The report, based on data from a global panel of independent retailers and wholesale activity on Faire’s platform, found physical stores are growing faster than online-only businesses. It also concluded that retailers in smaller cities and towns are outpacing those in major metropolitan centres and are identifying emerging consumer trends before they become mainstream.
Faire said the report draws on a decade of wholesale relationships through its platform, which the company says provides a dataset that has not previously been available for the independent retail sector. The company said it plans to use the information to regularly track changes in retailers’ sourcing strategies and consumer buying patterns.
Independent retailers account for more than half of all retail locations across every U.S. state and 65 per cent of retail locations in the United Kingdom, according to the report.
Jennifer BurkeSam Lion photo
“Inventory decisions are independent retailers’ biggest cost, but they’re also the expression of their biggest advantage: taste,” said Jennifer Burke, Chief Revenue Officer at Faire. “This report shows that even amid economic headwinds, independent retailers are proving remarkably resilient. Instead of retreating into pure cost optimization, these businesses strike a savvy balance and continue to offer their customers the best-of-the-best.”
The report found independent retail growth has been concentrated outside major metropolitan areas. In the United States, Faire said growth has been strongest in Sun Belt communities, including Augusta, Ga., and Norman, Okla., reflecting population shifts. It also attributed the trend to Gen Z consumers’ preference for shopping in person and increased travel to smaller historic destinations, including Sturgeon Bay, Wis., and Williamsburg, Va.
The company reported similar patterns in other countries. In the United Kingdom, Hereford and Lyme Regis recorded the highest proportion of growing retailers among the 58 cities measured, with 90 per cent of retailers expanding compared with 58 per cent in London. Faire said regional centres also outperformed major metropolitan markets in Canada, Australia and France.
The report also examined how retailers adjusted sourcing decisions following tariffs.
Faire said tariffs prompted U.S. retailers to increase purchases from domestic brands while continuing to buy selected imported products. Among the imported product categories recording growth were Italian leather accessories, up 571 per cent; Finnish bat and bee houses, up 423 per cent; Irish artisanal chocolates, up 233 per cent; and Moroccan woven bags, up 214 per cent.
In Canada, the report said retailers sharply reduced purchases from U.S. brands when tariffs took effect in 2025. It said spending on U.S. brands has since shown early signs of recovery in 2026, with the U.S. share of same-store spending increasing 1.7 percentage points year over year. Faire said Canadian retailers primarily increased purchases from established U.S. brands with strong consumer recognition and loyalty.
Arina Krasnikova photo
The report also found independent retailers were often early adopters of emerging product trends.
According to Faire, searches on its platform for “squishy” toys increased about six weeks before the products received broader attention in mainstream media. The company said it observed similar patterns for Mahjong sets and Dubai chocolate.
Faire also introduced the concept of “Scouts” in the report, describing them as established, high-volume retailers that are consistently among the first to place orders with new and unproven brands. The company said those retailers play an important role in identifying new products before they become more widely available.
Canadian grocery stores could significantly reduce their reliance on disposable plastic produce bags through relatively modest changes to store layouts, signage and reusable-bag availability, according to a University of Toronto research project that included a pilot at two Longo’s locations.
The U of T Trash Team estimates that an average grocery store in Toronto distributes approximately 2,000 plastic produce bags each day. Researchers say the cost becomes material across a large retail network, with one unnamed regional grocery company reporting annual spending of approximately $300,000 on the bags.
The project examined produce-bag use at 30 Toronto grocery stores representing 11 chains. Researchers also surveyed 50 customers and worked with Longo’s on an intervention at its Liberty Village and York Mills stores.
The findings suggest that many shoppers are willing to reduce their use of disposable bags, particularly when reusable alternatives are more visible and the reasons for the changes are clearly communicated.
The larger question is whether individual grocery chains are prepared to move first.
Researchers reported that grocery companies expressed interest in transitioning away from disposable produce bags but were reluctant to act without rules applying across the industry. Removing a familiar customer convenience could leave one retailer exposed to complaints while competitors continue providing the bags freely.
Thousands of Bags Distributed Daily
Plastic produce bags remain widely available in Canadian grocery stores, even as conventional plastic checkout bags have largely disappeared from retail environments.
They are typically found on rolls or in dispensers throughout produce departments, where customers use them for loose fruits and vegetables. Bags may also be taken for prepackaged goods or produce with a thick natural peel.
The U of T Trash Team observed customers and produce-bag placement across 30 Toronto stores during 2024. Based on those observations, researchers estimated that an average store distributes approximately 2,000 bags per day.
Environmental Defence, which publicized the findings on July 23, extrapolated the Toronto results to estimate that more than 2.7 million produce bags are distributed and discarded across Canada each day. The organization estimates that eliminating them could save the grocery industry almost $10 million annually, based on an assumed wholesale cost of approximately one cent per bag.
Those national totals are projections derived from the Toronto research and should not be read as a direct count of bag use across the country. The calculations nevertheless illustrate how a low-cost item can create a sizeable expense when supplied across hundreds of grocery stores and millions of shopping trips.
The study also heard from one regional grocery company that spends about $300,000 annually providing the bags. The retailer was not identified.
Customers Use Bags for Packaged and Durable Produce
Researchers found that disposable bags were frequently available near prepackaged produce or products with durable natural peels.
More than 30 per cent of surveyed customers reported using produce bags for goods that were already packaged or for fruits and vegetables such as bananas and onions, according to Environmental Defence.
Some of that use may be habitual, but the bags also serve practical purposes. They can contain dirt from potatoes and onions, keep loose products together, separate produce from meat or household goods, and prevent wet or delicate items from coming into direct contact with shopping carts and checkout belts.
Reducing produce-bag use therefore presents a different operational challenge from eliminating plastic checkout bags.
A customer can bring purchases home in a reusable shopping bag without making major changes inside the store. Produce bags are selected at several points throughout the shopping trip, often well before the customer reaches the checkout.
The research suggests that dispenser placement and product proximity can influence how often shoppers take them.
Longo’s Pilot Tests Changes Inside Two Stores
The project’s most direct retail component was a two-month pilot at Longo’s stores in Toronto’s Liberty Village and York Mills neighbourhoods.
The intervention did not begin with a complete removal of disposable produce bags. Researchers and the retailer tested a series of changes intended to make customers more conscious of their choices while making reusable alternatives easier to find.
Measures included larger educational posters, smaller messages near bag dispensers, more prominent placement of reusable produce bags, reusable-bag giveaways, and the removal or repositioning of some disposable-bag dispensers.
The approach allowed the stores to test whether customer behaviour could be influenced without abruptly withdrawing an established service.
Disposable-bag use declined during the pilot, although the results differed between the two stores. Researchers also reported substantial percentage increases in reusable produce-bag sales compared with the earlier control period.
Reusable-bag sales increased 538 per cent at Liberty Village and 260 per cent at York Mills, according to the U of T Trash Team policy brief.
Those percentages should be interpreted cautiously because the publicly available summary does not disclose the underlying unit-sales figures. A large percentage increase can result from a relatively small starting point.
The broader result remains relevant for grocery operators: customers responded when reusable options became more visible and disposable bags became less automatic to access.
Survey Suggests Shoppers Are Open to Change
Customer resistance may be less significant than some retailers expect, based on the limited survey conducted as part of the project.
Among the 50 customers surveyed, 94 per cent said they would be willing to stop using disposable produce bags, while 72 per cent said they would be willing to purchase reusable alternatives.
Researchers also found that some customers were unaware reusable produce bags were available.
The small sample does not provide a representative measure of sentiment across Canada or even across the broader Longo’s customer base. It does suggest that communication and product visibility could play an important role in any transition.
Retailers regularly face complaints when familiar free items are removed, particularly when customers view the change primarily as a cost-saving measure. Clear signage, affordable alternatives and gradual implementation could help explain the purpose of the transition before bags are eliminated or restricted.
The different results at the two Longo’s stores also indicate that performance may vary according to store layout, neighbourhood demographics, customer habits and execution.
Grocers Face a First-Mover Problem
The research points to a familiar competitive problem for Canadian grocery chains.
A retailer that independently removes disposable produce bags could reduce purchasing costs and plastic waste. It could also be accused of reducing service while nearby competitors continue supplying the bags without charge.
Environmental Defence said researchers found grocery companies were interested in moving away from plastic produce bags but unwilling to act without a policy requiring all chains to participate.
A common standard would reduce some of the competitive risk. Every major grocer would need to explain similar changes to customers, limiting the possibility that shoppers could switch chains because another retailer continued to provide free bags.
Operational questions would remain.
Grocery companies would need to determine which products genuinely require bags, which alternatives should be provided, and whether customers should pay for reusable or disposable options. Store fixtures, weighing procedures, food handling, employee training and customer communication could also be affected.
One approach may not work across every produce category. Durable items such as bananas, avocados and citrus fruit can often be purchased without a bag, while small, wet or loose items may require some form of container.
Produce Bags Remain Outside Federal Restrictions
Environmental Defence is calling on the federal government to expand Canada’s single-use plastics restrictions to include plastic produce bags.
The existing Single-use Plastics Prohibition Regulations cover six categories: checkout bags, cutlery, certain foodservice ware, ring carriers, stir sticks and straws. Produce bags are not among the regulated products.
Federal rules define checkout bags as bags designed to carry purchased goods from a business and typically supplied at the point of sale. Produce bags used within a store fall outside that category.
The distinction may be unfamiliar to consumers who have already adjusted to bringing reusable bags to grocery stores.
Environmental Defence argues that adding produce bags to the federal restrictions would create the consistent, industry-wide requirement that some grocery companies appear to want. No federal decision to regulate produce bags has been announced.
The organization is an environmental advocacy group, and its recommendation is a policy position arising from the research.
Alternatives Require Careful Evaluation
Removing conventional plastic bags does not settle the question of what should replace them.
Retailers could encourage customers to leave durable produce unpackaged, sell reusable mesh bags, provide paper bags or reserve disposable options for a narrower range of products. Containers brought from home may also work for some bulk items, depending on store procedures.
Each option carries different costs and environmental consequences.
Federal guidance for businesses transitioning away from regulated single-use plastics encourages waste prevention and reuse when alternatives are selected. It also notes that replacement products can carry environmental impacts of their own.
For grocery chains, the most practical approach may be to reduce unnecessary use before attempting to eliminate every bag.
The Longo’s pilot supports that possibility. It showed that signage, placement and customer prompts can affect behaviour while disposable bags remain available for shoppers who believe they need them.
Findings Come With Limitations
The research provides a useful look at an often-overlooked part of grocery-store operations, but its findings should be viewed within the scope of the project.
The observations were conducted at 30 stores in Toronto. The customer survey involved 50 people, and the intervention was limited to two Longo’s locations.
The national estimate of 2.7 million bags per day and the projected annual savings of nearly $10 million were extrapolated from the Toronto findings. The publicly available policy brief also does not contain the detailed statistical reporting typically found in a full peer-reviewed academic paper.
The research therefore does not establish how every Canadian shopper or grocery format would respond to the removal of produce bags.
It does show that bag use is influenced by store design and product placement, and that some customers will change their behaviour when alternatives are visible and the reason for the change is explained.
For grocers, reducing produce-bag use may offer a relatively modest opportunity to lower operating costs and respond to pressure around disposable packaging.
Whether companies pursue those changes voluntarily or wait for governments to create a common standard remains unresolved.
Canadians are expected to spend an average of 18 hours behind the wheel this summer as road travel accounts for more than half of all summer trips, according to a new report released by car rental marketplace Turo.
The company’s Summer Road Trip Report ’26 found that 55 per cent of Canadian travel between June and September will be by road, while seven in 10 road trippers plan to take at least two trips over the season. The findings also suggest many travellers are prepared to spend thousands of dollars on those trips despite choosing to drive.
The report points to road travel as the preferred option for many Canadians this summer, with cost, flexibility and multiple short getaways shaping travel plans. Nearly half of respondents said they are driving because it is more cost-effective than flying, while the survey also found that Canadians are planning repeat trips rather than a single vacation.
Among road travellers, 48 per cent said they are choosing to drive because it is more cost-effective than flying. Seven in 10 respondents have at least two road trips planned, while 47 per cent expect to travel in an SUV. Another 15 per cent plan to use a hybrid or electric vehicle.
The survey identified Banff, Toronto, Vancouver, Montreal, Prince Edward Island and Jasper among the most popular road trip destinations this summer.
Most Canadians also expect to travel with family members. The report found that 62 per cent plan to road trip with a partner or spouse, while 28 per cent will travel with their children.
The survey found younger Canadians are planning more frequent trips and higher travel spending than other age groups.
Among Generation Z respondents, 18 per cent said they have four or more road trips planned this summer, while 28 per cent expect to spend more than $5,000 on summer travel, the highest proportion among the generations surveyed.
The report also found that 16 per cent of Gen Z road trippers intend to visit a luxury destination, while 21 per cent plan to drive a hybrid or electric vehicle, compared with the national average of 15 per cent.
In addition to domestic travel, 60 per cent of Gen Z respondents said they expect to travel internationally this summer, compared with 27 per cent of baby boomers.
Provincial spending expectations also varied across the country.
One in four Albertans surveyed said they expect to spend more than $5,000 on road trips this summer. In Ontario, 16 per cent said they expect to spend more than $5,000, while 28 per cent of Ontario road trippers said they plan to keep spending below $1,000 by taking shorter trips closer to home.
The report suggests personal connections and events are key drivers of travel decisions this summer.
Nearly half of respondents said they are travelling to visit friends and family, while one in three plans to attend a major event or festival. The survey also found that 66 per cent intend to travel within Canada, with 72 per cent planning at least one trip within their home province and 53 per cent expecting to visit another province.
“We expected road trips to play a big role in Canadians’ summer travel plans this year, but what surprised us was the sheer scale,” said Bassem El-Rahimy, Vice President of Turo Canada. “Canadians aren’t just taking one road trip. They’re planning multiple getaways, spending hours behind the wheel and, in many cases, budgeting thousands to do it. That tells us this isn’t necessarily about finding a cheaper way to travel. It’s about choosing a better one.”
Bassem El-Rahimy Turo photo
In an interview with Retail Insider, El-Rahimy discussed the trend.
Question: Your research suggests road trips are no longer just a budget alternative to flying. What’s driving this shift, and do you think it’s a lasting change in Canadians’ travel habits?
Answer: With flight costs at an all time high, costs are no doubt playing a big part in the kind of travel Canadians are choosing this summer. That said, the benefits of roadtripping are equally playing into Canadians’ travel decisions. Roadtripping gives you much more flexibility, allows you to visit places you never would be able to by plane alone, and there’s nothing better than your favourite playlist and the feeling of the open road.
Q: Gen Z is taking more road trips and spending more than any other generation. What do you think explains that behaviour, especially at a time when affordability is such a concern?
A: Travel is clearly a priority for Gen Z. Our research shows they’re travelling more than any other generation, and they’re also the most likely to travel for festivals, concerts and major sporting events. They’re willing to spend on experiences that matter to them. What’s interesting is they’re not just taking bigger trips, they’re taking more trips. Between multiple road trips and international travel, it’s adding up to higher overall travel spending this summer.
Q: The data shows big regional differences, particularly between Alberta and Ontario. What do those spending patterns tell you about how Canadians are adapting their travel plans in different parts of the country?
A: Our research shows that Canadians are adapting to affordability pressures in ways that make sense for where they live. In Alberta, we’re seeing more people planning higher-budget road trips, which likely reflects the longer distances between destinations and the fact that many of Canada’s iconic road trip experiences—like the Rockies, Banff and Jasper—often involve longer journeys. In Ontario, we’re seeing more travellers keeping their road trip budgets under $1,000 by taking shorter getaways closer to home. So while the budgets differ, the underlying trend is the same: Canadians aren’t giving up on travel, they’re adjusting how they travel to make it work for their budgets.
Photo: Turo
Q: With more Canadians planning multiple road trips this summer, what trends are you seeing in the types of vehicles they’re choosing, and how is demand for SUVs, EVs, and hybrids evolving?
A: SUVs continue to be the vehicle of choice for Canadian road trips, with nearly half of travellers planning to drive one this summer. That makes sense because they offer the space and flexibility people need for everything from camping gear to family vacations and longer road trips.
At the same time, we’re seeing growing interest in hybrids and EVs. Nationally, 15 per cent of Canadians plan to road trip in one this summer, but that jumps to 21 per cent among Gen Z travellers. It suggests younger Canadians are embracing more fuel-efficient and electric options, whether it’s to reduce fuel costs, lower their environmental impact, or simply because they’re more comfortable adopting new vehicle technologies.
Q: As we head into the second half of the summer travel season, what are you expecting to see in terms of booking trends, travel spending, and consumer behaviour, and what should retailers and tourism businesses be watching?
A: We expect travel demand to stay strong through the rest of the summer, but Canadians will continue to be very intentional value-conscious. They’re taking multiple road trips, staying closer to home, and making deliberate choices about where they spend their money. For tourism operators and retailers, that’s a signal that people are still eager to travel, they’re just looking for experiences that deliver good value. Businesses that can make travel feel easy, flexible and affordable will be best positioned to benefit.
Clinique, AFC Toronto and Canadian Women & Sport Kick Off Clinique Black Honey "The Difference is You" Partnership (CNW Group/Clinique Canada)
Clinique Canada has launched a partnership with AFC Toronto and Canadian Women & Sport to promote participation in sport among young women through a national marketing campaign that combines athlete ambassadors, retail activations and consumer events.
The initiative, centred on the campaigns “The Difference is You” and “Unstoppable Together,” pairs the skincare brand with the Northern Super League club and the national non-profit organization as they seek to highlight the role sports participation can play in confidence, well-being and personal growth for girls and young women.
The partnership comes as Canadian Women & Sport points to research showing declining participation among teenage girls despite growing visibility for women’s professional sports.
According to Canadian Women & Sport’s Rally Report, participation in sports contributes to social connections, mental health and body image for young women. The organization said its research also found that 62 per cent of Canadian teenage girls do not participate in sports, representing a decline of 14 per cent over the past decade.
The campaign features six AFC Toronto players: captain Nikayla Small, midfielder Nyota Katembo, defenders Zoe Burns, Kaela Hansen and Sarah Rollins, along with Kaylee Hunter, who was named the Northern Super League’s Rookie of the Year last season.
The players appear in “The Difference is You,” which runs through July 31 and features Clinique’s Black Honey Almost Lipstick.
Kathleen HegartyAFC Toronto photo
“Every athlete brings something unique to the game”, said Kathleen Hegarty, Vice President, Brand and Partnerships, AFC Toronto. “They may wear the same jersey and work toward the same goal, but each player has her own personality, story, strengths, and way of expressing herself. That’s what makes this campaign resonate so strongly. It’s a reminder that confidence isn’t about fitting into a single mold. It’s about embracing what makes you uniquely you.”
Clinique said it will extend the campaign nationally through digital media and consumer events in partnership with Sephora and Shoppers Drug Mart.
From July 25 to July 28, the company has hosted a pop-up installation at CF Toronto Eaton Centre, where visitors can try the featured product and participate in a digital activation that creates personalized player cards for display within the exhibit.
The campaign concludes its first phase with “Almost Lipstick Day” on July 28, ahead of International Lipstick Day on July 29.
Susy BrownClinique photo
“July 29th is International Lipstick Day but since Black Honey is not quite a lipstick, not quite a gloss and more than a balm, Clinique is declaring July 28th Almost Lipstick Day,” said Susy Brown, Marketing Director, Clinique Canada. “Every time a young woman steps onto the pitch, court, or track, she builds something more lasting than a winning record: the confidence that defines true beauty. By partnering with AFC Toronto and Canadian Women & Sport, we are empowering young women to feel confident in who they are and what they can achieve.”
A second phase of the initiative, titled “Unstoppable Together,” is scheduled to run from Aug. 10 through Sept. 30 and will feature Clinique’s Moisture Surge collection.
Clinique, founded in 1968, said its products are sold in 107 markets worldwide. AFC Toronto is a founding club in the Northern Super League, while Canadian Women & Sport is a national non-profit organization focused on advancing equity for women and girls through sport.
Just Cuts global team at grand opening for first Canadian salon
Australian hair salon chain Just Cuts has opened its first Ontario location in Guelph and says it plans to expand further across Ontario with additional salons already confirmed for London, Hamilton and Toronto.
The company said the opening of its salon at Stone Road Mall marks the start of its Canadian expansion. The brand, which says it operates more than 230 salons across Australia, New Zealand and the United Kingdom, plans to open locations at Masonville Place in London in November, followed by Limeridge Mall in Hamilton and Dufferin Mall in Toronto in early January.
The expansion brings the company’s walk-in haircut model to the Canadian market as it seeks to establish a presence in Ontario. Just Cuts said it specializes exclusively in haircuts rather than offering a broader range of salon services, positioning the model around walk-in availability without appointments.
Denis McFaddenImage: Just Cuts
“Canada has always stood out as a market that shares many of the same values as Australia: great service, strong communities and busy lifestyles,” said Just Cuts founder Denis McFadden. “We’re excited to partner with Canadian entrepreneurs, create rewarding careers for local Stylists and build Salons that feel genuinely connected to the communities they serve.”
The company said every Canadian salon will be locally owned and operated by franchisees while operating under the Just Cuts brand. It said stylists will be trained to the same professional standards used throughout its international network.
Just Cuts also said each location will carry its Justice Professional haircare collection, a product line developed for use within the company’s salon network.
The Guelph location is the first step in what the company described as a broader Ontario growth strategy. In addition to the four announced locations, it said it is considering further sites across the province, although it did not identify specific communities or timelines.
To mark the opening of each Canadian salon, the company said the first 30 customers at every new location will receive a complimentary haircut. It also said all haircuts will be offered at a promotional price of $19 plus tax during the first six weeks after each salon opens.
The company said the expansion is intended to introduce its walk-in service model to Canadian customers as it builds its presence in the province.
Avenue Road entrance to Yorkville Village in Toronto. Photo: First Capital REIT
First Capital Real Estate Investment Trust, announced Monday financial results for the quarter ended June 30, 2026, indicating same property NOI growth of 2.5%, excluding bad debt expense (recovery) and lease termination fees; a lease renewal lift of 14.4% on strong leasing volume; and total portfolio occupancy of 97.1%.
Its key financial results were outlined by the company:
Operating FFO per Diluted Unit of $0.35: Operating Funds from Operations of $74.7 million increased $2.0 million, or $0.01 per unit, over the same prior year period. The increase in Operating FFO for the second quarter of 2026 was primarily due to higher NOI of $2.3 million and higher interest and other income of $2.1 million including $3.4 million of profits from the sale of residential condominiums recognized this quarter, partially offset by higher corporate G&A and interest expense.
FFO per Diluted Unit of $0.28: Funds From Operations of $59.5 million decreased $14.0 million, or $0.07 per unit, over the same prior year period. The decrease was driven by a year-over-year decrease in other gains (losses) and (expenses) of $16.0 million, partially offset by higher Operating FFO of $2.0 million. The decrease was primarily due to $14.8 million of legal and advisory fees incurred in connection with the privatization of FCR.
Net Income (Loss) Attributable to Unitholders: For the three months ended June 30, 2026, First Capital recognized net income (loss) attributable to Unitholders of $24.2 million or $0.11 per diluted unit compared to $63.5 million or $0.30 per diluted unit for the prior year period. The decrease in net income over prior year was primarily due to a $71.4 million residential development inventory impairment loss largely relating to a change in strategy for the 138 Yorkville Avenue ultra-luxury condominium project as a result of the previously announced agreement for FCR to be acquired, as well as $36.3 million of estimated credit losses recognized on loans receivable also connected with the project. These losses were partially offset by a year-over-year increase of $92.6 million related to the fair value of investment property, on a proportionate basis. Additionally, the Trust recognized an increase in the fair value of non-cash compensation plans of $15.8 million year-over-year as a result of FCR’s announced transaction with Kingsett Capital and Choice Properties REIT.
Westmount Centre in Edmonton. Image via First Capital REIT
It outlined key performance and capital allocation highlights:
Same Property NOI Growth: Total Same Property NOI increased 2.4% over the prior year period primarily due to rental rate growth. Same Property NOI excluding bad debt expense (recovery) and lease termination fees increased 2.5%. Same property NOI growth was adversely impacted by approximately 55 basis points during the second quarter due to the de-leasing initiatives at Westmount Shopping Centre, Edmonton. Under the REIT’s 2026 business plan, a major redevelopment of this property had commenced early in the second quarter, which would have excluded the shopping centre from the same property category. In accordance with the Arrangement Agreement with KingSett Capital and Choice Properties REIT, the redevelopment of the property has been paused and therefore Westmount Shopping Centre remains in the same property category.
Portfolio Occupancy: On a quarter-over-quarter and year-over-year basis, total portfolio occupancy decreased 0.1% to 97.1% at June 30, 2026, from 97.2% at March 31, 2026 and June 30, 2025, respectively.
Lease Renewal Rate Increase: During the quarter, net rental rates increased 14.4% on a volume of 612,000 square feet of lease renewals, when comparing the rental rate in the first year of the renewal term to the rental rate in the last year of the expiring term. Net rental rates on leases renewed in the quarter increased 19.4% when comparing the average rental rate over the renewal term to the rental rate in the last year of the expiring term owing to higher contractual growth rates embedded within the renewed lease terms.
Average Net Rental Rate: The portfolio average net rental rate increased by 0.6% or $0.14 per square foot over the prior quarter to a record $24.95 per square foot, primarily due to rent escalations and renewal lifts.
Property Investments: During the second quarter, First Capital invested approximately $40 million into property development, redevelopment, residential inventory and acquisitions.
Property Dispositions: During the second quarter, First Capital completed the disposition of 121 Scollard Street, located in Toronto, for $13 million.
First Capital owns and operates, acquires, and develops open-air grocery-anchored shopping centres in neighbourhoods with the strongest demographics in Canada.
Central oval at Yorkville Village in Toronto. Photo: First Capital REIT
In early June, First Capital REIT unitholders overwhelmingly approved the previously announced $9.4 billion acquisition of the company by KingSett Capital and Choice Properties REIT, moving one of Canada’s most significant retail real estate transactions closer to completion.
The special resolution approving the plan of arrangement received strong support, with fewer than one per cent of votes cast against the proposal. First Capital said it intends to seek final approval from the Ontario Superior Court of Justice (Commercial List), with all other required approvals already obtained.
Under the arrangement, First Capital unitholders will receive $19.24 in cash and 0.3186 of a Choice Properties REIT unit for each First Capital unit they hold.
Once completed, the transaction will see Choice Properties acquire approximately $5 billion of First Capital’s retail assets, while KingSett Capital will acquire approximately $4.4 billion of First Capital assets and all of First Capital’s issued and outstanding units.
On Monday, it said the transaction is expected to close in the fourth quarter of 2026, assuming that required approvals are obtained and all other conditions are satisfied.
Retail Council of Canada (RCC) and Caddlereleased on Monday their annual consumer research on Back-to-School shopping behaviour in Canada, indicating it has become a $4.5 billion market in the country, driven by about six million K-12 students.
Average household spending ranges from $600 to $750 per child when electronics are included, making it one of the most significant retail events of the year.
Key findings from the Report include:
In-Store Shopping Remains the Dominant Channel
Ninety-nine percent of Canadian parents plan to shop in-store for Back-to-School essentials this year. Core categories – including school supplies, clothing, snacks, and hygiene products – remain overwhelmingly brick-and-mortar purchases, despite continued growth in online research and digital discovery.
Price Is the Primary Driver of Retailer Choice
Price remains the number one driver of where parents make their first purchase of the season with 85% of parents actively seeking deals when selecting where to shop for Back-to-School.
Most Families Begin Planning in Late Spring or Early Summer
Sixty-one percent of parents have already started Back-to-School planning or intend to begin soon. Planning timelines vary significantly by the age of the child: parents of younger children tend to begin earlier, while parents of high school students are significantly more likely to shop without advance planning.
Most Parents Expect Multiple Shopping Trips
While most parents express confidence in their ability to complete Back-to-School shopping efficiently, only 19% expect to finish in a single trip. The majority anticipate two to three separate visits, driven by product availability, ongoing price comparisons, and school supply lists that evolve as the season progresses.
Brand Preferences Shift as Children Age
Private label products are most popular among parents of younger children. National brands gain influence as children age and develop stronger brand preferences of their own. A significant share of parents across all age groups remain open to switching between national brands and store labels when price and quality align.
New to this year’s research: 44% of parents are already using or are very interested in AI-powered shopping tools to help build lists, compare prices, or identify where to shop.
Santo LigottiGustavo Fring photoAugust de Richelieu photo
Question: The headline finding is that 99% of parents still plan to shop in-store. What does that say about the current role of physical retail, and were you surprised that e-commerce hasn’t captured more of the actual purchases?
Answer: The finding reinforces that physical retail remains central to back-to-school shopping, particularly for everyday categories such as school supplies, clothing, snacks, backpacks and personal care products. Parents often want to see items, assess quality, confirm sizing and involve their children in the decision.
That does not mean e-commerce is unimportant. In fact, 83% of parents also expect to buy something online, up four percentage points from last year. What we are seeing is a blended journey: parents research prices, products and reviews online, but still complete many purchases in-store.
So, no, the strength of in-store shopping is not especially surprising. Back-to-school is a practical, time-sensitive and often family-driven occasion. The opportunity for retailers is to make the transition from digital research to the physical store as easy as possible, with accurate inventory information, clear promotions and a consistent experience across channels.
Q: Price remains the dominant factor, with 85% of parents actively seeking deals. How are retailers changing their promotional strategies this year to compete for budget-conscious families without sacrificing margins?
A: Retailers know families are under considerable pressure. Ninety-one percent of parents believe back-to-school shopping has become more expensive, and 85% say they always or often look for promotions.
The response is not necessarily to discount everything. Retailers are becoming more targeted about where and when they offer value. That can include early-season promotions, bundles, loyalty offers, private-label alternatives and sharper pricing on the items that matter most to families.
We are also seeing more emphasis on communicating overall value, not just the lowest individual price. Selection, convenience and the ability to complete more of the shopping in one place are also important considerations for parents. Retailers that combine competitive prices with availability and convenience are in the strongest position to protect both customer loyalty and margins.
Q: Your research shows parents expect to make multiple shopping trips. Is this mainly driven by staggered school supply lists and inventory availability, or are consumers intentionally spreading purchases out to chase better prices?
A: It appears to be a combination of all three. Only 19% of parents expect to finish their shopping in one trip, while 62% expect to make two or three trips. The research points to stock availability, price comparisons and changing or evolving school lists as the main reasons.
There is also a timing factor. Families with younger children tend to start earlier, while parents of middle- and high-school students are more likely to concentrate their shopping later in August.
Consumers are being more deliberate. They may buy the obvious essentials early, wait for a school list, involve their children in later purchases or hold off for a better promotion. For retailers, that means the season should not be treated as one promotional event. There are several opportunities to bring the customer back through reminders, replenishment messages, updated offers and dependable inventory.
Q: The report highlights growing interest in AI shopping tools, with 44% of parents already using or interested in them. How do you expect AI to change the back-to-school shopping journey over the next few years, and what should retailers be doing now to prepare?
A: AI has the potential to reduce much of the work and stress involved in back-to-school planning. A parent could provide a school list, budget, child’s age and preferred stores, and receive a recommended shopping list, product comparisons, current prices and information about where items are available.
The interest is already meaningful. Approximately 23% of parents say they use something like this today, and another 21% say they would be very interested. A further 17% would consider using it if it clearly saved time or money.
Retailers should begin by getting the fundamentals right. Their product information, pricing, inventory and store-location data need to be accurate and easy for digital tools to interpret. They should also explore practical applications such as list builders, product comparison tools and personalized recommendations. The winning use of AI will not be technology for its own sake. It will be helping a busy parent make a faster, more confident and more affordable decision.
Q: Looking beyond this year’s season, what is the single most important trend in the data that Canadian retailers may be overlooking, and why does it matter?
A: The most important trend may be how fragile customer loyalty has become when convenience or availability breaks down. When a key product is out of stock, 35% of parents will go to another retailer, 30% will switch brands and 23% will order online.
That matters because retailers often focus heavily on attracting the shopper through price and promotion, but the sale can still be lost at the final stage if the product is unavailable or difficult to find.
The broader lesson is that value now includes more than price. It includes confidence that the item will be in stock, that the information online is accurate, that the store experience is easy and that the customer will not need to start again somewhere else. In a market where families are willing to switch stores and brands, execution is becoming as important as promotion.
“This is a rare opportunity to acquire a truly multifaceted commercial property in Bragg Creek, Alberta. The offering includes a fully functioning, fully staffed, high-quality restaurant operation with an outstanding reputation, along with exceptional long-term redevelopment potential. Down the road, the site could lend itself to a larger commercial use such as a boutique hotel or other destination-oriented project. Its future upside is especially compelling given its close proximity to the approved Gateway Village Development, a 12.6-acre master-planned mixed-use resort-style project,” said Campbell in a LinkedIn post.
Rob CampbellThe Bav + The Tav at Bavarian Inn photo
“Bragg Creek has long been a sought-after escape for those looking to enjoy the outdoors, great dining, and the charm of a vibrant hamlet just outside the city. The area is well known for hiking, biking, camping, horseback riding, and its collection of unique shops and restaurants. Tourism in the region has always been strong and continues to grow, with more and more visitors making the trip to Bragg Creek each year. Located just a short drive from the world-famous Kananaskis Country recreation area and set against the foothills of the Canadian Rockies, the Bavarian Inn Restaurant is a legendary fixture in the Southern Alberta dining scene.
“Known by many as the BAV TAV, the Bavarian Inn Restaurant has been serving guests since the 1970s and has built a long-standing reputation for quality, consistency, and warm hospitality. It has been a trusted destination for casual family dinners, celebrations, and private gatherings, with owners who have carefully maintained its strong standing in the community over the years.”
The Bav + The Tav at Bavarian Inn photo
Campbell said the building and property themselves are equally impressive.
“This well-maintained, purpose-built restaurant offers approximately 3,000 square feet on the main floor, featuring a welcoming dining room along with a separate, freshly renovated lounge and bar area. A beautiful wrap-around patio services both spaces, adding to the guest experience and expanding seasonal seating potential,” he said.
“The kitchen is thoughtfully laid out with ample prep space, a large walk-in cooler, and equipment that has been kept in excellent condition, with new commercial flooring just installed. Inside, the dining room offers a warm and comfortable atmosphere, with a great mix of well-spaced seating, abundant natural light during the day, and a wood-burning fireplace that adds to the ambiance on cooler evenings.”
The Bav + The Tav at Bavarian Inn photo
What makes this opportunity even more exciting is the additional upside still to be realized, added Campbell.
“The full basement presents a range of possibilities, whether built out as an event space, another complementary business use, or even owner’s quarters. Opportunities like this are exceptionally rare, combining an established and respected business with a beautiful real estate asset and strong future development potential,” he said.
Bragg Creek is a hamlet about 30 kilometres west of Calgary at the confluence of the Elbow River and Bragg Creek north of the intersection of Highway 66 and Highway 22.
For several years, retailers have invested heavily in delivering an omnichannel experience: online purchasing, in-store pickup, fast delivery, inventory visibility, simplified returns and mobile experience.
Today, these features no longer represent a competitive advantage. They have become baseline expectations.
The real challenge facing Canadian retail has shifted. Consumers can easily find information, compare products, check stock and buy wherever they want. Yet they hesitate more, compare more and abandon purchases more easily when faced with too many choices, a lack of guidance, or a fragmented experience.
Omnichannel has largely resolved the technical friction points of the shopping journey. However, it has not eliminated the main friction that remains today: the difficulty of making a decision.
These findings come from the Omnichannel Barometer developed by Sid Lee and Haigo, which assesses the maturity of customer experience across multiple industries in Canada.
The analysis draws on a combination of field research and real-world experience testing, covering 82 evaluation criteria, to understand how consumers actually experience their journey, from discovery through to purchase and the in-store experience.
What the Barometer reveals across industries:
While the challenges vary from sector to sector, one trend stands out: consumers have access to all the information they need, but companies still struggle to turn that information into a decision.
Beauty: digital inspires and informs, but the final decision remains deeply sensory. The challenge is creating continuity between digital experiences and the in-store experience.
Automotive: consumers start their journey online, but often have to start over at each step, between manufacturers, dealers, financing and after-sales service.
Home renovation: consumers think in terms of projects, while purchase journeys are still largely organized around products rather than the needs they’re meant to fulfill.
Sportswear: consumers are more informed than ever, but the sheer volume of options makes decisions harder and increases hesitation.
Furniture: all the information is available, but consumers lack the tools to compare options and picture them in their own space.
Retail (general): retailers offer a multitude of products and services, but journeys remain largely uniform and poorly personalized to consumers’ actual needs.
Across all sectors studied, one conclusion stands out: the brands delivering the best experiences are no longer simply the ones with the most touchpoints. They’re the ones that succeed in connecting the different stages of the journey, making information genuinely useful at the moment of decision, reducing doubt throughout the purchase process and maintaining a consistent experience between digital and in-store.
Question: Your report argues that omnichannel is now table stakes rather than a differentiator. What specific evidence from the Barometer convinced you that the competitive battleground has shifted from access and convenience to helping consumers make decisions?
Answer: Our 70 extensive shopping sessions, online and in store, across all major retailers in Canada showed us that the basics were fully fixed.
Consumers can:
● Find the nearest store
● Check if the product is sold there
● Access key product information everywhere
● Access their purchase history from anywhere
The e-commerce and in-store systems and data are connected, the technical barrier has fallen. But once the infrastructure is fixed, you need to go back to the experience itself: How do you put all the data in motion and in context to help the consumer make a decision? What features or information are really useful?
For example: if I am in the middle of a DIY project, I want to know everything about a specific piece of equipment.
● Is it useful for my particular project and level of expertise?
● This goes beyond the product description, and requires advice from experts from the retailer, or reviews from other consumers with similar interests and profiles.
Can I get it right now?
● If I’m looking online, I need the exact stock and to put it aside for me so I don’t waste a store trip to see how it actually looks and ask questions to an expert.
● If I’m already in the store and it’s not available, I want it to be delivered extra quickly or to pick it up from another store.
These simple examples showcase that Omnichannel is not only about having the information in the system, but to really engineer it into services that make sense from a consumer point of view, to help from Discovery to Purchase, and even further, to Use.
Q: Across the industries you studied, what are the most effective examples of retailers reducing “decision friction,” and what practical strategies should Canadian retailers prioritize over the next 12 to 24 months?
A: In the report, for each industry, we give a clear vision of the “must haves” and the potential delighters.
This being said, on decision making, Automotive and Beauty retailers are standing out, for two different reasons.
Beauty: Helping consumers make the right choice
In the Beauty sector, top retailers have cracked the “fit” aspect of decision making. They create assurance that you’ll make the right choice.
Online product pages are built to make consumers clearly understand if the product is for you or not.
With:
● Reviews filterable by skin type
● Ingredient benefits explained in simple words
● Smart integration of AI for try on or to check the compatibility with other products you already have In store, sales assistants are called Beauty Advisors for a clear reason: they are here to help and get everything they need to make it personal.
They know about the trends every day to anticipate client requests, can access the list of products you already bought to check for compatibility, order anything for you to get delivered at home… from a mobile phone that they have with them on the floor.
Automotive: Supporting a major decision
For Automotive, top performers are great to help you understand all the features and make your car truly your own.
They help you make a big and costly decision that is not only about a purchase, but a project for years.
Online, the mix of technical and inspirational content is handled perfectly, you can prepare your store visit with easy to use configurators, and even plan for financing. This makes the in store experience a special moment where the sales team are companions who know why you are here, as a prepared confirmation point.
Q: The research found different pain points in sectors like beauty, automotive, furniture and home renovation. Which industry is currently doing the best job of connecting the digital and in-store experience, and what lessons can other retailers learn from it?
A: Beauty and Automotive are standing out because you can feel that the omnichannel experience has been designed to be omnichannel.
Many retailers had a store and an e-commerce strategy, with specific directors who sometimes had conflictual objectives (each online sale could be considered a stealth from a store sale).
If it seems like data and tech infrastructure are not siloed anymore, the organization silos are still visible.
A best practice we are seeing is the rise of Chief Omnichannel Officers inside the most mature retailers.
At the crossroads of marketing, customer experience and tech, these roles connect the dots naturally.
Consumers don’t want to shop online or in store, their journey is not linear and in the store, they will continue to check on their mobile for comparison, reviews or pricing.
Internal silos and scopes should not create complexity in this context.
The other thing we noted is that not all store teams are equipped well to answer consumer needs.
Sometimes they share an old computer with an antique system to check stock, prices or product specifications.
If the consumer can get the information on his mobile before your salesperson on the floor, or if the conclusion of an in-store discussion is that the person you’re talking to cannot order for you or suggest the closest store that has the product in stock, it’s not telling a good story.
The omnichannel experience should be as fluid for the consumer as it should be for the floor teams.
Finally, we noticed that the brands mastering omnichannel understood that the human side of retail has to live across the whole experience. Just as consumers expect the store teams to be available, expert and kind, they want part of this human expertise and empathy to be accessible online.
Reviews and advice on how to use the product by a real team member or the ability to book a video call or an in-store appointment can make a lot of difference to bridge the online and store experience, but also to create brand preference.
Vitaly Gariev photo
Q: Personalization has been a retail buzzword for years, yet your findings suggest many customer journeys remain generic. What’s preventing retailers from delivering truly personalized decision support, and how can they overcome those barriers?
A: The key to personalization is data collection, analysis and activation across all channels. Yet, consumers are now expecting what we call a “data dividend”: as a brand, you have to demonstrate why consumers shall give you access to your information or just log in to your account.
The consumer journey mixes several devices and can take several days:
I start a LLM (Large Language Model) search on my personal mobile during my commute to work, check the brand website on my professional laptop during lunch break, go in store to look at the product for real,
then make my decision on the family laptop with my partner before buying from the store that has the product in stock the next weekend, and in between I might have adblocked remarketing banners on my social feeds.
Three different digital devices were used, brand website and LLM were leveraged, two different stores were visited, many digital ads didn’t get interactions… that’s a lot of reasons for the retailer to lose track of where you are in the journey and what you are exactly looking for.
The key is therefore to build trust through transparency and recognition to get the authorization to access the data which will fuel personalisation.
It’s another basic of retail which needs to be done well across all channels: the good old loyalty account and its benefits.
Amongst our 82 evaluation criteria, several are directly related to it and the most liked by consumers is the ability to pay with loyalty points, online or in store.
Also, personalization is expected by consumers as a perk, not as a marketing trick. There is more perceived value for the consumer when they are shown really complementary products after they visited a few pages than when you offer them 5% off if they subscribe to your newsletter straight away when they land on your homepage, and you don’t know why they are here.
That’s why our CX approach aims at finding the right balance between the consumer and the brand interests.
Q: As AI-powered shopping assistants, recommendation engines and conversational commerce become more common, how do you see these technologies changing the customer decision-making process, and where do you think Canadian retailers are still underestimating their potential?
A: Only 53% of the shopping sessions we did in Canada showcased a minimal offering of AI via a chatbot, so it’s not as common as expected.
This being said, understanding why and how consumers are using LLMs in their journey is a big topic we have been tackling with various retailers recently, and we are thinking about creating a “Prompt Index” to publicly share useful learnings across industries.
What we learned is that consumers from all ages and digital maturity are using more and more public LLMs for discovery, comparison, price hunting and usage advice.
If we go back to the personalization topic, it’s easy to understand why.
LLMs are capturing a big chunk of the intent and consumer knowledge that make them very relevant and trustworthy.
Examples:
● In beauty, it knows your skin type and the kind of look you appreciate.
● In grocery, it’s the recipes you like.
● In renovation, it helped you shape your project and understood your level of expertise from the tutorials you asked it to provide.
ChatGPT or Gemini are available 24/7 and you can ask them questions with no shame of being judged or no doubt that you are being tricked to buy something you don’t need or that the salesperson has an incentive to sell you right now (yet).
From a consumer perspective, it’s powerful. But retailers have several advantages over LLMs that they can play well.
First, in their respective sector, they have the best first party data from providers, experts and consumer reviews.
In their field, retailers will always be more specialized than a generalist generative AI.
Second, they manage the full process, including loyalty rewards that are very valuable for the consumers, and the delivery or pick up process that can be a real pain point if not done well.
Third, retail is and will always be a human business, and Canadian shoppers value this aspect a lot.
The paradox of the frictionless experience that AI could provide is that it doesn’t create emotions, memories, nor brand preference.
At best, LLMs will be personal shopping assistants, but consumers still appreciate the basics and foundations of retail:
● The service
● The ability to see and test the product
● The conversation with an expert
The omnichannel challenge is therefore to make these traits available anywhere and anytime.As the tech is now mature, the service layer can be properly improved, with the know-how that retailers have since decades.
