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INDOCHINO announces 10 new US showrooms coming in 2027, largest investment in standalone retail in years

INDOCHINO Kansas (Image: INDOCHINO)

INDOCHINO announced Thursday plans to open 10 new showrooms across the United States in 2027, marking the company’s largest investment in standalone retail in years. Six locations are confirmed for early 2027, with four additional showrooms slated to open in mid to late 2027.

The confirmed early 2027 locations are:

  • Cherry Hill, NJ
  • Columbia, MD
  • Ross Park, PA
  • Brea, CA
  • Roosevelt Field, NY
  • Boca Raton, FL

The remaining four locations will be announced in the coming months as site selection and lease finalization wrap up, said the company.

The announcement comes on the heels of six consecutive quarters of positive EBITDA for INDOCHINO, underscoring the financial strength behind the company’s direction and decision to further invest in its unique no inventory appointee based physical retail model, added the retailer.

“This is the largest investment we’ve placed on standalone retail in years, and it is the start of a new small format approach to our retail network, one we think we can expand for a decade,” said Drew Green, President and CEO of INDOCHINO. “Our customers keep telling us they want the INDOCHINO showroom experience closer to home and the consumer data we have gives us the confidence to deliver our showroom experience to more geographies, in a format that provides unique value to the communities and stakeholders we serve.”

Image: Drew Green, INDOCHINO CEO

Each new showroom will offer the full INDOCHINO experience, including one on one styling with Style Guides, premium fabric selection, and made to measure suiting, shirting, and outerwear built around the brand’s core promise, a confidence made for you, through every detail. The expansion reflects INDOCHINO’s market leadership within the made to measure category, and belief that investment in small format standalone showrooms as a core profitability growth lever, with markets selected based on strong customer demand in the areas selected, explained the company.

Founded in 2007, INDOCHINO is a global leader in made to measure apparel, operating a growing network of showrooms across the United States and Canada alongside a robust e-commerce platform. The company delivers custom suits and accessories crafted to precise measurements, combining personalized service, accessible pricing, and scalable operations to modernize the tailoring industry.

“We’ve been working on this for, well, pretty much the entire year, securing these first six locations for board approval, and then we’ve got another four that we’ve got to basically come to a conclusion on and then negotiate out,” said Green.

“But Cherry Hill, Columbia, Ross Park, Brea, Roosevelt, and Boca Raton, they just have a built-in customer base that we know will really love the in-showroom experience. And, you know, one of the things that is really core to this investment that we’re making is a new showroom format, which we’re basically calling a boutique format. Whereas it’ll be a bit smaller than our traditional showrooms, but be able to serve the same amount of customers.

“We’ve partnered with some great real estate firms and landlords across the US, and these are the first six that we’ve signed. They all launch literally in Q1 of 2027, and then we’ll follow that mid-2027 with another four. My goal would be, if all goes well with these 10 in ’27, is to launch 10 a year for the next five years.”

The brand has 56 flagship showrooms in the US, ranging in size from 2,000 square feet up to 5,000 square feet. The boutique format stores will range from around 1,500 up to 1,800 square feet.

Green said Canada has 13 locations and the brand hasn’t expanded beyond that 13 in quite some time.

“It’s a very, very healthy market for us, but there’s not really a need to expand further right now in Canada. Toronto is served by four showrooms, all of which do really, really well. The online business in Ontario is strong. So, we’re quite happy with where we are in Canada.”

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Nespresso Canada continues its boutique transformation with reopening of CF Sherway Gardens

Nespresso Canada image
Nespresso Canada image

Nespresso Canada has unveiled its redesigned CF Sherway Gardens boutique in Toronto, bringing the brand’s latest boutique concept to one of its most established locations, marking another step in the evolution of its boutique experience across Canada.

The company said the location holds an important place in the brand’s history in the Greater Toronto Area. First opened in 2015, it was Nespresso Canada’s second boutique in the region. Its renovation reflects Nespresso’s continued commitment to enhancing the premium coffee experience for customers, while reaffirming its long-standing presence in the GTA, it said.

The Sherway Gardens boutique marks the latest milestone in Nespresso Canada’s continued investment in retail excellence, following the opening of the Willowbrook boutique in Langley, British Columbia, and the reopening of the Oakridge boutique in Vancouver, British Columbia, and the Ste-Foy boutique in Québec City, Québec, reflecting the company’s broader vision for the future of retail in Canada, explained the company.

Reimagined to offer an even more elevated and personalized experience, the new Sherway Gardens boutique introduces new spaces and services designed to help coffee lovers discover, explore, and enjoy coffee in new ways, it said.

At the heart of the boutique is a new Coffee as an Art area, where Club Members can explore the journey of coffee from bean to cup through guided tastings and conversations with Nespresso Coffee Specialists. The boutique also features a welcoming lounge area designed for visitors to slow down, savour a coffee, and immerse themselves in the experience of coffee discovery, it added.

“Our boutiques are more than retail spaces; they are destinations where coffee lovers can discover the world of Nespresso through expert guidance, personalized service, and memorable experiences,” said Alexis Giguère, VP of B2C Sales at Nespresso Canada. “The redesigned Sherway Gardens boutique reflects our continued focus on creating meaningful moments for customers while bringing our latest retail vision to life.”

The redesigned boutique enhances the customer experience through its new self-selection stations, giving customers greater flexibility to explore, browse, and select their favourite coffees at their own pace, while expert guidance remains available throughout their visit. Whether welcoming long-time Club Members or those discovering Nespresso for the first time, the Sherway Gardens boutique offers a seamless blend of convenience and hospitality, while celebrating the craftsmanship, expertise, and culture behind every cup of coffee, said the company.

“As Nespresso continues to evolve, we are constantly looking for ways to enhance the boutique experience for our Club Members. Sherway Gardens was operating under one of our earlier retail concepts, so this renovation gave us the perfect opportunity to introduce our latest retail design and innovations including features such as our new self-selection stations. The goal is simple: create a more immersive, intuitive, and personalized destination that truly brings the world of Nespresso to life, while preserving the expert service our customers love,” said Carla Adwan, Retail Director, Nespresso Canada. 

“Sherway Gardens holds a special place in Nespresso Canada’s retail network. Since opening in 2015, it has consistently been our top-performing location in the Greater Toronto Area. As a flagship destination within one of Canada’s premier shopping centres, it was critical to preserve our presence while reimagining the space for the future. This renovation allows us to invest in the future of the boutique by introducing our latest retail concept, elevating the experience for our Club Members, and ensuring this location continues to set the standard for retail excellence in the GTA. 

Nespresso Canada image
Nespresso Canada image

“The Sherway Gardens reopening is part of Nespresso Canada’s broader commitment to retail excellence and the ongoing evolution of our boutique network. We continue to invest in our retail presence across the country, building on recent projects in British Columbia, Québec, and Ontario. As we look ahead, we are excited about opportunities to bring this elevated experience to additional communities across Canada, modernizing our network and bringing our latest innovations to more customers.”

To support sustainability efforts, Club Members can conveniently return their used Nespresso capsules for recycling at the Sherway Gardens boutique. The capsules undergo a mechanical separation process in which the aluminium and coffee grounds are separated, allowing the aluminium to be repurposed into new products and components, while the coffee grounds are used as compost on Canadian farms. This in-boutique collection option complements Nespresso’s other recycling options available across Canada, including at-home solutions, making it easy for Club Members to recycle their capsules in a way that best fits their routine. Availability of recycling solutions varies by region, added the company.

Nestlé Nespresso SA works with more than 130,000 farmers in 18 countries through the Nespresso Sustainable Quality Plan to embed sustainability practices on farms and the surrounding landscapes. Launched in 2003 in collaboration with the NGO Rainforest Alliance, the Nespresso Plan helps to improve the yield and quality of harvests, ensuring a sustainable supply of high-quality coffee and improving the livelihoods of farmers and their communities, said the brand.

In 2022, Nespresso achieved its first B Corp™ certification – joining an international movement of over 10,000 purpose-led businesses that meet B Corp’s high standards of social and environmental responsibility and transparency.

Headquartered in Vevey, Switzerland, Nespresso operates in 98 markets and has over 14,000 employees. In 2025, it operated a global retail network of 849 boutiques.

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IT Helpdesk and Consulting: Modernizing the Retail Technology Stack

The Evolution of Retail Technology

The retail industry has experienced a remarkable transformation over the past decade. With the rise of e-commerce, mobile shopping, and omnichannel experiences, retailers are compelled to continuously adapt their technology infrastructure to meet changing consumer expectations. Modernizing the retail technology stack is no longer optional; it’s essential for survival and growth. Retailers must embrace innovative IT solutions to enhance operational efficiency, improve customer engagement, and safeguard sensitive data.

This transformation is driven by consumers’ demand for seamless shopping experiences across physical stores, online platforms, and mobile devices. According to a report by Statista, global retail e-commerce sales are expected to reach $7.4 trillion by 2025, up from $4.9 trillion in 2021, highlighting the rapid growth of digital retail channels. To keep pace with this evolution, retailers need a modern technology stack that supports agility, scalability, and security.

One critical component in this modernization journey is the integration of advanced helpdesk and consulting services. These services provide retailers with the expertise and support needed to navigate complex IT landscapes and implement scalable, secure technology solutions. By leveraging specialized IT partners, retailers can focus on their core competencies while ensuring their technology infrastructure remains robust and future-proof.

The Role of IT Helpdesk in Retail Modernization

An efficient IT helpdesk is the backbone of any retail organization’s technology ecosystem. It ensures that technical issues are promptly resolved, minimizing downtime and maintaining smooth business operations. Today’s helpdesk goes beyond simple troubleshooting; it acts as a strategic partner that anticipates challenges and drives proactive improvements.

For example, the helpdesk team at Nortec plays a pivotal role in supporting retail businesses by offering tailored IT helpdesk solutions. Their team specializes in addressing the unique demands of retail environments, from point-of-sale system maintenance to network management. By leveraging such expertise, retailers can reduce the risk of costly disruptions and focus on delivering exceptional customer experiences.

A study by Gartner reveals that businesses implementing advanced IT helpdesk solutions experience a 35% reduction in system downtime, directly contributing to higher productivity and revenue growth. This improvement is crucial in retail, where even a few minutes of downtime can translate into significant lost sales and diminished customer trust. Efficient helpdesk support also facilitates faster resolution of issues related to inventory systems, payment processing, and customer data management, all vital for maintaining operational continuity.

Moreover, modern helpdesk services often include AI-driven ticketing systems and predictive maintenance tools that enable proactive identification of potential IT failures. This approach minimizes interruptions and helps retailers stay ahead of technology challenges, ensuring that stores remain operational and customers receive uninterrupted service.

Strengthening Security with Specialized Consulting

As retailers digitize their operations, cybersecurity becomes a paramount concern. The proliferation of customer data, payment information, and proprietary business insights makes retail a prime target for cyberattacks. Implementing comprehensive cybersecurity measures is vital to protect both the business and its customers.

Expert consulting services provide retailers with the knowledge and tools to fortify their defenses. For instance, companies offering cybersecurity services in New York City can help retail organizations assess vulnerabilities, design security strategies, and implement continuous monitoring solutions. This proactive approach reduces the likelihood of breaches and ensures compliance with industry regulations.

Research indicates that 60% of retail companies experienced at least one cyberattack in the past year, with an average financial impact exceeding $2 million per incident. These figures highlight the necessity of partnering with cybersecurity experts who understand the retail landscape. Retailers face threats such as ransomware, phishing attacks, and data theft, which can severely damage brand reputation and customer loyalty.

Beyond threat prevention, specialized consulting helps retailers navigate complex regulatory environments, including PCI DSS compliance for payment security and GDPR requirements for customer data privacy. Maintaining compliance is not only essential for legal reasons but also fosters consumer trust in an era where data breaches are frequently reported in the media.

Furthermore, consulting firms assist retailers in implementing advanced technologies like zero-trust architecture, multi-factor authentication, and endpoint security solutions. These measures collectively create a layered defense strategy that adapts to evolving cyber threats.

Key Components of a Modern Retail Technology Stack

Modernizing the retail technology stack involves integrating multiple systems and tools to create a seamless, agile IT environment. Some essential components include:

Cloud Computing: Enables scalability and remote accessibility, allowing retailers to manage inventory, sales, and customer data efficiently. Cloud platforms also support rapid deployment of new applications and services, facilitating innovation.

Data Analytics: Provides actionable insights into consumer behavior, inventory trends, and operational performance. Advanced analytics enable personalized marketing campaigns and optimized stock replenishment.

Mobile Solutions: Supports on-the-go management and enhances the customer shopping experience through mobile apps and contactless payments. Mobile POS systems increase checkout speed and flexibility.

IoT Devices: Facilitates smart inventory management and personalized marketing through connected sensors and devices. For example, RFID tags help track stock levels in real-time, reducing out-of-stock occurrences.

Unified Communications: Streamlines collaboration among store associates, supply chain partners, and headquarters. Integrated communication tools improve response times and coordination across multiple locations.

The integration and maintenance of these technologies require specialized expertise, making IT consulting and helpdesk services indispensable. A seamless technology stack not only improves operational efficiency but also empowers retailers to respond swiftly to market changes and consumer demands.

According to Deloitte, retailers that adopt modern IT strategies and partner with consulting firms report a 25% improvement in IT project success rates, leading to enhanced innovation and competitive advantage. This statistic demonstrates how strategic IT partnerships contribute to realizing the full potential of technology investments.

Benefits of IT Helpdesk and Consulting Partnerships in Retail

Collaborating with experienced IT helpdesk and consulting providers offers several tangible benefits to retailers:

1. Cost Efficiency: Outsourcing technical support reduces the need for a large in-house IT team, lowering operational expenses. This allows retailers to allocate resources toward growth initiatives.

2. Access to Expertise: Retailers gain access to specialists who stay updated on the latest technology trends and security threats. This expertise is critical for staying competitive in a fast-evolving landscape.

3. Improved Customer Experience: Faster resolution of technical issues ensures uninterrupted service, enhancing shopper satisfaction. Reliable technology underpins seamless transactions and personalized interactions.

4. Scalability: Consulting services help design flexible IT architectures that grow with the business. Scalability ensures that retailers can expand their operations without technology bottlenecks.

5. Risk Mitigation: Proactive cybersecurity strategies minimize the risk of data breaches and regulatory penalties. This protects both the retailer’s reputation and financial health.

Furthermore, IT helpdesk and consulting partnerships enable retailers to adopt emerging technologies such as artificial intelligence for customer service chatbots, augmented reality for virtual try-ons, and blockchain for supply chain transparency. These innovations differentiate retailers in a crowded market and meet evolving consumer expectations.

Implementing a Strategic IT Roadmap for Retailers

To effectively modernize their technology stack, retailers should develop a strategic IT roadmap. This plan outlines the phases of technology adoption, resource allocation, and risk management. Key steps include:

Assessment: Evaluate current IT infrastructure, identify gaps, and prioritize needs. This involves auditing hardware, software, security posture, and user workflows.

Planning: Define objectives, select appropriate technologies, and establish timelines. Engaging stakeholders from various departments ensures alignment with business goals.

Execution: Deploy solutions with minimal disruption, supported by helpdesk and consulting teams. Phased rollouts and pilot programs help mitigate risks.

Monitoring: Continuously track performance, security, and user feedback for ongoing improvements. Real-time analytics and reporting tools facilitate proactive management.

Training: Equip staff with the knowledge to utilize new technologies effectively. Training fosters user adoption and maximizes return on investment.

Engaging with trusted IT partners during each phase ensures alignment with business goals and maximizes return on investment. A well-crafted IT roadmap not only guides technology implementation but also supports change management and continuous innovation.

Conclusion

The retail landscape is evolving at a rapid pace, driven by technological innovation and shifting consumer behaviors. Modernizing the retail technology stack is crucial for retailers seeking to stay competitive and deliver superior customer experiences. Leveraging specialized IT helpdesk and consulting services enables retailers to build resilient, scalable, and secure technology environments.

By partnering with experts like them , retail businesses can safeguard their operations while embracing digital transformation. Integrating robust cybersecurity measures through further strengthens these efforts, ensuring comprehensive protection against evolving threats. As retailers continue to modernize their technology infrastructure, reliable IT support and consulting are becoming increasingly important for keeping systems efficient and responsive. For professionals working in retail technology, finding the right opportunities can be just as important as keeping up with new tools and systems. Jooble can help explore technology and IT-related positions across Canada.

Investing in comprehensive IT helpdesk and consulting services today positions retailers to meet tomorrow’s challenges head-on, ensuring they remain agile, secure, and customer-focused in an increasingly digital world.

Managed IT and Cybersecurity for Automated, Resilient Retail Operations

The Growing Importance of IT in Retail Automation

In today’s retail landscape, automation is no longer a luxury but a necessity. Retailers are increasingly relying on automated systems to streamline operations, improve customer experience, and stay competitive. From inventory management and point-of-sale systems to supply chain logistics, automation requires robust IT infrastructure and vigilant cybersecurity measures to ensure uninterrupted service and data protection.

The modern retail environment incorporates a complex web of interconnected devices, applications, and cloud services. This complexity enhances operational efficiency but also introduces multiple points of vulnerability. According to a recent report, 73% of retail businesses experienced at least one IT-related disruption in the past year, impacting sales and customer satisfaction. Such disruptions underscore the critical role of managed IT services in maintaining seamless retail operations.

However, as retailers adopt more interconnected technologies, they also face rising risks from cyber threats and system failures. The challenge is to build an automated retail environment that is not only efficient but also resilient. This resilience depends on continuous monitoring, rapid incident response, and proactive risk management-elements best delivered by specialized managed IT and cybersecurity services.

Partnering with Experts for Seamless IT Management

One effective approach for retailers is to collaborate with specialized IT firms that understand the nuances of retail technology. For example, Gravity, a professional IT firm offers comprehensive managed IT solutions tailored for the complexities of retail operations. Their expertise helps businesses implement scalable networks, integrate automation tools, and maintain secure cloud environments-all critical components for a resilient retail infrastructure.

Outsourcing IT management to such professionals enables retailers to focus on their core competencies while ensuring their technology backbone is reliable and up-to-date. This partnership also provides proactive monitoring and quick incident response, reducing downtime and mitigating risks before they escalate.

Moreover, managed IT providers assist with integrating emerging technologies such as AI-driven inventory forecasting and IoT-enabled supply chain tracking. These advanced tools increase operational efficiency but require sophisticated IT management to function securely and effectively. By leveraging expert IT partners, retailers can accelerate digital transformation while minimizing the risks associated with technology adoption.

The Critical Role of Cybersecurity in Retail

With the surge in digital transactions and customer data collection, cybersecurity has become a top priority for retailers. Cyberattacks targeting the retail sector increased by 44% in 2023 compared to the previous year, underscoring the urgent need for vigilant defenses. Retailers must safeguard sensitive customer information, payment details, and proprietary business data against constantly evolving threats.

Retailers located in major hubs such as Boston benefit from specialized local cybersecurity expertise. Companies offering cybersecurity in Boston provide tailored strategies that address region-specific threats and regulatory requirements. Their services include vulnerability assessments, employee training, and implementation of advanced security technologies designed to protect retail environments from breaches and ransomware attacks.

Retail cybersecurity strategies now extend beyond traditional firewalls and antivirus software. They incorporate multi-factor authentication, endpoint detection and response (EDR), and zero-trust network architectures. These measures are essential to protect against increasingly sophisticated threats such as phishing campaigns and supply chain attacks targeting retail vendors.

Building Resilience Through Integrated IT and Security Strategies

The integration of managed IT and cybersecurity is fundamental to achieving resilience in automated retail operations. Resilience means more than just preventing cyberattacks; it involves the ability to quickly recover from disruptions, maintain service availability, and protect business reputation.

Industry reports indicate that 60% of small and medium-sized retailers who suffer a significant cyber incident close within six months. This stark statistic highlights the importance of comprehensive IT and security planning. Managed IT providers work closely with cybersecurity experts to design systems that not only defend against attacks but also ensure operational redundancy and disaster recovery capabilities.

For instance, implementing automated failover systems enables retail operations to continue seamlessly even if primary servers or networks experience outages. Backup solutions and regular disaster recovery drills ensure that data integrity is maintained and services are restored rapidly. In addition, continuous risk assessments help identify emerging vulnerabilities, allowing retailers to adapt their defenses proactively.

Combining proactive IT management with robust cybersecurity protocols creates a holistic defense posture. Such integration reduces the likelihood of costly downtime, protects customer trust, and enhances overall business continuity.

Enhancing Customer Trust and Compliance

Beyond operational continuity, robust IT and cybersecurity practices enhance customer trust—a critical factor in retail success. Consumers today are more aware of data privacy issues and expect retailers to protect their personal information diligently. Retailers that demonstrate compliance with data protection regulations such as GDPR or CCPA differentiate themselves in the marketplace.

Managed IT services often include compliance support, helping retailers navigate complex legal frameworks and implement necessary controls. Cybersecurity firms provide ongoing audits and updates to maintain compliance, reducing the risk of costly fines and reputational damage.

A 2023 survey found that 82% of consumers are more likely to shop with retailers that demonstrate strong data protection measures. This statistic emphasizes that cybersecurity investments are not just about risk mitigation but also about building long-term customer loyalty.

Additionally, compliance with industry standards such as the Payment Card Industry Data Security Standard (PCI DSS) is crucial for retailers processing credit card transactions. Failure to comply can lead to severe penalties and loss of customer confidence. Managed IT and cybersecurity providers help ensure that retailers meet these requirements through regular system audits and security enhancements.

Future Trends in Retail IT and Cybersecurity

Looking ahead, the retail sector will continue to evolve with advancements in artificial intelligence, Internet of Things (IoT), and edge computing. These technologies promise greater automation and personalization but also introduce new vulnerabilities. Retailers must anticipate these changes and invest in adaptive IT and security solutions.

For example, IoT devices used in smart shelves or automated checkout systems increase operational efficiency but expand the attack surface for cybercriminals. Edge computing enables faster data processing at store locations but requires decentralized security measures. Retailers need managed IT partners who can architect secure, scalable infrastructures that incorporate these innovations safely.

Managed IT partners will play a crucial role in guiding retailers through this transformation, ensuring that infrastructure upgrades align with security best practices. Cybersecurity providers will increasingly leverage AI-driven threat detection and response tools to keep pace with sophisticated cybercriminal tactics. According to Gartner, by 2025, 70% of enterprises will use AI-based security solutions to enhance threat detection capabilities.

Preparing for these trends requires ongoing investment in workforce training, technology updates, and strategic partnerships. Retailers that proactively embrace innovation while maintaining robust security postures will be best positioned to thrive in the evolving marketplace.

Conclusion

Automated retail operations represent the future of commerce, offering efficiency and enhanced customer experiences. However, the complexity and interconnectedness of these systems demand expert management and strong cybersecurity to build resilience against disruptions. Retailers who invest in professional managed IT and cybersecurity services will not only protect their operations but also gain a competitive edge through increased reliability and customer confidence.

In a rapidly changing retail environment, partnering with experienced providers is a strategic move to ensure your retail business thrives securely and sustainably. Leveraging specialized regional expertise further strengthens your security posture and operational resilience. With the right technology partners, retailers can confidently navigate digital transformation, safeguard critical assets, and deliver exceptional service in an increasingly automated world.

IT Support and Managed IT Powering Retail Digital Transformation

The Digital Shift in Retail

The retail industry has undergone a profound transformation over the past decade, driven by the rapid adoption of digital technologies. What was once a predominantly brick-and-mortar sector has evolved into a complex ecosystem where e-commerce platforms, artificial intelligence (AI), data analytics, and cloud computing play pivotal roles. This digital shift is no longer optional; it has become essential for retailers who want to remain competitive and meet the ever-changing expectations of modern consumers.

Retailers today face a multifaceted challenge: they must deliver seamless, personalized customer experiences while optimizing operational efficiency and managing increasingly complex supply chains. Achieving this requires a robust IT infrastructure that supports innovation, agility, and security at every level of the business. However, building and maintaining such an infrastructure is no small feat, especially given the fast pace of technological change and the growing threat landscape.

In this context, IT support and managed IT services have emerged as critical enablers of retail digital transformation. These services allow retailers to implement cutting-edge technologies while ensuring system stability, security, and scalability. Companies that invest in professional IT support and managed services are better equipped to respond quickly to market shifts, reduce downtime, and enhance the overall customer experience.

One of the key advantages of leveraging remote support by 7tech is the ability for retailers to access expert assistance around the clock, ensuring that technical issues are resolved promptly and without disrupting business operations. This kind of IT support is essential in a retail environment where any downtime can lead to lost sales and diminished customer satisfaction. Moreover, managed IT providers often bring industry-specific knowledge, enabling them to tailor solutions that address the unique challenges faced by retailers.

Furthermore, retailers that opt to navigate Contigo’s services benefit from a comprehensive suite of IT services designed to proactively monitor systems, anticipate potential issues, and implement strategic improvements. This proactive approach not only reduces the risk of outages but also helps retailers optimize their IT investments by aligning technology initiatives with broader business objectives. As a result, managed IT services serve as a strategic partner in digital transformation, rather than just a reactive support function.

The Role of Managed IT Services in Retail

Managed IT services offer retailers a comprehensive and proactive approach to managing their technology environments. Instead of relying solely on internal IT teams, which may be stretched thin or lack specialized expertise, retailers partner with external providers who deliver a broad range of services. These include network management, cybersecurity, cloud infrastructure, data backup, and help desk support.

For example, retailers leveraging remote IT support can benefit from around-the-clock expertise that quickly addresses technical issues without the need for costly on-site interventions. This remote support model not only minimizes downtime but also helps control operational expenses-a crucial advantage in the highly competitive retail sector where margins can be tight.

Moreover, organizations that choose to engage managed IT services gain access to tailored IT solutions specifically designed to meet retail’s unique challenges. These managed services often encompass proactive system monitoring, rapid incident response, and strategic IT consulting. This partnership approach enables retailers to future-proof their technology investments, improve operational resilience, and focus on core business growth rather than firefighting IT problems.

The importance of managed IT services is underscored by industry data showing that 63% of retail businesses plan to increase their investment in managed IT solutions over the next two years to support digital initiatives. This trend reflects a growing recognition that expert IT management is foundational to successful digital transformation.

Improving Customer Experience Through Technology

Enhancing the customer experience is a primary driver behind retail digital transformation. Today’s consumers expect personalized, seamless interactions across multiple channels-whether shopping in-store, online, or via mobile devices. Technologies such as mobile apps, AI-powered chatbots, personalized marketing platforms, and omnichannel retailing depend on reliable and secure IT systems to deliver consistent and engaging experiences.

Managed IT services play a vital role in supporting these customer-facing technologies by ensuring the underlying infrastructure is robust and scalable. They help retailers deploy and maintain applications that provide real-time inventory visibility, personalized promotions, and frictionless checkout options. Additionally, managed IT providers implement advanced cybersecurity measures to protect sensitive customer data, which is critical for maintaining trust and complying with data privacy regulations such as GDPR and CCPA.

Statistics highlight the commercial value of investing in customer experience technology: 86% of buyers are willing to pay more for a better customer experience. Furthermore, retailers that deliver a consistent omnichannel experience retain 89% of their customers, compared to just 33% retention for retailers with weak omnichannel capabilities. These figures demonstrate that technology-enabled customer engagement directly correlates with increased loyalty and revenue growth.

By partnering with managed IT providers, retailers can ensure that their digital tools are always up-to-date, performant, and secure, enabling them to meet customer expectations and differentiate themselves in a crowded marketplace.

Enhancing Operational Efficiency and Agility

While customer experience often takes center stage, digital transformation also profoundly impacts back-end operations. Retailers must optimize inventory management, streamline supply chain logistics, and efficiently schedule workforce resources to stay competitive. Integrated IT solutions supported by managed services enable automation, real-time data analytics, and improved decision-making across these critical functions.

For example, cloud-based platforms supported by managed IT providers allow retailers to scale IT resources dynamically based on demand. This flexibility is especially valuable during peak shopping seasons or unexpected market disruptions, enabling businesses to maintain service levels without over-investing in permanent infrastructure. In fact, research indicates that 70% of retail businesses experience increased operational efficiency after adopting managed IT services.

Managed IT also plays a crucial role in risk mitigation. Through continuous monitoring and rapid incident response, IT providers help prevent costly system outages and data breaches, which can damage a retailer’s reputation and result in significant financial losses. By maintaining high system availability and security, managed IT services ensure that retailers can deliver consistent service and protect both business and customer data.

Furthermore, the integration of Internet of Things (IoT) devices in retail environments-such as smart shelves, RFID tracking, and connected point-of-sale systems-relies heavily on expert IT management. Managed IT providers facilitate the deployment and maintenance of these technologies, helping retailers gain granular visibility into operations and enhance supply chain efficiency.

IoT adoption in retail is on the rise, with projections estimating that by 2025, over 75 billion connected devices will be in use worldwide, many of which will be employed in retail settings to improve inventory accuracy and customer insights. This surge in connected technologies underscores the importance of reliable IT support to manage and secure these complex networks.

Future-Proofing Retail Through IT Innovation

The future of retail will be shaped by continuous technological innovation. Emerging technologies like artificial intelligence, machine learning, augmented reality, and IoT are transforming how retailers interact with customers and optimize operations. Successfully integrating these advancements requires sophisticated IT infrastructure and specialized expertise.

Managed IT providers are uniquely positioned to help retailers navigate this evolving landscape. They offer strategic IT consulting services that guide technology adoption aligned with business goals. Moreover, as retail shifts toward hybrid work models and decentralized operations, managed IT services ensure seamless and secure remote support for employees in stores, warehouses, and home offices.

Remote assistance capabilities have become increasingly important, especially in the wake of the COVID-19 pandemic, which accelerated the need for flexible work arrangements. Providers that deliver robust remote IT support enable retail teams to stay connected and productive regardless of location.

Additionally, managed IT services help retailers maintain compliance with evolving cybersecurity standards and data protection laws, safeguarding their operations against emerging threats. This proactive approach to IT management enables retailers to embrace innovation confidently, minimize risks, and sustain competitive advantage.

The increasing sophistication of cyber threats targeting retail businesses further emphasizes the need for expert IT support. According to a recent report, 43% of cyberattacks in the retail sector target point-of-sale systems and payment processing infrastructure. Managed IT providers help mitigate these risks through continuous security monitoring, threat detection, and rapid incident response.

Conclusion

The retail industry’s digital transformation journey is complex and ongoing. IT support and managed IT services are foundational elements that power this transformation, enabling retailers to adopt new technologies, enhance customer experiences, streamline operations, and innovate securely. By partnering with expert IT providers, retailers can reduce downtime, improve agility, and focus on delivering value to customers.

As competition intensifies and technology continues to evolve, the retailers that invest strategically in managed IT services will be best positioned to thrive. These partnerships not only support day-to-day operations but also provide the guidance and infrastructure needed to future-proof retail businesses in an increasingly digital world.

In summary, the integration of IT support and managed IT services into retail operations is no longer a luxury but a necessity. Retailers embracing these services can expect enhanced performance, greater resilience, and a stronger competitive advantage in the digital marketplace. With technology continuing to reshape consumer expectations and operational paradigms, managed IT services will remain at the heart of retail innovation and success.

METRO to Convert 10 Ontario Stores to Food Basics

Food Basics at 340 Queen St. in downtown Ottawa. Photo: Food Basics

METRO Inc. is accelerating the expansion of its Food Basics discount banner in Ontario, with plans to convert 10 existing Metro supermarkets as consumers continue to prioritize value and the company adjusts its store network market by market.

The conversions will take place across Ontario, including locations in the Greater Toronto Area, Ottawa and elsewhere in the province. Two have so far been identified: Metro Southgate in Ottawa and the Metro at 20 Church Avenue near Yonge and Finch in Toronto. METRO has not disclosed the remaining eight locations, saying stores and employees will be informed progressively as the program is rolled out.

The company is also planning to permanently close one additional, as-yet-unidentified Ontario store and a satellite warehouse as part of a broader network restructuring. METRO said the changes are intended to address customers’ continued search for value and strengthen its competitive position in targeted markets.

The moves come as discount grocery continues to capture more consumer spending. On METRO’s third-quarter earnings call Wednesday, Chief Operating Officer Marc Giroux said shopping patterns remain similar to recent quarters, with consumers purchasing proportionately more private-label products, participating in promotions and directing greater volume toward discount stores than conventional supermarkets.

“Consumers are focused on value,” Giroux told analysts, adding that METRO expects the trend to continue and is investing accordingly in what it considers the right store format for each market.

Food Basics Expected to Outperform Converted Metro Stores

METRO is positioning the 10 conversions as a targeted optimization of individual stores rather than a broad retreat from its conventional Metro banner.

President and CEO Eric La Flèche said the company continually evaluates its network and considers the most appropriate format for individual trade areas. For the 10 stores selected for conversion, management concluded that Food Basics provides a better fit for the markets they serve.

Eric La Flèche
Eric La Flèche

“If we’re deciding to convert a store, it’s because the store is not the right store for that market, and the store has not been performing as we would want to,” La Flèche told analysts.

METRO expects the conversions to increase sales and improve store contribution. Depending on the amount of construction required, an individual store could close for roughly two months during its transition, resulting in a temporary sales decline before reopening as Food Basics.

Once reopened, management expects the converted stores to generate higher sales than they did under the Metro banner, with further growth anticipated as the locations mature. The conversions are expected to begin improving store contribution in fiscal 2027, with benefits increasing over the following two years.

Toronto and Ottawa Stores Among First Conversions

The Metro at 20 Church Avenue in North York, near Yonge Street and Finch Avenue, is one of the stores slated to become Food Basics. METRO has confirmed the location as part of the 10-store program. The existing supermarket is scheduled to close August 13, with Food Basics expected to open at the site later in the fall.

METRO has also confirmed that Metro Southgate in Ottawa, at 2515 Bank Street, will be converted. La Flèche said during the earnings call that the Ottawa conversion is expected to open by the end of the current fiscal year.

The company has not identified the remaining eight stores. La Flèche said some locations had recently been advised or would be informed shortly, but METRO was withholding further details until affected employees had been notified. He said the conversions include stores in the GTA as well as other parts of Ontario.

The restructuring also has employment implications. METRO has not disclosed how many workers will ultimately be affected, but said employees at the Toronto and Ottawa stores have options under their respective collective agreements. Some employees will work at the incoming Food Basics stores, while others may pursue different options available under those agreements.

METRO recorded $25.7 million in restructuring expenses during the third quarter, primarily related to employee termination benefits, restoration and site-closure costs, and lease-related expenses. Those costs apply to the broader restructuring program, which includes the 10 conversions, the separate Ontario store closure, the satellite warehouse closure and changes to the company’s Montreal e-commerce operation.

Metro at 20 Church St. in Toronto. Image: CBRE

Food Basics Network Continues to Grow

The 10 conversions build on several years of expansion for METRO’s discount banners. Over the past three years, the company has added 31 discount locations through new stores and conversions, bringing Food Basics to 155 stores in Ontario and Super C to 121 in Quebec. Management said customers have responded well to the discount formats and that new and converted locations are generating encouraging sales results and returns.

METRO is also on track to open approximately a dozen new or converted discount stores during fiscal 2026. Five discount stores opened during the third quarter, including one conversion and one relocation.

The expansion extends a strategy already underway before the latest restructuring, with METRO directing more of its store investment toward discount formats as consumers emphasize price and value. The latest 10-store program adds another dimension by repositioning existing conventional supermarkets in markets where management believes Food Basics can generate stronger sales and returns.

Ontario Grocery Market Remains Highly Competitive

The shift is taking place against a highly competitive grocery backdrop in Ontario. La Flèche said METRO is pleased with its business in the province and is holding market share, while acknowledging continued competition for consumer spending.

Population growth has also slowed considerably while grocery square footage continues to expand. La Flèche said population growth is now “very small or flat,” adding to competitive conditions as retailers pursue growth in the market.

La Flèche rejected the suggestion that the 10 conversions were simply a reaction to competing discount stores opening nearby. He described the decisions as part of METRO’s ongoing review of individual markets and store performance.

“This was a good time to relook at the network as we were preparing the plans for next year,” La Flèche said. “For those 10 locations, we feel discount’s the way to go.”

Broader Network Changes Underway

The Ontario conversions are part of a wider effort by METRO to adjust its network and lower costs in areas where consumer behaviour has changed. In Quebec, the company will close its dedicated Montreal e-commerce fulfilment centre and shift to store-based picking supported by third-party delivery. METRO said growing demand for same-day grocery delivery makes the store network better suited to fulfil online orders while reducing the fixed costs associated with a dedicated facility.

The overall network optimization program is expected to generate approximately $15 million in recurring annual after-tax earnings by the end of fiscal 2028, with about half of the benefit expected by the end of fiscal 2027. Management said roughly half of the eventual improvement should come from increased contribution at the converted Food Basics stores and half from the lower-cost e-commerce fulfilment model.

METRO expects the Ontario restructuring to be completed by the end of fiscal 2027. For now, eight of the 10 Metro locations slated for conversion remain undisclosed, with the company planning to identify stores progressively as affected employees are informed.

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IKEA Canada to launch limited-edition KONSTRUNDA art collection

IKEA Canada photo
IKEA Canada photo

IKEA Canada is launching a limited-edition collection of 18 art objects created by seven artists, designers and creatives, with the products set to go on sale across the country and online Sept. 1.

The KONSTRUNDA collection brings together glass objects, ceramics, furniture and textiles, with IKEA positioning the range as an effort to make art more accessible through everyday home furnishings.

Collection brings together seven creators

IKEA said the contributors were invited to work independently from a blank canvas, creating pieces based on their individual perspectives. The collection’s name, KONSTRUNDA, means “Art Tour” and reflects what the company describes as a range of different artistic voices.

“Art should be available for all to enjoy, not a luxury reserved for galleries,” said Karin Gustavsson, Creative Leader for KONSTRUNDA. “Art evokes emotion, sparks conversation and helps transform a house into a home. With KONSTRUNDA, we wanted to create a collection that encourages people to express themselves and surround themselves with objects they love.”

The collection includes a handblown glass vessel, a stool designed as a sculptural piece and textiles intended to function as works of art. IKEA said the pieces feature bold forms, vibrant colours and expressive silhouettes, with each reflecting the individual creator’s approach.

The company said the collection is intended to allow customers to incorporate individual pieces into their homes or build collections of objects that have personal meaning.

IKEA emphasizes accessibility

Meghan Willisko, Head of Home Furnishing & Retail Design, said the collection is intended to make art more approachable through household objects.

“At IKEA, we know Canadians are always looking for ways to make their homes feel more personal and welcoming,” said Willisko. “What I love about KONSTRUNDA is its ability to make art more approachable through thoughtfully designed objects that inspire self-expression and creativity. By offering these pieces at affordable prices, we’re making it easier for the many Canadians to bring art into their everyday lives and create homes that truly reflect who they are.”

The company said its role in the collection is not to define or explain art, but to provide a platform for the participating creators while applying its experience in product development.

“At IKEA, we don’t claim to define or explain art. Instead, our role is to create space for it,” said Gustavsson. “We have extensive knowledge and experience in designing and developing products. We understand materials, proportions, colours, durability, and how to bring ideas to life. Through KONSTRUNDA, we can offer a platform for artists to create and an opportunity for people to collect art that reflects who they are in the home.”

Collection launches Sept. 1

KONSTRUNDA will be available in IKEA stores across Canada and online starting Sept. 1.

IKEA Canada is part of Ingka Group, which operates 574 IKEA stores in 31 countries. In Canada, the company operates 15 stores and 13 Plan and order points.

The company said IKEA Canada welcomed 33.3 million visitors to its stores last year and recorded 199.9 million visitors to IKEA.ca.

IKEA Canada was founded in 1943 in Sweden and operates under the company’s stated vision of creating a better everyday life for the many people.

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Morguard Advances Mall Redevelopments as Retail Leasing Strength Continues Across Canada

St. Laurent Centre in Ottawa. Image: morguardretailleasing.com

Morguard Real Estate Investment Trust is advancing a series of redevelopment projects across its Canadian shopping centre portfolio, bringing grocery stores, entertainment concepts and expanding national retailers into spaces formerly occupied by department stores and other large-format tenants.

The REIT reported improving retail occupancy and positive leasing momentum during the second quarter of 2026, with grocery-anchored community centres operating near capacity and enclosed malls continuing to post income growth despite the challenges created by Hudson’s Bay’s departure from several properties.

At St. Laurent Centre in Ottawa, a multi-year remerchandising program has already contributed to approximately 10 per cent increases in both foot traffic and sales productivity among smaller retailers, according to management. Additional projects are underway at malls in Saskatoon, Red Deer and Cambridge, Ontario, involving retailers and concepts including Uniqlo, Sport Chek, No Frills, Splitsville and Activate.

“We continue to believe that there are strong fundamentals in the retail leasing environment,” Andrew Tamlin, chief financial officer of Morguard REIT, said during the company’s second-quarter conference call.

The projects illustrate how Canadian shopping centre owners are moving beyond the traditional department store model, replacing large single-purpose anchors with a broader mix of fashion, grocery, sporting goods and entertainment operators designed to generate more frequent visits throughout the week.

Retail Occupancy Continues to Improve

Retail occupancy reached approximately 89.7 per cent at the end of June, up from 88 per cent at the close of 2025 and 60 basis points higher than the previous quarter.

Morguard reported occupancy of approximately 95 per cent across its community shopping centres and 87.8 per cent across its enclosed regional malls.

The REIT owns interests in 18 retail properties comprising approximately 4.3 million square feet. Its broader commercial portfolio, which also includes office and industrial assets, totals roughly eight million square feet across six provinces.

Community shopping centres generated same-asset net operating income growth of 5.9 per cent during the quarter, while enclosed regional malls recorded growth of 2.5 per cent.

Management described the community centre portfolio as effectively full, reflecting the stability of grocery stores, financial institutions and other daily-needs retailers that continue to generate consistent customer traffic.

The enclosed mall portfolio has required more active redevelopment, particularly where former department stores created significant vacancies. Even so, Morguard reported solid tenant sales, healthy traffic levels and positive leasing spreads secured throughout 2025 that continued to support retail performance this year.

St. Laurent Centre Becomes the Portfolio’s Showcase Redevelopment

St. Laurent Centre has emerged as Morguard’s flagship example of how strategic tenant remerchandising can strengthen an established regional shopping centre.

The Ottawa property is undergoing a multi-year transformation designed to introduce prominent national and international retailers while redeveloping former Sears and Hudson’s Bay space.

The first phase, completed in late 2025, created new or expanded premises for H&M, Sephora and La Vie en Rose through an investment of approximately $5.4 million.

Management said those additions have already produced measurable benefits. Foot traffic has increased by approximately 10 per cent, while sales productivity among smaller retailers has also risen by roughly 10 per cent, according to John Ginis, vice-president of retail asset management.

“Productivity of the shopping centre is up because foot traffic is up,” Ginis said. He added that sales among the mall’s smaller tenants had increased by a similar amount.

The next phase centres on approximately 84,000 square feet of former Sears space. Morguard has allocated approximately $23.3 million toward that redevelopment, including demolition of an obsolete parking structure connected to the former department store. The broader St. Laurent program is expected to involve between $25 million and $30 million in investment.

A 12,600-square-foot Uniqlo store is expected to open in early 2027. Sport Chek will relocate into a new-format store within the redeveloped area, while Splitsville will introduce a new entertainment destination. The larger redevelopment is expected to continue into 2028.

Rather than replacing one traditional anchor with another, the project assembles several complementary uses that can attract customers for different reasons and at different times of the week.

Laurent Shopping Centre Atrium 2025. Image: Canmenwalker on commons.wikimedia.org

Hudson’s Bay Leaves Different Challenges at Different Properties

Hudson’s Bay previously occupied approximately 290,000 square feet across St. Laurent Centre and Cambridge Centre, generating roughly $1.5 million in annualized gross rent for Morguard REIT before the leases were terminated through the retailer’s creditor-protection proceedings.

The Cambridge Centre lease was disclaimed in June 2025. The St. Laurent lease remained part of Hudson’s Bay’s lease monetization process for several additional months and was included among the locations proposed for transfer to a new department store venture led by B.C. businesswoman Ruby Liu. The court rejected that transaction in October 2025, and the St. Laurent lease was disclaimed the following month.

The closures immediately affected occupancy and rental income, but they also created opportunities to rethink how large department store boxes function within modern shopping centres.

Urban Behaviour Provides an Interim Solution at St. Laurent

One of Morguard’s earliest responses was relocating Urban Behaviour into part of the former Hudson’s Bay premises at St. Laurent Centre. The retailer opened in the lower level of the former department store in May 2026, allowing Morguard to reactivate part of the space while broader redevelopment plans continue.

Management said Urban Behaviour has been performing exceptionally well at the property.

The move demonstrates how landlords can use existing successful tenants to restore activity while planning longer-term redevelopment requiring larger capital investments.

Cambridge Centre. Image: Morguard

Grocery Continues Expanding Into Canadian Malls

Morguard is also strengthening its enclosed malls by introducing grocery anchors.

A No Frills opened at Parkland Mall in Red Deer during late 2025 following a redevelopment costing approximately $1.6 million. The project transformed previously vacant space into more than 22,000 square feet of income-producing retail.

Another No Frills is under construction at The Centre in Saskatoon within former Target space. The approximately 30,000-square-foot store is expected to open during the second quarter of 2027 following an investment of approximately $4.7 million.

Management expects both stores to become significant traffic generators.

The projects reflect a broader trend across Canadian shopping centres, where grocery retailers are increasingly replacing large-format vacancies and creating dependable weekly visitation that benefits neighbouring merchants.

Entertainment Continues Expanding Within Regional Shopping Centres

Entertainment has become another important component of Morguard’s redevelopment strategy.

Alongside Splitsville at St. Laurent Centre, the REIT is converting approximately 11,000 square feet of former cinema space at The Centre in Saskatoon for Activate. The project is expected to cost approximately $2.2 million and be completed during the second quarter of 2027.

Entertainment operators can often occupy spaces that are difficult to divide among conventional retailers while extending customer visits into evenings and weekends, supporting restaurants and other nearby businesses.

Cambridge Centre Remains a Work in Progress

Redevelopment of the former Hudson’s Bay premises at Cambridge Centre remains under negotiation. Management said it is working toward a transaction involving at least the lower level of the former department store, although no binding agreement had been finalized at the time of the conference call.

The REIT has removed approximately 65,700 square feet from its active leasable area while redevelopment options are evaluated. As a result, improvements in reported occupancy should not be interpreted as a complete replacement of the former Hudson’s Bay space.

The contrast between Cambridge Centre and St. Laurent demonstrates that no single formula exists for redeveloping former department store properties. Layout, access, construction requirements and local market demand all influence the eventual solution.

Canadian Shopping Centres Continue to Evolve

Morguard’s redevelopment program reflects broader changes taking place across Canada’s shopping centre industry. Rather than relying on a single department store to anchor an entire property, landlords are increasingly assembling a mix of grocery, fashion, sporting goods, beauty and entertainment tenants that create multiple reasons for customers to visit.

At St. Laurent, that strategy now includes Uniqlo, Sport Chek, Splitsville, H&M, Sephora and Urban Behaviour. In Red Deer and Saskatoon, No Frills is introducing regular grocery traffic, while Activate adds another destination beyond traditional retail shopping.

The early results at St. Laurent suggest the approach is gaining traction. Higher foot traffic and stronger sales among smaller retailers indicate that investment in anchor spaces can strengthen performance across an entire shopping centre.

Morguard expects retail performance to remain stable through the balance of 2026 as redevelopment projects continue.

While work remains to replace former Hudson’s Bay space at several properties, the REIT’s recent leasing activity suggests well-located Canadian shopping centres continue to attract investment from retailers prepared to expand their physical presence.

As department stores continue to disappear from the retail landscape, Morguard’s strategy points toward a different model for Canada’s regional malls — one built around a diverse mix of destinations rather than a single dominant anchor.

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Pet Valu Sees Room for 1,200+ Stores Across Canada

Pet Valu on Front Street in Toronto (Image: Dustin Fuhs)

Pet Valu continues to see room for more than 1,200 stores across Canada as the specialty pet retailer expands into Alberta, Quebec and smaller communities where management believes additional market opportunities remain.

The company ended its second quarter with 877 locations after opening seven stores during the period and 15 in the first half of 2026. Recent openings have performed well, according to management, with rural markets that have little or no specialty-pet competition among the areas identified for further growth.

The 1,200-plus figure is a long-standing estimate of Pet Valu’s potential Canadian footprint rather than a new target. The retailer had 633 stores at the end of 2021 and has since added more than 240 locations as it continues to build out its national network. Stifel analyst Martin Landry expects the expansion to continue at about 40 net new stores annually, forecasting approximately 903 locations by the end of 2026 and 943 in 2027, compared with 783 stores in 2023, 824 in 2024 and 863 at the end of 2025.

Rural Markets Offer Room for Growth

Smaller Canadian communities are becoming an increasingly important part of Pet Valu’s expansion strategy. CEO Greg Ramier said the company is focusing new-store investment on growth pockets across Canada, including Alberta, Quebec and rural communities, with stores opened during the past year producing good starts and satisfactory return profiles.

Management highlighted rural locations where Pet Valu can enter communities without an existing specialty-pet competitor. The strategy fits the retailer’s neighbourhood-oriented format and its emphasis on recurring purchases such as pet food and other consumables, allowing it to operate in smaller trade areas that may have limited specialty retail competition.

Ramier also said Pet Valu continues to find opportunities to fill market gaps while some competitors have paused expansion. The company takes a long view when selecting locations, with management describing a new store as a commitment of 10 years or more that is expected to operate through a full economic cycle.

Alberta and Quebec Among Expansion Priorities

Alberta and Quebec were specifically identified by management as markets where Pet Valu continues to see growth opportunities. Quebec has become a larger part of the network following Pet Valu’s acquisition of Chico, and the company is increasingly extending programs developed across the broader Pet Valu system to the Quebec banner, including its Item of the Month and Treat of the Month initiatives.

Pet Valu also completed its first corporate-store resales under the Chico banner during the second quarter. Quebec remains a competitive specialty-pet market, including a substantial presence from Mondou, which has grown beyond 100 locations in the province, leaving Pet Valu to pursue further growth through Chico while competing with established regional operators.

Franchise Model Supports Continued Growth

Franchising remains central to Pet Valu’s network strategy. About 71% of its 877 stores were franchised at the end of the second quarter, with that proportion increasing slightly as the company continued transferring selected corporate locations to franchise operators.

Pet Valu sold 11 corporate stores during the quarter, tying a company record, with locations acquired by both new and existing franchisees. Management said there remains a strong pipeline of franchisees interested in established stores where they can begin operating with an existing customer base and sales history.

The practice dates to Pet Valu’s move into franchising in the late 1980s and is expected to continue. With more than 250 corporate locations, management said the company typically has a subset of stores available for resale, providing another mechanism for increasing franchise penetration as the overall network grows.

Store Growth Continues Despite Softer Traffic

Pet Valu is continuing to add locations despite relatively subdued comparable-store performance. Same-store sales declined 0.2% in the second quarter, with Stifel estimating that a 1.2% increase in basket size was more than offset by a 1.4% decline in traffic as consumers consolidated shopping trips amid higher fuel costs.

The company nevertheless continues to report satisfactory returns from newly opened stores and is maintaining its expansion plans. Management has also said its 2026 outlook does not depend on a material improvement in the current consumer environment, leaving new-store development as an important source of growth while comparable sales remain close to flat.

Pet Valu Continues to Gain Market Share

Pet Valu says it continued gaining market share during the second quarter, supported by its expanding store network and growth across physical and digital channels. Management estimates that specialty retailers account for roughly half of the Canadian pet market and said there has been little movement between specialty and mass-market channels, with Pet Valu continuing to consolidate share within specialty retail.

Stifel estimates Pet Valu holds about 18% of the Canadian pet market, approximately three percentage points ahead of its next competitor. Landry also sees the possibility of difficult operating conditions putting pressure on some single-location pet retailers, potentially creating additional market-share opportunities for larger operators such as Pet Valu.

Pet Valu’s scale is also helping it manage costs as the network expands. The company has been working with specialty and national brands to mitigate rising product and fuel expenses, while investments in its distribution network have generated cost efficiencies for four consecutive quarters.

Store Network Supports Digital Growth

The physical network is also supporting Pet Valu’s digital business, which management says continues to grow faster than the broader industry’s online channel. Click & Collect and delivery platforms benefit from the reach of the store base, while the AutoShip subscription service continues to increase both in absolute dollars and as a proportion of digital sales.

Pet Valu does not disclose digital sales as a percentage of total revenue, but management has repeatedly linked the performance of its online business to the reach of its physical network. That gives the company another reason to increase store density, with locations supporting recurring in-store purchases as well as digital fulfilment and pickup.

At 877 stores, Pet Valu would need more than 300 additional locations to reach the 1,200-plus network size management believes Canada can ultimately support. The current pace of about 40 new stores annually points to a multi-year expansion, with smaller communities and further development in markets including Alberta and Quebec expected to account for part of that remaining growth.

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Pajar Acquires GGB as North American Expansion Accelerates

Melissa Footwear. Photo: shopmelissacanada.com

Montreal-based Pajar Canada has acquired Grendene Global Brands USA (GGB), expanding the Canadian company’s U.S. operations and giving it responsibility for the distribution and commercial management of Melissa and Mini Melissa in the United States.

Grendene had disclosed in March that it signed a non-binding letter of intent for the potential sale of the U.S. subsidiary to Pajar. The completed transaction gives Pajar an established U.S. operation for Melissa and Mini Melissa as the Montreal company continues to expand its North American footwear business.

The acquisition follows several years of expansion for Pajar, including its acquisition of Canadian footwear brand Cougar and a growing number of third-party distribution relationships. It also advances an effort to reduce the seasonality of a business historically centred on cold-weather footwear.

“We’ve always been looking to equalize our business from fall to spring,” Pajar President Michel Golbert told Retail Insider. “About 90 per cent of our business was fall, and we were looking for something that could complement Pajar and then Cougar.”

Michel Golbert, left, with father Jacques Golbert.

Canadian Success Led to U.S. Expansion

Pajar began distributing Melissa in Canada in 2025 as part of an expanded relationship with Grendene. The agreement, announced in June 2025, brought Melissa into Pajar’s Canadian sales network while Pajar also took on broader North American distribution responsibilities for several Grendene brands.

Golbert said the Canadian business performed well, helping lead to discussions with Grendene about expanding the relationship into the United States.

“We were very successful with everything, and we started talking to Brazil about possibly taking over the U.S.,” Golbert said. “One thing led to another, and we signed the deal.”

The agreement went beyond an expanded distribution contract. Pajar acquired the existing GGB operation, including its U.S. warehouse, and Golbert said most of its employees have joined Pajar to continue operating the business.

Pajar will now oversee U.S. distribution and commercial management for Melissa and Mini Melissa while continuing to oversee Ipanema distribution in North America. The company said the brands strengthen its spring and summer business and complement its longstanding position in premium winter footwear and outerwear.

Pajar’s acquisition of Cougar in 2024 was another step in that diversification, with the company using its distribution network to expand the Canadian footwear brand into additional markets.

Existing GGB Operations Remain in Place

Pajar deliberately acquired GGB rather than establishing a new U.S. company to handle the Melissa business. Golbert said retaining the existing organization allowed Pajar to preserve its employees, customer integrations, warehousing and ERP systems while minimizing disruption for retailers.

“There aren’t going to be many changes,” Golbert said. “We’ve been able to bring their staff in the U.S. on board, so it’s going to be pretty much business as usual.”

Golbert said acquiring the company itself was important because its infrastructure and customer relationships were already in place.

“We did it on purpose. We bought the actual company rather than starting a new company because all the integrations were already in place with the customers, along with the warehousing and ERP system,” he said. “We can start from day one, ship and continue doing everything they were doing without losing that momentum.”

Grendene had outlined some of the rationale for the transaction when negotiations were disclosed in March. The Brazilian manufacturer said the potential sale was consistent with a strategy to strengthen its U.S. presence through a local partner while improving operating efficiency and profitability and reducing direct exposure to international operations.

For Pajar, the acquisition provides an established U.S. organization through which to grow Melissa without having to recreate the distribution infrastructure.

Photo: Pajar Canada

Melissa Growth Creates U.S. Opportunity

Founded in Brazil in 1971, Grendene is one of the world’s largest footwear manufacturers. Its portfolio includes Melissa, Mini Melissa and Ipanema, among other brands, with products sold in more than 100 countries.

Melissa has developed an international following around its moulded footwear, distinctive designs and fashion collaborations. Golbert said the broader jelly footwear category has been performing particularly well over the past year and a half, particularly in the U.S.

“The whole jelly category is on fire right now,” Golbert said. “Over the past year and a half, that category has been doing very well, especially in the U.S.

Golbert described Melissa as Grendene’s higher-end jelly footwear brand and a key part of the Brazilian company’s international portfolio. In Canada, he said Melissa is carried by retailers including Browns and Holt Renfrew, while U.S. accounts include Bloomingdale’s, Nordstrom and Kith.

Pajar intends to expand both the wholesale and direct-to-consumer sides of Melissa and Mini Melissa in the U.S. The company said it plans to invest in the B2B and B2C businesses while maintaining the creativity and brand identity that have helped Melissa build its international following.

Image from the Pajar Canada website

Pajar Adds More Brands in Canada

Pajar has also recently expanded its Canadian distribution business as consolidation continues within the footwear sector.

Golbert told Retail Insider that Pajar has taken over Canadian distribution for Merrell Kids, Saucony Kids, Stride Rite and Kenneth Cole Women’s following the closure of longtime Canadian footwear distributor Indeka.

“We’ve taken over the distribution rights in Canada for those brands,” Golbert said.

Indeka, founded in 1972, represented a portfolio of footwear brands in Canada that included the four businesses Golbert identified as moving to Pajar. The additions broaden Pajar’s distribution activities across multiple footwear categories and selling seasons.

Golbert was cautious when asked whether Pajar could pursue further acquisitions after GGB.

“It’s a bit too soon to talk about that,” he said.

Footwear Industry Continues to Consolidate

Golbert spoke with Retail Insider from the floor of AFA Canada’s United in Style Spring/Summer 2027 trade show at the Toronto Congress Centre. The event brings together footwear, apparel and accessory brands with retailers, buyers and other industry participants from across Canada.

The setting provided a real-time view of an industry Golbert said is consolidating among both retailers and wholesalers.

“It’s not great for wholesalers like ourselves because obviously we’re losing stores every year,” Golbert said, pointing to the loss of major retail channels in Canada. He said surviving footwear retailers, including Browns and SoftMoc, have been positioned to capture some of the business left behind.

“Whoever is still standing is doing well,” he said. “People like Browns or SoftMoc are taking advantage of some of the mishaps from everybody else.”

Golbert sees similar consolidation among suppliers and distributors. From the United in Style show floor, he observed that the event appeared smaller than the previous edition six months earlier.

“There are fewer wholesalers as well,” Golbert said. “The show is much smaller than it was six months ago. Either there are fewer brands, people aren’t spending as much, or there are other factors, but it’s consolidating. There are fewer players.”

Pajar has been able to find opportunities within that changing market, including its additional Canadian distribution relationships and the GGB acquisition.

“For people like ourselves, we’re lucky that we’ve been able to capitalize on things like that,” Golbert said. “But I can see how it could be complicated for others.”

Despite the reduction in industry participants, Golbert remains positive about consumer demand.

“In general, the shoe business is still very strong,” he said. “We have good brands, and people are still interested in buying boots and shoes.”

More Than Six Decades in Montreal

Pajar was founded in Montreal in 1963 by Paul Golbert, whose family had a background in European shoemaking. The Pajar name was formed from the names Paul, Jacques and Rachel, and the company established its Montreal footwear factory in 1973.

The company remains family-run, with Jacques Golbert serving as CEO, Michel Golbert as President and David Golbert as Vice President. Pajar describes itself as a fifth-generation family footwear business and has said that its shared family-business culture with Grendene contributed to the relationship between the companies.

Manufacturing remains part of Pajar’s Montreal operation.

“We still produce in Montreal,” Golbert said. “We have our small factory, which produces our high-end Montreal | 1963 collection. We produce the rest of our boots in Europe and Asia, and then we distribute brands like Ipanema and Melissa from Brazil.”

Pajar distributes Cougar directly in the U.S. and works with a distributor for the brand in Canada. Cougar is also gradually expanding into Europe, following an international growth strategy Pajar has used for its namesake brand.

The GGB acquisition adds an established U.S. operation and a larger spring and summer footwear business to Pajar’s growing mix of owned brands and distribution relationships.

For Melissa, Golbert said the immediate focus is straightforward.

“Our goal is to continue selling, continue growing and maintain the momentum we’re having,” he said. “Then we’ll see where these opportunities bring us.”

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