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SSENSE Receives Court Extension as Restructuring Continues

By
Craig Patterson
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Montreal SSENSE store. Image supplied

SSENSE has secured additional court protection as it works to stabilize its business and navigate a complex restructuring process. On Friday, the Superior Court of Quebec granted the Montreal-based luxury e-commerce retailer an extension of its stay of proceedings under the Companies’ Creditors Arrangement Act until Feb. 19, providing the company with more time to restructure operations and pursue strategic alternatives while shielding it from legal action by creditors.

The ruling represents the latest in a series of stay extensions since September, when SSENSE sought creditor protection amid mounting losses, a deteriorating balance sheet, and escalating pressure from lenders. While the company continues to operate during the process, the repeated extensions highlight the scale of the challenges facing one of Canada’s most prominent digital-first fashion retailers SSENSE Bankruptcy Report.

Founded in 2003 by brothers Rami, Firas, and Bassel Atallah, SSENSE grew over two decades into a globally recognized destination for luxury fashion. The Montreal-based retailer built its reputation through a digital-first model that combined high-end fashion with editorial storytelling, attracting an international customer base.

The company’s trajectory accelerated during the pandemic as consumers shifted to online shopping and discretionary spending surged. By 2021, SSENSE was reportedly valued at $5 billion following a minority investment from Sequoia Capital, positioning it as one of Canada’s most valuable privately held fashion companies. That momentum, however, proved difficult to sustain once market conditions shifted.

Post-Pandemic Pressures Expose Structural Weaknesses

As in-store shopping resumed and inflation began to weigh on discretionary spending, demand for online luxury softened. For SSENSE, the normalization of consumer behaviour exposed vulnerabilities that had been masked during years of rapid growth.

Court filings show the company recorded substantial losses over multiple consecutive years, steadily eroding liquidity. By mid-2024, SSENSE was carrying hundreds of millions of dollars in liabilities, including significant obligations to banks, brand partners, and other trade creditors. Rising interest rates further increased the cost of servicing that debt, narrowing the company’s financial flexibility.

SSENSE store in Old Montreal. Image: David Chipperfield Architects

Inventory and Margin Challenges Come to the Fore

Inventory management emerged as a central contributor to the company’s financial stress. During the pandemic, SSENSE expanded purchasing to meet elevated demand expectations. When those expectations did not materialize, the company was left holding large volumes of unsold inventory.

Clearing excess merchandise required extensive discounting, which supported near-term cash flow but materially compressed margins. The combination of lower profitability and high operating costs placed additional strain on an already stressed balance sheet.

Lender Pressure Triggers Court Proceedings

By August 2024, tensions between SSENSE and its lenders reached a breaking point. Members of the lending syndicate moved to initiate their own CCAA application, seeking to force a sale of the business in order to recover outstanding debts.

The move prompted a swift response from the company’s founders. SSENSE filed a competing application to place the business under creditor protection while retaining operational control. After negotiations, the parties reached a consensual restructuring framework that allowed the company to remain under the leadership of the Atallah brothers while entering formal court supervision.

Interim Financing Provides Short-Term Stability

On Sept. 12, the Superior Court of Quebec approved SSENSE’s CCAA filing and appointed Ernst & Young as the court-appointed monitor. The court also approved $40 million in interim financing, providing critical short-term liquidity.

The financing included contributions from both the lending syndicate and the company’s founders, signalling continued commitment from management despite the severity of the financial challenges. The initial stay order was granted for a limited period, with subsequent extensions approved as restructuring efforts continued.

Company Continues to Pursue Strategic Alternatives

Alongside operational restructuring, SSENSE has been exploring a range of strategic options. The company is fielding potential investment and refinancing proposals and has launched a sale and investment solicitation process to evaluate interest from third parties.

Earlier this month, the deadline for qualified bidders was extended to Dec. 8, suggesting that discussions remain active. In September, CEO Rami Atallah told employees that a sale was not off the table and that he and his brothers intend to submit their own bid for the company, adding further complexity to the process.

In a statement, a company spokesperson said, “Extensions to the stay of proceedings will continue to be requested, as required, to the Court until SSENSE successfully emerges from CCAA.”

Cost-Cutting and Operational Reset Underway

As part of the restructuring, SSENSE has implemented significant cost-control measures. Workforce reductions over the past two years have affected hundreds of employees, and the company has streamlined operations across logistics, marketing, and merchandising.

Purchasing practices have been tightened, with greater focus on margin discipline and inventory control. Marketing spend has been reduced, with emphasis placed on core markets and efficiency rather than aggressive expansion. These measures are intended to preserve cash while the company works toward a longer-term solution.

Impact on Suppliers and the Broader Fashion Ecosystem

SSENSE’s restructuring has implications beyond the company itself. Court documents show that the retailer owes tens of millions of dollars to brand partners and other trade creditors, many of whom are independent designers or smaller fashion houses.

For those suppliers, the outcome of the CCAA process will determine recovery levels and may influence future wholesale relationships. The situation highlights how financial distress at a major retail platform can ripple through the broader fashion ecosystem.

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Canada’s Food Inflation Crisis Is Not About Grocers

By
Sylvain Charlebois
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Photo: Loblaw Companies

Food inflation in Canada is once again moving in the wrong direction. In November, it rose to 4.2%, up from 3.4% the previous month. More troubling still, inflation for food purchased in stores climbed to 4.7%, the highest level since December 2023. For households already stretched thin, these numbers are not noise—they are signals.

A comparison across the G7 underscores Canada’s vulnerability. The gap between food inflation and overall inflation—a measure of whether food prices are rising faster than the broader economy—places Canada near the top of advanced economies. Only Japan shows a larger divergence. Canada’s gap stands at +2.0%, compared with +1.3% in the United Kingdom, +1.1% in Italy, and +0.5% in France. In the United States, the gap is negligible (+0.1%), while in Germany food inflation is running below overall inflation (–0.5%).

When food inflation persistently outpaces general inflation, the explanation is rarely macroeconomic alone. It points instead to structural stress within the food system itself—how food is produced, processed, transported, regulated, and brought to market.

Canada’s public debate has often defaulted to blaming grocers. Yet it is worth noting an important, and underappreciated, shift in Ottawa. Not a single cabinet minister in the Liberal government has openly blamed grocery retailers for food inflation in nearly two years. That rhetoric has largely been confined to the NDP and the Green Party. This is an improvement—and a revealing one. It suggests that the federal government increasingly recognizes that Canada’s food inflation problem is neither simple nor linear, and that slogans alone will not bring prices down.

The data support that realization. Claims of “greedflation” are not borne out by the evidence. Gross profit margins—measured as revenues minus the cost of goods sold—have remained largely stable across Canada’s major grocery retailers. If profiteering were the dominant force, margins would be expanding. They are not. What consumers are experiencing is cost pass-through within a system under strain.

Those strains are structural and policy-driven. Input costs remain elevated, including energy, fertilizer, and labour. Regulatory complexity adds friction at multiple points in the supply chain. Trade constraints and domestic production limits reduce flexibility. Logistics costs remain stubbornly high in a geographically vast country with limited redundancy. And Canada continues to suffer from a lack of scalable mid-tier food processors and distributors—the “missing middle” that helps stabilize prices in other advanced economies.

The composition of food inflation today reinforces this diagnosis. All three components of the meat category—beef, pork, and chicken—are rising simultaneously, an uncommon and concerning pattern. Coffee prices are up. Pantry staples are more expensive. Vegetables continue to climb. This is not a narrow or temporary shock; it is broad-based and embedded.

Other G7 countries offer a contrast. In Germany and the United States, food inflation is easing relative to overall inflation. Their systems are not immune to global pressures, but they are better equipped to absorb them through scale, infrastructure, competition, and policy alignment.

Blaming greed may be politically convenient, but it does little to lower food prices. The path forward lies elsewhere: reducing regulatory drag, improving transportation and logistics capacity, encouraging investment in domestic food manufacturing, modernizing competition policy, and enabling firms to scale.

Food inflation is not a communications problem. It is a systems problem. And until Canada fully confronts that reality, food prices will remain uncomfortably high—for consumers and policymakers alike.

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The Intersection of Real Estate and Mineral Rights

By
Retail Insider
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In many real estate transactions, the focus remains squarely on surface value.  Where is the property located? How is it zoned? What investment potential does it have? But beneath the surface lies an often-overlooked asset class with the potential to significantly alter a property’s worth: mineral rights.

Mineral rights represent the ownership of subterranean resources of a parcel of land, including oil, natural gas, coal, and metals. Importantly, they can be sold or leased independently from the surface rights to the land above them. In effect, a single parcel of land can be monetized twice — once for the surface rights and once for the right to extract the resources beneath it.

For real estate professionals and landowners, mineral rights deserve more than a passing glance. While they can introduce legal and financial complexity, they also present opportunities for enhanced value creation.

How mineral rights affect property values

Mineral rights can affect property values in several ways:

1. Future development potential

A landowner who retains mineral rights may benefit from leasing opportunities or royalty payments if oil, gas, or other minerals are extracted from their land. These potential income streams can materially increase a property’s overall value.

2. Marketability of the property

In areas where oil production is common, such as North Dakota’s Williston Basin, properties with intact mineral rights can fetch higher prices. Conversely, if mineral rights have been severed from the surface rights in resource-rich areas, the property may be discounted because the surface owner lacks control over what happens beneath the ground with respect to the mineral rights.

3. Surface use considerations

When mineral rights are sold or leased separately, the mineral owner has the right to reasonable use of the surface to explore for and extract the minerals. Future drilling, pipelines, or mining activity may disrupt surface use, including potentially impacting agricultural, residential, or commercial plans. This impact can reduce surface property value if not managed carefully.

These dynamics mean that mineral rights can either add value or introduce risk — depending on ownership status and the surrounding market.

Advice for prospective buyers of mineral rights

For buyers of mineral rights, due diligence is essential. Here are three key steps that every buyer should take:

1. Verify ownership

Mineral rights can be severed and sold decades earlier, often leaving property owners unsure of their status. Buyers should commission a thorough title review, ideally conducted by a landman or an attorney with mineral rights experience in the applicable jurisdiction where the land is located.

Local regulations, permitting requirements, and existing leases or royalties tied to the property can dramatically alter the value of the associated mineral rights. Easements for access roads, storage facilities, or pipelines may already be in place and could also impact the value of the surface rights. Buyers need to know whether these encumbrances exist before closing a deal.

3 Evaluate future potential

A property’s location matters, particularly as it relates to mineral rights. Is it in an active or emerging basin where energy companies are investing and producing oil and gas? 

For instance, in the Williston Basin, mineral rights have proven especially valuable. Buyers in these regions should weigh not only the property’s current condition but also the likelihood of future leasing opportunities to operations and non-operators alike.

Advice for mineral rights owners

For those who already own mineral rights, education and strategy are key.

Know your assets

Many mineral rights have been passed down through families for generations. While selling can be an emotional decision, understanding the market value is critical. Owners should request valuations from credible operators or consult specialists before making decisions.

Weigh selling versus leasing

Holding mineral rights can yield long-term royalties, but it also comes with risks, such as commodity price volatility, regulatory shifts, and the uncertainty of when (or if) operators will drill. Selling mineral rights to a third party can provide upfront value and transfer risk to the buyer.

Negotiate favorable leases

When leasing mineral rights, owners should carefully negotiate terms such as royalty rates, lease duration, and surface use protections. Professional guidance from a landman or an attorney in the applicable jurisdiction where the rights are located can help owners protect both their financial and surface interests.

As I often tell investors and landowners, owning the surface does not automatically mean you own the minerals beneath it. Protecting your interests requires knowledge and preparation.

Why this matters for real estate professionals

Real estate professionals who overlook mineral rights may miss critical factors that influence a property’s value. On one hand, a property that appears attractive on the surface may harbor hidden encumbrances tied to severed and sold mineral rights. On the other, it could hold untapped value in mineral rights.

Across the US, companies and mineral rights investors regularly acquire mineral interests in multiple states and deploy capital into both mineral rights acquisitions and drilling operations. This trend underscores a truth for real estate professionals: subsurface assets can reshape a property’s long-term economics.

From a real estate perspective, mineral rights remain a specialized niche, with relatively few companies equipped to manage them at scale. But for buyers, sellers, and investors who understand their impact, mineral rights can be a differentiator that turns an ordinary land deal into a strategic investment.

Final thoughts

In real estate, what you see on the surface is only part of the picture. Mineral rights, though often overlooked, can alter a property’s value, its future use, and its overall investment potential. 

For buyers of real property, the lesson is due diligence. For mineral rights owners, the lesson is education and careful decision-making.

Above all, remember that mineral rights are a unique intersection of law, geology, and finance. Approaching them with foresight and professional guidance ensures that these unseen assets work for you — rather than against you.

— Adam Ferrari is CEO at Phoenix Energy. He has nearly 20 years of experience in the oil and gas industry, following receipt of his bachelor’s degree in Chemical Engineering, magna cum laude, from the University of Illinois at Urbana-Champaign. He began his career with BP America in the Gulf of Mexico, then spent a stint in investment banking at Macquarie Capital, before transitioning back to the operating side with then-startup Halcón Resources Corporation. Following his tenure at Halcón, Adam pursued entrepreneurial opportunities in the mineral-acquisitions side of the oil and gas industry, which ultimately led him to Phoenix Energy.

*Disclaimer: The information contained in this article is meant for general informational purposes only. While Phoenix Energy One, LLC (together with its affiliates, “Phoenix”) makes every effort to ensure the accuracy and currency of the information presented, it cannot guarantee it. Phoenix does not provide legal advice, and the information contained herein should not be considered a replacement for obtaining legal advice related to the subject matter hereof. Phoenix recommends you consult with a qualified legal expert for advice tailored to your specific circumstances. Any reliance on the information contained herein is done at your own risk. Phoenix disclaims any liability for loss or damage, including indirect or consequential loss or damage, arising from or related to the use of the information in this article or the reliance upon the information presented.

Hudson’s Bay Holiday Windows Return at Queen and Yonge

By
Craig Patterson
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Mars Canada Christmas window display unveiling at the Hudson's Bay/Simpsons building at 176 Yonge Street in Toronto, December 14, 2025. Photo: Craig Patterson

On a frigid Sunday evening, December 14, crowds gathered along Yonge Street as Cadillac Fairview officially unveiled the return of Toronto’s iconic holiday windows at the former Hudson’s Bay flagship at Queen and Yonge. For the first time since Hudson’s Bay shuttered its Canadian department stores earlier this year, the illuminated display bays once again glowed with festive scenes, drawing families, tourists, and longtime downtown residents back to a ritual that has defined Toronto’s holiday streetscape for more than a century.

This year’s windows mark both a revival and a reinvention. With the department store behind the glass now closed, Cadillac Fairview has repositioned the historic façade as a leased experiential platform, beginning with a holiday activation by Mars Wrigley Canada. The confectionery giant has taken over seven prominent windows along the Yonge Street side of the building, transforming them into animated tableaux designed to restore a sense of wonder to the corner while signaling a new future for one of the city’s most storied retail landmarks.

Cadillac Fairview, which owns the former Hudson’s Bay and Saks Fifth Avenue complex connected to CF Toronto Eaton Centre, has made clear that the holiday windows are no longer tied to a single department store tenant. Instead, the landlord is treating the building’s extensive street-facing windows along Yonge, Bay, and Richmond streets as a stand-alone experiential and media asset.

Publicly, Cadillac Fairview has framed the initiative as an effort to honour and preserve a cherished Toronto tradition, even as it explores new commercial and cultural uses for the space. Internally, the move also reflects a pragmatic response to the closure of Hudson’s Bay, which left a massive downtown anchor vacant after the retailer filed for creditor protection with more than a billion dollars in debt and failed to secure a buyer.

By reviving the windows, Cadillac Fairview is extracting value from the building’s most visible asset while longer-term redevelopment and re-tenanting plans are evaluated. The Queen Street frontage remains partially blocked due to Ontario Line construction at the intersection, but the Yonge Street run is fully active for the holidays, with additional bays on Bay and Richmond streets being marketed to future partners.

Mars Steps Into the Spotlight on Yonge Street

Mars Wrigley Canada’s activation represents the first major branded tenant to step into the revived window program. Known globally for confectionery brands such as M&M’s, Snickers, Twix, and Skittles, Mars is best recognized by consumers for candy, even though its largest business today is pet care.

For Ellen Thompson, General Manager of Mars Wrigley Canada, the opportunity to animate the windows carried both excitement and responsibility.

Ellen Thompson, General Manager of Mars Wrigley Canada

“So we are so excited to be bringing the wonder of Mars to downtown Toronto,” Thompson said during an interview at the unveiling. “We are thrilled to be bringing back the holiday windows so we can have another year of celebration, and we know that Toronto will absolutely love it.”

The activation spans seven windows and unfolds as a continuous narrative. Thompson described it as a storybook journey following the “elves of Mars” through a whimsical day in their world.

“It starts with a storybook that tells the story of the elves of Mars and a day in the life of their journey,” she explained. “They start their day getting their supplies ready, then they make their way to a chocolate factory. Then they have a very magical special clock, and they go through a winter wonderland, finally finishing their day celebrating with their family and their furry friends.”

The scenes are animated, brightly coloured, and unmistakably festive, designed to be enjoyed by children and adults alike as they move along the sidewalk from window to window.

Crowds Brave the Cold for the Unveiling

Despite freezing temperatures, the unveiling drew a sizable crowd on Sunday night. Parents lifted children onto shoulders for a better view, couples paused mid-walk to watch the moving figures, and groups lingered to take photos and videos as the curtains lifted.

For many in attendance, the moment carried emotional weight. The disappearance of The Bay windows earlier this year had sparked concern that a defining part of Toronto’s holiday identity might vanish permanently. Seeing the displays return, even under a different model, felt like a restoration of something deeply familiar.

Thompson acknowledged that sense of civic expectation, noting that the project was driven as much by public sentiment as by brand ambition.

“My team and I happened to be walking downtown one day, and we saw the windows were boarded up,” she said. “We were talking about how sad it was that the windows wouldn’t be returning again this year. Then we started looking around and saw that other people felt exactly the same way, and we knew we could do something about it.”

Mars Canada Christmas window display unveiling at the Hudson’s Bay/Simpsons building at 176 Yonge Street in Toronto, December 14, 2025. Photo: Craig Patterson

Built in a Month, Crafted by Hand

Remarkably, the entire project came together in roughly a month, a compressed timeline by the standards of large-scale holiday installations. Thompson said the speed was made possible by close collaboration with Cadillac Fairview and a Toronto-based production company that fabricated the displays.

“Everything is original, everything is handmade,” she said. “We partnered with a production company here in Toronto, and they’ve been wonderful partners, as well as the building allowing us to take over the windows for the holiday season.”

Mars also worked with Ana Fernandez, a creative director who had previously been involved with the historic holiday windows, to ensure continuity with past displays.

“We hope that people will see that authenticity and the tradition they’ve come to know and love, but also see a little bit of a modern twist that we brought,” Thompson said.

For Mars, the project represented a step outside its usual comfort zone.

“We’ve never done this before,” Thompson said. “This is definitely a little bit out of our comfort zone, but we heard the city of Toronto asking for it, and we thought we could do it.”

Mars Canada Christmas window display unveiling at the Hudson’s Bay/Simpsons building at 176 Yonge Street in Toronto, December 14, 2025. Photo: Craig Patterson

Blending Brand Storytelling With Community Impact

Beyond spectacle, the activation includes a charitable component tied to Food Banks of Canada. Visitors are encouraged to visit a dedicated website and fill out a simple holiday wish list, triggering a one-dollar donation from Mars for each submission.

“When people visit us at wonderofmars.ca and fill out a holiday wish list, we’ll make a one-dollar donation to the Food Banks of Canada for every wish list we receive,” Thompson said. “That way we can spread the holiday cheer, not only here in Toronto, but across all of Canada.”

The campaign aligns with Mars’s broader corporate principles, which emphasize responsibility and mutuality, and adds a social dimension to what might otherwise be seen purely as brand marketing.

Mars Canada Christmas window display unveiling at the Hudson’s Bay/Simpsons building at 176 Yonge Street in Toronto, December 14, 2025. Photo: Craig Patterson

A Landmark Site With Deep Cultural Roots

The significance of the Queen and Yonge holiday windows extends far beyond their current tenant. The tradition dates back more than a century, to the early 1900s, when Simpsons first installed elaborate Christmas displays at the corner. By the 1920s, visiting the competing Eaton’s and Simpsons windows had become a seasonal ritual for Toronto families.

Over time, the displays evolved from static toy arrangements into animated scenes with motors, music, and narrative themes such as Santa’s workshop, toy factories, and festive villages. When Hudson’s Bay took over the flagship in the 1990s, it modernized the windows while preserving their role as a hallmark of downtown December.

For generations, seeing the windows marked the unofficial start of the holiday season, often paired with trips to nearby attractions or skating rinks. Few retail installations in Canada have matched their emotional resonance or longevity.

That legacy made the closure of Hudson’s Bay in mid-2025 feel particularly final. With the store gone, many assumed the windows would disappear as well, another casualty of the decline of the traditional department store.

Mars Canada Christmas window display unveiling at the Hudson’s Bay/Simpsons building at 176 Yonge Street in Toronto, December 14, 2025. Photo: Craig Patterson

A Post-Department-Store Model Emerges

By reviving the windows under a landlord-led model, Cadillac Fairview is testing a new approach to legacy retail real estate. Rather than tying the façade to a single retailer, the windows are being repositioned as a flexible platform for brands, cultural organizations, and charities.

For Holiday 2025, a single major brand secured the Yonge Street run, while other sides of the building remain available or partially committed. The leasing model treats each window bay as a premium experiential unit, sold individually or in sequences, similar to high-impact out-of-home media.

The Mars activation runs from December 14 through January 2, operating 24 hours a day throughout the holiday season. Beyond that, Cadillac Fairview has signaled that the program is intended to continue year-round, with rotating campaigns that blend retail, culture, and civic storytelling.

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Experiential insights from Gradient’s Beauty IMPACT Report

By
Mario Toneguzzi
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Image: Gradient Experience
Image: Gradient Experience

Gradient Experience, an experiential agency based in New York, has released its Beauty IMPACT Report 2025, which explores how leading beauty brands are redefining what experience means today.

The report draws on insights gathered through its annual IMPACT survey and conversations with executives from MAC Cosmetics, Mugler, and Caudalie, among many others, offering a grounded view of how experience, culture, and technology are shaping the future of beauty marketing.

The full white paper can be found here: https://www.gradientexperience.com/beauty-white-paper

Pauline Oudin
Pauline Oudin

Pauline Oudin, the company’s President, said the new report builds on Gradient’s earlier Impact Report, which outlined the agency’s methodology for evaluating brand experiences. 

She said last year’s study was broader and included interviews with chief marketing officers and brand directors across industries such as beauty, spirits, luxury, automotive, as well as a survey of “nearly 1,000 marketers.”

Client feedback prompted the agency to drill further into beauty-specific insights this year. 

Oudin said Gradient conducted interviews with “about a dozen CMOs, founders of beauty brands,” ranging from large L’Oréal labels to independent companies, along with a survey of 130 marketers in the beauty sector. While the sample size is smaller than the previous report, she said it provides “directional data” on how brands are using experiential programs.

One trend identified in the survey is a sharp rise in the use of experiential marketing to support influencer content. 

Oudin said the data shows “influencer content creation… increased over 25 points,” while in-retail rituals dropped by 36 points. She noted the shift “is not surprising when you’re in this space” but is now backed by quantitative findings.

The survey also shows greater emphasis on brand and product education delivered through experiences, which Oudin said is “probably… linked to influencer content,” while the importance of product trial and sampling decreased.

Oudin said integration across channels remains critical for brands seeking to maximize the value of experiential activations. 

“A successful experience has to be integrated across multiple channels, otherwise, as a standalone, it’s too expensive,” she said. 

Image: Gradient Experience
Image: Gradient Experience

This year’s results show integration with advertising and media spending rose 26.4 per cent, compared to a 19 per cent increase in retail integration. 

Experiential marketing is “almost becoming a source of content for advertising,” she added.

Although the study did not quantify the overall portion of budgets devoted to influencers specifically, Oudin said most respondents reported higher experiential spending overall. According to the survey, 86 per cent said their experiential budgets increased, with 40 per cent reporting significant growth and 46 per cent reporting slight growth.

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Image: Gradient Experience
Image: Gradient Experience
Image: Gradient Experience
Image: Gradient Experience

Canadian Retail News From Around The Web For December 15, 2025

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 48 hours.

‘I can spend it on other groceries’: Canadians turn to Dollarama amid rising costs (CTV)

Why is Lululemon CEO Calvin McDonald stepping down? (Globe & Mail)

New MEC store on Vancouver Island spells good news for company, shoppers: retail analyst (CBC)

Back from the brink: major Canadian retailer MEC expands to Nanaimo (CBC)

Winnipeg store owner ‘can’t retire, because I’m actually here collecting all the stories’ (Winnipeg Free Press)

OK Tire’s new CEO Mielko pushes for growth across Canada (Tire Business)

Duty Free stores hopeful for return of stockpiled U.S. alcohol (Pelham Today)

Got empties? Finding a place to return them in Ontario is getting harder (CBC)

Metro Vancouver’s First Robot Bubble Tea Shop Has Quietly Closed After 1.5 Years (Noms Magazine)

This vintage thrift shop in Toronto is so hidden it almost feels like trespassing (BlogTO)

Quebec microdistilleries want to sell their ready-to-drink cans in grocery stores — not just SAQs (CBC)

The ultimate holiday gift shopping guide for Toronto’s Parkdale neighbourhood (BlogTO)

Two injured in robbery-related stabbing at Yorkdale mall Friday night (Toronto Star)

Women used children for distraction theft in B.C. store, owner says (CTV)

Five people charged in Ancaster jewelry store heist (Toronto Sun)

Chip Wilson, founder of lululemon, blasts retailer’s succession planning

By
Mario Toneguzzi
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Entrance doors to Lululemon at Yonge and Bloor in Toronto. Photo: Craig Patterson

Chip Wilson, the Founder of lululemon athletica inc. and one of the retailers’ largest shareholders, says the company’s board has failed at succession planning and the brand needs to be revitalized.

Wilson made his comments on Friday after the company announced Thursday that Calvin McDonald plans to step down as Chief Executive Officer and member of the company’s Board of Directors, effective January 31, 2026.

“As I have communicated to members of the Company publicly and privately, lululemon needs revitalization and an infusion of new skills to get back to being a product-first company that creates real, long-term shareholder value. After overseeing years of poor decisions erode the brand and destroy shareholder value, it is clear to me that only under my increasing pressure has the lululemon Board of Directors finally started to listen,” said Wilson in a public statement.

Chip Wilson
Chip Wilson

“As one of the largest active shareholders of lululemon, I am deeply concerned about what appears to be a tremendous failure by the Board to competently plan for the future and manage an effective succession process. This latest failure in my opinion only amplifies the urgency the Company faces and the obvious need for the CEO search to be led by new, independent directors with real experience. I believe that the Board should seek the advice of individuals with specific and unique expertise, and deep knowledge of the Company, to advise on the CEO selection process.

“The Board’s praise for Calvin McDonald, a CEO who has overseen massive value destruction over the past two years, with a 62.8% drop in LULU’s share price, shows blatant disregard for its shareholders. In my view, the Board has failed to properly hold management accountable to deliver product innovation and instead has led with complacency. The erosion of premium brand value in the Company’s core markets demonstrates that the Board does not understand its target customers anymore or what will drive shareholder value at lululemon over the long term. I strongly believe in the continued strength of the lululemon brand, and I know there are several qualified CEO candidates across the retail and apparel space who can continue to build on its legacy. I hope the Board continues this constructive dialogue with me to find refreshed, experienced directors ahead of completing a CEO search.”

On Thursday, the company said McDonald and the Board are working together to facilitate a smooth transition, and he will serve as a senior advisor to the company through March 31, 2026. It said the Board is conducting a comprehensive search process in partnership with a leading executive search firm to identify the company’s next CEO.

The company also announced that Marti Morfitt, Chair of the Board, will take on the expanded role of Executive Chair, effective immediately, to ensure the continued execution of the company’s near- and long-term growth strategy during the leadership transition. In addition, Meghan Frank, Chief Financial Officer, and André Maestrini, Chief Commercial Officer, will serve as interim co-CEOs following McDonald’s transition. Both interim co-CEOs bring extensive global retail experience and proven track records of driving growth at lululemon, and will support all aspects of the business through the conclusion of the search process, said the company.

Lululemon area and Sephora kiosk in the University of Toronto Bookstore at 214 College Street in Toronto. Photo: Craig Patterson

Since joining lululemon in 2018, the company said McDonald has guided the it through a period of significant growth and innovation. Under his leadership, lululemon said it has more than tripled its annual revenues, and the company expects to generate $11 billion in annual revenue this fiscal year. It said McDonald also broadened lululemon’s global reach to over 30 geographies and grew the company’s China Mainland business into its second largest market. Additionally, it said he expanded lululemon’s product portfolio, meaningfully growing its athletic and lifestyle categories, and formally expanding into new high-demand activities such as tennis and golf. 

“On behalf of the Board and the entire organization, I want to thank Calvin for his visionary leadership building lululemon into one of the strongest brands in retail,” said Morfitt. “During his tenure, Calvin led lululemon through a period of impressive revenue growth, with differentiated products and experiences that resonated with guests around the world. We are grateful for Calvin’s numerous contributions and appreciate his continued support over the coming months to facilitate a seamless transition.

“The Board is confident in our leadership transition plan, the strength of our teams across the company, and our ability to deliver on our strategy. lululemon has a strong foundation in place, and, as we look to the future, the Board is focused on identifying a leader with a track record of driving companies through periods of growth and transformation to guide the company’s next chapter of success. While the search is underway, I look forward to working closely with Meghan, André, and the rest of the Senior Leadership Team to execute on our strategy with a sense of urgency and meaningfully drive the business forward.”

Calvin McDonald
Calvin McDonald

In a LinkedIn post, McDonald said: “After more than seven amazing years, I will step down from my role as CEO of lululemon on January 31.

“This decision was something that I, along with the Board, have been discussing and carefully considered. As we near the end of our five-year strategy, and with our strong senior leadership team in place, we all agree that now is the time for a change.

“I am incredibly proud of everything that our teams have accomplished since I joined the company in 2018. We have quadrupled our international business and tripled our total revenue to more than $10 billion, while increasing our profitability.

“We’ve driven industry leading omnichannel guest experiences, have become the #1 women’s activewear apparel brand in the U.S., and created significant growth in our men’s business. We expanded into new categories and activities, including tennis and golf. And we advanced our sustainability leadership through our Impact Agenda and strengthened our inclusive, people-first culture.

“We have a strong foundation of innovation, creativity, and connection that has transformed the athletic apparel industry and will continue to drive it forward.

“I feel confident the opportunity ahead for lululemon continues to be significant, and I will fully support the transition as an advisor to lululemon through March. And I look forward to sharing more about my next chapter as well.

“I believe we have built an outstanding and ambitious product pipeline. We have created products that don’t just meet the moment, they anticipate where our community is heading. I cannot wait for our guests to experience what’s coming.

“When I joined lululemon, I said this was my dream job. It exceeded every expectation. Thank you to everyone at lululemon who contributed to the growth and accomplishments we’ve shared, and for building something that I believe will deliver incredible value for years to come.”

Lululemon shop-in-store at the University of Toronto Bookstore at 214 College Street in Toronto. Photo: Craig Patterson

On Thursday, lululemon announced financial results for the third quarter of fiscal 2025, which ended on November 2, 2025.

For the third quarter of 2025, compared to the third quarter of 2024:

  • Net revenue increased 7% to $2.6 billion. Americas net revenue decreased 2%. International net revenue increased 33%;
  • Comparable sales increased 1%, or 2% on a constant dollar basis. Americas comparable sales decreased 5%. International comparable sales increased 18%;
  • Gross profit increased 2% to $1.4 billion and gross margin decreased 290 basis points to 55.6%;
  • Income from operations decreased 11% to $435.9 million and operating margin decreased 350 basis points to 17.0%;
  • The effective income tax rate for the third quarter of 2025 was 30.5% compared to 30.2% for the third quarter of 2024;
  • Diluted earnings per share were $2.59 compared to $2.87 in the third quarter of 2024;
  • The Company opened 12 net new company-operated stores during the third quarter, ending with 796 stores.
Bruce Winder
Bruce Winder

Retail analyst Bruce Winder said the change at the top of lululemon was expected. 

“Although McDonald took the company to new heights by tripling the retailers’ revenue, expanding internationally and launching new successful categories, shares of the firm were down about 50% this year and investors lost confidence.

“We saw signs of a troubled retailer as several senior leaders left the company over the past year or so.

“Increased competition, tariffs, a softening economy and perceived quality issues all plagued the company and made it tougher to win.

“I listened to their Q2 earnings call in September and the company acknowledged that they had missed the mark on product. Q3 results were posted this week and the US business continued to suffer while international markets fared much better.

“Former founder and majority shareholder Chip Wilson was unhappy with where the company was headed and publicly called for a change.

“McDonald can be proud of a fantastic run at lululemon but as we all know Wall Street has a short memory and sometimes changes need to happen at the top to reset confidence and utilize a new set of eyes.  The question now is who will run this Canadian champion and how will they build momentum again in the US market.”

George Minakakis
George Minakakis

George Minakakis, CEO Inception Retail Group Inc., wondered: Can anyone really predict the future? Can any retailer really predict the future? 

“Retailers and their CEOs come and go it is the nature of business.  lululemon’s stock price is down over 50% from its February highs this year,” he said, adding with no clear successor this should raise many questions about the board.

“If someone thought this brand’s trajectory was infinite, they don’t understand retail,” he explained. “The competition has grown, and the uniqueness of any brand eventually wears out.  

“And apparel is one sector where your fashion decisions are feast or famine.  I believe McDonald did well in his tenure, but the role of retail CEO’s need to be shorter and the leaders must  come with a fresh perspective because over time everything old looks new.”

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IKEA Canada opens its newest Plan and order point in Abbotsford, British Columbia (Photos)

By
Mario Toneguzzi
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IKEA Canada has officially opened its doors to customers at the new IKEA Abbotsford Plan and order point, located at 32700 South Fraser Way, Unit 80. (CNW Group/IKEA Canada Limited Partnership)

IKEA Canada has officially opened its doors to customers at the new IKEA Abbotsford Plan and order point, marking what it says is an important step in its journey to bring the brand closer to the many Canadians.

This unique location is the first of its kind in British Columbia and 11th across Canada, said the company.

Plan and order points are one of the many ways the renowned home furnishing retailer is making affordable home furnishings and services more convenient and accessible. Customers can book appointments with IKEA experts to design, order, and purchase complex home furnishing solutions for the kitchen, bedroom, living room, and bathroom. Once orders have been placed, they can be delivered to their homes or collected from the pick-up location at the Plan and order point, said the retailer.

“For those looking to instantly refresh their spaces, visitors to the Abbotsford Plan and order point, located at 32700 South Fraser Way, Unit 80, can shop a limited selection of products from the IKEA range (excluding food – sorry, no meatballs) for immediate purchase and takeaway,” it said.

Christophe Adrien, Market Manager, IKEA Coquitlam (CNW Group/IKEA Canada Limited Partnership)
Janet McGowan
Janet McGowan

“At IKEA, our vision is to create a better everyday life for the many. And for Canadians today, that means greater value, ease, speed, functionality, and sustainability. In response, IKEA Canada has been transforming to ensure we deliver an affordable, seamless shopping experience – no matter how, when, and where customers choose to shop with us,” said Janet McGowan, Market Area Manager, West Market, IKEA Canada.

“IKEA has called British Columbia home for almost 50 years. We see so much more potential in this dynamic market and are excited to continue making our products and services even more accessible to the many British Columbians.”

With a commercial area of 5,790 square feet, the Abbotsford Plan and order point features 10 kitchen display inspirations, nine bedrooms display inspirations, four bathroom display inspirations; and two living room display inspirations. A team of 10 experts are ready to offer customers advice and ideas for designing the spaces of their dreams that meet the evolving needs of life at home.

“The Abbotsford Plan and order point has been created with our customers in mind. It’s a different space where they can explore ideas, get inspired, and work with our experts to plan and design solutions that fit their home, style, and budget. We’ll guide customers through every detail, from concept to delivery, so they can create a home that truly reflects who they are,” said Christophe Adrien, Market Manager, IKEA Coquitlam. “This opening is more than just a new location. It’s a promise to Abbotsford that IKEA will continue to innovate and adapt to meet the needs of its residents. By creating jobs, supporting local initiatives, and partnering with organizations that make a difference, we are committed to building a better everyday life, not just inside homes but across this great city.”

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With a commercial area of 5,790 square feet, the Abbotsford Plan and order point features 10 kitchen display inspirations, nine bedrooms display inspirations, four bathroom display inspirations; and two living room display inspirations. (CNW Group/IKEA Canada Limited Partnership)
With a commercial area of 5,790 square feet, the Abbotsford Plan and order point features 10 kitchen display inspirations, nine bedrooms display inspirations, four bathroom display inspirations; and two living room display inspirations. (CNW Group/IKEA Canada Limited Partnership)
Alex Mitchell, CEO, Abbotsford Chamber of Commerce (CNW Group/IKEA Canada Limited Partnership)
Janet McGowan, Market Area Manager, West Market, IKEA Canada (CNW Group/IKEA Canada Limited Partnership)
IKEA Canada hosted a grand opening celebration attended by representatives from IKEA Canada, the Government of British Columbia; Abbotsford City Council, Corporate Sponsorships, and Economic Development; Abbotsford Chamber of Commerce; Archway Community Services; and partners from Leeswood Construction and Colliers. (CNW Group/IKEA Canada Limited Partnership)

Malabar Gold & Diamonds Opens Flagship Store in Ajax

By
Craig Patterson
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Malabar Gold & Diamonds in Ajax. Photo: Malabar Gold & Diamonds

Malabar Gold & Diamonds, one of the world’s largest jewellery retailers, has opened its third Canadian showroom with the launch of a flagship location in Ajax, Ontario, positioning the store as a cornerstone of the brand’s broader national expansion strategy. The opening reflects Malabar’s growing confidence in the Canadian market following strong early performance and marks another step toward building a coast-to-coast retail presence.

The Ajax showroom officially opened on December 6, and has been designated as Malabar Gold & Diamonds’ flagship location in Canada. Spanning more than 6,000 square feet, the store represents the company’s most significant Canadian investment to date, both in scale and in the breadth of its offering. The opening follows the brand’s initial entry into Canada in late 2023 and its subsequent expansion into British Columbia earlier this year.

Beyond Ajax, Malabar Gold & Diamonds has confirmed plans to continue expanding its Canadian store network. Future locations are planned for Calgary and Montreal, with discussions also underway for a possible additional showroom in the Vancouver area. These planned openings would extend the retailer’s footprint beyond Ontario and British Columbia and support its longer-term objective of establishing a national platform in Canada’s largest metropolitan markets.

Malabar Gold & Diamonds in Ajax. Photo: Malabar Gold & Diamonds

A Purpose-Built Flagship Experience in Ajax

The Ajax showroom has been designed as a destination retail environment that showcases the full scope of Malabar Gold & Diamonds’ global offering. The store houses more than 30,000 jewellery designs across gold and diamond categories, spanning over 25 exclusive Malabar brands and collections. The assortment includes a substantial bridal jewellery offering, alongside collections tailored to occasional wear, daily wear, and office wear.

In addition to its extensive merchandise selection, the Ajax flagship features a customized jewellery design facility that allows customers to create bespoke pieces with the support of in-house designers. The showroom also includes a dedicated customer lounge intended to support longer, more consultative shopping experiences, as well as ample parking to accommodate destination-driven traffic within the eastern Greater Toronto Area.

The scale and format of the Ajax location reflect Malabar’s global approach to flagship stores, which are intended to anchor regional growth and reinforce brand positioning through immersive retail environments.

Malabar Gold & Diamonds in Ajax. Photo: Malabar Gold & Diamonds

Strong Canadian Performance Drives Expansion

Malabar’s continued investment in Canada has been supported by strong performance at its existing locations, particularly in Ontario. Sources tell Retail Insider that the brand’s Mississauga showroom at Heartland Town Centre generates annual sales exceeding $35 million, placing it among the top-selling jewellery stores in Canada. While Malabar does not publicly disclose store-level financials, the reported figures highlight the strength of demand the brand has achieved since entering the Canadian market.

The Mississauga location, which opened in November 2023, was Malabar Gold & Diamonds’ first Canadian showroom and remains the largest jewellery store in the country by square footage. Its early success played a key role in accelerating the company’s Canadian rollout, leading to the opening of its second showroom in Surrey, British Columbia in June 2025 and now the launch of the Ajax flagship.

With two locations now operating in the Greater Toronto Area, Malabar has established a strong regional base that mirrors its expansion strategy in other global markets, where initial clustering supports brand awareness, operational efficiency, and sustained sales growth.

Malabar Gold & Diamonds in Ajax. Photo: Malabar Gold & Diamonds

Growing North American Footprint

Globally, Malabar Gold & Diamonds operates more than 415 showrooms across 14 countries and ranks among the top five jewellery retailers worldwide by store count. In North America, the brand now operates 10 showrooms, including seven in the United States and three in Canada.

The company’s U.S. locations span key metropolitan markets including Los Angeles, New Jersey, Dallas, Chicago, Naperville, Atlanta, and Austin. The Ajax opening coincided with the launch of a new showroom in Austin, Texas, underscoring the parallel pace of Malabar’s expansion on both sides of the border.

Chairman of Malabar Group, M.P. Ahammad, described North America as central to the company’s global growth strategy. “Our North American operations have always been a pivotal part of our international growth journey, and we are proud to expand our retail presence in the region with 2 new showrooms. The launch of our Austin & Ajax showrooms reflects our commitment to elevating India’s jewelry craftsmanship onto the world stage and advancing our ambition to become the world’s No.1 jewelry retailer. These launches also reaffirm our dedication to customers across continents who continue to place their trust in our brand. It is not merely about adding new retail spaces, but about building cultural bridges, creating new standards of transparency, and introducing the world to the unparalleled richness of Indian jewelry design. We remain focused on strengthening our global presence through responsible practices, innovation, and the unwavering values that have guided us for over three decades.”

Malabar Gold & Diamonds in Ajax. Photo: Malabar Gold & Diamonds

Canada as a Strategic Growth Market

Canada has emerged as a strategically important market for Malabar Gold & Diamonds, driven by both demographic factors and evolving consumer tastes. The country is home to a large and economically significant South Asian diaspora that values traditional jewellery craftsmanship, particularly in bridal and ceremonial categories. At the same time, Malabar has increasingly positioned its collections to appeal to a broader customer base seeking contemporary design, premium materials, and transparent pricing.

Managing Director of International Operations, Shamlal Ahamed, emphasized the importance of North America within the global jewellery landscape. “North America has evolved into one of the most influential and high-potential markets in the global jewelry industry. The region is home to a vibrant Indian sub-continental diaspora that deeply values traditional craftsmanship, while also attracting a growing audience of mainstream customers who appreciate the contemporary elegance and design diversity that Malabar Gold & Diamonds brings. Our expansion into Austin & Ajax reflects our deep understanding & trust in the city’s jewelry landscape and we are confident that these showrooms will go on to become a preferred jewelry shopping destination for residents.”

He added that Malabar has charted an ambitious expansion roadmap across both the United States and Canada. “Our presence in North America remains vital to our global expansion plans and to this effect, we have charted an ambitious expansion plan for both the USA & Canada. In the USA, more showroom launches are being planned across San Francisco, Seattle, Tampa, Virginia, Detroit, Houston, Charlotte, Phoenix, New York, and San Diego. In Canada, expansion is being planned to Calgary, Vancouver & Montreal in the near future.”

Malabar Gold & Diamonds in Ajax. Photo: Malabar Gold & Diamonds

Ethics, Transparency, and the Malabar Promise

Malabar Gold & Diamonds continues to emphasize sustainability, transparency, and ethical sourcing as core elements of its retail proposition. These principles are formalized through the company’s Malabar Promise, which includes transparent pricing, assured lifetime maintenance at any showroom globally, guaranteed buyback, certified diamonds, full value exchange on gold and diamond jewellery, 100 percent hallmarked jewellery, responsible sourcing, and fair labor practices.

Vice Chairman of Malabar Group, Abdul Salam K.P., reinforced the role of these commitments in the company’s growth strategy. “As we expand our footprint across North America, sustainability, responsibility, and ethical business practices remain central to our growth strategy. The jewelry industry is undergoing rapid transformation, and we believe that true leadership comes from not only offering world-class products but also doing so with unwavering integrity. The launch of our Austin and Ajax showrooms is another step in delivering a retail experience that combines global luxury with ethical value. Our customers can trust that every piece they purchase is crafted with respect for people, the environment, and the global supply chain.”

He added that Malabar continues to invest heavily in ESG initiatives across markets. “We are also investing in strengthening our ESG initiatives across markets, ensuring that our expansion brings measurable positive impact. As we grow internationally, we remain committed to fostering local relationships, creating employment opportunities, and introducing customers to world-class jewelry backed by the highest standards of responsibility and craftsmanship.”

From Kerala to a Global Jewellery Leader

Malabar Gold & Diamonds was founded in 1993 in Kozhikode, in the Indian state of Kerala, by entrepreneur M.P. Ahammed. The company began as a single jewellery showroom and has since grown into the flagship brand of Malabar Group, a privately held conglomerate with vertically integrated operations spanning retail, wholesale, manufacturing, and design.

Over the past three decades, Malabar has expanded from India into the Middle East, Southeast Asia, Europe, and North America. Key milestones include the opening of its first U.S. showroom in Chicago in 2018 and the launch of its 300th global showroom in Dallas in 2023. Today, Malabar Gold & Diamonds reports annual revenues in the range of $7.5 billion USD, placing it among the largest specialty jewellery retailers in the world.

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Dollarama Delivers Strong Q3 Results as Valuation Tightens: Stifel

By
Craig Patterson
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Dollarama (PHOTO: WWW.THECENTREMALL.COM

Dollarama continued its pattern of strong operational execution in the third quarter of fiscal 2026, delivering results that exceeded expectations across key financial metrics. According to a research report authored by Martin Landry, Managing Director at Stifel Canada, the value-focused retailer benefited from solid Canadian same-store sales growth, expanding margins, and continued momentum from its Dollarcity international business.

For the quarter, Dollarama reported adjusted earnings per share of $1.17, up 19 percent year over year. The result exceeded Stifel’s forecast of $1.08 and consensus expectations of $1.11, with higher revenues and stronger gross margins in Canada driving the upside. While investors had anticipated a solid quarter following recent share price appreciation, the results reinforced Dollarama’s ability to deliver consistent growth amid ongoing consumer value sensitivity.

Martin Landry
Martin Landry

Canadian Same-Store Sales Reach a Seven-Quarter High

A standout feature of the quarter was Canadian comparable-store sales growth of 6.0 percent, the strongest performance in seven quarters. In his analysis, Landry noted that this result surpassed Stifel’s estimate of 4.2 percent as well as consensus expectations of 4.8 percent. Growth was driven by both traffic and basket size, with transaction volumes increasing 4.1 percent and average transaction size rising 1.9 percent.

Seasonal merchandise played a meaningful role during the quarter, supported by a favorable calendar shift that extended the Halloween selling period by four additional days compared with last year. While this created an easier comparison, the report emphasized that underlying demand trends in Canada remain healthy.

Total revenues for the quarter reached $1.91 billion, representing a 22 percent increase year over year and modestly exceeding Stifel’s expectations. Australia contributed $186 million to revenue growth during the quarter, although profitability in that market remains in transition.

Margin Expansion Reflects Strong Operating Discipline

Dollarama also delivered meaningful margin expansion, particularly in its Canadian operations. Gross margin in Canada increased by 110 basis points year over year to 45.8 percent, well ahead of Stifel’s estimate of 44.7 percent. Landry attributed the improvement to a more favourable mix of seasonal merchandise and lower logistics costs.

Selling, general, and administrative expenses showed modest leverage as well. Canadian SG&A declined by 10 basis points as a percentage of sales to 14.2 percent, reflecting scale benefits as revenues increased. Excluding contributions from Dollarcity and Australia, EBITDA margin in Canada reached 32.0 percent, up 110 basis points year over year and ahead of both Stifel’s forecast and consensus estimates.

Australia, however, remained a modest drag on earnings. According to the report, the Australian business reduced quarterly earnings per share by approximately $0.03 as Dollarama continues to invest in a multi-year turnaround of The Reject Shop banner.

Dollarcity Continues to Outperform Expectations

Dollarama’s international growth continues to be led by Dollarcity, which posted its strongest earnings growth in five quarters. Dollarcity’s earnings increased 64 percent year over year, supported by sales growth of 21 percent and margin expansion driven by lower logistics costs.

Following the end of the quarter, Dollarcity opened its 700th store, a milestone that Landry described as further evidence of the banner’s growing scale and brand recognition across Latin America. Dollarcity continues to represent a meaningful long-term growth driver within Dollarama’s portfolio.

In contrast, Australia remains in the early stages of transformation. Management completed four store renovations during the quarter and is implementing a comprehensive refresh that includes new layouts, shelving, fixtures, and lighting. Landry noted that the company expects to renovate the entire store network over a four-year period, with rebranding anticipated once Dollarama controls the majority of product sourcing.

Guidance Raised as Calendar Effects Come Into Focus

In response to the strong quarter, Dollarama raised its fiscal 2026 outlook. Management now expects comparable-store sales growth of 4.2 percent to 4.7 percent, up from its previous guidance of 3.0 percent to 4.0 percent. While this represents increased confidence, the updated guidance still implies a slowdown from the 5.3 percent year-to-date pace.

The moderation is largely attributable to calendar normalization. Last year’s fiscal calendar included 53 weeks, while the current year does not. Management quantified the calendar impact at approximately 180 basis points, reflecting the shift from additional Halloween selling days in the third quarter to slower late-January days later in the fiscal year.

Gross margin guidance was also raised, with the midpoint increased by 55 basis points. However, Landry cautioned that fourth-quarter gross margins could be slightly lower year over year due to challenging comparisons.

Valuation Remains the Central Question

Despite another quarter of strong execution, Stifel maintained a HOLD rating on Dollarama shares. The firm increased its target price to $200 from $190, reflecting a roll-forward of valuation multiples applied to fiscal 2028 estimates rather than a change in the company’s underlying performance outlook.

At current levels, Dollarama shares are trading at approximately 33 times calendar 2027 earnings. In Landry’s view, the valuation already reflects significant future earnings growth, limiting the potential for further multiple expansion. While Dollarama’s scale, defensive characteristics, and international investments could justify a premium valuation, the report also highlighted the risk of multiple contraction should investor preferences shift toward more cyclical consumer stocks.

The $200 target price is based on an average of three valuation approaches, including earnings and EBITDA multiples applied to fiscal 2028 estimates, as well as a discounted cash flow analysis.

Consistency Meets Valuation Discipline

Dollarama’s third-quarter performance reinforces its reputation as one of Canada’s most consistently executing retailers. Canadian operations remain strong, Dollarcity continues to scale rapidly, and management has demonstrated discipline in guiding expectations. As Landry’s analysis makes clear, the key debate is no longer about operational strength, but about valuation discipline in a stock that has already priced in much of its future growth.

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