U.S.–Israeli strikes on Iran began February 28 — also a Saturday. It gave markets time to digest the shock. But markets eventually reopen. And by Monday, the economic implications were already becoming clearer.

If tensions persist, Canadian food prices could feel the impact.

The focal point is the Strait of Hormuz, the narrow waterway between Iran, the United Arab Emirates and Oman. It is one of the most important arteries of the global economy. Roughly 20% of global oil supply, 23% of natural gas, and about 30% of global chemical fertilizers move through that corridor each year.

That is not a regional chokepoint. It is a global one.

 

Unlike Russia’s illegal invasion of Ukraine four years ago — when markets worried about access to wheat and grains — this crisis is fundamentally about energy and industrial inputs.

Shipping through the strait has already slowed. Cargo operators are wary, and insurers are raising war-risk premiums. When insurance disappears, ships often do too.

Fertilizer markets are particularly vulnerable. The Middle East is a major exporter of urea and ammonia, both critical for global crop production. Any sustained disruption will push input costs higher.

Canadian farmers try to shield themselves from volatility by pre-buying inputs months ahead. But they are not fully protected. Some fertilizer is locked in early, but other purchases remain exposed to global price swings. Diesel, meanwhile, is the real wild card.

Energy markets have already reacted. Oil is up about 13% since Monday. Natural gas prices in some regions have jumped 30%. Diesel prices are climbing between 8% and 13%. Agricultural commodities — wheat, soybeans, milk — are edging upward, but markets are not panicking.

 

For Canada, the concern is transportation costs across the food supply chain.

If diesel were to spike 25% under a prolonged Iran conflict scenario — combined with Canada’s scheduled industrial carbon price increase on April 1 — the effect on food inflation could be noticeable. The country’s industrial carbon price will rise from $95 to $110 per tonne. Yes, it is still there. Someone in Ottawa once referred to it as “shadow taxing.”

Our models suggest this combination could add 0.4 to 0.7 percentage points to national food inflation by May or June. That may not sound dramatic. But every percentage point of food inflation translates into roughly $150 to $200 more in annual food spending for the average Canadian household. Fresh produce and meat would likely feel the pressure most.

And Canadians are already under strain. According to the latest data from Statistics Canada, food prices are currently rising at 7.3% year-over-year, far above the country’s overall inflation rate of about 2.3%.

In other words, the system is already running hot.

But carbon pricing is only one part of the equation. Fuel used across the food system — from farm equipment to trucks, rail and processing facilities — is also subject to other levies, including federal excise taxes, provincial fuel taxes, and sales taxes such as GST or HST applied to fuel purchases. Despite exemptions, these levies still increase transactional costs for everyone involved in food distribution in Canada.

Individually, these costs may appear manageable. But together they compound. When global energy prices rise at the same time as domestic fuel-related taxes remain embedded throughout the supply chain, the pressure on food production, processing and transportation costs increases as well.

Still, energy shocks alone rarely drive long-term food inflation. Exchange rates, labour costs, and global commodity markets typically matter far more. What matters most now is duration.

If the conflict fades quickly, the market impact will likely remain limited. If it drags on, costs will ripple through global supply chains.

Global energy shock. Domestic carbon tax hike.

Lovely timing.

More from Retail Insider:

Sephora Expands Footprint in Canada’s Beauty War

By
Craig Patterson
-
Sephora on Ste-Catherine St. W. in Montreal. Photo: Victor DiLallo Balsis

Sephora is set to open its 144th Canadian store at Erin Mills Town Centre in Mississauga on March 6. The opening is part of the retailer’s sustained effort to capture additional share in the rapidly evolving Canadian beauty market.

Sephora entered Canada digitally in 2003 before opening its first physical location at CF Toronto Eaton Centre in 2004. Since then, the company has steadily built infrastructure, including a Canadian headquarters in 2007, a dedicated Canadian website in 2012, and a 280,000-square-foot distribution centre in Brampton in 2015. Its 100th Canadian store opened in Winnipeg in November 2022, and the brand has added roughly 10 to 15 stores annually since then.

The Erin Mills opening reflects Sephora’s ongoing suburban expansion strategy. Rather than concentrating solely on premier downtown shopping centres, the retailer is increasingly targeting residential hubs and secondary malls. That move directly addresses convenience advantages long held by drugstore operators. Jeff Berkowitz of Aurora Retail Group handles lease negotiations for Sephora.

Construction hoarding for Sephora at Erin Mills Town Centre, image via Instagram

A $12 Billion Industry in Transition

The Canadian beauty market is valued at approximately $12.18 billion in 2026. Growth in prestige categories continues to outpace mass segments, supported by premiumization in fragrance, skincare, and hair care.

Sephora remains the leading specialist beauty retailer in Canada and commands roughly 30 percent of the prestige segment. While Shoppers Drug Mart maintains the broadest physical footprint with more than 1,300 locations nationally, Sephora has differentiated itself through experiential retail, knowledgeable sales staff and digital integration.

The competitive dynamic is increasingly defined by how retailers balance prestige positioning with value sensitivity. Inflationary pressures have encouraged consumers to seek smaller indulgences, reinforcing what is often referred to as the Lipstick Effect. Sephora’s mix of exclusive brands, private label offerings, and trial-size formats allows it to capture that behaviour.

Competitive Landscape: Sephora, Shoppers, and Holt Renfrew

Sephora occupies a strategic middle ground between mass convenience and ultra-luxury exclusivity. Its open-sell format, emphasis on discovery, and digital tools such as Color IQ and Skin IQ reinforce its positioning as an omnichannel leader.

Shoppers Drug Mart, owned by Loblaw Companies, controls an estimated 28 to 30 percent of Canada’s total health and beauty market. The retailer leverages the PC Optimum loyalty ecosystem to convert everyday purchases into redeemable points across grocery and pharmacy categories. Its BeautyBOUTIQUE concept has enabled it to carry prestige brands traditionally associated with department stores. Some have complained about a lack of staff, and market share is said to be declining. 

Holt Renfrew operates within a narrower ultra-luxury segment, emphasizing concession-based brand boutiques and concierge-level service. Although its volume share is smaller, average transaction values are significantly higher. Its basement-level beauty halls “could perform better” according to sources. 

Sephora’s advantage lies in exclusivity and cultural relevance. Brands such as Rare Beauty by Selena Gomez, Fenty Beauty by Rihanna, Haus Labs by Lady Gaga, and Makeup by Mario anchor its prestige moat. Shoppers differentiate with heritage luxury names, including Chanel, Guerlain, and Clé de Peau Beauté.

The result is a market increasingly shaped by loyalty competition. PC Optimum drives transactional value, while Sephora’s Beauty Insider program fosters emotional attachment through early access and community engagement.

Heartland Town Centre. Photo: Orlando Corporation

The Hudson’s Bay Exit and Market Reallocation

The collapse and permanent closure of Hudson’s Bay by June 1, 2025, reshaped the Canadian beauty market. For decades, department store beauty counters served as a middle-ground prestige destination. Their disappearance displaced numerous heritage brands and beauty advisors.

Brands that once relied on Hudson’s Bay counters were forced to seek alternative distribution. Many pivoted toward Shoppers Drug Mart’s BeautyBOUTIQUE concept or strengthened direct-to-consumer strategies. Sephora and Shoppers emerged as primary beneficiaries, effectively consolidating prestige distribution into a tighter competitive framework.

Walmart Canada has also moved aggressively into the masstige segment. Through initiatives such as its Start Accelerator program, Walmart has introduced premium quality brands at accessible price points, targeting value-conscious consumers who previously shopped department stores.

The relaunch of Zellers under new ownership in 2026 reflects a more focused model. The updated concept deliberately avoids pharmacy and beauty counters, acknowledging the dominance of Sephora, Walmart, and Amazon in those categories.

The Ulta Question

If Ulta Beauty enters Canada, it would represent the most significant disruption in the sector in more than a decade. Ulta’s hybrid model combines prestige and mass brands under one roof and typically includes in-store salon services.

Such an entry would intensify competition across all segments of the Canadian beauty market. Sephora would likely double down on exclusives and experiential loyalty offerings. Shoppers Drug Mart would face increased pressure to elevate service components beyond convenience and points accumulation.

An Ulta arrival would also ignite a suburban real estate contest. Sephora’s move into power centres mirrors Ulta’s typical U.S. footprint. Co-location in plazas could become common, driving sharper pricing strategies and more aggressive promotional activity.

Ultimately, a three-player rivalry among Sephora, Shoppers, and Ulta could narrow pricing gaps and accelerate brand launches in Canada.

Photo: Ulta Beauty

Structural Shifts Reshaping the Industry

Beyond store counts, deeper shifts are redefining the Canadian beauty market in 2026.

The first is the maturation of derm-cosmetics and regenerative skincare. Retailers increasingly compete with medical aesthetic providers. Clinical positioning has become mainstream, and dermatologist-tested branding carries significant weight.

The second is the rise of Indigenous-owned and BIPOC-led brands. Commitments such as Sephora Canada’s 25 percent BIPOC-owned assortment goal by 2026 signal structural change in merchandising strategies. Brands like Cheekbone Beauty and Sḵwálwen Botanicals illustrate how representation and cultural storytelling are shaping product development.

Sustainability has also progressed beyond marketing claims. Industry milestones, including diversion of more than 100,000 pounds of beauty waste through recycling partnerships in late 2025, reflect measurable environmental efforts. Refillable packaging formats from luxury brands have become central selling points rather than niche offerings.

Finally, men’s grooming remains the fastest-growing segment, projected at a 10 percent compound annual growth rate through 2026. Retailers are reframing grooming as self-maintenance, expanding assortments in gender-neutral skincare and performance-driven hair treatments.

Outlook: A Market Far from Saturation

Sephora’s 144-store milestone reflects a larger shift in the Canadian beauty market. Even with economic pressures, Canadians continue to spend on accessible prestige products. The closure of department store beauty counters has concentrated sales among fewer players, while Sephora’s move into suburban malls is designed to capture growth closer to where consumers live.

Competition is intensifying. Exclusive brands, loyalty programs, and in-store experiences are becoming key tools in the fight for market share. Sephora’s steady expansion signals that the company believes Canada still has room for further growth relative to its size and spending potential.

If Ulta Beauty enters Canada, the competitive landscape would change again. For now, the Erin Mills Town Centre opening reinforces Sephora’s intention to remain a leading force in a market that is evolving quickly rather than gradually.

More from Retail Insider:

Pet Valu Shares Drop as Growth Outlook Softens

By
Lee Rivett
-
Pet Valu on Front Street in Toronto (Image: Dustin Fuhs)

Shares of Canadian pet specialty retailer Pet Valu Holdings Ltd. declined sharply after the company issued a softer than expected growth outlook for 2026, reflecting increased promotional activity and cautious consumer spending in the pet category.

According to a research report authored by Martin Landry, Managing Director at Stifel Canada, investors repriced the stock following guidance that points to more modest revenue expansion than previously anticipated. The report indicates that the company expects revenue growth of between two and four percent in 2026, below historical averages and below expectations from analysts and investors.

The market reaction was swift. Pet Valu shares fell approximately 11 percent after the outlook was released, reflecting concerns that the specialty pet retail sector may face slower growth in the near term.

 

Promotional Pressure and Value-Seeking Consumers Weigh on Results

The report notes that Pet Valu’s fourth quarter results for fiscal 2025 were affected by increased promotional activity across the pet retail sector. While the company reported revenue growth in the quarter, the results came in below analyst expectations.

Pet Valu reported fourth quarter revenue of approximately $326 million, representing growth of about three percent year over year when adjusting for the additional week included in the prior fiscal year. The company also reported same-store sales growth of 0.3 percent, which was below analyst expectations and consensus forecasts.

Martin Landry
Martin Landry

Sales growth was driven primarily by a modest increase in basket size, while store traffic declined slightly during the quarter. Analysts noted that the Canadian pet industry experienced relatively subdued demand during the period, with consumers becoming more value conscious.

Promotional activity across the sector also placed pressure on margins. Gross margin declined to 33.1 percent during the quarter, representing a decrease of roughly 90 basis points compared with the previous year. According to the report, both consumer value-seeking behaviour and increased promotional intensity from competitors contributed to the margin decline.

Slower Growth Expected to Continue in 2026

Looking ahead, Pet Valu’s management team expects the softer environment to persist into 2026. The company’s guidance calls for same-store sales growth ranging from flat to approximately two percent, while overall revenue growth is projected to reach between two and four percent year over year.

Analysts at Stifel believe the early weeks of 2026 have continued to reflect similar trends observed during the fourth quarter of 2025. Performance early in the quarter suggests that same-store sales growth remains below one percent and that promotional activity continues to influence margins.

As a result, the research firm reduced its earnings forecasts for the company. Stifel now expects Pet Valu to generate earnings per share of approximately $1.70 in 2026, compared with a previous estimate of $1.82. The firm also reduced its 2027 earnings forecast from $2.02 per share to approximately $1.90.

These adjustments reflect expectations for slower same-store sales growth and continued promotional pressure in the near term.

Specialty Pet Channel Facing Increasing Competition

The report also highlights broader competitive dynamics affecting the Canadian pet retail market. While Pet Valu continues to gain share within the specialty pet channel, the overall segment may be losing ground to other retail formats.

Analysts suggest that retailers such as Costco, Dollarama, and online platforms are increasingly competing for pet product purchases. The entry of online pet retailer Chewy into the Canadian market in recent years has also added additional competitive pressure.

These factors contribute to a more challenging environment for specialty pet retailers, even as the overall pet category remains relatively resilient compared with other discretionary retail sectors.

 

Analysts Maintain Positive Long-Term View

Despite the near term growth slowdown reflected in the Pet Valu growth outlook, Stifel maintained its Buy rating on the company’s shares. However, the firm lowered its target price from $37 to $32.

The revised valuation reflects updated earnings forecasts as well as lower valuation multiples applied to the company’s projected financial performance.

Even with the more cautious growth outlook, analysts continue to view the pet retail sector as defensive relative to many other retail categories. Historically, spending on pet products has proven resilient during economic cycles, and the Canadian pet food market has experienced very limited periods of contraction over the past several decades.

Stifel also notes that Pet Valu’s supply chain transformation initiatives have largely been completed. These investments previously weighed on earnings growth but are expected to provide operational efficiencies moving forward.

Valuation Seen as Attractive Despite Slower Growth

According to the report, Pet Valu’s shares currently trade at roughly 13 times forward earnings, below the company’s historical average valuation multiple of approximately 17.5 times.

This lower valuation suggests that the current share price already reflects much of the expected slowdown outlined in the updated Pet Valu growth outlook.

While near term revenue expansion may remain modest due to promotional intensity and cautious consumer spending, analysts believe the company remains well positioned within Canada’s specialty pet retail sector over the longer term.

More from Retail Insider:

Daily Synopsis: Mar 3, 2026

By
Retail Insider
-

Today’s Retail Insider articles focus on critical moves in Canadian retail strategy and real estate, with Roots launching a strategic review amid market valuation concerns while Eddie Bauer markets 24 store leases in Canada during its liquidation. Meanwhile, Calgary Co-op recently opened a new urban Food Centre that integrates retail with residential space, illustrating evolving property uses. These developments highlight the ongoing reconfiguration of retail footprints and brand positioning in response to market and consumer shifts.

 

🗞️ The Day’s Retail Insider Article List

 

🌐 Canadian Retail News From Around the Web

Roots Launches Strategic Review, Sale Explored

By
Craig Patterson
-
Roots flagship store on Robson St. in downtown Vancouver. Photo: Brandon Artis

Canadian apparel retailer Roots has initiated a formal strategic review that could reshape the future of one of the country’s most recognized lifestyle brands. On March 3, the company announced that its Board of Directors has begun exploring “strategic alternatives,” with a potential sale of the company explicitly identified as a leading option.

The announcement immediately sparked investor interest and renewed debate about the long-term ownership of the 53-year-old brand. The Roots strategic review marks a pivotal moment for the Toronto-based company, which trades on the Toronto Stock Exchange under the ticker TSX: ROOT.

To guide the process, Roots has retained J.P. Morgan Securities Canada Inc. as financial advisor and Torys LLP as legal counsel. The company stated there is no guarantee a transaction will occur and indicated it does not intend to provide updates unless a specific deal is approved or the review concludes.

Strategic Alternatives on the Table

According to the company, the objective of the review is to maximize value for shareholders. While the full scope of alternatives was not detailed, the board is evaluating a range of options that include a full or partial sale of the company, strategic partnerships or joint ventures, and potential changes to capital allocation or corporate structure.

Despite the sweeping language, management emphasized that it remains “business as usual” across its operations. Roots continues to operate more than 100 corporate stores in Canada, alongside partner-operated locations in Asia. The company also maintains a developing digital business and a limited physical footprint in the United States, where it currently operates only two stores.

The Roots strategic review follows a period of operational stabilization and improving financial metrics, raising questions about timing and long-term strategy.

Roots Tremblant store. Photo: Roots

Operational Recovery Ahead of the Review

The most recent detailed financial results, for the third quarter ended November 1, 2025, point to a business that has regained some momentum.

Total sales reached $71.5 million in Q3 2025, representing a 6.8 percent year-over-year increase. Direct-to-consumer comparable sales rose 6.3 percent, while gross margin expanded to 60.8 percent, an increase of 80 basis points. Adjusted EBITDA improved 5.3 percent to $7.5 million. Net income dipped slightly by 4.5 percent to $2.3 million, though net debt declined 5.9 percent to $44.1 million.

The company’s direct-to-consumer channel has been a key driver. For the first nine months of 2025, comparable sales growth of 11.5 percent reflected stronger online traffic and improved in-store conversion. DTC gross margin reached 65.4 percent, supported by tighter markdown discipline and inventory management. Inventory ended the period at $66.6 million, described as a healthy position relative to demand.

These figures suggest a leaner, more margin-focused operation. However, public market investors have remained cautious. Roots’ market capitalization has hovered in the $120 million to $130 million range, well below what some observers believe reflects the brand’s cultural equity and revenue base of more than $270 million annually.

Market Reaction Reflects Valuation Debate

Investors reacted swiftly to news of the strategic review. On March 3, 2026, the stock closed up nearly 13 percent at $3.40. Earlier in the day, shares had been trading closer to $3.26, reflecting intraday volatility as the market absorbed the news.

The positive reaction indicates that investors are anticipating a potential buyout premium. Many see Roots as undervalued relative to its brand recognition in Canada. The valuation gap between public market pricing and perceived brand worth has been a recurring theme since the company’s 2017 initial public offering at $12.00 per share.

The Roots strategic review therefore appears to be as much about capital markets dynamics as it is about retail operations.

The Searchlight Factor

Any discussion of a potential sale must consider the role of Searchlight Capital Partners. The private equity firm acquired a majority stake in Roots in 2015 and has now held that position for approximately 11 years.

Private equity investments typically follow a five-to-ten-year lifecycle. Given that timeline, the current review aligns with a natural exit window. Industry observers note that Searchlight’s extended ownership period suggests the firm may be ready to monetize its investment.

The appointment of Meghan Roach, a former Searchlight Managing Director, as CEO in 2020 was widely viewed as part of a stabilization effort. Since then, Roots has focused on operational discipline, margin improvement, and digital growth. The strategic review may represent the culmination of that turnaround phase.

Meghan Roach
Meghan Roach

Leadership Moves Ahead of a Possible Transaction

The announcement follows the February 2026 promotion of Rosie Pouzar to Chief Commercial Officer. Pouzar previously held a senior role at Sephora Canada and brings experience in omnichannel retail and growth strategy.

In mergers and acquisitions contexts, leadership appointments often serve to strengthen executive benches ahead of potential transactions. A seasoned commercial executive with omnichannel credentials can enhance a company’s appeal to prospective buyers seeking a plug-and-play asset.

The timing of the appointment, coming just weeks before the review announcement, adds another layer of strategic positioning to the narrative surrounding Roots.

The International Split: Opportunity or Constraint?

Roots’ geographic footprint presents a two-sided story.

In Canada, the brand maintains broad awareness and a stable store base. In Asia, it operates more than 100 partner-run locations, demonstrating that the brand can travel when supported by local operators.

In contrast, its U.S. presence remains minimal, with only two physical stores. For some potential acquirers, that limited footprint may represent a missed opportunity. For others, it signals significant white space and growth potential.

A larger global apparel company with established U.S. infrastructure could theoretically accelerate expansion far more quickly than Roots can as a standalone mid-cap public company.

Potential Buyer Profiles

Market observers have begun speculating about likely acquirers, although the company has not commented on any specific discussions.

One scenario involves a private equity take-private transaction. A new financial sponsor could delist the company, pursue cost efficiencies outside quarterly reporting pressures, and invest in international growth before pursuing a later exit.

Another possibility is acquisition by a large retail conglomerate. Companies such as VF Corporation, which owns brands including Vans and The North Face, could view Roots as a complementary heritage lifestyle brand. Similarly, Canadian Tire Corporation, which already owns Mark’s and SportChek (and Hudson’s Bay Company’s IP), could see strategic value in consolidating a Canadian apparel icon within its portfolio.

A third path could involve a brand management firm such as Authentic Brands Group, which specializes in acquiring intellectual property and expanding brands through licensing partnerships. Under that model, the Roots name and beaver logo could be leveraged globally with a capital-light structure.

Each scenario carries different implications for store operations, manufacturing strategy, and brand positioning.

Roots store at Vaughan Mills. Photo: Roots

Heritage Meets Public Market Pressures

Roots has long positioned itself around a distinctly Canadian aesthetic rooted in nature, comfort, and cottage culture. That identity has created enduring loyalty domestically.

However, public markets often prioritize rapid growth and margin expansion over heritage narratives. As a mid-cap public company, Roots has faced scrutiny over selling, general, and administrative expenses, which rose 10.6 percent last quarter due to marketing and personnel investments.

A private ownership structure could allow longer-term investments without the same quarterly earnings pressure. Conversely, integration into a larger retail group could provide scale efficiencies and supply chain leverage.

The Roots strategic review highlights this tension between cultural capital and capital markets expectations.

A Crossroads Moment

Roots finds itself at a defining juncture. Operational metrics have improved, debt has declined, and margins have strengthened. At the same time, the stock trades far below its IPO price, and international expansion remains constrained by capital limitations.

The board’s decision to initiate a strategic review reflects an assessment that the brand’s intrinsic value may not be fully reflected in its current public valuation. Whether the outcome is a take-private transaction, a strategic partnership, or a sale to a global operator, the objective is clear: secure the resources and structure necessary to unlock the next phase of growth.

For now, management insists it is business as usual. Yet the market’s strong reaction underscores that stakeholders view this as a potential turning point for a brand deeply embedded in Canada’s retail landscape.

The coming months will determine whether the iconic beaver remains a standalone public company or becomes part of a larger global portfolio. 

More from Retail Insider:

Apple Launches New Studio Display and Studio Display XDR in Canada

By
Lee Rivett
-

Apple is launching new displays engineered for a wide range of users, from everyday consumers to top professionals. The new offerings, the Studio Display and the Studio Display XDR, come equipped with advanced features designed to enhance the user experience.

The Studio Display features a 12MP Center Stage camera with improved image quality, a studio-quality three-microphone array, and a six-speaker sound system with Spatial Audio. The display supports Thunderbolt 5 connectivity, enabling more downstream connections for accessories and daisy-chaining other displays. Pre-orders for the Studio Display will begin on March 4, with availability starting March 11.

 

Advanced Display Features

The Studio Display is notable for its 27-inch 5K Retina XDR display, which offers a mini-LED backlight, boasting 2000 nits of peak HDR brightness and a 120Hz refresh rate. This high-performance display is accompanied by a number of features tailored for creative professionals, including exceptional colour accuracy and a wide colour gamut.

According to John Ternus, Apple’s senior vice president of Hardware Engineering, “Studio Display gets even better with a new 12MP Center Stage camera and powerful Thunderbolt 5 connectivity. The Studio Display XDR is a huge leap forward for XDR technology, transforming workflows like filmmaking, design, and 3D animation.” The pricing for the Studio Display starts at $2,099 CAD, while the Studio Display XDR begins at $4,499 CAD.

 

Studio Display XDR Benefits

The Studio Display XDR sets a new standard for pro displays. It features enhanced resolution and performance characteristics, making it well-suited for workflows like HDR video editing and 3D rendering. The inclusion of Adaptive Sync technology ensures that users experience smooth graphics and minimal latency, a significant advantage for gaming and dynamic content.

With two USB-C ports for further connectivity and the option for either standard or nano-texture glass, the new display addresses diverse user needs with a flexible approach. Apple’s commitment to environmental responsibility is evident, as both displays are built with a significant proportion of recycled materials.

Pre-Order and Availability

Customers in Canada can pre-order the new Studio Display and Studio Display XDR starting tomorrow at apple.com/ca/store and through the Apple Store app. The devices are also set to arrive in select Apple Store locations and authorized resellers starting on March 11.

With AppleCare enhancements, users will have the option to add support services for their new displays, ensuring peace of mind with their technology investments.

More from Retail Insider:

Apple Launches Enhanced MacBook Air with M5 Chip in Canada

By
Lee Rivett
-

Apple is unveiling the new MacBook Air with M5 chip, enhancing the world’s most popular laptop with improved performance and expanded storage. The M5 chip is set to deliver significant advancements in computing power, making it ideal for a range of tasks from everyday use to complex AI applications.

The new MacBook Air now features a 10-core CPU and an up-to-10-core GPU, both equipped with a Neural Accelerator. This upgrade enables the laptop to achieve up to 4x faster performance for AI tasks compared to its predecessor, the M4, and up to 9.5x faster than the M1 model. Additionally, the MacBook Air comes standard with 512GB of storage, double that of earlier versions, and offers configurations up to 4TB, catering to users with extensive data requirements.

 

Available in 13- and 15-inch models with a variety of colour options including sky blue, midnight, starlight, and silver, the MacBook Air promises a sleek aesthetic along with a sturdy aluminum design. The new model boasts an impressive battery life of up to 18 hours, with enhanced connectivity thanks to Apple’s N1 wireless chip, which supports Wi-Fi 7 and Bluetooth 6. This makes it easier for users to stay connected and productive anywhere.

Key Features

The MacBook Air with M5 includes several other noteworthy features:

  • A stunning 13.6- or 15.3-inch Liquid Retina display with 500 nits brightness.
  • Advanced camera technology and immersive sound systems for enhanced video calls and media consumption.
  • Two Thunderbolt 4 ports for expanded connectivity and dual external display support.
 

Environmental Considerations

In alignment with Apple’s commitment to sustainability, the new MacBook Air is built with 55 percent recycled content and aims to meet ambitious carbon neutrality goals by 2030. The device utilizes 100 percent recycled aluminum and cobalt, further illustrating Apple’s dedication to reducing its environmental impact.

Availability and Pricing

The MacBook Air with M5 is available for pre-order starting March 4, with official availability from March 11. Pricing begins at CAD $1,499 for the 13-inch model and CAD $1,799 for the 15-inch model, with discounts available for education.

Customers can visit apple.com/ca/store for additional information or to place their order. With this latest offering, Apple continues to set the standard for high-performance laptops suitable for a wide range of users.

More from Retail Insider:

Apple Launches Advanced MacBook Pro Models Featuring M5 Pro and M5 Max Chips

By
Lee Rivett
-

Apple is set to enhance its MacBook Pro lineup with the introduction of the new 14- and 16-inch models featuring the M5 Pro and M5 Max chips. These new offerings promise substantial advances in processing speed and AI capabilities, positioning them as leaders in the professional laptop market.

The latest MacBook Pro models boast improved CPU and GPU performance, including up to 2x faster SSD speeds and a starting storage option of 1TB. The enhancements are particularly significant for developers, researchers, business professionals, and creatives, aiming to leverage AI directly on the device.

 

According to John Ternus, Apple’s senior vice president of Hardware Engineering, the M5 Pro and M5 Max redefine what is possible in a pro laptop, achieving remarkable battery life and groundbreaking AI performance. The inclusion of Neural Accelerators in the GPU allows users to execute advanced models locally, a feature that no competing laptop currently offers.

Key Features and Performance Improvements

The M5 Pro and M5 Max chips, designed using the new Apple Fusion Architecture, deliver substantial performance improvements. The CPU includes a new up-to-18-core configuration with optimally designed cores for power efficiency and high performance, delivering up to 30% faster performance compared to the preceding models.

MacBook Pro users will benefit from faster AI capabilities, with up to 7.8x faster AI image generation performance and up to 6.9x faster LLM prompt processing compared to previous versions. Such improvements are invaluable for professionals involved in 3D rendering or video effects.

 

Storage Capacity and Connectivity

The new MacBook Pro models also offer impressive storage capacities, starting at 1TB for M5 Pro and 2TB for M5 Max. Users can expect up to 2x faster storage performance, with read/write speeds reaching up to 14.5GB/s, significantly enhancing productivity for users handling high-resolution video projects and large datasets.

Connectivity options have been expanded as well, with support for Thunderbolt 5, HDMI, and an SDXC card slot, catering to the needs of professionals requiring high-speed data transfers and seamless media importing.

Pricing and Availability

Customers can pre-order the 14- and 16-inch MacBook Pro models starting March 4, with shipments beginning March 11. The 14-inch MacBook Pro with M5 Pro starts at $2,999 CAD, while the 16-inch variant begins at $3,599 CAD. Additionally, the MacBook Pro with M5 Max has a starting price of $4,999 CAD for the 14-inch model.

The new MacBook Pro range is available in space black and silver, with additional educational pricing options available. As sustainability remains a priority for Apple, the MacBook Pro is constructed using 45% recycled materials, supporting Apple’s goal for carbon neutrality by 2030.

This launch not only emphasizes Apple’s commitment to innovation in technology but also highlights the growing demand for high-performance devices in professional settings.

More from Retail Insider:

1...103104105...1,333Page 104 of 1,333