Friday’s Retail Insider articles are listed below, followed by the latest Canadian Retail News From Around the Web. Highlights include Mercatto’s significant move into Port Credit with a large suburban location featuring brunch, reflecting shifting consumer demand in mixed-use waterfront areas. Meanwhile, Statistics Canada reports increased business optimism despite ongoing inflation and labour challenges, offering important insights for retail stakeholders. In addition, Skip’s focus on emotional connection and brand meaning demonstrates how winning brands are reshaping loyalty in 2026.
There’s absolutely no denying how there’s an ongoing major shift occurring within the home décor industry, and this has a lot to do with the changes that are currently being driven by young shoppers.
Gen Z and Millennial consumers have recently become the largest group entering the rental and housing markets, and we’re beginning to see how their buying habits look starkly different in comparison to previous generations.
From what they value in branding to how they discover new products, young shoppers are revolutionizing the ways in which home décor products are marketed, designed and sold—and for retailers, this means it’s absolutely essential to create new priorities!
The New Normal Is Digital-First Décor Shopping
It’s rare for younger shoppers to start a home décor shopping journey in a physical store, because they’re instead browsing trends on social media platforms via their mobile devices.
Instagram, TikTok and Pinterest have become the newest digital showrooms featuring viral posts that can turn specific décor styles into overnight sensations.
This digital-first shift has forced countless home décor brands into heavy digital content investments, e-commerce platforms and influencer marketing partnerships. It’s also no secret how young décor buyers fully expect seamless shopping experiences online, clear product information and fast shipping.
Décor Style Over Matching Sets
Unlike previous generations that fell in love with furniture collections, today’s younger generations are more likely to be interested in mix-and-match, curated spaces. Today’s young décor shoppers want their homes to feel 100% personal, and nothing like a perfect showroom.
This growing transition has subsequently led to a boosted demand in statement pieces, as well as a reduced demand in full room packages.
Shoppers are now investing in vintage side tables, bold sofas, and striking area rugs to anchor rooms—because the goal now is to develop spaces that offer a storytelling element for guests.
Softened Household Spaces & Round Rugs
Another big trend that directly reflects the youth’s mindset is the growing popularity of round area rugs. Younger décor shoppers are utilizing round rugs to break away from boxy, rigid layouts and ultimately soften modern interiors.
And what’s great for budget-conscious younger shoppers is that shopping online for high-quality round rugshas never been easier thanks to countless outlets offering affordable selections.
Round rugs are known for providing a sense of warmth and flow to any space, and they work especially well in reading corners, under coffee tables, and in smaller living rooms where square or rectangular rugs feel a bit too heavy.
On social media platforms, round rugs are known for photographing beautifully—which has helped exponentially increase their overall appeal. And from a retailer’s standpoint, this has led to many companies offering much larger varieties of round rugs in terms of sizes, shapes and textures.
Young Décor Shoppers Emphasize Value Just As Much As Design
Today’s younger shoppers also generally want to know where a décor piece comes from and how it’s specifically made. This is often connected to an added emphasis on ethical sourcing, sustainability, and consumer transparency that are now widespread concerns and deciding buying factors.
This is why countless décor brands are now conducting more responsible manufacturing practices, utilizing eco-friendly materials and prioritizing recyclable packaging.
Young shoppers want to genuinely feel good about their purchases, and this applies to both aesthetics and ethics.
Quality-Focused, Yet Budget-Conscious
The majority of young décor consumers are very price-aware, but this doesn’t necessarily mean they’re constantly looking for their cheapest options.
A lot of them are more than willing to spend more money on products they know are versatile, durable and timeless.
This is why there’s been a growing interest in artisanal area rugs, furniture, and various décor pieces that can easily move from one home to the next.
Fast furniture is also quickly losing its appeal among young shoppers, whereas long-lasting pieces are inversely gaining ground.
Millennials & Gen Z Are Ushering In A New Era For Home Décor Retail
Younger shoppers are heavily influencing the home décor market today in 2026 toward improved brand flexibility, creativity and responsibility.
This is why we’re now seeing retailers offer things like digital conveniences, unique designs, and an ethical branding in order to position themselves for future success.
From eco-conscious materials to social-friendly styles like round rugs, the new future of home décor is being shaped by the generations that truly want their homes to be equally as meaningful as they are strikingly beautiful!
Toronto-born Italian dining brand Mercatto is expanding beyond the city core with the opening of Mercatto Centrale in Port Credit. The new restaurant opens March 13, 2026, at 230 Missinnihe Way in Mississauga’s Brightwater community.
Founded in 1998, Mercatto has built a reputation for warm hospitality, all-day energy and a modern approach to Italian cuisine. The brand has operated four downtown Toronto locations under the Alter Ego Group. The Port Credit opening marks the first Mercatto location outside Toronto, bringing the concept into the broader GTA.
The launch of Mercatto Centrale Port Credit reflects continued restaurant investment in emerging mixed-use communities across the GTA, particularly those anchored by residential density and waterfront appeal.
Brightwater Location Targets Growing Waterfront Community
Mercatto Centrale is located within Brightwater, a growing waterfront community in Port Credit known for walkability and proximity to Lake Ontario. The neighbourhood has developed a strong dining culture, attracting both local residents and visitors.
The restaurant is positioned to serve residents, nearby businesses and destination diners. According to company materials, Mercatto Centrale is designed to function as a go-to destination for casual dining, group gatherings and special occasions.
As suburban nodes such as Port Credit continue to intensify, full-service restaurant operators are increasingly viewing these areas as viable alternatives to traditional downtown locations.
8,500 Square Foot Restaurant with 290+ Seats
The scale of the new restaurant signals a significant investment in the west end. Mercatto Centrale occupies approximately 8,500 square feet, with roughly 5,000 square feet dedicated to dining, bar and private dining spaces.
Total seating capacity exceeds 290 seats, including more than 200 indoor seats and over 90 patio seats. The large patio component aligns with the waterfront setting and supports seasonal traffic.
This footprint positions Mercatto Centrale Port Credit as one of the larger full-service restaurant offerings in the immediate area, particularly within a newly developed community.
Image: Mercatto
Alter Ego Group Brings Established Culinary Philosophy
Mercatto Centrale is operated by the Alter Ego Group, which oversees the brand’s Toronto locations. Executive Chef Doug Neigel leads the kitchen, balancing Italian classics with reimagined dishes.
The expansion maintains continuity in culinary and service philosophy while introducing new programming tailored specifically to the Port Credit market.
Brunch Debuts Exclusively at Mercatto Centrale
One of the most notable distinctions for Mercatto Centrale Port Credit is the introduction of brunch. The Port Credit location will be the only Mercatto restaurant to offer brunch, with a curated menu developed specifically for this site.
Brunch highlights include Eggs Benedict with peameal bacon, hollandaise and crispy potatoes, as well as French Toast served with strawberry preserve, whipped cream and maple syrup.
The broader menu spans antipasti, chilled seafood, pizza, pasta, piatti and dolci. Offerings include Fritto Misto with calamari, shrimp and zucchini; fresh oysters such as Belle Du Jour from New Brunswick and Sweet Island Kiss from PEI; and pizzas including Diavola and Prosciutto.
Pasta dishes include Orecchiette Pugliese with fennel sausage and rapini, Chitarra Alla Carbonara made with Conestoga Farms egg, and Pan-Seared Lasagna with ragù Bolognese. Larger plates range from Pollo Alla Diavola to a 12oz Prime New York Striploin.
Dessert options include Nonna’s Affogato, featuring a choice of Dillon’s Coffee Liqueur or Frangelico paired with gelato and espresso.
The breadth of the menu supports Mercatto’s positioning as an all-day Italian dining destination while introducing incremental daypart revenue through brunch.
Design Inspired by The Birth of Venus
The design of Mercatto Centrale draws inspiration from The Birth of Venus, interpreted through subtle and modern details. Rather than literal references, the design incorporates linear yet fluid patterns that reflect the waterfront setting and architectural lines of the building.
Sculptural vaulted ceilings create a sense of movement and openness, contributing to an elegant, coastal feel rooted in Italian sensibility.
Materiality plays a central role. Soft limewashed walls introduce warmth and a timeless quality, while refined detailing at the bar highlights artisanal craftsmanship.
The result is a contemporary space designed to align with both the waterfront environment and Mercatto’s established brand identity.
Private Dining and Event Strategy
In addition to everyday dining, Mercatto Centrale is designed to accommodate private and group events. The restaurant includes a dedicated private dining room that accommodates approximately 16 to 20 guests for seated or standing events. The space is equipped with AV capabilities, making it suitable for both social and corporate gatherings.
Beyond the private room, the restaurant can host large group bookings within the main dining room and lounge areas. Event menus draw from the restaurant’s existing food and beverage offerings, ensuring consistency with the core dining experience.
This event capacity positions Mercatto Centrale Port Credit to capture corporate functions, celebrations and community gatherings within a growing residential catchment.
Strategic GTA Growth for Established Toronto Brand
The opening of Mercatto Centrale represents a strategic step for a brand that has operated exclusively in downtown Toronto for more than two decades. By expanding into Port Credit, Mercatto is extending its reach while maintaining brand continuity under the Alter Ego Group.
As mixed-use waterfront developments continue to reshape suburban markets across the GTA, restaurant operators are evaluating opportunities outside the urban core. Mercatto Centrale Port Credit reflects that broader shift, combining scale, design investment and differentiated programming in a community-driven setting.
With its March 13 opening, the restaurant introduces a new Italian dining option to Mississauga while marking a milestone in Mercatto’s long-term growth trajectory.
Designed to celebrate and spark meaningful conversations and support women, girls and gender-diverse people in communities across Canada, Giant Tiger Stores Limited has launched its fourth-year exclusive shirt in advance of International Women’s Day, in partnership with the Canadian Women’s Foundation.
Available now in select Giant Tiger stores and online at gianttiger.com, 100% of profits from the sale of the shirt will be donated to the Canadian Women’s Foundation to support programs in communities across Canada.
Information about the artist collaboration, the impact of Giant Tiger’s partnership with the Canadian Women’s Foundation and the SPAO Photographic Arts Centre can be found here.
International Women’s Day is March 8.
Created in collaboration with the SPAO Photographic Arts Centre, one of Canada’s foremost photographic arts centres, the shirt features original artwork by Ottawa-based visual artist Linh VH Nguyen. (CNW Group/Giant Tiger Stores Limited)
Created in collaboration with the SPAO Photographic Arts Centre, one of Canada’s foremost photographic arts centres, the shirt features original artwork by Ottawa-based visual artist Linh VH Nguyen, a queer Vietnamese Canadian artist selected as part of Giant Tiger’s annual commitment to spotlight a new Canadian artist. Working across analog and digital photography, Nguyen’s work explores memory, transformation and diasporic identity.
Linh VH Nguyen
“This is the first time my work is reaching people outside of galleries, and I’m thrilled that it’s accessible to a wider audience,” said artist Linh VH Nguyen. “This partnership, bringing together Giant Tiger, the Canadian Women’s Foundation and photo-based artists, shows real commitment, especially knowing that 100% of the profits support the Foundation. Buying something you love can be powerful, and I hope this campaign sparks conversation and reminds people to support one another and find moments of joy.”
Through its International Women’s Day shirt campaign, Giant Tiger has raised more than $120,000 to date, with funds going directly to grassroots programs that provide critical support, build skills, belonging and confidence, and help make safety, opportunity and hope possible.
“Through this campaign, we’re proud to spotlight Canadian artists like Linh VH Nguyen, while directing 100% of profits to the Canadian Women’s Foundation to support community-based programs that advance gender equity. With more than 260 locally owned stores across the country, we can help turn creative expression into meaningful impact. As a Canadian retailer dedicated to doing what’s right, it’s incredibly rewarding to partner with organizations that are making a real difference in the lives of our customers and the communities we proudly serve, while giving talented artists a national platform to share their work.”
DESIGNME Launches Rooting for All Women, a Campaign Celebrating Transformation, Strength, and Collective Impact (CNW Group/DESIGNME)
DESIGNME, the professional, vegan Canadian haircare brand, has unveiled Rooting for All Women, a limited-edition campaign honouring women, their evolution, and the power of transformation at every stage of life.
From artists behind the stylist chair to creators, salon owners, and consumers, women help bring DESIGNME to life every day. Rooting for All Women builds on the brand’s long-standing commitment to confidence, creativity, and self-expression – values that have been at the heart of DESIGNME since its inception in 2016, said the company.
“Rooting for All Women is about honouring the many transformations women experience – personally, professionally, and creatively,” said Cynthia Desrochers, VP Global Marketing and Digital at DESIGNME. “It’s a celebration of resilience and reinvention, while also creating meaningful impact for women who need support most.”
Cynthia Desrochers
Inspired by the idea of metamorphosis, the campaign reflects moments of growth, renewal, and empowerment, mirroring the transformations women navigate throughout their lives, said the company
As part of the initiative, DESIGNME will donate a portion of proceeds from the limited-edition collection, up to a maximum total donation of $10,000, to women’s support organizations in North America. The brand will also continue its commitment beyond the campaign, with additional initiatives planned throughout the year in support of charities, it said.
A portion of the Canadian proceeds will benefit Chez Doris in Montréal, an organization dedicated to providing safety, resources, and opportunity to women in vulnerable situations.
Diane Pilote
“This partnership reflects our mission in a meaningful way: transforming corporate commitment into concrete action,” said Diane Pilote, Executive Director of Chez Doris. “Access to essential hygiene and hair care products plays a vital role in restoring confidence and self-worth. DESIGNME’s support directly helps preserve the dignity and autonomy of the more than 1,700 women we serve each year.”
Businesses continue to anticipate a variety of obstacles over the next three months. While pressures of both cost- and labour-related obstacles continued into the first quarter of 2026, the proportion of businesses with a positive outlook has increased compared with previous quarters, according to a report released by Statistics Canada on Friday.
In the first quarter of 2026, 59.2% of businesses across Canada expect cost-related obstacles over the next three months, down from 61.2% in the fourth quarter of 2025. For the Canadian Survey on Business Conditions, cost-related obstacles consist of inflation; cost of inputs; interest rates and debt costs; cost of insurance; cost of real estate, leasing or property taxes; and transportation costs. In January 2026, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index, increased by 7.7% month over month and rose 8.0% year over year. Additionally, average hourly wages among employees were up 3.3% on a year-over-year basis in January, following growth of 3.4% in December 2025, explained Statistics Canada.
“Within this environment, in the first quarter of 2026, just over two-fifths (40.8%) of businesses expect inflation to be an obstacle over the next three months, marking it as the most commonly expected obstacle among businesses. Businesses expecting inflation to be an obstacle were most frequently found in accommodation and food services (60.7%); agriculture, forestry, fishing and hunting (50.1%); and wholesale trade (48.2%),” it said.
“Recruiting skilled employees is the second most commonly expected obstacle, anticipated by one-quarter (25.3%) of businesses, led by those in administrative and support, waste management and remediation services (39.0%); construction (37.5%); and accommodation and food services (34.2%).
“When asked to identify the most challenging expected obstacle over the next three months, 10.7% of businesses expected it to be recruiting skilled employees, 10.5% indicated inflation and 6.8% reported the cost of inputs.”
Nearly one-third (32.0%) of all businesses, whether they engaged in trade or not, reported that the imposition of tariffs by the United States on imports from Canada had a negative impact on their business over the 12 months prior to the survey. Businesses in manufacturing (51.2%); agriculture, forestry, fishing and hunting (47.1%); and wholesale trade (45.7%) were most likely to indicate this. In contrast, 1.4% of businesses reported that these tariffs had a positive impact on their business over the 12 months prior to the survey. Meanwhile, over half (51.2%) indicated that the imposition of tariffs by the United States on imports from Canada had no impact on their business over the 12 months prior to the survey. A further 15.4% of businesses were unsure what impact tariffs imposed by the United States had on their business, noted Statistics Canada.
“In the first quarter of 2026, all businesses were asked whether they had passed cost increases due to tariffs onto their customers over the 12 months prior to the survey, whether they engaged in trade or not. Over one-quarter (26.8%) of businesses reported having done so, while over one-third (34.5%) had not passed any cost increases onto their customers. Meanwhile, nearly two-fifths (38.6%) of businesses had not experienced any cost increases due to tariffs,” it said.
“At the same time, over one-third (34.1%) of businesses reported that they were either very likely or somewhat likely to pass cost increases due to tariffs onto their customers over the next 12 months. In contrast, 14.4% were either very unlikely or somewhat unlikely to do the same, and 15.0% were unsure. Over one-third (36.5%) of businesses did not expect any cost increases due to tariffs over the next 12 months.”
Andrea Piacquadio photo
In the first quarter of 2026, 16.1% of businesses indicated they had changed their marketing practices over the 12 months prior to the survey to promote Canadian products, led by those in retail trade (41.3%), accommodation and food services (30.2%) and wholesale trade (28.1%), according to the report.
“Over the 12 months prior to the survey, 12.7% of businesses experienced an increase in sales of their Canadian products, with businesses in retail trade (27.2%), manufacturing (23.0%) and wholesale trade (21.7%) being most likely to see an increase in sales. In contrast, 7 in 10 (70.5%) businesses did not experience an increase in sales of their Canadian products over the 12 months prior to the survey, and a further 16.9% were unsure,” it said.
“In the first quarter of 2026, nearly three-quarters (73.1%) of businesses are either very or somewhat optimistic about their outlook over the next 12 months, higher than the proportions of businesses that reported the same in the third (66.7%) and fourth (66.3%) quarters of 2025,” concluded Statistics Canada.
“Meanwhile, in the first quarter of 2026, nearly one-fifth (18.1%) of businesses expect their sales of goods or services to increase over the next three months, a slight increase from 16.3% in the fourth quarter of 2025. In the first quarter of 2026, 14.8% of businesses expect sales of their goods or services to decrease, while 23.2% of businesses anticipate the selling price of their goods or services to increase. Businesses most likely to expect their selling prices to increase over the next three months are those in accommodation and food services (35.1%), retail trade (29.7%) and manufacturing (29.5%).”
“While margins remained constrained in our fourth quarter results, we advanced margin improvement initiatives and saw underlying momentum improve as we exited the quarter. As we head into the important Lenten period, we are well positioned to drive profitable sales growth, supported by our ongoing focus on continuous improvement, including plant efficiencies, and disciplined execution.”
Key financial results, reported in USD, for Q4:
Adjusted EBITDA decreased by $4.5 million, or 18.9%, to $19.3 million compared to $23.8 million, and Adjusted EBITDA as a percentage of sales decreased to 7.1% compared to 10.1%;
Sales volume increased by 0.9 million pounds, or 1.5%, to 61.3 million pounds compared to 60.4 million pounds, while sales increased by $35.2 million, or 15.0%, to $270.2 million compared to $235.0 million;
Net income increased by $2.1 million, or 35.6%, to $8.0 million compared to $5.9 million, and diluted earnings per share (“EPS”) increased to $0.27 per share compared to $0.20 per share;
Adjusted Net income decreased by $9.8 million, or 78.4%, to $2.7 million compared to $12.5 million and Adjusted Diluted EPS decreased to $0.09 per share from $0.41 in 2024;
Gross profit decreased by $1.3 million, or 2.5%, to $49.7 million compared to $51.0 million, and gross profit as a percentage of sales decreased to 18.4% compared to 21.7%; and
Net Debt to Rolling fifty-two weeks Adjusted EBITDA was 3.5x at January 3, 2026 compared to 2.3x at the end of Fiscal 2024 and 2.6x at end of Fiscal 2023.
Key financial results, reported in U.S. dollars, for the year:
Adjusted EBITDA decreased by $11.6 million, or 11.2%, to $91.7 million compared to $103.3 million, and Adjusted EBITDA as a percentage of sales decreased to 8.9% compared to 10.8%;
Sales volume increased by 2.1 million pounds, or 0.9%, to 237.9 million pounds compared to 235.8 million pounds and sales increased by $67.7 million, or 7.1%, to $1,026.9 million compared to $959.2 million;
Net income decreased by $23.6 million, or 39.2%, to $36.6 million compared to $60.2 million and diluted earnings per share (“EPS”) decreased to $1.22 per share compared to $1.89 per share;
Adjusted Net income decreased by $13.2 million, or 27.5%, to $34.8 million compared to $48.0 million and Adjusted Diluted EPS decreased to $1.17 per share compared to $1.51 per share; and
Gross profit decreased by $4.5 million, or 2.1%, to $212.8 million compared to $217.3 million, while gross profit as a percentage of sales decreased to 20.7% compared to 22.7%.
Paul Jewer
“As we look ahead to 2026, we remain focused on driving sustainable margin improvement and leveraging the investments we have made in new product innovation and brands to support profitable growth,” said Jewer.
“With disciplined margin management, cost reductions, and targeted supply chain efficiency initiatives, we are confident in our ability to offset higher raw material costs and tariffs. We are seeing profitability improve and expect that to continue over the course of the year. Overall, despite continued pressures on our business from macro headwinds, we remain confident in our ability to deliver year over year adjusted EBITDA growth, starting in the first quarter of 2026.
“My conviction in the strong underlying fundamentals of our business and outlook is supported by our steady execution and the continuous innovation, which includes our newly launched fully cooked seafood line that provides customers with responsibly sourced, easy to execute, delicious mealtime solutions. These products, as well as the exciting new innovation offerings we have in the pipeline, present opportunities to expand the category and encourage greater North American seafood consumption. Our balanced approach to capital allocation, along with the recently oversubscribed incremental addition to our term loan and the extension of our ABL (asset based lending), further strengthens our financial flexibility and demonstrates strong confidence in our overall strategy.”
Real gross domestic product GDP declined 0.2% in the fourth quarter of 2025, after rising 0.6% in the third quarter. The fourth quarter decrease was due to withdrawals of business inventories following inventory accumulations in the third quarter. Offsetting some of the decline was higher exports, household spending and government capital investment. On a per capita basis,GDP was unchanged in the fourth quarter after increasing 0.5% in the previous quarter, according to a report released Friday by Statistics Canada.
Real GDP increased 1.7% in 2025, the slowest pace of annual growth since the decline in 2020. Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025, explained the federal agency.
“Businesses withdrew from non-farm inventories in the fourth quarter, after adding to their stock in the previous two quarters. The largest withdrawals in the fourth quarter occurred in the manufacturing sector, followed by the wholesale trade sector. In the retail sector, motor vehicle inventories declined,” said Statistics Canada.
“On an annual basis, businesses withdrew from non-farm inventories in 2025, marking the first annual decline of inventory stock since 2020, during the COVID-19 pandemic. In contrast, the stock of farm inventories rose for the first time in three years, given strong crop production in 2025.
“Exports rose 1.5% in the fourth quarter, after increasing 0.9% in the third quarter. The growth in the fourth quarter was led by higher exports of unwrought gold and of unwrought aluminum and aluminum alloys. Despite the increases in the latter half of the year, exports fell 1.7% in 2025, as shipments to the United States did not fully recover following the drop in the second quarter.
“Imports edged up 0.3% in the fourth quarter, as higher imports of computers, clothing and footwear, and metal ores were largely offset by lower imports of pharmaceutical and medicinal products. For the year, imports were down 0.4% in 2025 due to the 2.9% decline in the third quarter.”
Household spending rose 0.4% in the fourth quarter after declining 0.2% in the third quarter. Higher expenditures on rent and financial services in the fourth quarter were partially offset by lower spending on new passenger vehicles and alcoholic beverages, as overall expenditures on goods declined for a second consecutive quarter, said Statistics Canada.
On an annual basis, household final consumption expenditure was up 2.3% in 2025, keeping pace with the 2.2% growth in each of the previous two years. The rise in 2025 was led by increased household spending on financial services and rent, it said.
Andrea Piacquadio photo
“The household saving rate was 4.4% in the fourth quarter, down from 5.2% in the previous quarter, as growth in disposable income (+0.6%) lagged that in spending (+1.2% in nominal dollars). Despite lower net saving in the fourth quarter, the household saving rate was 4.9% in 2025, about the same as in 2024,” added Statistics Canada.
“Household disposable income grew at a slower pace in the fourth quarter of 2025, as did wages and salaries and self-employment income (termed mixed income). Net property income declined 1.7% in the fourth quarter due to a reduction in investment earnings that outweighed lower interest payments. Household investment earnings (termed property income received) declined 1.7% in the fourth quarter, due mainly to lower returns on interest-bearing deposits. Household property income paid, comprised of mortgage and non-mortgage interest expenses, declined by 1.6% in the fourth quarter.”
Andrew Grantham
Andrew Grantham, Senior Economist, CIBC Capital Markets, said: “While consumer spending rose in Q4, that came despite an easing in disposable income growth and therefore was the result of a drop in the household savings rate. Real personal disposable incomes fell for the first time since Q1 2023. Because of this there is some concern regarding how sustainable the pick-up in consumer spending will be.”
Maria Solovieva, Economist, TD, said: “Canada ended the year on a weaker footing as businesses drew down inventories, weighing on headline growth. For 2025 as a whole, the economy slowed to a 1.7%, primarily due to lower exports to the United States. That said, domestic demand grew at a better 2.3% pace, supported by stronger government spending. The rebound in consumption and the return of non-residential investment in the fourth quarter provide some reassurance that underlying demand is stabilizing.
Maria Solovieva
“Still, today’s report is weaker than the Bank of Canada’s January projections for a flat reading, reinforcing their view that momentum remains limited. There is still evidence of labour market slack and inflation gradually moderating. Taken together, these dynamics suggest that the Bank of Canada will remain on the sidelines, and the policy rate at 2.25%.”
The Canadian retail landscape is entering a new phase of change. Retailers are investing in physical store expansion while also accelerating digital innovation. Recent activity shows a clear focus on growing brick-and-mortar networks and using AI tools to improve efficiency and customer engagement. At the same time, companies are adapting to shifting consumer habits and ongoing economic pressure. From large grocery chains opening new formats to premium foodservice brands entering the market and boutique fitness operators consolidating, the industry is working to balance growth with innovation and long-term relevance.
These changes are unfolding against a backdrop of uneven consumer spending and continued labour challenges. As demand slows in some categories and shoppers become more price sensitive, retailers are rethinking how they operate and how they define value. At the same time, seasonal moments such as Lunar New Year are providing targeted boosts in foot traffic and restaurant sales. This reminder of occasion-driven demand underscores the importance of staying agile. Even as broader structural shifts reshape the industry, retailers must be ready to capture opportunities when and where they emerge.
Retailer News
The grocery sector’s expansive efforts are headlined by Loblaw’s $2.4 billion commitment to open 70 new stores in 2026, from pharmacies and care clinics to discount grocery outlets, while renovating nearly 200 locations and bolstering supply chains. This initiative, part of a $10 billion five-year strategy, signals a focused push to reinforce infrastructure and scale across Canada’s market. Complementing this physical momentum, Loblaw’s pioneering expansion of AI commerce with Google Gemini integration exemplifies the melding of traditional and digital retail, advancing shopping via conversational AI.
Meanwhile, the entrance of Eggslut to Canadian urban dining scenes with new sites in Toronto and Vancouver highlights the premium fast-casual breakfast niche’s appeal among younger, quality-conscious consumers, adding diversity to core foodservice offerings within retail environments. Foodtastic further extends its portfolio by acquiring Edmonton’s Central Social Hall, drawing a blend of casual and premium dining in the social hall format that caters to contemporary consumer tastes. The intensifying leasing activity at Calgary’s CF Market Mall and CF Chinook Centre, largely driven by retail expansions such as Samsung and Wingstop, reflects robust market reactivation with retail, not entertainment, powering growth — a vital indicator for Alberta’s commercial retail outlook.
The retail sector’s financial performance conveys mixed signals shaped by consumer cost sensitivities and evolving purchasing preferences. Loblaw’s retail revenue exceeding $16 billion in 2025, propelled by nearly 20% growth in e-commerce and consistent same-store sales gains, demonstrates resilience bolstered by strategic investments in omnichannel capabilities and new store openings. Across the broader retail landscape, Leon’s Furniture reported nearly $3.1 billion in annual sales, reflecting durable demand despite weather and logistics challenges, while Canada’s restaurants and bars sector topped $100 billion in annual sales in 2025, albeit with a slight dip in December as described in the Statistics Canada report highlighting shifting dining patterns.
At the consumer behaviour level, an Omnisend survey revealed that 64% of wealthy Canadians have turned towards cheaper alternatives, including store brands and second-hand goods, evidencing a broader trend of price-consciousness transcending income groups. Correspondingly, a Harris & Partners study reported financial strain for 87% of Canadians facing rising living costs, which influences retail spending and underscores the importance for retailers to optimise pricing strategies and promotions effectively.
Small business optimism in Canada has nudged above historical averages, signalling some confidence return among entrepreneurs despite persistent concerns over taxes, regulation, and rising costs as highlighted by the CFIB survey. These economic stressors will continue to weigh on retail expansion, leasing decisions, and consumer engagement strategies.
Retailer People News
Leadership shifts signal strategic realignments within Canadian retailers. Roots appointed Rosie Pouzar as Chief Commercial Officer, entrusting her with harmonizing commercial strategy and accelerating omnichannel expansion, reinforcing the brand’s commitment to cross-border growth and customer-centric innovation. Reitmans also announced a significant board leadership transition, with Samuel Minzberg succeeding founder Stephen Reitman as Board Chairman, marking a notable moment in governance as the retailer pursues strategic renewal under CEO Andrea Limbardi’s direction.
The grocery sector’s evolving challenges are underscored in discussions about discount store proliferation and food inflation pressures, as explored in recent thought leadership content. These personnel and strategic adjustments across the sector reflect the need for agile leadership to navigate market rationalisation and consumer shifts.
Retailer Op-Eds
The sector’s overarching store footprint is being critically examined with analysis revealing a decline in grocery store density per capita in Canada despite ongoing investments by major chains. This nuanced trend, as detailed by industry expert Sylvain Charlebois in his Retail Insider op-ed, points to market rationalization amidst slower population growth, driving a shift toward fewer but larger format stores. This insight compels stakeholders to reconsider saturation assumptions and recalibrate growth strategies accordingly when evaluating real estate and competitive positioning in grocery retail.
Complementing this macro view, research into consumer ethical shopping behaviours illustrates friction points between intention and checkout actions, especially as rising costs alter household budgets. The findings stress the importance of pricing strategies and product presentation in converting ethically inclined consumers into actual purchasers, directly impacting retail assortment decisions and in-store merchandising as explored in Why Ethical Shopping Intentions Fail at Checkout.
Editor’s Take
This week’s developments show that Canadian retail is at a turning point. Retailers are balancing growth with the need to operate more efficiently in a market where shoppers are price conscious and digitally savvy. Loblaw’s investment in both new store infrastructure and AI highlights this reality. Retailers can no longer depend only on opening more stores or launching digital tools. They need to connect the two in a meaningful way to keep up with changing consumer expectations and rising competition.
At the same time, the drop in grocery store density, even as expansion plans are announced, points to an important shift. Growth does not always mean adding more locations. In many cases, it means building smarter stores in better locations, designed around specific community needs. Retailers are thinking more carefully about format, size, and long-term performance.
Financial pressure on consumers is also reshaping the market. Shoppers are looking for value, which is pushing retailers across segments to adjust pricing, formats, and product assortments. From mass-market grocers to premium fast-casual brands, companies are refining their strategies to stay relevant. Meanwhile, leadership changes and consolidation activity signal an industry that is actively repositioning itself. Agility and quick decision-making are becoming essential. Even so, areas such as fitness, foodservice, and boutique retail continue to show growth, driven by lifestyle trends and targeted demand.
Looking ahead, Canadian retail leaders will need to focus on technology that improves efficiency, including AI, while also rethinking store formats and site selection. Demographics, trade pressures, and cost challenges will all shape decision-making. Success will depend on strong leadership and disciplined execution.
Overall, the week’s developments reflect a retail sector that is adapting to change. The opportunity is there. However, retailers will need clear strategy and careful integration of physical and digital capabilities to fully capture it.
Neo Naturelle, a federally registered Canadian skincare company, is expanding its operations and retail footprint to meet growing demand for products aimed at women experiencing hormonal changes, including perimenopause and menopause. Founded in 2019 by Nila Cook, who serves as both company founder and lead formulator, the Vancouver-based business is pursuing a dual strategy of online sales and selective retail partnerships across the country.
The company launched shortly before the COVID-19 pandemic, which initially constrained its growth and limited opportunities to engage with distributors and retailers. “For the first year of our company’s life, everything was on lockdown,” Cook said. “There were no trade shows, no markets. Retailers were closed. Distributors didn’t want to talk to you. We were kind of semi-hibernating.” During that period, Neo Naturelle focused on establishing an online presence and building brand awareness through awards and competitions.
Neo Naturelle maintains two home offices: Cook operates from Vancouver while her daughter, a collaborator on product development, is based in Toronto. The federal registration of the company allows it to operate nationwide, enabling the business to distribute products across Canada.
Marketing and operational leadership are shared between Cook and co-founder Marina Mushlovina, who serves as the company’s marketing director. “I am the founder and the formulator of the company, and Marina is a co-founder and marketing manager or director,” Cook explained, highlighting the dual leadership structure that balances product development and market strategy.
The company’s focus on women navigating hormonal changes emerged from Cook’s initial efforts to develop skincare products for her pregnant daughter. Cook said that many conventional and natural skincare products either contained ingredients unsuitable for pregnant women or lacked active ingredients capable of producing noticeable results. “We realized that there were either skinceuticals-type products that used potent actives but also ingredients we were not happy with, or natural products that were very simple moisturizers without potent actives,” Cook said.
Marina Mushlovina, left, and Nila Cook
Neo Naturelle adapted this insight into a broader product strategy targeting women at multiple life stages affected by hormonal fluctuations. “Our skin brand evolved into a brand that specifically formulates for women who go through hormonal changes: perimenopause, menopause, post-menopause,” Cook said. She emphasized that the company designs products to minimize sensitivities and accommodate changes in skin biology related to hormonal shifts.
Mushlovina outlined the company’s current distribution strategy, noting that Neo Naturelle products are available across Canada through both online channels and select physical retailers. In British Columbia, the company’s products are sold in retail locations such as Pure Integrative Pharmacy, as well as independent pharmacies and MediSpa offices. In Ontario, Neo Naturelle products are available through naturopathic practices, health food stores, and independent pharmacies. The company has also established a distribution partner in Atlantic Canada but continues to expand retail access in that region and in Quebec.
“We find that independent practitioners who have their own dedicated client base and trust with their customers are excellent advocates for us,” Mushlovina said, identifying a core focus of the company’s retail strategy.
Marina Mushlovina, left, and Nila Cook
Looking ahead, Neo Naturelle plans to scale its distribution across Canada with an emphasis on health food stores, pharmacies, and independent practitioners. Mushlovina said the company seeks to expand its presence in Ontario and increase the number of pharmacy locations and practitioner partnerships.
Cook articulated a longer-term brand ambition to establish Neo Naturelle as a household name among women experiencing hormonal changes. “I want every woman in Canada and worldwide who is going through perimenopause and menopause to associate the skincare they’re using with our brand,” she said.
The company’s initial growth was constrained by pandemic-related market conditions, including closed retailers and limited trade show opportunities. Cook noted that these restrictions forced Neo Naturelle to focus on developing an online business and establishing brand credibility in alternative ways.
Neo Naturelle also faces the challenge of delivering products that meet high consumer expectations. Cook stressed that women in the company’s target demographic are highly discerning: “We do not tolerate any BS. We know if we like it or if we don’t. We don’t appreciate buzzwords or fluff. It either works for me, or it doesn’t work for me.” This emphasis on efficacy guides product development and marketing strategy, according to Cook.
Cook holds a master’s degree in chemistry and food science and previously worked as a national quality manager at Coca-Cola, overseeing 40 facilities across Canada. Mushlovina leads marketing efforts and coordinates distribution and retail partnerships, providing operational support alongside Cook’s product development focus. The company’s co-leadership model allows Neo Naturelle to balance scientific formulation with market expansion.
Nila Cook
Despite initial setbacks due to the pandemic, Neo Naturelle is pursuing steady expansion across Canada. By combining targeted product development for hormonal skincare with selective retail distribution and online sales, the company aims to reach both existing and new consumers within its niche market. Cook said the company places high importance on customer feedback as it refines products and expands its presence.
