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Canada business exits outpace entries for 5th straight quarter: CFIB economist

By
Mario Toneguzzi
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Photo: KATRIN BOLOVTSOVA
Photo: KATRIN BOLOVTSOVA

An overlooked—but important—trend in the latest Statistics Canada releases: for the fifth quarter in a row, business exits are outpacing business entries in Canada, says Andreea Bourgeois, Director Economics at Canadian Federation of Independent Business (CFIB).

In a LinkedIn post, she said this isn’t a sudden pandemic‑style drop. 

“It’s a steady slowdown in business creation combined with higher exit numbers. In T1 2025, the latest quarter with both entry and exit data available, the entry rate was 4.7% compared to an exit rate of 5.8%,” noted Bourgeois.

“Regionally, every province is in negative territory except Quebec, where entry and exit rates are roughly balanced. The widest gaps are in NL, PEI, and Ontario.

Andreea Bourgeois
Andreea Bourgeois

“By sector, only health and education are seeing positive net business creation. Hospitality is doing “less bad” than most sectors but still negative.

“Bottom line: Canada is quietly losing businesses—quarter after quarter—and it’s not getting the attention it deserves. At this pace, by the next Winter Olympics we won’t just be short on business creation, we might be short on sponsors for Team Canada’s jackets.”

In its most recent report, Statistics Canada said that In October, the business opening rate dropped by 0.3 percentage points to 4.5%, following a slight increase of 0.1 percentage points in the previous month. The opening rate was 0.2 percentage points below its 2015-to-2019 historical average. The decrease in the opening rate was driven by the 0.2 percentage point decline in the re-opening rate (2.9%), while the entry rate (1.7%) was relatively unchanged.

The business closure rate rose by 0.2 percentage points to 4.9% in October, after declining over the previous two months. The business closure rate was 0.3 percentage points above its historical average. Business closures increased or changed little in all sectors, said the federal agency.

“The number of active businesses decreased by 0.2% (-1,740 businesses) in October, as the number of business closures was higher than that of business openings. In the same month, payroll employment increased by 0.1% and real gross domestic product decreased by 0.3%. Business insolvency filings increased by 7.3%, from 395 in September to 424,” it said.

“In October, the number of active businesses dropped or changed little in all sectors. Professional, scientific and technical services (-776 businesses; 23.4% contribution to the decrease) and construction (-668; 20.1%) led the decrease in the overall number of active businesses. This was followed by retail trade (-323; 9.7%) and health care and social assistance (-308; 9.3%).”

Photo: Pavel Danilyuk
Photo: Pavel Danilyuk

According to the CFIB’s Enterprise Pulse, Q3 2025:

  • The number of self-employed has been growing over the past two years; the latest Q4 2025 count of 1,982,800 is just 1% below the peak of 2,003,400 reached in Q4 2019.
  • The number of active businesses with employees has been rising steadily since 2021, hitting 938,790 in Q3 2025—a 4% increase over Q4 2019 levels. Growth has plateaued however, with the number remaining virtually unchanged since Q1 2024. 
  • Data on business entries and exits shows that Q1 2025 (the most recent quarter for which both entries and exits are available) marked a fifth straight quarter of negative net business creation—more businesses exited the market than entered. Even more concerning, the number of new entrants continues to fall sharply. The current entry rate of 4.9% (as a share of all active businesses) is flatlining at the lowest level outside the pandemic.
  • The Q4 2025 number of insolvencies stands at 1,110 for all sectors combined, which represents a decrease from its peak of 2,003 insolvencies reached in Q1 2024 but it is still above its historical average.

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Montréal visitor numbers rise 7.3% in 2025 as tourism spending holds steady

By
Mario Toneguzzi
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Future JD Sports at 777 Ste-Catherine St. W. in downtown Montreal. Photo: Victor DiLallo Balsis

Tourisme Montréal says the city welcomed 11.8 million visitors in 2025, a 7.3 per cent increase from the previous year, as travel rebounded in the second half of what the organization described as a turbulent year.

In a year-end report released Tuesday, Tourisme Montréal said a spring marked by uncertainty gave way to a steady recovery, underscoring what it called the city’s resilience and ability to adapt in an unpredictable global environment.

The agency said tourism spending remained stable at $5.8 billion, comparable to 2024, reinforcing the sector’s role in Montréal’s economy.

Growth driven by domestic market

Domestic travel led the gains in 2025, with the Canadian market rising 10 per cent. Growth was particularly strong in the Atlantic region, where visits increased 17 per cent.

Travel from the United States fell sharply mid-year, declining 12 per cent in July, before narrowing to a five per cent decrease by year’s end. Overseas markets posted overall growth of two per cent.

France recorded more than 470,000 visitors, up two per cent from 2024 and a new high, according to the report.

Tourisme Montréal said travel planning patterns shifted during the year. Visitors booked trips about 50 days in advance, compared with roughly 90 days in previous years, reflecting what the organization described as ongoing economic and geopolitical volatility.

Spending and hotels

Tourism expenditures totalled $5.8 billion in 2025, unchanged from the prior year. Visitors continued to direct most of their spending toward food and accommodation, which together accounted for nearly 75 per cent of total tourism revenue.

The hotel sector strengthened as the year progressed. After a slower start, occupancy improved steadily, with the fourth quarter offsetting earlier softness and bringing annual results in line with 2024.

More than 90 days during the year recorded occupancy rates above 80 per cent, a seven per cent increase over 2024. The gains came despite a four per cent rise in hotel capacity, which expanded Montréal’s room inventory.

Digital traffic increases

Tourisme Montréal said its website, mtl.org, recorded 11.8 million visits in 2025, up 14.5 per cent from the previous year.

The organization said the increase reflected sustained interest in the destination and the impact of its marketing initiatives, positioning the site as a central planning platform for prospective visitors.

Major events ahead in 2026

Looking ahead, Tourisme Montréal pointed to several large-scale events expected to shape 2026:

  • The UCI Road World Championships, scheduled for more than 10 days of competition from Sept. 20 to 27. The organization said it will be Montréal’s largest international sporting event since the 1976 Summer Olympics.
  • The Formula 1 Grand Prix, which has been moved to May this year with the aim of restoring attendance levels typically seen in June.
  • The city’s summer festival season, which the organization said will feature an expanded lineup of events.

Tourisme Montréal, a private, non-profit organization marking its 100th year, represents more than 1,000 businesses and groups involved directly or indirectly in the tourism sector. The agency works to promote Montréal as a leisure and business destination and advises on tourism-related economic, urban and cultural development.

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Winnipeg Retail Market Sees Major Investment Wave

By
Lee Rivett
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CF Polo Park in Winnipeg. Image: Cadillac Fairview

The Winnipeg retail market is entering a new phase of investment and redevelopment, with significant capital being deployed across major shopping centres and new retail districts. Recent activity includes the $160.5 million acquisition of St. Vital Centre, a $30 million redevelopment at Kildonan Place, new tenants at CF Polo Park, and major suburban retail developments tied to residential growth.

The combined announcements signal renewed confidence in the Winnipeg retail market, as owners reposition assets, attract national brands, and invest in long-term mixed-use strategies.

Leyad Acquires St. Vital Centre

Montreal-based real estate firm Leyad closed its acquisition of St. Vital Centre last week, marking a major transaction in the local retail sector. The $160.5 million deal transferred ownership from the Ontario Pension Board to a private investment firm with an expanding national portfolio.

The purchase was backed by a syndicated loan from six Canadian credit unions, reflecting lender confidence in the asset’s stability and long-term prospects.

St. Vital Centre comprises approximately one million square feet of gross leasable area and attracts roughly eight million visitors annually. The mall is home to more than 160 retailers, anchored by Walmart, Cineplex SilverCity, Indigo and others. The property is also preparing for the arrival of Uniqlo, which is taking a substantial footprint.

Leyad has expanded aggressively across Canada, with acquisitions including Northgate Centre in North Bay and Londonderry Mall in Edmonton. CEO Henry Zavriyev described St. Vital as “dominant in its market” and “deeply embedded in the daily lives of the community,” signaling the firm’s long-term stewardship approach.

St. Vital Centre in Winnipeg. Photo: Leyad

Kildonan Place Announces $30 Million Redevelopment

Kildonan Place has unveiled a $30 million redevelopment program designed to modernize the shopping centre and respond to rapid population growth in East Winnipeg. The project emphasizes sustainability, enhanced dining, and significant structural changes.

The centrepiece of the redevelopment is a relocated food court designed as a zero-waste facility. The new space will use advanced composting, recycling, and food-waste reduction strategies. Seating capacity will increase from 325 to 550, while the number of vendors will grow from eight to ten, featuring a mix of local and national operators. The new food court is expected to open in early 2027.

The redevelopment also includes demolition of the former Famous Players theatre space, which spans approximately 30,000 square feet. The project will introduce a new modern entrance as part of the reconfigured layout.

As an early phase of the project, Dollarama has relocated and doubled its footprint to approximately 16,000 square feet. Its former location is being converted into upgraded public washrooms.

The project is partly a response to growth along the “Kildonan Mile,” where population has increased by roughly 10 to 12 percent and the average resident age is approximately 38. Owner Primaris REIT expects the property to reach full occupancy by the time the redevelopment is completed in 2027.

During construction, the north centre entrance near the former theatre remains closed. Guest Services has been temporarily relocated, with a permanent station scheduled to open in April 2026.

Photo: Kildonan Place
Photo: Kildonan Place

CF Polo Park Adds New Retailers and Advances Master Plan

CF Polo Park, Manitoba’s largest shopping centre, has added several tenants while continuing work on its long-term redevelopment strategy. The updates reflect a focus on fashion, experiential retail, and mixed-use growth.

London Drugs opened on November 20, 2025, introducing a new anchor with a full-service pharmacy, technology, and beauty departments. Makers followed on November 26, marking the brand’s first Manitoba location with a curated marketplace for local artisans.

Rodd & Gunn opened in early 2026, bringing the New Zealand menswear brand to the former Sears redevelopment area. The store launched the brand’s “Trophy Range” concept. Uniqlo is also scheduled to open in spring 2026, representing one of the most anticipated retail debuts in the Winnipeg market.

Beyond store openings, Cadillac Fairview and Shindico are advancing a multi-phase redevelopment of the surrounding parking lots. The long-term plan envisions approximately 3,700 rental units across several six- to twelve-storey buildings, transforming the site into a complete mixed-use neighbourhood.

As of early 2026, the project is progressing through a “landscape first” approach, which includes consolidating parking into structures and introducing green spaces and pedestrian promenades.

CF Polo Park in Winnipeg. Image: Cadillac Fairview

Major Shifts in Suburban Retail

Beyond the major malls, the Winnipeg retail market has seen significant changes tied to new suburban development and large-format retail moves.

One of the most notable developments is the reorganization of Costco’s footprint in the city. A new 167,000 square foot warehouse opened on November 13, 2025, at 4077 Portage Avenue, replacing the older St. James location. The new store features one of only four fresh sushi bars in Canada and carries more than 3,200 products.

The former St. James warehouse is being converted into Winnipeg’s first Costco Business Centre, expected to open later in 2026. The format is designed to serve small business owners with a distinct assortment from traditional warehouses.

Meanwhile, Shindico Realty and Olexa Developments have confirmed plans for The Stockyards, a new retail hub within the $1 billion Water Tower District redevelopment at Marion and Archibald Streets. The project is expected to deliver up to 200,000 square feet of retail space, anchored by a grocery store and supported by a mix of national and local tenants. Construction is anticipated to begin later in 2026 following the start of residential phases.

Other retail properties have also seen incremental updates. Outlet Collection Winnipeg hosted a Lotto Sport grand opening in February 2026 and continues to attract outlet and luxury-oriented tenants.

Garden City Shopping Centre has undertaken steady interior upgrades, including improvements to food court seating and common areas, as it competes with newer developments across the market.

Taken together, the announcements across Winnipeg point to a period of relocation, redevelopment, and long-term investment. Major capital is flowing into both established shopping centres and new suburban districts, while national and international retailers continue to expand their presence.

RONA Foundation opens applications for $1M Build from the Heart campaign

By
Mario Toneguzzi
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RONA+ Charlemagne (Image: RONA)

The RONA Foundation is inviting Canadian non-profit organizations to apply for a share of $1 million in funding as part of its 2026 Build from the Heart campaign.

The foundation, which oversees the philanthropic activities of RONA inc., said applications will be accepted from Feb. 16 to March 13. Seven organizations will be selected to receive funding to support major construction or renovation projects.

The Foundation said the campaign is aimed at projects that improve living environments or facilitate access to housing for victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues. Submitted projects will be evaluated by a selection committee, with selected organizations to be announced in the spring.

Renaud-B. Paquin
Renaud-B. Paquin

The Foundation said $1 million will be distributed among the seven chosen organizations. Interested non-profits must submit an application form during the eligibility period.

“As we know, the current housing crisis in Canada is a pressing social issue. Housing starts are insufficient and access to adequate lodging is increasingly difficult for a growing segment of the population. That is why the Foundation provides support through the Build from the Heart campaign,” said Renaud-B. Paquin, Director of the Foundation.

The annual campaign forms part of the Foundation’s mandate to support housing-related initiatives across Canada, it said.

“Together, we can make a real difference and build stronger communities,” added Catherine Laporte, President of the RONA Foundation Board of Directors and Chief Digital and Marketing Officer at RONA inc.

Catherine Laporte
Catherine Laporte

Last year’s beneficiaries included organizations such as the Hollyburn Community Services Society.

Application forms can be found here.

RONA inc., headquartered in Boucherville, Que., operates and services more than 425 corporate and affiliated dealer stores. The company, founded in 1939, employs approximately 21,000 people across its network.

The Foundation, established in 1998, is a registered charity focused on improving living environments and access to housing for vulnerable Canadians, including victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues.

From left to right, Jones Bentley, Store Manager, RONA North Vancouver, Peter Due, District Manager, RONA inc., Peter Brent, RONA North Vancouver, Michelle Garcia, RONA North Vancouver, Joy Hayden, Mark Friesen and Steve Kirkby, during the cheque presentation to Hollyburn Community Service Society, one of the organizations who benefited from the RONA Foundation’s support for the 2025 Build from the Heart campaign. (CNW Group/RONA inc.)

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Daily Synopsis: Feb 16, 2026 – Sustainability and Experiential Growth

By
Retail Insider
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[Note to Readers: Retail Insider is updating its format, Canadian Retail News from Around the Web is at the bottom of this article]

Here’s what stood out in Friday’s Retail Insider coverage: Toronto-based chocolatier Aline Nasseh has successfully leveraged a seasonal pop-up at at Holt Renfrew Yorkdale to expand its luxury brand presence with customizable bonbons, illustrating a scalable model for specialty brands aiming to access premium retail spaces without heavy overhead. Meanwhile, Montreal’s Leyad solidified its foothold in the Prairie provinces by acquiring Winnipeg’s St. Vital Centre for $160.5 million, positioning itself to capitalize on the mall’s strong tenant mix and community relevance including an anticipated Uniqlo. These moves underscore how physical retail continues to blend local experiential appeal with strategic real estate acquisitions that promise long-term value.

 

The focus on sustainability and innovative consumer engagement also emerged. Los Angeles underwear brand KENT aims to grow its Canadian wholesale footprint, emphasizing eco-friendly, compostable apparel that appeals to health-conscious consumers despite tariff challenges. Parallel to this, Winnipeg’s Kildonan Place announced a $30-million redevelopment spotlighting a new zero waste food court designed to elevate sustainability and customer experience.

The Day’s Article List

 

Canadian Retail News From Around the Web:

Eddie Bauer sets March 12 deadline to use gift cards (CTV)

Toys ‘R’ Us Canada gets extended creditor reprieve, eyes further closures (Global)

Toys ‘R’ Us Canada stopped accepting gift cards after Monday (CTV)

Will This Canadian Menswear Retailer Change the Game in 2026? (re: HANK: Fashion Magazine)

Toronto’s struggling suburban malls bet big on condo developments. Can they survive the crash? (Toronto Star)

Canada grocery bills are topping $1,200 a month for many families (oalep.ca)

Sales of Ontario wines have ‘skyrocketed’ since LCBO pulled U.S. booze from stores: officials (CBC)

Made in Canada Grocery Store Guide (Made in CA)

Grace O’Malley’s Faces Termination Notice as Building’s Condo Future Looms (6ix Retail)

Canada’s Grocers Turn to AI, Shoppers to Pay [Op-Ed]

By
Sylvain Charlebois
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Bakery department in a Loblaws store. Photo: Loblaw

Artificial intelligence in is poised to become one of the most consequential grocery stories of the year — not because it is new, but because its presence is becoming visible to consumers. AI has long been embedded in grocery operations, optimizing logistics, inventory management, demand forecasting, shrink reduction, and supply-chain coordination. What is changing now is its direct interface with consumers. Grocers are beginning to explicitly deploy AI-enhanced platforms to personalize shopping experiences, recommend products, and potentially shape purchasing behaviour in real time.

Loblaw’s recent partnership with ChatGPT is notable for two reasons. First, Loblaw historically develops most capabilities internally and rarely relies on high-profile external technology partnerships. This suggests that the infrastructure required for consumer-facing AI may exceed what even large retailers can efficiently build alone. Second, Loblaw chose to publicize the partnership. It is unlikely that other grocers have not been experimenting with similar tools; Loblaw is simply the first to formalize and communicate the move. Others will likely follow.

The economic and social implications, however, remain uncertain. Canadian grocers operate under heightened scrutiny following past controversies, including the bread price-fixing case. In that context, AI deployment risks being perceived as a “ghost in the machine”—a tool capable of learning from consumers and potentially extracting greater margins over time.

Of particular concern is algorithmic or personalized pricing. While dynamic pricing is well established in airlines and hospitality, food is not a discretionary luxury—it is a necessity. If consumers perceive differential pricing for staple items such as bananas, beef, or bread based on behavioural data, the backlash could be severe. Food markets are deeply tied to equity, food security, and public trust.

Data privacy presents an additional layer of risk. Retailers have already experienced cybersecurity breaches. AI systems rely on large volumes of consumer data; any misuse or vulnerability would amplify reputational and regulatory consequences.

The broader issue is institutional trust. The social contract between grocers and consumers is already fragile, in part because retailers do not disaggregate food financials in a way that satisfies public demand for transparency. Introducing AI into the consumer interface without clear safeguards, pricing assurances, and transparency frameworks could intensify existing concerns.

AI can absolutely improve efficiency, reduce waste, and enhance consumer convenience. But in food retailing, optics matter as much as algorithms. Without careful governance and clear communication, what is designed as innovation could quickly be interpreted as exploitation.

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Aline Nasseh Chocolates Pop Up at Holt Renfrew

By
Craig Patterson
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Holt Renfrew Yorkdale. Photo: GHD Partners

Toronto-based Aline Nasseh Artisan Chocolates has opened a seasonal pop-up at Holt Renfrew Yorkdale, introducing its hand-painted bonbons to a luxury retail audience ahead of Valentine’s Day. The pop-up runs through February 22 and features the brand’s signature artisanal chocolates along with a limited-edition Valentine’s collection.

The activation places the young Toronto chocolatier inside Canada’s most prominent luxury department store. For a brand launched only a few years ago, the placement signals growing recognition and an opportunity to reach new customers.

“Holt Renfrew is proud to provide space to local brands who amplify our connection to the community while bringing additional uniqueness to our product selection,” said Robert Bunka, Divisional Vice President and General Manager at Holt Renfrew Yorkdale.

Photo: Aline Nasseh Artisan Chocolates
 

Persistence Leads to a Yorkdale Opportunity

Founder Aline Nasseh said the opportunity came after repeated visits to the store and a determination to connect with the right person. After sharing samples with the store team, Holt Renfrew proposed a Valentine’s activation rather than a Christmas placement.

“They explained that the holiday season was already very busy, so they suggested doing something for Valentine’s Day instead. I thought it was a great idea,” Nasseh said.

She said the pop-up has performed better than expected, even during the slower post-holiday period.

“The response has been amazing,” she said. “January is usually a quieter time after the holidays, so I was not expecting strong sales. But the bonbons have been a very good fit for the store.”

Sales held steady even during early winter storms.

“We had a snowstorm in the first week, but the sales were still strong. The team at the store was pleasantly surprised,” she said.

Traffic has increased as Valentine’s Day approaches, a peak period for premium chocolate.

 

A Gift-Driven Luxury Environment

Nasseh said Holt Renfrew’s customer base aligns closely with her target market. The brand is positioned as a luxury gifting product rather than an everyday purchase.

“Our chocolates are a luxury item, and that means they are not for every day,” she said. “They are meant to be special gifts or indulgences.”

Inside the department store, many customers arrive looking for inspiration.

“Many customers come in without a specific item in mind. They are simply looking for a gift. When they see the chocolates, they are drawn to the presentation and decide it is the perfect option,” she said.

A key feature of the pop-up is the ability for customers to create their own assortments from more than 20 flavours.

“We offer more than 20 flavours, and customers can choose exactly what they want,” Nasseh said. “It becomes part of the experience because they are involved in building their own box.”

The interactive approach mirrors the brand’s e-commerce platform, where customers can also build custom assortments online.

Aline Nasseh Artisan Chocolates pop-up at Yorkdale.

A Young Brand Growing Through Events and Direct Sales

Aline Nasseh Artisan Chocolates was founded in 2022. The business began in a rented kitchen and initially sold through markets and seasonal activations.

“I started by producing chocolates in a rented kitchen and selling at markets,” Nasseh said. “It was a way to test the concept and introduce the brand.”

As corporate and wedding orders increased, the company shifted to a dedicated production facility in North York in 2023.

“We eventually moved into our own production space because the demand was growing, especially for corporate and event orders,” she said.

Participation in the One of a Kind Show helped raise awareness.

“That was our first major exposure. Very few people knew the brand at that point, and after the show we started to see real growth,” she said.

Today, the brand sells primarily through direct channels, corporate gifting, events, and online orders with Canada-wide shipping.

Pop-Up Model Lowers Barriers to Luxury Retail

The Holt Renfrew pop-up structure provides a relatively accessible entry point for emerging brands. Nasseh said the arrangement involves a customized cart and a percentage of sales rather than a traditional lease.

“We pay to customize the cart, and then Holt Renfrew takes a percentage of the sales. There is no traditional rent,” she said.

She described the model as an effective way for smaller brands to enter premium retail environments.

“If we had to pay full rent in a location like that, it would be very difficult. This kind of opportunity makes it possible for small businesses to be present in a luxury environment,” she said.

The Yorkdale location also works from a logistics standpoint. The store is close to the company’s North York production facility, making it easier to manage inventory and staffing.

“It is only about 15 minutes away without traffic, so it is very convenient,” Nasseh said.

Aline Nasseh Artisan Chocolates

Future Pop-Ups and Measured Growth

Discussions are already underway about returning to Holt Renfrew Yorkdale for another activation, possibly around Mother’s Day.

“The team told us they would like to have us back, so we are discussing the possibility of returning for Mother’s Day,” Nasseh said.

While the brand is growing, she said the company is taking a cautious approach to expansion and is not rushing into permanent retail.

“Maybe in three to five years we could consider our own store, but for now we want to continue growing step by step,” she said.

Focused on Perfecting a Signature Product

Rather than diversifying into multiple categories, Nasseh is concentrating on refining her core product.

“My goal is to create the best bonbons in Canada,” she said. “I would rather focus on one product and make it exceptional than try to do too many things at once.”

She believes a focused approach is key to long-term success.

“If you try to make too many products, none of them may be strong enough. If you do one thing very well, that can be enough,” she said.

More from Retail Insider:

From The Desk: Canadian Retail Navigates AI Shifts and Operational Pressures

By
Craig Patterson
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Mid-February’s retail landscape reveals a sector at the crossroads of technological innovation and strategic realignment. The week brings forward initiatives that embrace advanced AI applications, such as Loblaw’s pioneering integration of grocery shopping within ChatGPT, signaling a shift toward conversational commerce. Concurrently, traditional retail players are wrestling with profitability pressures and operational challenges, reflected in store closures and leadership reshuffling, against a backdrop of changing consumer spending and workforce dynamics.

Alongside these developments, the industry also faces continuing headwinds from labour shortages and inflation, underscoring a persistent need for adaptation and supportive measures across the retail ecosystem. As Valentine’s Day approaches on a Saturday for the first time in years, elevated consumer spending in dining and gift sectors offers a seasonal boost that will test retailers’ strategies focused on engagement and efficiency.

 

Retailer News

The retail sector is witnessing a compelling blend of innovation and cautious restructuring this week. Loblaw’s launch of an AI-powered grocery shopping app within ChatGPT exemplifies the cutting edge of technology adoption in Canadian grocery retail, allowing customers to plan meals and order products conversationally while maintaining control of checkout and fulfillment. This positions Loblaw as a clear leader in leveraging AI for enhanced customer engagement.

Meanwhile, Alimentation Couche-Tard detailed its “Core + More” growth strategy, prioritizing operational excellence in fuel, nicotine, and beverage cores while cautiously expanding into food, media, car wash, and EV charging through 2030. This measured pivot from aggressive acquisitions towards diversified revenue streams reflects evolving convenience retail trends and points to cautious optimism about sustained profitability.

The challenges facing legacy retail formats remain stark as Toys “R” Us Canada announced additional Ontario store closures amid creditor protection restructuring efforts. Such closures highlight ongoing pressures from debt loads, costly leases, inflation, and e-commerce competition that continue to reshape physical retail footprints.

In the restaurant sector, Restaurants Canada’s forecast anticipates a challenging 2026 with a projected dip in sales and concerns over profitability due to rising food and labour costs exacerbated by immigration-related staffing difficulties. These trends reiterate the sector’s vulnerability amid operational headwinds and the potential need for policy support.

Data underscores a Canadian retail environment balancing between growth sectors and ongoing financial strain. The Canadian apparel market saw an 8.5% sales rebound in 2025, propelled by value-oriented consumer behaviours, omnichannel shopping, and growing resale apparel, but this also intensifies competition and underscores the importance of scale and digital capability.

The shifting labour landscape is equally significant. Canada’s retail workforce is transforming structurally with demographic changes, wage pressures, and evolving expectations, as examined in analysis of labour shifts. This reshaping influences hiring, retention, and consumer spending patterns, calling for strategic workforce planning across retail sectors.

Retail real estate remains robust with several REITs reporting strong occupancy and growth. SmartCentres REIT showcased nearly full occupancy and healthy rent growth, while Primaris REIT’s results reflect strategic asset acquisitions and focus on redeveloping former anchor spaces. These indicators signal confident investor sentiment toward grocery-anchored and mixed-use retail properties.

Retailer People News

The human stories relating to retail reveal resilience and strategic leadership pivots. Alberta entrepreneurs Darcy and Elaine Skarsen, profiled following pandemic layoffs, illustrate how franchising in secondary markets can drive local economic growth despite ongoing operational challenges like staffing and inflation. Their experience highlights opportunities for investors focused on emerging regional retail hubs.

Leadership changes in pharmacy retail are notable with Rexall’s appointment of Ron Wilson as president and CEO, supported by Jeff Boutilier as COO, detailed to reinforce its health and wellness strategy. Bringing corporate retail experience from Best Buy signals a renewed operational focus for Rexall amidst competitive pressures.

Retailer Op-Eds

Recent opinion perspectives emphasize the critical role of immersive brand experiences and strategic storytelling. The argument that storytelling must integrate into C-suite strategy rather than remain a marketing afterthought prompts retailers to rethink physical retail as a content and community platform, critical for deeper consumer engagement and sustained growth.

Complementing this, analyses of experiential retail growth and luxury brand expansion underscore that innovative store formats and curated customer experiences are decisive to attracting foot traffic and navigating the challenges of legacy retail formats. These themes are vital as retail continues its evolution in a complex economic and social environment.

 

Editor’s Take

This week’s developments illustrate Canadian retail’s dual trajectory of embracing innovation while managing structural challenges. Loblaw’s ChatGPT grocery integration epitomizes the forward edge of AI adoption, offering an engaging, personalized shopping experience that could redefine consumer interaction across the grocery sector. This exciting innovation contrasts with the sober realities confronting retailers like Toys “R” Us Canada and Eddie Bauer’s Canadian operations, which remain under pressure to streamline footprints amid debt and shifting consumption patterns (or shut altogether).

The strategic recalibration at Couche-Tard encapsulates this balancing act: doubling down on core strengths while selectively investing in emerging revenue streams like EV charging signals a retail sector keenly aware of the need to evolve without forsaking profitability. Meanwhile, the labour market paradox, with frontline shortages hitting stores and digital transformation stretching corporate roles, demands that retailers innovate externally and internally to optimise workforce strategies.

These narratives come together to reinforce an imperative for retail leaders to integrate technological advances, operational discipline, and workforce development in a coherent strategy. Success will hinge on the ability to innovate meaningfully, adapt physical retail to new roles as experiential and community hubs, and sustain real estate portfolios aligned with evolving consumer preferences and economic realities.

This Week’s Articles

Retailer News

Retailer People News

Retailer Op-Eds

News From Around the Web

Los Angeles underwear brand KENT eyes Canadian wholesale growth amid tariff pressures

By
Mario Toneguzzi
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Photo: Stacy Grace, KENT
Photo: Stacy Grace, KENT

A Los Angeles-based underwear company founded on eliminating synthetic materials is looking to expand its wholesale footprint in Canada, even as tariff pressures weigh on growth.

KENT, launched in June 2020 by founder and chief executive Stacy Grace, produces plant-based underwear for women and men designed to be compostable at the end of its life. The company sells primarily through its e-commerce website and select U.S. partners, with a smaller but steady presence in Canada.

Grace said the brand was created to address what she viewed as a gap in the sustainable fashion market.

KENT has been collaborating with Montreal-based Gaspard Premier on a Valentine’s Day giveaway.

Focus on organic, plant-based materials

“We focus on 100% organic, 0% synthetic underwear for women and men. Everything in the garments is plant-based, so the garments themselves are actually compostable at end of life. When you’re done with your underwear, usually it just gets thrown in the trash, but with ours, you can actually compost them.”

Grace, who previously worked in sustainable fashion, said she was motivated by the continued use of synthetic fibres in the industry.

Stacy Grace
Stacy Grace

“I worked in sustainable fashion for a long time and just saw that even the most sustainable brands were still using synthetics, like polyester or nylon, elastin. Those are all petrochemical-based, really horrible for the environment. Even now we’re seeing studies show up that it’s so bad for your skin and your body. Your skin is absorbing a lot of these toxins in those materials.”

The company initially launched with women’s products and later expanded into men’s underwear after a personal experience highlighted what Grace saw as a market opportunity.

“So we started with women, and then when my husband and I were actually trying to have our first baby, his doctor said, ‘Wear all-natural underwear, not too tight,’ and we couldn’t really find anything that he liked. So we introduced men’s, and men’s is actually our bestseller right now, which is interesting.”

Sales channels and Canadian presence

Kent sells primarily online.

“It’s majority through our e-commerce website, but we also do dropship through Nordstrom online, and we’re in a couple of hotels and a few small boutiques. But the majority is still online.”

In Canada, the company has a boutique presence in Vancouver and ships directly to customers.

Grace described the Canadian market as modest but consistent.

“I’d say it’s small but steady. It was growing, and then obviously the tariff situation threw a wrench, as everyone is feeling it. I don’t think the American public realizes how horrible the tariffs are for small businesses. That has kind of slowed down the growth. But we’re hoping to potentially open some accounts in Canada that will increase our footprint from a wholesale perspective.”

She said the company is exploring wholesale relationships to expand its reach.

“Either hotels, spas, or traditional retail.”

Stacy Grace
Stacy Grace

Brand collaboration aimed at awareness

Kent is also pursuing brand collaborations as part of its marketing strategy. Grace said a recent partnership with Gaspard Premier began after being approached for a joint promotion.

“He reached out to me to do a collaboration on a giveaway just between our two brands. Then we just got chatting, and I was curious about his brand and how he’s grown. We just kind of connected over the past couple weeks, so pretty recent.”

The collaboration involved a joint social media giveaway.

“We’re just doing a giveaway on Instagram together, where KENT is giving a prize package, his brand’s giving a prize package, and people are entering to win.”

Grace said such initiatives are intended to expand brand awareness.

“I think our brands really complement each other in terms of ethos and aesthetics and customer base. Typically when we do these types of collaborations, it’s to expand our awareness of our brand with new potential customers.”

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Kildonan Place announces $30-million redevelopment and new zero waste food court (Renderings)

By
Mario Toneguzzi
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Photo: Kildonan Place
Photo: Kildonan Place

Kildonan Place in Winnipeg is launching a $30-million redevelopment that it says will elevate the shopping experience for the community, including the relocation and creation of a new zero waste food court, a new redesigned mall entrance, the removal of the former theatre space, and bringing new and exciting retailers to the centre. 

This project reflects the centre’s ongoing commitment to offering a welcoming, modern, and community‑focused environment for shoppers and tenants, said the shopping centre.

“Our team is incredibly excited to bring this redevelopment to life for our community,” said Graham Bialek, Regional Manager of Operations, and General Manager at Kildonan Place. “The new food court will be brighter, more spacious, and more welcoming for families and visitors. We’re proud to introduce a zero waste design that reflects our commitment to sustainability, and we look forward to unveiling a space that truly brings people together.”

Kildonan Place has continued to evolve to meet the needs of its shoppers. In 2022, Cineplex relocated to a newly built Cineplex Junxion in the vacated Sears space. In late 2025, Kildonan Place began the food court redevelopment which will include relocation of the food court, creation of a new mall entrance, and the demolition of the former theatre. The project represents an investment of approximately $30 million and will reduce gross leasable area by roughly 30,000 square feet.

Photo: Kildonan Place
Photo: Kildonan Place

The redeveloped food court will offer more variety, more space, and an enhanced dining experience. The number of food units will increase from eight to ten, and seating capacity will grow from 325 to 550 seats. The refreshed food court tenant mix will include both new and returning food vendors, supporting local and national operators. Designed as a zero waste food court, the new space is expected to divert a significant volume of waste from landfill by implementing strategies like composting, recycling, and reducing food and packaged waste. This involves a combination of operational changes such as training staff on food storage and waste tracking, and clearly marked sorting stations for waste and compostables.

Construction preparation is well underway, with hoarding now in place around the former theatre and adjacent retail units. Demolition of the former theatre began on February 9, 2025. The relocated guest services area is scheduled to open in April with a dedicated community event. The new food court is expected to open in early 2027, marking a major milestone in the property’s transformation.

Photo: Kildonan Place
Photo: Kildonan Place

In addition to the redevelopment, Kildonan Place is welcoming Tommy Gun’s Original Barbershop which is anticipated to open later this spring, and the newly relocated Soft Moc which will open in April. 

Kildonan Place looks forward to welcoming shoppers into the revitalized food court as construction progresses and the centre continues to evolve as a community‑gathering destination.

“The food court is beginning to look a little dated. It’s still a high-performing food court. Sales are about $2,700 a square foot with eight retail vendors. It’s undersized—325 seats in the current iteration of the food court. The last time it was renovated was in the early 2000s, so it’s been 20 years,” explained Bialek.

“So it needs a refresh. The numbers say that it’s a good place to invest and maybe even increase the size of the food court, which is what we’re looking to do. We’re going from eight vendors to 10 vendors, a mix of national and local, and increasing the number of seats from 325 to 550. It’s going to be much bigger, brighter, more spacious, more inviting overall for the community and the customers.

“We are pretty much full now. We have one unit that leases specialty leasing and three currently under construction, but the tenants have already taken possession. Other than that, it’s a really full shopping centre—occupancy in the 90s—and anticipating once the new food court and the CRU opens up that we will be 100% leased in 2027. So it’s an exciting time for Kildonan Place.”

Bialek said the neighbourhood around the mall has really been growing since 2011 and expected for 10 or 12% growth over the next decade or so.

“Growing younger population—average age, I think, is 38—and we experience about 5 million visitors a year. So yeah, it’s been good. Deal activity is up, occupancy is high,” he said.

“We are going to keep the food court open. The first kickoff was Dollarama. Dollarama was right next to the existing food court. It was about 8,000 square feet. It moved and doubled in size, so that kind of kicked it off. Where Dollarama is now is going to be the new and improved washrooms. So that’s kind of the first phase of what’s being constructed right now, while the old Cineplex—30,000 square feet approximately of GLA—is being demolished.

Photo: Kildonan Place
Photo: Kildonan Place

“The food court is remaining open throughout construction. Then early in 2027, one night, we’re just going to close the existing food court and open the new one right across from it, where the existing is now.”

Kildonan Place, is northeast Winnipeg’s largest shopping centre. The centre is 50% owned and fully managed by Primaris Real Estate Investment Trust. Initially developed in 1980, the mall is situated on 56 acres and was last renovated in 2021. Approximately eight acres of the site is undeveloped representing a residential intensification opportunity.

Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.2 million square feet, valued at approximately $5.2 billion at Primaris’ share.

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Rendering: Kildonan Place
Rendering: Kildonan Place
Rendering: Kildonan Place
Rendering: Kildonan Place
Rendering: Kildonan Place
Rendering: Kildonan Place
Rendering: Kildonan Place
Rendering: Kildonan Place
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