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Central Walk Details Redevelopment of Former Bay Spaces at Woodgrove and Mayfair

By
Craig Patterson
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H Mart at Mayfair in Victoria. Photo: Central Walk

Central Walk is advancing plans to redevelop approximately 310,000 square feet of former Hudson’s Bay space at Woodgrove Centre in Nanaimo and Mayfair Shopping Centre in Victoria, bringing H Mart, TM Wander, family entertainment and international hot pot chain Haidilao into the two Vancouver Island projects.

At Woodgrove, Central Walk expects the redevelopment to represent approximately $30 million to $40 million in combined landlord and tenant investment. H Mart will anchor part of the former Bay space, while TM Wander and a new Family Entertainment Centre will form major components of the first level. Central Walk is targeting completion of the major new uses in spring or summer 2028.

Mayfair, where demolition is already underway, is approximately six months ahead of Woodgrove. Central Walk owner Ruby Liu told Retail Insider that Haidilao is planned for the first level of the former Bay space alongside TM Wander, which she said would give the international restaurant chain its first Vancouver Island location.

The two projects reflect Liu’s strategy for replacing the role once played by a large department store. Instead of seeking another single retailer to occupy the space, Central Walk is dividing the former Bay stores among grocery, restaurants, entertainment and other uses intended to bring customers to the properties for different reasons and at different times.

Liu said e-commerce and changing consumer behaviour have altered the role of the traditional department store anchor. Shopping centres increasingly need to consider why consumers will make a trip to a property and what will encourage them to stay, she said in written responses translated from Mandarin.

“Rather than relying on one traditional anchor, we are creating multiple anchors and experiences within the same destination,” Liu said.

Ruby Liu and the Central Walk Team, Woodgrove.

H Mart to Anchor Woodgrove Redevelopment

The former Hudson’s Bay space at Woodgrove spans approximately 144,000 square feet over two levels, according to Central Walk. H Mart has been confirmed as a major anchor on the second level, with the Korean supermarket expected to occupy approximately 30,000 square feet.

Liu said H Mart also plans to introduce some related food, beauty and lifestyle concepts at the property. The grocery component is intended to provide frequent repeat visits while supporting the surrounding food and entertainment businesses.

Central Walk’s redevelopment materials say H Mart is expected to serve demand for Asian grocery products in Nanaimo while helping draw customers from elsewhere on Vancouver Island.

The first level will include TM Wander and an all-ages Family Entertainment Centre. Plans include children’s activities, party rooms, event spaces and sports facilities, while other parts of the redevelopment will incorporate dining, social, wellness and community uses.

Central Walk also plans to activate part of Woodgrove’s existing second-level parking area. Liu said the space could accommodate outdoor dining, performances and festivals during warmer months, with patios, heaters and food and beverage service extending its use during colder periods.

Renderings show illuminated art and interactive lighting installations along with a large LED performance area. A retractable projection screen is also planned for the central atrium, allowing it to accommodate events, brand launches and live performances.

Central Walk anticipates approximately $10 million in landlord investment at Woodgrove. Liu estimates tenants and operators will invest another $20 million to $30 million, bringing total expected investment associated with the project to approximately $30 million to $40 million.

The company expects to complete its building permit application before the end of 2026, with demolition also beginning during the period. Construction and tenant fit-outs are expected to take place primarily in 2027, followed by completion of the major components in spring or summer 2028. The project remains subject to applicable permitting and approvals.

Future Woodgrove TM Wander

TM Wander Expands Following Tsawwassen Launch

TM Wander will occupy part of the first level at Woodgrove, where Central Walk expects approximately 30 individual vendors.

The company is expanding TM Wander after opening the first location at Tsawwassen Mills earlier this year. According to Liu, weekend traffic at Tsawwassen Mills has been approximately 10 per cent higher than comparable year-earlier periods since TM Wander opened, with customers also travelling from outside the centre’s traditional trade area. The traffic figure was provided by Central Walk.

Liu said some existing food court tenants initially worried TM Wander would shift spending from one part of the mall to another. She said the existing food court instead benefited as overall traffic increased. Central Walk has also used the first location to identify operational issues involving hours, programming and design that it plans to address at subsequent locations.

Woodgrove will therefore not replicate the Tsawwassen concept. Liu said the Nanaimo location will place greater emphasis on evening dining, beverage service, live performances and entertainment-oriented restaurants, potentially extending activity beyond conventional shopping centre hours.

Mayfair Mall TM Wander Entrance

International Brand in Talks for Woodgrove and Mayfair

Central Walk is also negotiating with an unnamed international brand that could become another major anchor at Woodgrove.

Liu said the company cannot disclose the retailer while negotiations remain commercially sensitive. If an agreement is completed, Woodgrove would represent the brand’s first Vancouver Island location. The discussions also involve Mayfair, with the brand considering a package involving locations at both properties.

The negotiations highlight a leasing advantage created by Central Walk’s control of large former Bay spaces at both centres. A retailer looking to establish a larger Vancouver Island presence can potentially negotiate across two established shopping centres rather than approaching each property separately.

Mayfair – TM Wander

Haidilao Planned for Mayfair

The former Hudson’s Bay space at Mayfair comprises approximately 166,000 square feet over two levels, according to Central Walk. Together with Woodgrove, the two projects account for approximately 310,000 square feet of former department store space.

Demolition is already underway and exterior hoarding for TM Wander has been installed. Central Walk is targeting spring 2028 for the project’s opening.

Liu told Retail Insider that Haidilao is planned for the first level alongside TM Wander. She said the location would be the international hot pot chain’s first on Vancouver Island. Central Walk is also in advanced discussions with the undisclosed brand considering space at both Mayfair and Woodgrove.

Central Walk plans to adapt TM Wander to the Victoria market rather than duplicate the Tsawwassen Mills concept. Liu pointed to Victoria’s younger consumers and university population as reasons for emphasizing restaurants and social environments geared toward gatherings and other social occasions.

Woodgrove, by comparison, is being planned with a stronger evening entertainment component. Liu said the core TM Wander identity will remain consistent while individual locations are adapted to their respective markets.

Renderings for Mayfair show a substantial transformation of the former department store, including a two-level atrium, event areas, greenery, new retail spaces and a redesigned food court.

Liu described Mayfair as one of Central Walk’s more mature Canadian shopping centres, with strong occupancy and existing retailer demand. She said the former Bay space provides an opportunity to introduce new dining, retail and social uses without fundamentally repositioning the rest of the property.

Ruby Liu and Mae Wang (CEO of Central Walk) at Woodgrove

Former Bay Spaces Open Door to New Uses

Central Walk gained control of the former Hudson’s Bay premises at Woodgrove and Mayfair through the retailer’s insolvency process, along with the former Saks Off 5th premises at Tsawwassen Mills.

The transaction gave Liu control of large blocks of space within shopping centres already associated with Central Walk. It also accelerated a direction the company had been pursuing before Hudson’s Bay entered creditor protection, particularly at Woodgrove, where Central Walk had previously discussed adding entertainment, gathering and community uses.

The redevelopment comes as owners of former Hudson’s Bay locations across Canada assess how large department store boxes can be reconfigured following the retailer’s collapse. Central Walk’s approach at Woodgrove and Mayfair distributes the former anchor function among uses with different visit patterns, including grocery, restaurants, entertainment and events.

The two Vancouver Island projects will provide an early test of how effectively that combination can replace some of the traffic and destination function historically associated with a major department store.

Mayfair rendering of the new atrium in the former HBC space. Rendering: Central Walk

Central Walk Takes Leasing Opportunities to ICSC Toronto

Central Walk continues to seek retailers and operators for both projects as planning and leasing move forward.

Liu said the company is particularly interested in food, beverage and entertainment operators that can generate evening activity, as well as regional, national and international retailers capable of drawing customers from a wider trade area. Brands considering their first Vancouver Island locations are also a priority.

Central Walk has been meeting with local government representatives as the projects move through planning and approvals. Liu said discussions in Nanaimo and Victoria have included permitting, development priorities and community needs.

The company plans to present the Woodgrove and Mayfair opportunities at ICSC Toronto as it searches for additional tenants and operating partners. With H Mart confirmed for Woodgrove, Haidilao planned for Mayfair and another international brand considering both properties, Central Walk will arrive at the industry gathering with much of its redevelopment strategy established and significant leasing still in play.

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8 in 10 Canadians cutting back on restaurants: Restaurants Canada

By
Mario Toneguzzi
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Gera Cejas photo
Gera Cejas photo

Canada’s restaurant industry continues to feel the pain as consumers, strapped financially these days, are eating out less.

In a report released Thursday, Restaurants Canada said 80% of Canadians are eating out less often due to the rising cost of living, up from 75% a year ago. Restaurants Canada’s 2026 Foodservice Facts report said the biggest jump is in households earning $100,000 or more (78% compared to 70% in 2025).

Despite this, Canadians continue to find ways to frequent restaurants, making 24 million restaurant visits daily. Six in 10 Canadians (61%) say they would visit a table-service restaurant more often if they had more disposable income, up from 53% in 2025, demonstrating the important role restaurants play in the day-to-day lives and quality of life of Canadians, said the report.

“Canadians still want the option of getting a meal at a restaurant or picking up take-out on the way home from a busy workday, but increasingly they have to make difficult choices about where and how much they can spend,” said Chris Elliott, Chief Economist and Vice-President of Research of Restaurants Canada. “The good news is they are finding new ways to dine out while keeping costs down. The challenge for restaurants is that operating costs remain elevated, putting continued pressure on already-thin margins.”

Chris Elliott
Chris Elliott
Kelly Higginson
Kelly Higginson

The organization said annual restaurant sales are projected to reach nearly $130 billion this year, more than double what they were in 2011. Despite record sales, restaurant profitability remains under significant pressure. The industry’s average pre-tax profit margin is just 4.1% – the equivalent of earning a profit only on the last day of a typical 30-day month. Four in 10 (41%) restaurant companies are operating at a loss or just breaking even, up from just 12% in 2019.

“Our industry is a part of every community in the country and of Canadians’ daily lives. The dollars spent at restaurants stay local, through jobs, purchases from Canadian suppliers, and taxes,” said Kelly Higginson, President and CEO of Restaurants Canada. “The challenges we’re facing – chronic rising costs, Canadians cutting back on visits, and trade uncertainty – have consequences far beyond the viability of individual restaurants. They have a direct impact on the broader economy, affecting jobs, Canadian suppliers, and an industry that provides millions of meals to Canadians every day.”

“Foodservice Facts shows why the economic health of restaurants matters well beyond our industry. Restaurants are major employers, major purchasers from Canadian suppliers and an important part of how Canadians eat every day. Creating the conditions for restaurants to operate, invest and grow strengthens communities and the broader Canadian economy.”

Restaurants Canada said the industry employs 1.2 million workers, including nearly 500,000 youth and continue to be the number one source of first-time jobs. They purchase $43 billion in food and beverage products every year – 68% of it from Canadian suppliers, including more than 80% for dairy, chicken, and beef. Every dollar spent in a restaurant generates $2.25 across the broader economy and sustains nearly 300,000 spin-off jobs in other industries.

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Retail sales dip in July: Statistics Canada

By
Mario Toneguzzi
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Sam Lion photo
Sam Lion photo

Retail sales decreased 0.7% to $73.7 billion in July. Sales were down in eight of nine subsectors, led by declines at general merchandise retailers. Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were down 0.7% in July. In volume terms, retail sales decreased 1.1% in July, reported Statistics Canada on Thursday.

Following an increase of 1.2% in June, core retail sales declined 0.7% in July. The largest decrease was observed at general merchandise retailers, in which retail sales were down 1.9% in July, after increasing 2.5% in June. In July, lower sales were also recorded at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (-1.2%). The sole increase to core retail sales in July came from building material and garden equipment and supplies dealers (+0.8%), up for a fourth consecutive month, explained the federal agency.

Statistics Canada provided an advance estimate of retail sales, which suggests that sales increased 1.3% in August.

In July, the federal agency said sales at motor vehicle and parts dealers were down 0.8% in July, posting their first decline in four months. Lower sales at new car dealers (-1.3%) led the decrease in this subsector. The largest increase in the motor vehicle and parts dealers subsector came from used car dealers (+2.9%).

Sales at gasoline stations and fuel vendors declined 0.9% in July, posting their second consecutive monthly decline. In volume terms, sales at gasoline stations and fuel vendors decreased 3.5%, it added.


Sales decrease in eight of nine subsectors in July

Chart 2: Sales decrease in eight of nine subsectors in July

Retail sales decreased in five provinces in July. The largest provincial decrease in dollar terms was observed in Ontario (-2.0%), led by lower sales at general merchandise retailers. In the census metropolitan area (CMA) of Toronto, retail sales decreased 4.7%. In British Columbia, retail sales were down 1.4% in July, led by lower sales at motor vehicle and parts dealers. In the CMA of Vancouver, sales were down 1.6%. The largest provincial increase in retail sales in July was observed in Alberta (+1.4%). This increase was led by higher sales at general merchandise retailers, said Statistics Canada.

On a seasonally adjusted basis, retail e-commerce sales decreased 3.5% to $5.5 billion in July, accounting for 7.5% of total retail trade, compared with 7.7% in June, it noted.

Katherine Judge
Katherine Judge
Maria Solovieva
Maria Solovieva
Shelly Kaushik
Shelly Kaushik

“Monthly retail sales data is very volatile, and while the third quarter is showing an acceleration, we doubt the momentum can last given renewed trade tensions that are set to cause the unemployment rate to rise, while elevated gasoline prices will also eat into discretionary spending power in the near term. It likely won’t be until 2027 when we see signs of consumer spending showing a sustained pickup, and the BoC (Bank of Canada) is therefore not going to hike rates in 2026,” said Katherine Judge, Senior Economist, CIBC Capital Markets.

Maria Solovieva, Economist, TD, said some reversal was in the cards following an exceptionally strong second quarter.

“With a rebound indicated for August, nominal retail sales are tracking roughly flat in Q3. This is consistent with our TD Spend data, where goods spending is also tracking flat, while services outlays are firmly in growth territory,” she explained.

“Having seen three consecutive quarters of real consumption growth above 2%, we believe households have the capacity to spend, supported by accumulated wealth and savings as the most difficult phase of the mortgage renewal cycle recedes. We expect some moderation rather than a retrenchment, with real personal consumption expenditure forecast to grow 2.6% annualized in Q3 2026.”

Shelly Kaushik, Vice-President, Senior Economist, BMO Capital Markets, said: “A decent August flash takes a bit of the sting out of a weak July retail sales report. While significant trade uncertainty and the energy price shock remain material headwinds, consumers have so far stayed resilient.”

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7-Eleven Brings Korean Bestsellers to Canada as Global Food Strategy Expands

By
Lee Rivett
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Photo: 7-Eleven

7-Eleven Canada is bringing some of its South Korean counterpart’s top-selling snacks to Canadian stores, extending a strategy that is increasingly drawing on products developed and tested elsewhere in the retailer’s global network.

The assortment marks the first time 7-Eleven Canada says it has imported a snack selection from another 7-Eleven international market. Products are rolling out between August and November at stores from Ontario through British Columbia.

It follows the Canadian introduction earlier this year of a Japanese-style egg salad sandwich inspired by a popular 7-Eleven Japan product. According to the company, it went on to become 7-Eleven Canada’s best-selling sandwich.

The progression gives the Canadian operation access to something considerably larger than its own product-development pipeline. Successful products from other 7-Eleven markets can increasingly become candidates for Canadian shelves.

7-Eleven Korea’s top snacks come to Canadian stores this Fall, 7-Select™ Tteokbokki Snacks, Yogurt Jelly Gummies, & Honey Butter popcorn.

Korean Bestsellers Head to Canada

The Korean assortment includes 7-Select Tteokbokki Snack, Yogurt Jelly Gummies and HBAF Honey Butter Popcorn, along with cookies and chicken wings and strips using Buldak sauce.

Several arrive with an established track record in South Korea. 7-Eleven says its HBAF Honey Butter Popcorn sold 600,000 units within 50 days of its Korean debut in 2021.

Korean sales are no guarantee of Canadian demand, but they give the Canadian operation actual sales experience from another market rather than relying entirely on a forecast of what might sell.

“With 7-Eleven operating in 19 countries around the world, we have a front-row seat to emerging food trends,” said Marc Goodman, Vice President and General Manager of 7-Eleven Canada. “Our customers have shown incredible enthusiasm for our internationally inspired products, from our Japanese-style egg salad sandwich to matcha beverages.”

Goodman said the company intends to continue bringing products from its international stores to Canada.

7-Eleven store on Government Street in Victoria BC. Photo: Apple Maps

Japanese Egg Sandwich Provided an Early Test

7-Eleven Canada introduced its Japanese-style egg salad sandwich in March, using Kewpie mayonnaise and shokupan-style milk bread. At the time, Goodman said Canadians had been asking the retailer to bring products associated with 7-Eleven Japan into the country.

The company now says the sandwich became its top-selling sandwich in Canada. That gave 7-Eleven evidence that a product closely associated with another part of its international business could generate meaningful sales here.

Goodman had already indicated where the company wanted to take the idea. Speaking to The Canadian Press earlier this year, he said popular products from Japan could eventually find their way into Canadian 7-Eleven stores.

The Korean assortment broadens that approach from one Japanese-inspired food item to a range imported from another 7-Eleven market.

7-Eleven Wants a Bigger Share of the Food Business

The international products are arriving as 7-Eleven works to increase the importance of food within its Canadian business.

Goodman has described the operation as increasingly food-focused for several years. The company has expanded prepared foods, fresh sandwiches, baked products, proprietary beverages and hot foods, supported by four Canadian commissaries.

Earlier this year, he told The Canadian Press that 7-Eleven wants a greater proportion of Canadian sales to eventually come from fresh food, hot food and proprietary beverages. He described the longer-term direction as closer to a quick-service restaurant that also sells convenience merchandise.

International private-label products complement that strategy. National-brand snacks are widely available across competing channels. A 7-Select product sourced through another 7-Eleven market gives the chain a more differentiated assortment and greater control over what it puts on the shelf.

Seven & i Holdings has also identified private brands and proprietary products as areas it wants to strengthen across its operations.

7-Eleven Korea’s top snacks come to Canadian stores this Fall, 7-Select™ Tteokbokki Snacks, Yogurt Jelly Gummies, & Honey Butter popcorn.

The Global Network Couche-Tard Wanted to Buy

That global network became the subject of considerably more attention when Laval-based Alimentation Couche-Tard attempted to acquire 7-Eleven parent Seven & i Holdings.

The Circle K owner pursued Seven & i through much of 2024 and 2025 before withdrawing its proposal in July 2025. Couche-Tard argued that combining the businesses could use their international scale and operating capabilities to accelerate growth.

Seven & i remained independent and has continued emphasizing merchandising, proprietary products and the transfer of operating expertise across its international operations.

There is no evidence that Couche-Tard’s takeover attempt prompted the Korean rollout. 7-Eleven Canada was pursuing its food strategy independently, while Seven & i’s efforts to share products and expertise between markets predate the bid.

The takeover fight nevertheless put an unusually public spotlight on the strategic value of global convenience-store scale. Seven & i retained its network, and moving successful products between markets is one practical way of extracting more value from it.

Turning International Scale Into Canadian Shelf Space

Seven & i’s network encompasses roughly 87,000 stores globally. The company has discussed sharing merchandise-development expertise, manufacturing knowledge and successful products between markets while adapting assortments to local demand.

The Canadian operation, by comparison, has about 550 corporately operated stores, according to Goodman earlier this year, concentrated between Ontario and British Columbia. It is also exploring franchising as a route to expansion, including potentially entering Quebec and Atlantic Canada.

The assortment strategy matters because 7-Eleven competes for purchases well beyond the traditional convenience-store category. Grocery chains sell prepared meals and snacks, dollar stores compete aggressively on packaged food, and quick-service restaurants compete for immediate-consumption spending.

Exclusive and proprietary merchandise can give customers a reason to seek out a 7-Eleven instead of merely shopping there because one happens to be convenient.

There is also a growing commercial market for Korean food in Canada. Agriculture and Agri-Food Canada reported that South Korea exported $337.5 million worth of agri-food and seafood products to Canada in 2024, providing a firmer measure of the opportunity than familiar references to K-pop and Korean television.

For 7-Eleven, the more interesting advantage sits inside the company. Its international operations generate products, sales information and merchandising experience that the Canadian business can draw from without starting every concept from scratch.

The Japanese egg sandwich produced an early Canadian success, according to the company. Korean snacks will provide a broader test.

Goodman says more products from 7-Eleven’s international stores are coming to Canada. If customers continue responding, Canadian shelves could become increasingly connected to what is already selling across the retailer’s much larger global system.

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Osmow’s reaches 250 locations as family-run restaurant marks 25 years

By
Mario Toneguzzi
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Ben, Sam and Bernadette Osmow
Ben, Sam and Bernadette Osmow

Osmow’s Shawarma has opened its 250th location as the Ontario-based restaurant chain marks 25 years in business, reaching the milestone after expanding from a single family-owned restaurant in Streetsville, Ont.

The company was founded by Sam Osmow in 2001 after he converted a small Streetsville sub shop into the first Osmow’s Shawarma location. The business is now led by Osmow alongside his children, Ben Osmow, chief executive officer, and Bernadette Osmow, president, as the family continues to expand the restaurant through franchising.

Osmow's photo
Osmow’s photo

From one restaurant to 250

Sam Osmow immigrated from Egypt in 1998 and invested his resources into opening the restaurant. According to the company, the idea for its shawarma-focused business emerged after he shared one of his traditional Middle Eastern meals with a customer, prompting him to reshape the original restaurant.

His children have been involved in the business since childhood. Bernadette Osmow began working at the original location at age 13, while Ben Osmow started at nine, gaining experience across the business as it developed.

Ben Osmow now oversees finance, marketing, real estate, construction, franchise development and information technology, while Bernadette Osmow is responsible for restaurant operations, manufacturing, human resources and the Osmow’s Hope Fund, the company’s charitable initiative focused on supporting schoolchildren in developing nations.

The Hope Fund has provided more than 600,000 meals to children in more than 30 communities, according to the company.

The siblings say their approach to expanding the business has included maintaining the principles established by their father while introducing new initiatives and systems.

“Our dad taught us to give 100% every day, be kind, stay connected to our communities and always take pride in what we serve. Those lessons are at the heart of how we operate today and continue to drive our commitment to quality in both our ingredients and the experience we provide,” says Bernadette Osmow.

Sam Osmow
Sam Osmow
Bernadette Osmow
Bernadette Osmow
Ben Osmow
Ben Osmow

Expansion through franchising

Under the second generation of family leadership, Osmow’s has expanded through franchising while also investing in technology and increasing support for franchise partners. The company has also launched initiatives including National Shawarma Day and the Osmow’s Hope Fund.

The chain’s expansion has included reaching its 100th location and entering the U.S. market before reaching its current 250-location milestone, according to Ben Osmow.

“From working shoulder to shoulder in our original Streetsville restaurant to opening our 100th location, expanding into the U.S., and now celebrating our 250th restaurant, we’ve experienced every milestone together. Sharing those moments as a family reminds us how far we’ve come and the legacy we’re continuing to build,” says Ben Osmow.

Successful franchise model

The company says its franchise model has allowed it to expand while providing opportunities for franchise partners to operate restaurants under the Osmow’s brand. It says franchisees receive systems, expertise and operational support intended to help them build their own businesses.

According to the Canadian Franchise Association, Canada’s franchise sector contributes nearly $150 billion annually to the economy and employs close to two million Canadians. It says the sector also creates jobs, supports local communities and provides opportunities for business ownership across generations.

Osmow’s says the family’s next phase of growth will continue to be led by Ben and Bernadette Osmow, following the expansion from their father’s original Streetsville restaurant to a 250-location business.

Ben Osmow said the company’s official franchising journey started in 2015. 

“But before then we were doing some friends and family openings, so just people we were very close with, some family members that became, let’s say, our first franchisees, but we didn’t really even view it as a franchising process,” he said.

“As of 2015 we really made a decision as a brand that we would start franchising and growing a lot more.”

Today, about 97 per cent of the locations are franchise owned with about 77 per cent multi-unit owners.

“I think it’s just a testament to the brand. Anybody can sell a franchise, a single franchise. Getting the same franchisee to keep coming back, investing more money, and opening up more of the same brand over and over again, I think is the complicated part.

“It really is a testament to how much they love the brand and that they believe that they should continuously invest in it.”

Osmow's photo
Osmow’s photo

Further growth potential 

Osmow said the sky’s the limit for future growth for the brand.

“We’re not publicly traded. We don’t have these crazy big growth targets that we have to get to, 100 a year and stuff like that. Everything’s been going really well. The market has been super receptive to us. Canadians have been super supportive of the growth of Osmow’s.

“When we’re opening up in new markets, we’re doing even better sales than we even do back in our home base of Mississauga. Onwards and upwards is the way we’re looking at it right now, and we see no reason why we can’t hit 500 locations in the next couple of years.”

Looking for real estate 

Osmow said the company used to be conservative in its real estate approach. It would find units tucked away in a plaza, thinking the food was so good that people would find them.

“And then obviously that did prove to be true, but what proved to be even truer is that when we take real estate that’s very prominent and visible, it really aligns with what we do from a marketing side. So we are very active. We’re very active in marketing,” he said.

“We’re typically always on TV. We always have a national campaign that’s running. So for that reason, we think it’s really important to kind of complement that with really good visibility and frontage.

“We love good co-tenancy. We love being beside schools. But most importantly, we just love having a good-looking Osmow’s sign that’s up there and lets people know that we’re in the market, and we’re in a pretty good location that makes us very easily accessible to a lot of the customers in that area.”

He said the locations average about 1,500 square feet, with the smallest about  900 and the largest is well over 2,200.

Bernadette, Sam and Ben Osmow
Bernadette, Sam and Ben Osmow

Looking for franchisees

Osmow said the most important thing for the company is to find people who have a passion towards the Osmow’s brand.

“It’s not about liquidity or X number of dollars in the bank, or we don’t care if they have a lot of experience with other franchises. That really doesn’t matter to us. I think that’s our training that we lean on a lot more that allows us to not care that a franchisee doesn’t have tons of experience in other franchises,” he said.

“What we really care about is somebody who’s going to be super passionate about the food, about the brand, because if you’re passionate about it, you’re probably going do a good job of training your team and having them be passionate about it. You’re probably going to do a good job of getting your customers to be passionate about it.

“It’s really become an important thing because if you think about the franchise landscape, shawarma is like this category that we made big.There’s never been a franchise globally to ever reach 250 restaurants for Middle Eastern and for shawarma. We were the first to do that, and the way we did that is making sure all of our franchisees are super passionate about the food and the brand, because for a lot of Canadians, we are their first ever shawarma.”

“And it means they trust us, and they have the confidence in the brand that they would venture outside of their comfort zone and try something new.”

The family’s patriarch

Osmow said his 72-year-old father is still active in the business.

“That man will never retire. He always wants to check in on us, and his baby has always been the plant, so the production side of the business,” he said.

“We marinate, we package, we slice, we do all of our own products for, you know, all of our shawarma products, all of our falafel. We do that all ourselves at the plant, and that’s always been his baby, so he’s really, really focused on food quality even to this day.”

Osmow's photo
Osmow’s photo

The QSR space 

The quick service restaurant (QSR) space is quite competitive these days with phenomenal growth from some of the corporate giants with different brands.

“There’s a couple of attributes that contribute to that. I think first and foremost, sometimes grocery pricing gets so high that it’s actually cheaper for people to eat at QSR restaurants,” explained Osmow.

“The other part of it is the QSR business is super focused on customer retention. It’s all of our focus to make sure we do a good job of keeping existing customers and keeping them coming back, let’s say three times a month, on average.

“And I think if you can do a good job of balancing quality alongside the value proposition, then you’re going do a pretty good job of having customers know that they can come back to you over and over again. And especially for us, I can’t speak to some of the other brands, but for us, our menu, we focus really, really hard on not having our food be pumped with preservatives, be food that’s much better for you.

“I think that’s very important to a lot of our customers. Today’s consumer is a lot more health conscious, a lot more educated.”

Osmow's photo
Osmow’s photo

The menu 

Osmow said people want variety and options that are better for them.

“And I think we fit that mold perfectly. The core staple items are the core staple items. We do not mess around with those items. Those are our claims to fame. Those are the reason why our customers love us, so we keep those items as is, but we have evolved the menu quite a bit. And I think we always will.

“It’s a part of our brand. We get to be a little bit edgy. We play in a space that not too many play in, which is that Middle Eastern, Mediterranean, QSR space. So we get to have a lot more fun with our food, and we get to do a good job of introducing a lot of Canadians to some items that they haven’t potentially tried in the past.

“A lot of people talk about the American success story and the American dream. I think for my dad at least, this was very much the Canadian dream. This was taking a big risk and moving here and starting from scratch and nothing worked for years on years on years. It’s crazy to even think that we’re celebrating 250 now.

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Osmow's photo
Osmow’s photo

KaleMart24 preparing for rapid expansion in the coming months

By
Mario Toneguzzi
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KaleMart photo
KaleMart photo

KaleMart24, a Montreal-based convenience store chain founded by Oussama Saoudi, is preparing for a rapid expansion across Quebec and Ontario, with nine locations now operating and plans to have at least 22 stores open by the first quarter of 2027.

The first KaleMart24 opened at Montreal’s Berri-UQAM Metro station in March 2024. Saoudi said 17 locations have now been secured, with eight of those under construction and expected to open by the end of the fall, while five additional franchisees are still looking for locations. The company is targeting urban areas with high pedestrian traffic and typically seeks spaces of about 1,000 to 1,500 square feet.

He said the first KaleMart24 location in Toronto will open Saturday at 601 Yonge Street.

Saoudi, a Moroccan-born civil engineer who previously founded a matcha energy-drink company, said KaleMart24 was created to offer an alternative to the traditional convenience store model. The stores retain conventional convenience-store products while emphasizing ready-to-eat meals, smoothies, acai bowls and other products marketed as better-for-you options. He said the company is aiming to surpass 100 locations by the end of 2027.

Oussama Saoudi
Oussama Saoudi
KaleMart photo
KaleMart photo

Looking for locations out West

“We’re mostly Quebec and Ontario. Nothing in Calgary or BC yet, but we’re looking for franchisees there. But, you know, we were focusing mostly on Quebec and Ontario, Toronto,” said Saoudi.

“I grew up in Casablanca, Morocco, until I was 17. I moved to France, to Paris, to do engineering. So I’m a civil engineer by education. I spent five years in Paris doing civil engineering, then moved to Canada as part of a double degree with Polytechnique in Montreal, and then decided to stay. And before, when I was an engineering student, I used to be a huge Red Bull consumer.

“I used to drink three, four cans of Red Bull every day. You know, it’s very unhealthy, very caffeinated, gave me jitters. When I came to Canada, that’s where I discovered matcha. Matcha green tea.

“It changed my relationship with caffeine, how I see caffeine. I started drinking matcha every morning in a bottle of water. I stopped drinking Red Bull. My previous company was called Toro Matcha, which was a matcha energy drink. So basically, like a Red Bull can, but with matcha, natural ingredients. We got that company into Costco in Canada, into Loblaws, Sobeys, Metro, you know, even in the U.S. with some retailers like Sprouts Markets.”

How the idea for KaleMart came into being

Throughout that journey, he was traveling a lot, going to conferences, travelling the world, seeing what’s going on, and he noticed that the convenience store landscape in Canada and the U.S. was really missing something. 

“People go to convenience stores in Canada and the U.S. only to get alcohol, tobacco, or lottery. Whereas,  in Europe, in Asia, people are going there for breakfast, for lunch, for snacks, for food. So there is something to do in North America in terms of convenience stores. They need to be revamped to something more premium with better products, with a better destination, better experience.

“That’s where the idea came from for KaleMart24. Once I exited that company, I started KaleMart with the idea of really keeping classic categories of a convenience store, but bringing better-for-you products, better ready-to-eat items, better meals to the people across our stores.

“Because a convenience store, you can open it at every corner in a city, whereas, a supermarket you need higher foot traffic. It’s harder to get the space.”

KaleMart photo
KaleMart photo

Real estate space opportunity

Saoudi said there are many spaces available for convenience stores that only need 1,000 square feet to 1,500.

“So there is much more opportunity in a convenience store than supermarkets to open many. And all the convenience stores right now in North America are missing that touch of food, better-for-you snacks, a clean experience, nice experience. When you go to a convenience store today in North America, it’s only to get alcohol, cigarettes, or lottery.

“You don’t really go there thinking, “Oh, I’m going to get a smoothie or an acai bowl or food.” You’re going there really to get those three items. And if you look at data, 70 per cent of sales of classic convenience stores such as Couche-Tard, Circle K are coming from tobacco, alcohol, and lottery.

“When you look at KaleMart24, 70 per cent of our sales are coming from ready-to-eat items, smoothies, acai bowls, packaged products like better-for-you products even if it’s chocolate, chips, gums, whatever, but natural products.

KaleMart photo
KaleMart photo

Changing the convenience store landscape

“We’re changing the convenience store landscape. We’re catering it to people that are looking for these items and our sales are even higher than a classic convenience store, but because people are really coming not just for the classic items, but also for these better-for-you items, for the food component of the concept.”

Saoudi said the brand is looking for high foot traffic areas, dense urban areas. But it’s also looking now at different types of locations to test a different crowd, more like in gas stations or strip malls where people park and go shop.

The typical size of a location is 1,000 to 1,500 square feet. But it can go to bigger stores of up to about 2,000 square feet.

“We’ve tried smaller stores. The smallest we have is 300 square feet. It’s really small. But the problem with those sizes is that we don’t have enough offerings. The store is really small, so we can’t offer as much products as we would want to.”

Editor’s note: The brand’s national expansion is being led by Think Retail, with brokerage founder Tony Flanz overseeing site selection and deal execution across Quebec and Ontario. 

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Altea leases 51,000 square feet for new wellness club in Toronto’s Leaside

By
Mario Toneguzzi
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Altea rendering
Altea rendering

Altea has signed a long-term lease for about 51,000 square feet at RioCan REIT’s Bayview and Broadway property in Toronto, with plans to redevelop the space into a wellness club scheduled to open in December 2027.

The deal marks the second project between Altea and RioCan and comes as the Canadian fitness and wellness operator looks for additional sites in Ontario, British Columbia and Alberta.

Leaside site selected for club

The space at 1860 Bayview Ave. in Toronto’s Leaside neighbourhood is expected to undergo redevelopment beginning in early 2027. Altea said the site met the main criteria it uses when assessing potential locations, including floor space, parking, demographics and the mix of other tenants at the property.

The club will occupy a single level, allowing Altea to include its training floor, studios, recovery facilities and lounge in one space, along with a dedicated HYROX zone. The property also has structured parking, while Altea said the surrounding area provides a dense residential population and existing demand for boutique fitness services.

The company said RioCan is developing an everyday-needs and wellness-oriented tenant mix at the property, with Altea intended to serve as a daily-use component of that offering.

Altea photo
Altea photo
Altea photo
Altea photo

“We are highly selective about real estate,” said David Wu, Co-Founder and Chief Growth Officer of Altea. “We look at 10 sites to do one deal. The floor plate, the ceiling height, the parking and the demographics all have to work. If one of them is off, we pass. Bayview has all four. No two properties are the same, so we sit down with the landlord and work out the design and the deal structure that makes a club fit their asset. This is the second time we have done that with RioCan. We expect to announce further locations in British Columbia and Alberta over the coming months, and we are actively reviewing sites.”

Expansion plans

Altea said its clubs are designed as daily-use facilities, with training, studio fitness, recovery and lounge and coworking areas housed together. The company said that model is intended to generate regular member visits and allow customers to use the facilities throughout the day.

The clubs are built without aquatic facilities, with recovery offerings including contrast therapy, sauna, cold plunge, compression and massage. Altea said that approach allows it to consider a wider range of existing retail properties for conversion and cited previous projects involving a former Lowe’s in Edmonton and a former Cineplex in Toronto’s Leslieville neighbourhood.

The new Leaside club is expected to include a full training floor and studios for Reformer Pilates, Mat Pilates, Yoga, Barre, Strength & Conditioning, LF3 small-group strength, Running + Turf with HYROX-style conditioning, Boxing and Cycle. It will also include recovery facilities, a smoothie bar and lounge and coworking space, with interiors using natural stone and wood.

“Our job is to build the best club a member has ever belonged to,” said Jeff York, Chief Executive Officer of Altea. “Everything is in one building — the studios, the training floor, recovery and the lounge — so a member isn’t paying for two or three memberships and driving between them. Members join because the place feels good, and they stay because they get fitter. That is what makes us a tenant a landlord wants for twenty years. Leaside will be built the same way.”

Altea photo
Altea photo

More sites under consideration

Altea said it is seeking properties in Ontario, British Columbia and Alberta, with flexibility around development structures that include build-to-suit projects, conversions of existing retail space and locations within mixed-use developments.

The company is generally seeking about 50,000 to 60,000 square feet for a standard club, more than 80,000 square feet for a large-format destination club and about 30,000 square feet for an urban AVANT-format location. Single-level properties are strongly preferred, while parking, ceiling heights, column spacing and the characteristics of the surrounding trade area are also part of its site criteria.

The company’s first project with RioCan, Altea Ottawa at 1660 Carling Ave., remains its largest club.

Altea currently operates four clubs in Canada in Winnipeg, Vancouver, Ottawa and Toronto, along with AVANT by Altea in Toronto’s Yorkville neighbourhood. Two additional clubs are under construction: a 125,000-square-foot location in west Edmonton targeted to open in the first quarter of 2027 and a 54,000-square-foot location at Oakridge Park in Vancouver targeted to open in the second quarter of 2027.

The company is also developing a 59,000-square-foot club at 1651 Queen St. E. in Toronto’s Leslieville neighbourhood on a former Cineplex property, with an opening targeted for 2028.

Familiarity with the location

York said he knows Leaside from his Farm Boy days. 

“We opened our biggest store in Toronto there, and Longo’s put their flagship there 10 years before that. Grocers don’t do that unless the neighbourhood is strong, and the same people who shop those stores are the people who join our clubs,” he said.

“At every one of our clubs, more than 60 per cent of the members are university-educated women, and they come in three or four times a week. That’s the customer every premium retailer wants on their site, and it’s the same customer Farm Boy built its business on. There hasn’t been a premium fitness option in Leaside because no building has been big enough to support one. Bayview & Broadway gives us a space that’s already the right size and shape, on a main street, easy to get in and out of, with structured parking.”

Getting the traffic

York said members show up three or four times a week and stay an hour or more. 

“Most retailers would love that kind of traffic, and the other tenants on the site benefit. When a landlord has a big empty box, an old cinema, or a podium that’s hard to lease, we can take the whole thing on a long-term lease instead of them chopping it up into small units. We’ve done conversions, taken over a grocery box, and built a club on three floors of a new tower. We build to the building,” he said.

Future expansion targets

Over the next three to four years, Altea expects to add four greenfield deals in Calgary and Edmonton using its new 85,000 square foot prototype, plus two large retail conversions in the Vancouver market, 90,000 to 100,000 square foot former retail boxes, both in development now,” said Wu.

“There’s more coming in Ontario as well. We’re not chasing a number. We’d rather open a few great clubs a year than a lot of average ones, and the pipeline right now is the deepest it’s been,” he said.

Altea photo
Altea photo

Challenges finding 50,000 to 60,000 square feet sites

Finding the square footage isn’t the hard part. It’s finding demographics, visibility, access, parking, and ceiling heights all on the same site, explained Wu. 

“Most older big boxes were built for retailers who didn’t need the height, and urban sites are usually short on parking. The neighbourhoods we want tend to be built out, so we must be creative about where the club goes. Our Vancouver club is 43,000 square feet over three floors of a brand-new office building, and it’s one of our best. Bayview is a single-level former grocery box. Layer on construction costs and how long approvals take in the big cities, and that’s why we look at 10 sites for every one we sign,” he said.

Second deal with the same landlord, long-term leases, and redevelopment flexibility

“When a landlord comes back for a second deal, it’s because they’ve seen what we do to a building. We put serious capital into every club, well beyond what a typical retail tenant spends, and the landlord ends up with a completely different asset than the one we walked into,” noted York.

“Our Ottawa club was a vacant former retail box on Carling Avenue. Today it’s a 129,000-square-foot premium wellness destination with nine boutique studios, a 25-metre pool, pickleball courts, a dedicated HYROX training zone, a women’s-only fitness suite, a recovery lounge, saunas and steam rooms, a kids’ club, coworking space, and a café and bar. It’s the biggest club in the city, and it draws people to that property every day of the week. 

“That’s why we need long leases. We’re not putting that kind of money into a 10-year deal. That’s why we look for landlords willing to work through the redevelopment with us. We keep doing business with asset managers who understand that trade.”

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Gallery Streetwear brings exclusive streetwear brands to Downtown Kelowna

By
Mario Toneguzzi
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Gallery Streetwear photo
Gallery Streetwear photo

Todd Daniels says Gallery Streetwear was years in the making before it opened its doors in downtown Kelowna in 2024, bringing a curated selection of exclusive streetwear brands to a market he believed was missing something different.

Daniels, founder and owner of the boutique at 588 Bernard Ave., said the concept had been developing for about two decades. After working in the board sports industry and seeing once-exclusive brands become widely available, he decided to build a store focused on limited releases, independent labels and customer experience rather than volume. The shop carries apparel, footwear and accessories with influences from skateboarding, golf and contemporary streetwear culture.

Despite opening during a challenging period for retail, Daniels said the business has continued to grow by emphasizing exclusivity, community and a strong online presence. He said Gallery Streetwear has attracted customers from across Canada and visiting tourists alike, while future expansion into larger markets such as Toronto and Vancouver remains a long-term goal.

Todd Daniels
Todd Daniels
Todd Daniels
Todd Daniels

The store is located on the main strip in downtown Kelowna and consists of about 1,550 square feet.

“It’s right on the main thoroughfare. It would be like your Robson Street of Vancouver. It’s right in the main section,” said Daniels.

“We have a mix of stuff. It’s mainly what we call streetwear, which is kind of an urban term for cool menswear and womenswear now. We do some stuff mixed with skateboard culture. We’re not necessarily a skateboard shop. We carry some decks just because it’s fun, but we’re not a skateboard shop. A lot of streetwear culture has its roots in skateboarding.

“We also carry golf apparel, but streetwear golf, so it’s kind of a young, more urban golf vibe . . . We do brands that you won’t find anywhere else. We don’t do mall brands. In fact, I have this kind of set policy: if certain shops carry it, we don’t. Our shop is based on more of an exclusivity or scarcity model, so we don’t carry huge amounts of most brands. We kind of prefer to sell out. I don’t love having tons of inventory.

“We also sell shoes.”

Gallery Streetwear photo
Gallery Streetwear photo

Daniels grew up in Kelowna. As a professional snowboarder when he was younger, he travelled the world.

“I’ve always been into this kind of culture. I was really into board sports like skateboarding as well. I worked quite a few other jobs too. I lived in the woods being a fire watcher,” he said.

Over the years, he helped start up other retail stores. 

The current store concept came along later.

“We kind of hit the right note at the right time. We got away from generic and the same. I don’t even want to say young people because we have a pretty good age range. With the golf category, we just kind of hit the right crowd as far as what I would call social affluence,” said Daniels.

“We’re not super cheap. We’re at a little bit higher price point.

“I believe people should come into our store and have an experience. Otherwise, they’ll just walk and go somewhere else. We have to treat every single person well. I treat selling a T-shirt like selling a snowboard or a car. You teach them about the materials and why it costs what it does because we tend to be higher priced. We explain it, and we have stories behind every brand. I think that’s helped too because people come in, and they just like hanging out. We have a very big community vibe.

Gallery Streetwear photo
Gallery Streetwear photo

When the stores gets people from the bigger cities, especially from Japan and from New York, they’re amazed. “This is a shop from a big city.”

“We do really well when people drop by. They say, “We wish we had this in our bigger city.”

“I would like to expand. I just have to make this one pay for itself. It’s paying for itself, but I want to make sure of that before we expand. I’ve seen other board shops expand, and they just blew up because they didn’t really contain each of the locations. A lot of them do well for six months, and because they’re not there and they have management, they end up imploding.

“It has to be timed. If I had one in Toronto, I’d have to be there for a year or two, which I’m fine with. I’m very hands-on.”

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Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo
Gallery Streetwear photo

Oatly turned Toronto’s Ossington Avenue into a monochromatic Matcha Hotel Suite

By
Mario Toneguzzi
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Oatly photo
Oatly photo

Beverage company Oatly recently transformed a narrow storefront on the popular Ossington Avenue in Toronto into a fully realized, monochromatic-green hotel world. Its Matcha-tality Suite.

It was part luxury suite, part visual joke, and part physical expression of the Oatly Matcha brand.

Rather than build a traditional branded pop-up, their creative team treated the space like an actual hotel suite and designed every detail around that fiction: a green bedroom and bathroom, a bathtub filled with Matcha cartons, retro hotel-room objects, custom robes and sleep masks, “stolen from the suite” amenities, a faux balcony overlooking Niagara Falls, room-service styling and an entirely green exterior takeover.

The intention was to create something that felt like a coherent interior and visual identity rather than a collection of branded touchpoints – essentially turning the product’s colour and personality into an inhabitable space.

Emily Keeney
Emily Keeney
Oatly photo
Oatly photo

In an interview with Retail Insider, Emily Keeney, VP of Brand, Oatly, spoke about the initiative.

What was the thinking behind turning Oatly’s Matcha-tality concept into a fully realized hotel suite, rather than a more traditional branded pop-up or retail activation?

We wanted to create something people could actually enter and experience, rather than simply walk past or sample from. The hotel-suite concept gave us a much richer creative framework to work with because it let us build an entire world around Matcha, not just a branded footprint.

A traditional pop-up can sometimes feel like a series of product messages and photo moments. With the Matcha-tality Suite, we could create a space with its own logic, humor and personality, where everything from the room service to the robes to the bathroom details helped tell the same story. That gave people more reasons to stay, explore, interact and ultimately connect with the product in a much more memorable way.

Oatly photo
Oatly photo

How did your creative team translate the Matcha-tality concept into the physical design of the Ossington Avenue space, from the monochromatic green palette to the furnishings, bathroom, faux balcony and hotel-room details? 

Once we committed to the idea of a hotel suite, the creative challenge became making that fiction feel complete.

The monochromatic green palette was the starting point because it immediately connected the space back to Matcha and gave us a strong visual system to build from. From there, the team treated every element as if it belonged in a real hotel room, just filtered through Oatly’s perspective. 

That meant thinking about the bedroom, bathroom, wet bar, room-service moments, toiletries, robes, slippers, the retro phone, glassware and even the view outside the “balcony.”

The faux Niagara-front view is probably the clearest example of the tone we were aiming for. It looks polished and immersive, but there is still a joke embedded in it. That balance between craft and absurdity is very Oatly.

Oatly photo
Oatly photo

What role did the narrow storefront and the Ossington Avenue location play in shaping the design and overall visitor experience? 

The narrow footprint actually helped the concept because it naturally created a sequence of spaces rather than one large open room. As people moved through the Suite, they discovered different parts of the hotel world one by one, which made the experience feel more layered and gave us more opportunities for surprise.

Ossington also felt like the right setting because it already has such a strong mix of food, fashion, hospitality and independent retail. We wanted the activation to feel like it belonged in the neighborhood rather than being dropped into it as a temporary branded installation. The location helped us reach people who are already culturally curious and used to discovering new restaurants, shops and experiences in that part of Toronto.

How did Oatly approach balancing the playful elements and visual humour of the suite with the goal of creating a cohesive, immersive environment that people would actually want to spend time in? 

The humour only works if the world itself feels convincing.

We did not want the space to feel like a collection of jokes or props. The creative team was very intentional about making the visual language consistent from room to room so that the playful details felt like they belonged inside one coherent environment.

That meant obsessing over things that might seem small: the styling, materials, signage, objects, uniforms, glassware, props and how the product showed up throughout the space. The jokes are there, but they are embedded in a place that still feels designed, considered and comfortable enough that people actually want to hang out in it.

Oatly photo
Oatly photo

What did Oatly learn from the Matcha-tality Suite about using physical spaces and experiential design to build a connection between a product and consumers?

The biggest takeaway is that physical spaces can make a product feel much more dimensional.

People are surrounded by product messaging all day, so simply telling them why they should care is rarely enough. Experiential design gives you an opportunity to create a feeling around a product and let people discover it for themselves.

With the Matcha-tality Suite, the product became part of a broader experience that people could taste, photograph, talk about and spend time inside. That kind of interaction creates a different kind of memory than a traditional ad or sampling moment.

It also reinforced something we believe strongly at Oatly: when you create something people genuinely want to participate in, the brand message travels further because consumers become part of telling the story themselves.

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Oatly photo
Oatly photo’
Oatly photo
Oatly photo

How AI Is Changing Retail Procurement and Supplier Management

By
Retail Insider
-

Procurement in retail has always felt a bit like juggling several things at once. Buyers need to lock in the right products at solid prices from suppliers they can actually trust. At the same time, they have to keep inventory lined up with demand that can swing pretty fast.

Most of this work used to happen through spreadsheets, calls, and experience. That’s starting to look different. AI is what’s pushing the shift.

The Procurement Challenges Retailers Face Today

Ask any retail buyer what’s keeping them up, and the same challenges surface.

Supplier management is the big one. A mid-sized retailer can work with hundreds of suppliers, each bringing different lead times, payment terms, and quality track records. Keeping track by hand is almost impossible.

Then there’s price volatility.

  • Raw material costs swing fast
  • Shipping rates jump without warning
  • Currency moves can erase a margin before anyone notices

By the time a buyer spots the shift, the damage is often done.

Customer demand adds another layer. Trends spike and fade in weeks. Seasonal patterns no longer follow the old rules. Forecasting starts to feel like a guessing game.

On top of everything, many procurement teams are still stuck in manual work. Purchase orders get typed by hand. Approvals sit in inboxes. Supplier data lives in systems that don’t talk to each other.

For retailers facing these issues, Artificial Intelligence in procurement helps lighten the load. It takes care of routine tasks, digs into purchasing data, and backs faster, more confident decisions. Skip that support and the opposite happens—slower choices, more mistakes, and less time for the work that actually matters.

5 Ways Retailers Are Applying AI to Procurement

AI isn’t taking over procurement jobs. It’s handling the repetitive number-crunching that used to eat up most of the day. These are the areas where the impact shows up most clearly.

Spend Analysis

Tools dig through years of buying history and sort spending by supplier, category, and SKU fast. That visibility often spots duplication across teams and points to consolidation that lowers costs.

Demand Forecasting

Models pull in sales data, seasonality, promotions, weather, and social signals to forecast actual demand. Procurement can then order closer to what customers will buy instead of building excess stock.

Supplier Evaluation

AI scores suppliers on delivery, quality, responsiveness, and pricing consistency on an ongoing basis—not just once a year. Buyers get a much clearer view of real performance.

Purchase-Order Automation

Once inventory hits a set level, routine orders can be generated, approved, and sent without the usual manual steps. Processing time shrinks, and people get more room for the higher-value work.

Risk Monitoring

Systems track news, financial reports, and logistics data to flag potential problems early—factory issues, bankruptcies, port delays. Retailers get time to find alternatives before supply is affected.

How AI Is Changing Supplier Relationships

One noticeable shift from AI in procurement is the change in buyer-supplier dynamics. Hard data replaces personal relationships or sales talk as the basis for comparisons, so negotiations feel more objective. Buyers arrive knowing exactly how a supplier’s pricing and delivery compare.

Monitoring moves from periodic to continuous. Suppliers see they’re being measured on real metrics, which often improves accountability. AI can also flag a likely late shipment early, giving buyers a chance to raise it before it becomes a crisis.

Negotiations end up better informed and relationships more open. Strong performers get more volume. Others receive a clear explanation backed by data.

Most retail teams still treat procurement, inventory, and sales as separate functions. AI is beginning to pull them together.

Link purchasing data with live inventory and reordering improves. Let sales trends guide buying decisions, and orders track what people are actually purchasing. Results include:

  • Less surplus stock in warehouses
  • Fewer markdowns
  • Better availability in stores and online

That connection is where the financial upside sits. Excess inventory drains cash and margins. Stockouts frustrate customers and cost sales. AI lets teams manage the balance more steadily than manual processes could.

How to Introduce AI Into Retail Procurement

Trying to roll out AI everywhere at once usually falls flat. It makes more sense to begin with simple, repetitive processes such as purchase-order generation. The ROI is easy to track, and the downside is limited.

That said, the data has to be in decent shape first. Cleaning up supplier records, standardizing SKU data, and centralizing procurement information gives the tools something reliable to work with. The old “garbage in, garbage out” rule applies here more than almost anywhere else.

Integration matters too. AI doesn’t work well bolted onto the side of existing systems; it needs to connect with ERP, inventory management, and supplier portals. And throughout the process, human review should remain in place — especially for high-value orders and supplier decisions. AI is a decision-support tool, not an autopilot.

What the Future Could Look Like

Procurement is becoming predictive. AI flags low stock or price spikes early and suggests actions. Automation also spreads into contracts, invoicing, and compliance.

Supplier scoring and risk alerts move into everyday workflows. Teams then focus on strategy—category planning, supplier development, sustainability—while the system handles execution.

Retailers that adopt it carefully, with clean data and realistic goals, can improve efficiency. It gives teams more time for decisions that still require human judgment.

Conclusion

AI isn’t some future concept in retail procurement anymore. It’s starting to show the difference between retailers who just react and the ones who can actually plan ahead.

Companies already using it are making decisions faster, working better with suppliers, keeping stock leaner, and protecting their margins. The ones still waiting risk getting left behind by competitors who forecast demand earlier, spot problems sooner, and negotiate with better data.

The technology itself isn’t the advantage. It’s how you use it—letting AI handle the speed while people handle the judgment and the relationships. With margins this tight and customers expecting more, that mix is getting hard to ignore.

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