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Q1 2026 Real Estate & Leasing Retail Report: Tight Space, Tougher Deals

By
Craig Patterson
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Canada’s retail real estate market entered 2026 facing a contradiction: retailers still want stores, but increasingly struggle to secure economically viable space in the locations they want most.

The market is no longer defined by recovery. It is increasingly being defined by scarcity.

Prime retail availability remains extremely tight across major Canadian markets. Landlords continue reporting high occupancy, rising renewal spreads, and strong tenant demand, particularly in grocery, value, service, fitness, wellness, luxury, and necessity-driven categories. At the same time, rising construction costs, elevated build-out expenses, tighter capital conditions, and longer development timelines are reshaping how retailers approach expansion.

The challenge is no longer proving demand exists. The challenge is converting demand into profitable, affordable, buildable space.

That tension defined Canadian retail real estate during Q1 2026.

Former Hudson’s Bay locations are becoming some of the country’s largest redevelopment and subdivision opportunities. Owners are actively repositioning large-format boxes into mid-sized leasing opportunities while using redevelopment flexibility to rethink tenant mix, intensification, and long-term site planning. Meanwhile, older retail assets without clear reinvestment strategies are becoming increasingly exposed as debt costs, redevelopment complexity, and capital requirements rise.

The result is a market behaving less like a traditional growth cycle and more like a scarce-resource economy.

Sunridge Mall in Calgary. Photo: Tourism Calgary

Executive Summary

Several themes dominated Canadian retail real estate during Q1 2026:

  • Prime retail availability remained historically tight in major Canadian markets.
  • Former Hudson’s Bay locations became Canada’s largest mid-box leasing opportunity.
  • Landlords continued pushing renewal and new leasing spreads materially higher.
  • Rising build-out and development costs placed increasing pressure on retailer economics.
  • Grocery, value, fitness, service, wellness, and necessity retail categories remained strongest.
  • Landlords with redevelopment capital widened their competitive advantage.
  • Retailers became more selective, flexible, and data-driven in expansion planning.
  • Adaptive reuse and mixed-use intensification accelerated across older retail assets.
  • Second-generation space became increasingly attractive relative to expensive new development.

The quarter also reinforced a broader structural shift: retail real estate strategy is increasingly becoming capital strategy. In 2026, choosing a site also means choosing a balance sheet.

Q1 2026 by the Numbers

Several metrics illustrated how constrained the Canadian retail real estate market has become:

  • 98.6% RioCan committed retail occupancy
  • 25.8% RioCan blended leasing spreads
  • 58.5% RioCan new leasing spreads
  • $175 million–$225 million expected Primaris investment into former Hudson’s Bay repositioning projects
  • 15 million square feet of former Hudson’s Bay space analyzed by JLL
  • 65% projected Hudson’s Bay absorption within two years through subdivision and re-tenanting strategies
  • 97.6% SmartCentres committed occupancy
  • 58 Retail Insider real estate and leasing stories published during Q1 2026

These are not indicators of a weak leasing environment. They are indicators of scarcity.

Retail Real Estate Moves Beyond Recovery

Retail Insider’s Q1 coverage revealed a market increasingly focused on optimization rather than broad expansion.

The industry conversation shifted away from pandemic recovery and toward more structural concerns:

  • how to reposition large-format vacancy,
  • how to justify rising occupancy costs,
  • how to intensify aging retail assets,
  • and how to deploy capital efficiently in a market where development economics have fundamentally changed.

That shift is visible across Canada.

In Toronto, dominant nodes such as Yorkdale Shopping Centre, Bloor-Yorkville, Ossington Avenue, and CF Toronto Eaton Centre continue experiencing intense competition for space. Vancouver remains defined by luxury demand concentrated around Alberni Street and the emerging Oakridge Park retail district, where more than 30 luxury brands are expected to open stores over time. Calgary and broader Alberta markets continue benefiting from population growth and suburban expansion momentum, particularly in grocery-anchored and necessity-oriented formats.

The issue is not whether retailers want Canadian space. The issue is whether enough viable space exists in the locations retailers actually want.

What We’re Hearing Across the Market

Several themes repeatedly surfaced across earnings calls, leasing discussions, brokerage commentary, and Retail Insider reporting during the quarter.

Retailers are becoming materially more cautious about expansion economics, even while continuing to pursue growth. Many are prioritizing:

  • second-generation space over expensive new shell construction,
  • flexible footprints,
  • phased openings,
  • and lower-cost build-out opportunities.

At the same time, landlords are becoming increasingly selective about tenant mix and covenant quality. Grocery, fitness, wellness, value retail, food, medical, pet, and service-oriented tenants continue attracting strong landlord interest because they generate repeat traffic and stronger long-term property productivity.

There are also signs that some discretionary retailers are quietly becoming more hesitant about aggressive expansion, particularly in expensive urban corridors where occupancy costs, fixturing expenses, and construction pricing have materially increased over the past several years.

Meanwhile, competition for well-located mid-box space appears to be accelerating faster than many landlords initially expected following the collapse of Hudson’s Bay.

Retail space is still available in Canada. Economically viable retail space is becoming much harder to secure.

Hudson’s Bay flagship store in downtown Vancouver on Wednesday, May 28, 2025. Photo: Lee Rivett

Former Hudson’s Bay Space Becomes Canada’s Largest Leasing Opportunity

The collapse of Hudson’s Bay has created one of the most significant retail real estate repositioning opportunities Canada has seen in decades.

JLL estimates roughly 65 percent of former Hudson’s Bay space could be committed within two years, largely through subdivision strategies that transform oversized department store boxes into smaller, leasable mid-format spaces.

That shift matters because many modern retailers no longer want massive legacy department store footprints. Instead, they want:

  • 15,000–40,000 square foot spaces,
  • better visibility,
  • more efficient layouts,
  • lower operating costs,
  • and locations within already-proven trade areas.

Primaris REIT is effectively betting on that thesis at scale. The company is preparing to invest between $175 million and $225 million repositioning former Hudson’s Bay locations while also unlocking redevelopment flexibility previously constrained by legacy department store agreements.

This is becoming the new landlord playbook:

  • subdivide oversized anchors,
  • upgrade tenant mix,
  • improve traffic quality,
  • and reposition existing assets rather than waiting for traditional department store replacements that may never return.

Some of the strongest leasing opportunities in Canada over the next 24 months may emerge from spaces that currently look transitional and construction-heavy rather than polished and stabilized.

The next leasing opportunity may arrive disguised as a redevelopment problem.

Rising Rents Are Colliding With Retail Economics

The strongest landlords in Canada continue benefiting from significant pricing power.

RioCan’s Q1 leasing spreads reinforced how constrained prime Canadian retail space has become, with new leasing spreads reaching 58.5 percent.

But rising rent is only one layer of the equation.

Retailers are simultaneously facing:

  • elevated construction costs,
  • higher fixturing expenses,
  • more expensive financing,
  • labour shortages,
  • permitting delays,
  • and rising operating costs.

For many retailers, especially discretionary and mid-tier concepts, the issue is no longer simply securing a location. The issue is whether the economics still work once construction, staffing, occupancy, and capital costs are fully modeled.

That creates an important contradiction in the market.

Landlords continue pushing rents higher because space remains scarce. However, retailers still need stores to remain profitable. If occupancy costs move too far ahead of store productivity, the market risks creating hidden fragility beneath today’s strong occupancy metrics.

This is particularly relevant in categories such as:

  • discretionary fashion,
  • independent restaurants,
  • experiential retail,
  • and highly customized flagship concepts with expensive build-outs.

Retailers are no longer simply competing for customers. Increasingly, they are competing for viable economics.

Queens Harbour, under construction. Photo: Craig Patterson

Construction Costs Are Reshaping Expansion Strategy

Canada continues building retail space, but the threshold for development has materially increased.

Public REIT commentary increasingly reflects a more disciplined development environment:

  • projects tied closely to leasing commitments,
  • phased development,
  • selective intensification,
  • and targeted capital deployment rather than broad speculative expansion.

That matters because rising development costs are narrowing future supply.

The market increasingly favours:

  • second-generation space,
  • adaptive reuse,
  • former anchor subdivisions,
  • and mixed-use intensification.

Retailers capable of operating flexible formats now hold a meaningful advantage.

Brands able to efficiently adapt to:

  • 5,000 square feet,
  • 12,000 square feet,
  • or 25,000 square feet,
    using modular fixtures and lower-cost build-outs have materially more flexibility than concepts dependent on expensive flagship prototypes.

This is becoming increasingly visible across Canadian expansion activity. Retailers are becoming more selective about where flagship investments still make sense, while simultaneously pursuing lower-risk suburban, mixed-use, and second-generation opportunities.

The non-obvious implication is that construction inflation is not simply inflating budgets. It is reshaping retail strategy itself.

Landlords With Capital Are Pulling Ahead

Capital access has become one of the defining competitive advantages in Canadian retail real estate.

The former Hudson’s Bay situation illustrates this clearly. Demand for many locations exists, but landlords still require substantial capital to:

  • subdivide space,
  • modernize infrastructure,
  • improve visibility,
  • reconfigure loading,
  • and reposition aging assets.

Landlords capable of funding these projects are creating opportunity. Owners facing debt pressure or limited redevelopment capacity are becoming more exposed.

Dixie Outlet Mall’s receivership reinforced this reality. A retail property can remain active, operational, and occupied while still facing financial pressure if the capital structure no longer works.

The divide between well-capitalized owners and weaker operators is likely to widen further over the next several years.

Passive retail ownership is becoming increasingly risky.

Dixie Outlet Mall. Photo: Trip Advisor

Adaptive Reuse Moves From Trend to Necessity

Adaptive reuse has increasingly shifted from theory to commercial necessity.

Older malls and large retail parcels now represent some of the country’s most valuable serviced land within established communities facing housing shortages and intensification pressure.

The issue is no longer whether mixed-use redevelopment will happen. The issue is which properties can realistically execute it.

Leading landlords are already leaning into:

  • residential intensification,
  • mixed-use redevelopment,
  • entertainment uses,
  • service-oriented merchandising,
  • healthcare integration,
  • and adaptive reuse planning.

The strongest owners are repositioning retail properties into broader mixed-use ecosystems rather than relying solely on traditional shopping centre formats.

For retailers, this creates both opportunity and uncertainty. Redevelopment clauses, shorter lease terms, phased construction, parking changes, and shifting access conditions are becoming increasingly common realities.

The exposed assets are those stuck in the middle:

  • not dominant enough to command premium rents,
  • but not advanced enough in approvals, financing, or redevelopment planning to evolve quickly.

Winners and Pressure Points

Winners This Quarter

  • Grocery-anchored retail real estate
  • Mid-box subdivision strategies
  • Landlords with redevelopment capital
  • Alberta suburban retail markets
  • Luxury and premium urban corridors
  • Necessity-driven retail categories
  • Second-generation leasing opportunities

Pressure Points

  • Mid-tier discretionary retail
  • Older enclosed malls without redevelopment strategies
  • High-buildout restaurant concepts
  • Retailers facing aggressive lease renewals
  • Capital-constrained landlords
  • Large-format boxes dependent on outdated merchandising models

Risks to the Thesis

Despite strong leasing fundamentals, several risks could weaken the market’s current trajectory.

These include:

  • softer discretionary consumer spending,
  • retailer insolvencies,
  • financing stress,
  • redevelopment delays,
  • construction inflation,
  • and over-aggressive rent growth.

The market also risks becoming overly optimistic about redevelopment timelines. Former department store boxes remain large, capital-intensive projects requiring:

  • patient leasing,
  • substantial construction work,
  • phased execution,
  • and significant redevelopment expertise.

Not every landlord will execute successfully.

There is also a risk that some “healthy” retail properties are currently being protected by limited alternatives rather than genuinely strong long-term economics.

The strongest evidence of resilience remains concentrated among dominant, well-capitalized assets rather than the market as a whole.

Editor’s Take

The biggest shift in Q1 2026 is that Canadian retail real estate is increasingly behaving like a scarce-resource economy.

Retailers still want physical stores. International brands continue targeting Canada. Consumers continue shopping dominant retail nodes. Landlords continue reporting strong leasing demand.

But underneath those fundamentals sits growing friction:

  • space scarcity,
  • rising rents,
  • construction inflation,
  • expensive capital,
  • and tightening store economics.

The market remains healthy, but it is becoming materially less forgiving.

The strongest landlords are those with:

  • redevelopment capital,
  • disciplined merchandising strategies,
  • data-driven leasing,
  • and the ability to actively reposition assets.

The strongest retailers are becoming more selective, more flexible, and more operationally disciplined.

The weakest players are increasingly exposed:

  • older assets without clear redevelopment plans,
  • retailers dependent on outdated store economics,
  • and operators hoping demand alone will solve structural issues.

One of the most important shifts may be psychological. For years, Canadian retail real estate discussions centred around recovery, e-commerce disruption, and store closures. In 2026, the conversation has increasingly shifted toward scarcity, redevelopment, and capital efficiency.

That does not mean every retail asset wins. It means the market is becoming more polarized.

The long-term story is no longer simply retail recovery.

It is scarcity:

  • not enough prime space,
  • not enough easy development,
  • not enough cheap capital,
  • and not enough simple anchor replacements.

That scarcity will continue shaping Canadian retail real estate long after the immediate Hudson’s Bay disruption fades.

For executives, the practical takeaway is increasingly straightforward: in 2026, retail real estate decisions are balance-sheet decisions.

Selected Coverage

How Rokt Builds a Culture That Promotes From Within and Why It’s Working

By
Retail Insider
-

Rokt, the New York-based e-commerce technology company that will power more than 10 billion transactions in 2026, has spent years building a corporate culture where the stated philosophy is to hire people who challenge you to be better. That’s the story Dan Wright tells about working at Rokt for nearly a decade.

Dan Wright’s Decade at Rokt: Fourteen Teams, One Constant

Wright is currently VP of Operations and Solutions at Rokt, and his career there is an unusual case study in what internal mobility actually looks like when a company is scaling fast. Over nearly ten years, he has worked for, founded, or been part of fourteen different teams at Rokt, a breadth that gives him a different vantage point on the company than most employees develop. The thing that stands out to him isn’t the change. It’s what hasn’t changed.

“What I’m really proud of and always have been over the last ten years is what hasn’t changed,” Wright said. “That’s the culture and the people.”

The consistency he’s describing has a direct effect on how he hires. In a recent feature on Rokt’s blog, Wright explained the philosophy he has carried across every team he’s built: hire the person who is better than you. Build a team of people who are stronger than you in many aspects, and you end up with a great team.

The Jon Humphrey Story: A Hiring Philosophy Made Concrete

The clearest illustration of that philosophy is a story Wright has told about hiring Jon Humphrey about four years ago as a Director of Solutions. Six months into the role, Wright was sitting in a performance calibration meeting with Rokt’s executive leadership team. When it came time to start Humphrey’s review, he opened with what he described as a half-joke: “I think I’ve just hired my boss.” The room laughed. Wright didn’t walk it back.

“No, I’m serious,” he told the room. “I think Jon within the year is going to be my boss.”

He was right. Humphrey became VP of Operations and Solutions within a year. He is now SVP of Operations and Advertising. “He’s just absolutely skyrocketed,” Wright said. “For me, I think it’s one of the proudest things I’ve done at Rokt, being involved in Jon’s success.”

The story is a specific, verifiable example of something Rokt’s culture pages and award write-ups tend to describe more abstractly: that the company promotes quickly, measures leaders by the growth of their direct reports, and doesn’t treat internal advancement as a threat to the person who did the hiring.

Recognition as an Organizational System, Not a Program

Rokt’s approach to employee recognition goes beyond milestone gifts and shout-outs at all-hands meetings, though it has those too. According to Built In’s 2026 company culture profile, Rokt uses structured awards tied directly to its core values, including a Values Champion award and an Impact Award that highlight individuals and teams for demonstrating the company’s principles and delivering measurable results. Spot bonuses and milestone gifts mark onboarding, work anniversaries, and life events. Practices like gratitude rounds and “recent wins” segments are embedded into regular team meetings rather than treated as separate recognition activities.

What makes the system notable is the organizational logic behind it: recognition at Rokt is designed to make contributions visible beyond the immediate team. Cross-department shout-outs, company-wide acknowledgment from senior leaders, and recognition through digital platforms are all part of a deliberate effort to surface work that might otherwise remain invisible. For a company that has grown from roughly 313 employees in 2021 to more than 500 by 2024, keeping contribution visible across a scaling organization is an active management challenge, not a solved problem.

Third-Party Validation: What the Awards Actually Measure

The external recognition Rokt has received is meaningfully different from the kind companies self-report. Great Place To Work, which bases its certification on direct employee surveys rather than company submissions, reports that 91% of Rokt employees describe it as a great place to work, compared to 57% at a typical U.S. company. Rokt has held Great Place To Work certification for five consecutive years.

Fortune ranked Rokt #9 on its Best Workplaces in Advertising and Marketing list for 2025, drawing on confidential survey data from employees across the industry. In 2026, Rokt earned recognition across eight Built In Best Places to Work lists, including the #2 midsize employer ranking in Seattle, #14 in San Francisco, and #15 in New York City.

These aren’t rankings that companies can purchase or petition for. The Built In awards are based on employee data. The Fortune list relies on confidential surveys. When companies appear on lists like these repeatedly, the external validation is a signal of something consistent happening internally, not a one-time performance.

A High-Change Environment With a Stable Core

Rokt describes itself as a high-change environment, and that framing shows up in how employees talk about working there. A current employee with more than five years at the company described watching Rokt grow from 200 to 800 people, with advancement opportunities and the chance to grow alongside the business. 

The tension between high standards and sustainable pace is one Rokt has addressed directly. Rokt’s 2026 Built In award write-up noted that the company’s July 2025 internal engagement survey showed 88% of employees said Rokt provides equal opportunity regardless of age, race, gender, or sexual orientation; a six-point increase from the prior year’s 82%. Internal promotion rates remain above 10% annually, well above industry averages, according to Built In’s workplace profile.

The company also invests $100 million annually in product innovation, according to Rokt’s own performance data. Over the past decade, it has maintained a compound annual growth rate above 40%. Between 2021 and 2024, revenue grew from $97 million to $418 million, a 330% increase. That growth rate earned Rokt the #87 overall ranking on the Financial Times list of The Americas’ Fastest Growing Companies 2026, a list compiled by the Financial Times and Statista that identifies companies with the strongest verified revenue growth between 2021 and 2024.

What “Builder DNA” Means in Practice

Rokt refers to its employees as “Rokt’stars” and uses the term “Builder DNA” to describe the mindset it hires for. According to Built In’s innovation and technology profile of the company, Rokt made a deliberate decision to give every employee access to the full suite of AI tools the company licenses rather than gating access by role or seniority. One employee described the shift as watching “a collective effort to democratize access to tooling and information” unlike anything they had seen in their career.

The company runs an annual company-wide hackathon, the Rokt’athon, which in 2025 focused on building AI-powered solutions to real business problems — not hypothetical proposals, but working products developed by cross-functional teams under time pressure. That’s a meaningful design choice. A culture that produces working products under time constraints in a 48-hour sprint is different from one that produces strategy documents and presentations.

The flat organizational structure Rokt describes, with wide spans of control and minimal hierarchy, is the structural counterpart to that approach. When leadership is accessible, and decision-making is fast, it’s possible for someone like Jon Humphrey to be hired as a director and become an SVP within a few years. That kind of trajectory requires an organization willing to move quickly on people, and a hiring philosophy that actively looks for talent above its own level.

Why the Culture Story Matters at Scale

Rokt now operates in 17 global markets and serves more than 33,000 active clients, including more than half of the largest global e-commerce companies by volume. At that scale, culture is an execution variable, not a branding exercise. The company’s ability to sustain 40%-plus growth over more than a decade depends on continuously bringing in and developing people capable of running parts of the business that didn’t exist two years earlier.

Dan Wright’s story is a small-scale version of that dynamic. He’s been part of fourteen teams because the company keeps building new ones. He has hired people who became his boss because the company keeps creating the senior roles that make that possible. He has stayed for nearly a decade, in part, because the culture that existed when he joined is still the culture he recognizes today.

That consistency, at a company growing as fast as Rokt, is not an accident. It’s the product of a deliberate organizational system; one built around promoting talent it recognizes, recognizing contributions it might otherwise miss, and rewarding the leaders who make it possible by measuring them on what the people they hired go on to do.

Vivobarefoot to Open Second Canadian Store in Toronto

By
Craig Patterson
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Future location of Vivobarefoot, 666 Queen St. W. in Toronto. Photo: Julie SEO (broker who listed the property, no broker on the tenant side of the lease deal)

Vivobarefoot is opening its second Canadian store on Toronto’s Queen Street West as barefoot-style footwear continues gaining momentum among consumers seeking a blend of wellness, performance, and fashion.

The British footwear brand will open at 666 Queen Street West in the former Oak + Fort space, marking the company’s biggest Canadian expansion move since entering the market with a Kitsilano store in Vancouver roughly three years ago. The Toronto location, expected to open June 20, will span approximately 1,200 square feet.

 

For Andrew Bentley, who holds the exclusive Canadian distribution rights for Vivobarefoot, Toronto represented the obvious next step as awareness around minimalist footwear continues to grow.

“There’s a natural pull toward Toronto,” Bentley told Retail Insider in an interview. “It’s one of North America’s leading cities, and people here understand fashion, wellness, and new consumer trends.”

Andrew Bentley

Bentley said the Queen West location was selected because of the area’s combination of fashion-conscious consumers, strong pedestrian traffic, and wellness-oriented demographic, particularly around nearby Trinity Bellwoods Park.

The company also saw similarities to Kitsilano in Vancouver, where Vivobarefoot established its first Canadian physical retail presence.

“It’s a community where people care about health and movement, and they’re willing to invest in those things,” Bentley said.

Toronto Store Builds on Vancouver Momentum

Bentley said the Vancouver store helped demonstrate that Canadian consumers were increasingly open to footwear concepts that combine function, lifestyle, and fashion.

“We’ve continued to see double-digit growth from the Vancouver store,” he said. “A large percentage of customers are still discovering the brand for the first time, which tells us there’s growing awareness around the category.”

The Kitsilano location has also become a destination for travellers already familiar with Vivobarefoot internationally, reinforcing the role physical retail can play for brands built around education and customer experience.

Bentley recalled one family visiting from Mexico City who FaceTimed relatives while shopping in the store before ultimately purchasing about a dozen pairs of shoes.

Founded in 2012 by Galahad and Asher Clark, members of the Clarks footwear family, Vivobarefoot has built a global following around minimalist footwear designed with flexible soles, wide toe boxes, and an emphasis on more natural movement. The company is also B Corp certified and has developed sustainability initiatives focused on repair, refurbishment, and resale.

Bentley said the Toronto location will become the company’s second concept store in North America. A New York City location is also planned for the Soho area.

Vivobarefoot at 2190 W 4th in Kitsilano, Vancouver (Image: Vivobarefoot)
 

Physical Retail Remains Important for the Category

While Vivobarefoot continues expanding online and through wholesale partnerships across Canada, Bentley said physical retail remains important because many consumers are still unfamiliar with barefoot footwear and want in-person guidance before making a purchase.

“The category still requires education,” he said. “People want to understand what makes the product different and how it’s meant to function.”

Vivobarefoot currently works with several wholesale partners in Canada, including retailers in Toronto, Ottawa, and Saskatoon.

The Toronto store is expected to host fittings, community events, and movement-focused programming as the company works to build awareness around the category.

That approach reflects a broader shift among wellness and performance brands toward experience-driven retail environments that emphasize community and education alongside product sales.

Vivobarefoot at 2190 W 4th in Kitsilano (Image: Vivobarefoot)

Minimalist Footwear Gains Wider Attention

Bentley believes barefoot footwear is increasingly moving beyond its traditional niche audience as athletes, wellness consumers, and fashion shoppers become more aware of the category.

“We’re seeing barefoot footwear evolve into a category of its own,” he said.

He pointed to growing adoption among professional athletes and sports organizations, including NHL players and training programs that incorporate minimalist footwear into conditioning and rehabilitation routines. Bentley also noted that larger fashion companies have recently introduced minimalist-inspired footwear products, which he views as further validation of the category’s growing visibility.

At the same time, Vivobarefoot continues emphasizing sustainability as part of its broader brand strategy.

“There are billions of pairs of shoes entering landfills every year,” Bentley said. “We want to think differently about how footwear is made, repaired, reused, and kept in circulation longer.”

The company operates refurbishment and resale initiatives internationally through its “Revivo” platform and has introduced “ReLoved” programs in Canada designed to extend the lifecycle of footwear products. Vivobarefoot is also exploring customized production concepts, including foot-scanning technologies and more localized manufacturing approaches aimed at reducing waste.

Vivobarefoot flagship store in London UK. Photo: Vivobarefoot

Montreal Identified as a Potential Next Market

Although the company remains focused on establishing its Toronto store, Bentley acknowledged that additional Canadian expansion opportunities are already being considered.

“Montreal is definitely a market we’re interested in over the longer term,” he said.

For now, however, Toronto represents an important milestone for the company as Vivobarefoot looks to expand awareness of barefoot-style footwear within Canada’s largest retail market.

“We want to create products that feel natural while still being stylish enough for everyday life,” Bentley said. “That balance is a big part of what Vivobarefoot is about.”

More from Retail Insider:

adidas Taking Over Toronto’s STACKT Market for FIFA World Cup

By
Craig Patterson
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Photo: adidas/Stackt Market

adidas is taking over STACKT Market this summer, transforming the downtown Toronto site into a month-long World Cup fan destination featuring giant watch parties, retail pop-ups, food programming, music, and interactive soccer experiences tied to the 2026 FIFA World Cup.

Running from June 11 through July 19, the “Home of Soccer” takeover will span more than 25,000 square feet near Toronto Stadium (BMO Field) and the city’s FIFA Fan Festival area, positioning STACKT as one of Toronto’s major gathering places for soccer fans throughout the tournament.

The initiative comes as brands, restaurants, retailers, and tourism operators increasingly position themselves around what is expected to be one of Toronto’s biggest international events in decades.

 

Giant Watch Parties and Soccer Challenges

At the centre of the adidas installation will be a massive outdoor screen measuring 13.5 feet by 24 feet, broadcasting every World Cup match throughout the tournament period.

Organizers say the venue will accommodate up to 1,200 visitors daily, with admission operating on a first-come, first-served basis. Large crowds are expected for marquee international matches, particularly as soccer fandom continues growing across Canada ahead of the World Cup.

One of the main attractions will be the “Strike Lab,” where visitors can test adidas Predator and F50 soccer boots while tracking shot speed on a live leaderboard.

The takeover is also expected to include appearances from adidas athletes and brand ambassadors during the residency, though specific names have not yet been announced.

Alongside the soccer programming, adidas will introduce an “adidas Studio” featuring rotating experiences such as barber services, hair braiding, temporary tattoos, and hair dye customization on select dates.

 

Retail, Product Drops, and Personalization

Retail will play a major role throughout the site.

The temporary adidas store will feature official World Cup merchandise, national team kits, tournament-inspired apparel, and limited-edition footwear launches tied to the global event.

Fans will also be able to personalize purchases onsite and create customized Panini x adidas cards designed for collectability and social sharing.

adidas is also leaning heavily into customization and interactive experiences, areas that have become increasingly important for sportswear brands seeking to engage younger consumers in physical retail environments.

The takeover also comes as global sportswear companies intensify marketing efforts ahead of the World Cup, with adidas continuing to expand its visibility in Toronto through flagship stores, partnerships, and large-scale public events.

STACKT Market Continues to Grow as Cultural and Retail Destination

The choice of STACKT Market is significant from both a retail and real estate perspective.

Built from repurposed shipping containers on a former industrial site west of downtown Toronto, STACKT Market opened in 2019 and quickly became one of the city’s most visible destinations for pop-ups, food concepts, concerts, festivals, and branded public events.

The open-air complex regularly hosts retail installations, wellness programming, live entertainment, and cultural events aimed at younger urban audiences. Its flexible layout and outdoor gathering spaces also make it well suited for large-scale public viewing events tied to major international moments such as the World Cup.

Located near Toronto Stadium and the waterfront, the venue is expected to benefit from increased visitor traffic throughout the tournament period.

For adidas, the environment aligns closely with the kind of immersive consumer experiences global brands are increasingly prioritizing as retail, entertainment, hospitality, and live events continue to overlap.

Food Programming and Tournament Atmosphere

Food and beverage offerings will form a major part of the “Home of Soccer” concept.

Local vendors and chefs including Rob Bragagnolo and Joseph Shawana are expected to create menus inspired by the international nature of the tournament, while a dedicated beer garden will allow fans to gather for match viewings throughout the event schedule.

No advance registration will be required for entry, though organizers are encouraging guests to arrive early for high-profile matches because of anticipated demand.

During the World Cup, STACKT Market is expected to become one of Toronto’s busiest gathering places for soccer fans as the city embraces the tournament atmosphere this summer.

More from Retail Insider:

Small business confidence falls steeply in May: CFIB

By
Mario Toneguzzi
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www.kaboompics.com photo
www.kaboompics.com photo

Small business confidence dropped 11.7 points in May, falling to 46.3, finds the Monthly Business Barometer by the Canadian Federation of Independent Business (CFIB).

Measured on a scale between 0 and 100, an index below 50 means owners expecting their business’s performance to be weaker over the next three or 12 months outnumber those expecting stronger performance. 

The long-term optimism index dropped significantly this month falling below the 50-point threshold. Every province and every sector posted a decline. Fuel costs remained the top pressure point, cited by nearly three quarters (72%) of small businesses. Weak consumer demand is still the lead cost constraint (53%), said the national organization which is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.

“Many small firms are stuck in a grind. Demand is weak, costs−especially fuel- are high and conditions don’t show signs of improving. This environment is not conducive to strong orders or investment,” said Andreea Bourgeois, CFIB director of economics. 

Andreea Bourgeois
Andreea Bourgeois

Average wage plans were unchanged at 2.4%, while businesses plan to raise prices by an average of 3.1% in the next few months, added the CFIB.

“This is not the direction we’d like to see this data point go. Higher oil prices add upward pressure on inflation, while tariffs and other economic challenges are still weighing on economic growth. With the next Bank of Canada interest rate decision only weeks away, it is a tough spot to be in. This is the second month we’ve seen price increase plans above 3%, and now we have to ask: is this the beginning of a new upward trend?” said Bourgeois.

Hiring intentions remain weak and below seasonal levels, with 14% of small firms looking to hire full-time in the next few months, noted the CFIB.

Simon Gaudreault
Simon Gaudreault

“While our governments don’t have control over global events, they can control what’s happening here at home. It’s important governments leverage domestic policies to boost our economy. Lowering taxes, reducing red tape and eliminating internal trade barriers are some of the ways to help small businesses weather the current challenges,” said Simon Gaudreault, CFIB chief economist and vice-president of research. “It’s in the moments like these that we can transform the nation by creating conditions that will outlast the current crisis and pay off in the long term.”

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Lightspeed announces Q4 and full year 2026 financial results, net loss of just over $144 million

By
Mario Toneguzzi
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Lightspeed image
Lightspeed image

Lightspeed Commerce Inc., the unified omnichannel platform powering ambitious retail, golf, and hospitality businesses in over 100 countries, announced on Thursday its financial results for the three months and fiscal year ended March 31, 2026, showing a net loss for the year of $144.4 million, or $1.04 per share, as compared to a net loss of $667.2 million, or $4.34 per share the previous year.

“Year one of our multi-year transformation was a resounding success with both Customer Location growth and GTV accelerating every quarter during the year,” said Dax Dasilva, Founder and CEO. “Throughout this transformation, Lightspeed continued to invest in the capabilities that matter most to the businesses we serve, distinguishing the platform as the go-to solution for our complex retail and hospitality customers.”

Dax Dasilva
Dax Dasilva
Asha Bakshani
Asha Bakshani

“In Fiscal 2026, Lightspeed delivered significant operational and financial progress, marked by expanding margins and positive Adjusted Free Cash Flow,” said Asha Bakshani, CFO. “Backed by a strong balance sheet and improving profitability, we remain focused on driving long-term shareholder value, including through the renewal of our normal course issuer bid.”

Fourth Quarter Financial Highlights

(All comparisons are relative to the three-month period ended March 31, 2025 unless otherwise stated):

  • Total revenue of $290.8 million, an increase of 15% year-over-year.
  • Transaction-based revenue of $185.3 million, an increase of 17% year-over-year.
  • Subscription revenue of $93.3 million, an increase of 6% year-over-year.
  • Net loss of ($28.6) million, or ($0.20) per share, as compared to a net loss of ($575.9) million, or ($3.79) per share. Net loss in the comparable period includes a non-cash goodwill impairment charge of ($556.4) million. After adjusting for certain items, such as share-based compensation, the Company delivered Adjusted Income of $11.5 million, or $0.08 per share1 as compared to Adjusted Income of $15.0 million, or $0.10 per share.
  • Adjusted EBITDA of $15.1 million up from Adjusted EBITDA of $12.9 million.
  • Cash flows used in operating activities of ($11.4) million as compared to cash flows used in operating activities of ($9.9) million, and Adjusted Free Cash Flow used of ($13.0) million as compared to Adjusted Free Cash Flow used of ($9.3) million.
  • As at March 31, 2026, Lightspeed had $453.9 million in cash and cash equivalents.

Full Fiscal Year Financial Highlights 

(All comparisons are relative to the full fiscal year ended March 31, 2025 unless otherwise stated):

  • Cash flows from operating activities of $55.5 million as compared to cash flows used in operating activities of ($32.8) million, and Adjusted Free Cash Flow of $18.2 million as compared to Adjusted Free Cash Flow used of ($11.2) million;
  • Total revenue of $1,227.0 million, an increase of 14% year-over-year;
  • Transaction-based revenue of $815.1 million, an increase of 17% year-over-year;
  • Subscription revenue of $370.7 million, an increase of 8% year-over-year;
  • Net loss of ($144.4) million, or ($1.04) per share, as compared to a net loss of ($667.2) million, or ($4.34) per share. Net loss in the comparable period includes a non-cash goodwill impairment charge of ($556.4) million. After adjusting for certain items, such as share-based compensation, the Company delivered an Adjusted Income of $61.9 million, or $0.44 per share as compared to an Adjusted Income of $69.5 million or $0.45 per share;
  • Adjusted EBITDA of $72.5 million up from Adjusted EBITDA of $53.7 million.

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31% of Canadians have side hustle to cover every day expenses: Omnisend

By
Mario Toneguzzi
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RDNE Stock project photo
RDNE Stock project photo

New research by Omnisend reveals that side hustles in 2026 are less about passion projects and more about financial necessity. In a survey of 1,029 Canadians, 31% report currently having a side hustle, and 85% admit they started for financial reasons rather than personal fulfillment or fun, said the company.

Among those with side hustles:

  • 57% wanted to earn extra money for bills or essentials
  • 27% started to pay off debt, supplement existing income, or save for a goal
  • Only 8% intended to pursue a passion or hobby, down from 17% since October 2025.

More than half (53%) earn $500 or less monthly from their side hustle, but 73% are still satisfied with that additional income. Collectively, this adds up to an average of $9.9 billion monthly across Canada, down slightly from $10.2 billion last year, noted Omnisend.

“Inflation may have cooled on paper, but everyday expenses like housing, groceries, and insurance remain stubbornly high,” said Marty Bauer, Ecommerce Expert at Omnisend. “An extra $200-$500 a month can cover groceries, utilities, or debt payments. That makes even low-earning side hustles feel worthwhile.”

Marty Bauer
Marty Bauer

Overall, 50% started their side hustle less than a year ago, and they’re able to maintain them without sacrificing large amounts of personal time. 91% spend fewer than 20 hours per week on them, with 5-9 hours being the most common range, said Omnisend.

“Ecommerce, including reselling, is the most common side-hustle category among respondents, with 48% saying they sell online. That puts ecommerce ahead of freelance work (17%), food delivery services (15%), and content creation (15%),” it noted.

“For online sellers, side hustles often start with accessible product categories: 27% sell  vintage or second-hand items, 23% sell handmade or custom goods, and 11% sell print-on-demand products such as t-shirts or mugs.”

The report said the most popular platforms are established marketplaces, led by Facebook Marketplace at 53%,  Amazon at 34%, eBay at 28%, and Etsy at 18%.

“Compared to freelancing or gig work, ecommerce – especially reselling – is relatively low-risk. It doesn’t require specialized skills or major upfront investment, but most importantly, it offers flexibility, making it the easiest starting point for people looking to earn extra,” said Bauer, adding that overall, 81% say they plan to continue their side hustle over the next 12 months.

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Time Out Market Vancouver prepares for May 28 opening date at Oakridge Park

By
Mario Toneguzzi
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Time Out Market Vancouver
Time Out Market Vancouver

Vancouver’s vibrant culinary scene will see the opening of the innovative Time Out Market Vancouver on Thursday May 28 at 11 a.m. at Oakridge Park.

Recently, the concept announced further additions to complete its menu and complement its culinary roster, serving a diverse range of cuisines.

Ask for Luigi introduces Pasta e Basta at Time Out Market Vancouver

“For more than a decade, Ask for Luigi has been a cornerstone of Vancouver’s Italian dining scene, earning consistent recognition, including mentions in the Michelin Guide and Canada’s Top 100 Restaurants. Known for its warm hospitality and the spirit of a traditional Italian home, the restaurant has inspired several successful sister concepts across the region – all grounded in a commitment to producing their own pasta from scratch, ensuring guests receive the highest quality product possible. Now, the team brings an exclusive new concept to Time Out Market Vancouver with Pasta e Basta by Ask for Luigi, serving a focused menu of pasta favourites such as Spaghetti Cacio e Pepe and Rigatoni Bolognese, alongside a selection of classic Italian antipasti – delivering the simple pleasure of great pasta, done right,” said the Market.

Pasta e Basta by Ask for Luigi
Pasta e Basta by Ask for Luigi

PiDGiN brings modern Asian fusion concept to the Market

“Asian French fusion restaurant PiDGiN first opened its doors in Vancouver’s historic Gastown neighbourhood in 2013. Since then, the restaurant has cemented itself as a leader in the city’s culinary landscape, winning awards and receiving Michelin Guide recognition. The restaurant draws inspiration from both Asian and French culinary traditions, creating dishes that honour both heritages while forging something entirely new. At Time Out Market Vancouver, PiDGiN will continue their fusion cuisine offering in the form of the Foie Gras Rice Bowl, Lobster Dan Dan Noodles, and Mango Rice Pudding,” added the Market.

PiDGiN (Juno Kim photo)
PiDGiN (Juno Kim photo)


Dumpling bar Blnd Tger joins Market lineup 

“Dumpling bar Blnd Tger opened in 2021 in the heart of Vancouver’s Chinatown as a nod to the Shanghai alleyway dumpling shops. Known for offering a fun, elevated, and unique dumpling and dim sum experience, the stylish, industrial-style restaurant blends traditional culinary methods with modern twists of ingredients. Drawing inspiration from Jiangsu, Cantonese, and Sichuan cuisines, as well as a family background in hospitality, Chef Phong Vo is passionate about sharing traditional Asian-style dumplings and giving them life with new modern influences. Blnd Tger’s new offering at Time Out Market Vancouver will include Fujian Chicken & Chive Dumplings, Shrimp Toast, and Shanghai Cold Sesame Noodles,” noted the Market.

Blnd Tger (Joshua Neufeld photo)
Blnd Tger (Joshua Neufeld photo)

España brings Spanish cuisine to Time Out Market Vancouver 


“Since 2012, España has brought Spain to the West End of Vancouver, gaining a reputation as a top restaurant in the city and recognized by The Georgia Straight as the ‘Best Restaurant in the West End’ for eight years in a row. Owner Edward Perrow has consistently delivered warm hospitality to restaurant visitors, creating a respectable list of Spanish wines, sherries, vermouth, and spirits.  España creates delicious Spanish inspired dishes made with local & seasonal ingredients.  At the Market, visitors can expect a selection of pinxtos, tapas, charcuterie boards and iconic paellas.

España
España

Beaucoup Bakery Café joins Time Out Market Vancouver, bringing two guest experiences: the signature Café and its new, exclusive dessert bar concept, Beaucoup Creamery, Dessert Bar

“For over ten years, Beaucoup has raised the bar for the fine art of French pastry and café culture in Vancouver, building its reputation as a beloved, award-winning destination, with three locations across BC. First opened in 2012 by celebrated pastry chef, Jackie Kai Ellis, the bakery is now run by siblings Betty and Jacky Hung, who continue to bolster Beaucoup’s legacy and take its menu in creative directions that blend French techniques with ingredients and inspiration that honour their Asian heritage. This year, Beaucoup brings a new dessert concept, The Creamery by Beaucoup, exclusively to Time Out Market Vancouver, where guests can expect bold creative concepts, never-before-seen flavour pairings, and innovative seasonal items. Menu items across the cafe and creamery offerings include classic and seasonal coffees, Ham and Cheese Scroll, Golden Fried French Toast with a Kouign-amann flavour, Butter Dip Soft Serve, among other desserts.”

Beaucoup Bakery (AmyHo photo)
Beaucoup Bakery (Amy Ho photo)


Time Out Market Vancouver launches Time Out Express


Officials said Time Out Express will take the market experience up a notch, serving as the go-to spot for creative, zero-proof drinks and a central hub for guest service. At the centre of it all is a made-to-order spirit-free bar, where botanical concoctions shine alongside a curated lineup of local kombuchas. Beyond the drinks, Time Out Express is the place for all your market questions, grab Time Out Market gift cards, or even pick up vendor takeout orders – all in one convenient spot. To top it off, the space offers a selection of local snacks, letting guests enjoy the city’s best sweet and savory bites on the go, it said.

The Market will feature three bars, with a curated bar program designed to highlight Vancouver’s vast local microbrewery scene, spotlight classic Okanagan wines, and serve custom cocktails, including a Green Tea Fizz. Zero Proof Cocktails, including an Almond Sour, Garden Fizz, Raspberry Spritz, and Mojito, will also be available.

“Beyond its culinary offerings, Time Out Market Vancouver will embrace the city’s vibrant cultural scene with a curated, year-round program of activations and events, including live music, wine tastings, book signings, cooking demonstrations, watch parties, DJ sets and family-friendly activities. Full monthly programming will be announced upon opening,” it said.

Julien Lavoie, General Manager of Time Out Vancouver, said: “We’re thrilled to unveil our final vendors, completing a lineup that showcases the very best of Vancouver under one roof – from standout culinary creations to live music, curated events, and cultural experiences. We can’t wait to welcome both locals and visitors to experience it all.”

To select the talent for the curated mix showcased at Time Out Market Vancouver, the Time Out team said it has scoured the city in search of the best chefs and restaurateurs, inviting the very top talent to join the lineup, from established names to up-and-comers. This curated selection offers an incredible range of local cuisine. In addition to the vendors revealed recently, the following were announced previously:

  • Chef Rob Feenie will launch Feenie’s to serve gourmet burgers
  • Chef Chanthy Yen joins with Mee Bar – a celebration of his Cambodian heritage
  • Lunch Lady with its renowned Vietnamese street food
  • MaKaam is modern Artisan Thai cuisine from the city’s top female chef and Baan Lao’s Owner Nutcha Phanthoupheng
  • DownLow Chicken will serve its iconic crispy fried chicken
  • Barnacle by Bar Bravo will offer a selection of raw and cooked seafood
  • Chef Vikram Vij brings new Indian concept, Peacock
  • Award-winning Neopolitan pizza concept, Via Tevere
  • Kishimoto brings authentic Japanese cuisine
  • SANTO TACO will offer heritage Mexican dishes and an authentic taco experience rooted in bold, traditional flavours. 
  • Modern Chinese BBQ concept, Heritage
  • Mello brings elevated artisan donut concept
  • Boba Run offers fresh, fun, and unique Korean-inspired flavoured bubble tea options  
Julien Lavoie
Julien Lavoie

Time Out Market Vancouver is located at Oakridge Park, 650 W. 41st Ave. The Market offers a curated mix of some of the city’s best food, drinks and cultural experiences. Across 51,000 sq ft there are 18 kitchens, a dessert counter, a coffee counter, 3 bars, multiple event spaces and a large outdoor terrace onto a public park.

Time Out Market is part of Time Out Group PLC, a global brand that inspires and enables people to experience the best of the city through Time Out Media and Time Out Market. Time Out launched in London in 1968. There are currently more than 10 Markets in cities such as New York (Brooklyn and Manhattan), Montreal, Dubai, Cape Town and Osaka, with several new sites in development, in addition to a pipeline of further locations in advanced discussions.

Co-developed by QuadReal Property Group and Westbank, Oakridge Park is over five million square feet and strategically designed around a sprawling nine-acre park within the expansive 28-acre footprint. 

Oakridge Park. Image: Westbank

Comprising residential, retail, office, green spaces, civic, and cultural components, Oakridge Park is a world-class, master-planned community. Once fully completed, it will offer a top-tier retail experience totalling 650,000 square feet with 140+ leading global brands, including flagship and boutiques stores, accommodations for over 6,000 residents through 3,000+ residences, 720,000 square feet of meticulously designed office space for over 3,000 creative economy professionals, one of Vancouver’s largest community centres and busiest libraries, six dynamic indoor and outdoor live-music venues, and will be home to the second Time Out Market in Canada.

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Survey reveals Canadians have reached breaking point: Harris & Partners

By
Mario Toneguzzi
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Kampus Production photo
Kampus Production photo

As Canadians face an increasingly difficult financial landscape, a clear and troubling picture has emerged from one of the country’s most comprehensive surveys of financial wellbeing. The Harris & Partners Financial Resilience Index, built from over 12,000 survey responses collected across multiple national studies, documents how financial strain has crystalized into a full-blown crisis.

The data tells a story of a nation not merely under pressure, but pushed past its limits: working more for less, borrowing to survive, losing sleep, and quietly hiding the consequences from the people closest to them, said the company, adding that the concern is no longer whether Canadians are struggling. It’s whether the system that surrounds them is equipped to respond.

“This data doesn’t just show stress; it shows a nation hitting its limit. When you look across all 12 surveys, the message is unmistakable: Canadians are exhausted, financially overextended, and increasingly unsure how to stay afloat,” said Joshua Harris, CEO & Licensed Insolvency Trustee, Harris & Partners.

Rising Costs, Stagnant Incomes, and a Vanishing Safety Net

At the heart of the Index is a finding both simple and devastating: household incomes no longer match the cost of living for the majority of Canadians, said the report. 57.3% of respondents said their income did not cover basic expenses including rent, food, and bills. That strain has since intensified, with 88.9% living paycheque-to-paycheque and 82.9% cutting back on essentials such as heating and groceries. Rents have climbed across major cities. Heating costs have surged. Food inflation continues to outpace wage growth. Many families find themselves choosing between fresh produce, fuel for the car, or paying bills on time.

“We speak with people every day who are earning more than they ever have in their careers, yet still can’t keep up with grocery bills or rising rents. When the basics become unaffordable, financial resilience doesn’t just erode – it vanishes,” noted Harris.

Joshua Harris
Joshua Harris

Borrowing to Survive: Credit, Payday Loans, and Shrinking Options

As affordability has deteriorated, the report said Canadians have increasingly turned to borrowing not to get ahead, but simply to cope:

  • 53.4% borrowed in the past two years just to cover essential living costs
  • 77.1% could not cover a $500 emergency without taking on debt
  • 61.2% used credit in the last year to pay for basic expenses

Among the 569 payday loan users surveyed, the picture is even more acute: 71.4% borrowed for essential expenses, 40.4% for emergencies, and 44% struggled to repay. These are not lifestyle borrowers. These are people whose fridge is empty, or whose rent is due, it said.

Changes to the criminal interest rate caused lenders to tighten criteria, leaving many lower-income households with fewer viable, regulated options.

“People feared turning to unregulated lenders. And based on the conversations we’ve had, that fear was justified. When legal credit tightens in a country with declining financial resilience, people don’t stop borrowing – they just borrow unsafely,” added Harris.

The Emotional Toll: Anxiety, Sleepless Nights, and Shame

Financial strain has not stayed in the spreadsheet. It has moved into bedrooms, relationships, and the working day, according to Harris & Partners:

  • 60.4% go to bed worrying about money
  • 46% lose sleep because of financial pressure
  • 68.4% say their debt makes them anxious
  • 56.6% hide their financial struggles from loved ones
  • 76.3% said job or financial stress harmed their mental health in the past year
  • Nearly 40% say their debt is damaging their relationships

“We’ve entered a period where financial shame is as common as financial stress. People feel embarrassed, or they don’t want to worry their spouse, or they think they should just ‘cope.’ But silent stress is still stress – it eats away at mental health and relationships,” explained Harris.

Families are avoiding conversations. Parents are skipping meals. People are postponing medical appointments because they cannot afford the cost. The consequences are very real, and they are compounding, he said.

Workplace Burnout: Doing More for Less

Beyond the household budget, the Index reveals a parallel crisis in the workplace:

  • 58% felt emotionally burned out
  • 52.6% said their workload increased without better pay
  • 45.1% took on a second job or extra gig work just to get by
  • 21.4% took on extra duties with no compensation
  • 14.7% worked unpaid overtime

“We’re used to thinking of overtime or extra work as a path to security. It has become a coping mechanism – and even then, it isn’t enough,” said Harris.

Tima Miroshnichenko photo
Tima Miroshnichenko photo


A Generation Already Behind: Young Canadians Losing Faith

The Index also highlights an accelerating crisis among students and young adults. More than 60% of graduates reported regretting taking on student debt, and nearly 85% felt the government should do more to address it. With average student debt around $28,000, combined with high rents and starting wages that lag inflation, young Canadians are delaying homeownership, family planning, and even healthcare.

A Supreme Court ruling further complicated relief options, resetting the seven-year bankruptcy discharge period when borrowers return to school, a change that many young Canadians view as yet another barrier on an already difficult path, noted Harris & Partners.

“This generation did everything right. They studied, trained, and worked – yet they’re entering adulthood already behind. When you add high rents and rising consumer prices, it becomes incredibly difficult to build a stable foundation,” said Harris

Insolvencies at Highest Level Since 2009

The financial signals collected across the Index were ultimately borne out in national insolvency data. According to the Office of the Superintendent of Bankruptcy (OSB), consumer insolvencies reached 36,256 in Q3 – the highest level recorded since 2009.

“These filings confirm what the Index has been signalling. Households simply cannot absorb any more financial shocks. The margin is gone,” according to Harris.

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Expectations mismatch fueling Canada’s youth unemployment challenges: CFIB

By
Mario Toneguzzi
-
Kampus Production photo
Kampus Production photo

A new report by the Canadian Federation of Independent Business (CFIB) finds fundamental disconnects at every stage of the hiring process: how employers and youth search for each other, what they expect from a job, which roles young people are willing to take, and what skills employers actually need.

The report is based on a survey of small business owners and a special poll of Canadian youth.

Nearly two-thirds (62%) of small businesses recruit through personal connections, referrals from people they trust. Meanwhile, three in four youth (73%) search primarily through online job boards and only around half tap into their personal networks. This mismatch means opportunities are circulating in places youth aren’t actively looking. Co-op and internship programs, which convert to permanent hires at a 73% rate, are used by a quarter of youth but only one in five small businesses, highlighting a missed opportunity for businesses to access job-ready youth, said the CFIB.

“We have two groups – employers and young job seekers – who are increasingly out of sync right now,” said Molly MacCormack, CFIB policy analyst. “Small businesses hire through trusted networks and look for soft skills, while many youth focus on online postings potentially overlooking the available roles that businesses need. As a result, they’re missing each other and fueling high youth unemployment numbers.”

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

Molly MacCormack
Molly MacCormack

When hiring youth, small businesses rank soft skills, like positive attitude (91%), motivation (84%), and professionalism (76%) above credentials, experience, or education. These are exactly the qualities most visible in service, trades, and physical roles, yet those are precisely the jobs many young Canadians are ruling out. Nearly half won’t consider jobs requiring heavy physical effort or overnight shifts. Nearly two in five won’t consider outdoor work, noted the CFIB.

“The reality is there are jobs out there that young Canadians just don’t want, can’t do, or won’t do,” said Bérengère Fouqueray, CFIB research analyst. “Whether it’s a resort in northern B.C. or a restaurant in rural New Brunswick, businesses need workers to keep operating and support their local economies. Many young people aren’t able or willing to relocate, or take on the shifts required, especially if they are in school. Leaving these roles unfilled could be the difference between staying open or closing the doors for good.”

Bérengère Fouqueray
Bérengère Fouqueray

Small businesses are also operating in a sluggish economic environment. Tight margins and ongoing uncertainty make it harder to bring on new, inexperienced workers. And while most small firms pay above the provincial minimum wages of $15 to $18 per hour, more than one-third of youth say they wouldn’t consider a minimum wage job. CFIB’s findings point to the often-overlooked costs of entry-level hiring, particularly the time and resources required for training, according to the report.

“Today’s hiring environment is far more constrained for small businesses,” said Fouqueray. “Given the current economic pressures, small businesses are hesitant to grow their teams and are being much more cautious about bringing on new staff.”

More than two-thirds of small businesses are also unaware that government hiring supports even exist. Those who find them describe application processes that are onerous, poorly timed, and disconnected from how small businesses actually operate, explained the CFIB.

“Young workers need more training and hands-on management, which takes time away from running the business,” added MacCormack. “That time has a real cost, and any policy that seeks to address youth unemployment needs to acknowledge it.”
 
CFIB is calling on governments to cut payroll taxes, introduce permanent refundable tax credits for co-op and internship hires, and cut the red tape from programs like Canada Summer Jobs. 

“Small businesses owners are proud to often be the ones to give young people their first jobs, and we don’t want to lose that,” said Fouqueray. “Bridging the expectation gap means young people can continue to get valuable workplace experience, and businesses get the workers they need.”

Read the full report, Work in Progress: Bridging the gap between small businesses and Canada’s youth.

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