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Calgary AI Startup StoriBot Targets Retail With ‘Narrative Intelligence’ Platform

By
Craig Patterson
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Storibot.ai founder Michael Harris with Joe Colangelo, left and Nathalia Servetnyk, centre. Image supplied

Generative artificial intelligence has made it easier and cheaper for retailers to produce marketing copy, emails, social media posts and other customer communications. Calgary-based technology startup StoriBot.ai is betting that the next challenge will be determining whether all that content is actually connecting with customers.

The company operates a platform built around what it calls Narrative Intelligence™, a proprietary term StoriBot uses for its approach to analyzing the stories businesses are telling customers, identifying gaps and creating communications that remain consistent across different channels and stages of the customer relationship.

Founder and CEO Michael Harris argues that the proliferation of generative AI is creating an abundance of content without necessarily improving the effectiveness of business communications.

“Businesses already produce enormous amounts of content, but much of it is generic, disconnected and quickly forgotten,” Harris told Retail Insider. “StoriBot helps organizations understand the story they are currently telling, identify what is missing and create communications that connect more meaningfully with customers.”

Retail is emerging as one of the company’s areas of focus, particularly automotive dealerships and, increasingly, grocery and consumer packaged goods. StoriBot is already generating contracted enterprise revenue and has secured outside investment, although its retail strategy—particularly automotive—is still at an earlier stage of deployment.

Michael Harris

Moving Beyond AI Content Generation

StoriBot began development in Calgary in 2024. Harris brings roughly three decades of experience in media, entertainment and brand storytelling to the venture and has also participated in the Founder Institute startup program.

Rather than positioning StoriBot as another AI writing tool, Harris describes it as a system for bringing greater structure to an organization’s communications. Businesses can provide existing content, company information and other material, which the platform analyzes using storytelling frameworks and brand context before producing material for different formats and channels.

The broader proposition is to measure how those communications perform and use the results to inform subsequent activity. Harris argues that general-purpose AI can create individual pieces of content, while StoriBot is intended to provide an additional layer of intelligence, governance and measurement connecting those communications to a company’s broader narrative, customer journey and business objectives.

“ChatGPT can give someone an answer,” Harris said. “StoriBot is designed to help an organization build, govern, distribute and continually improve a consistent narrative across its operations.”

The platform is designed to work alongside technology businesses already use. Harris said its roadmap includes additional connections with systems such as HubSpot and Salesforce, while integrations with specialized retail and dealership systems would depend on the technology, security and privacy requirements of individual organizations.

Automotive Becomes an Early Retail Focus

Automotive is currently StoriBot’s most developed retail use-case vertical, based on the maturity of its applications, market development and pipeline. The company is also pursuing opportunities in grocery and CPG, multi-location businesses, hospitality and service-oriented retail.

The automotive sector presents an opportunity because the relationship between a dealership and customer can extend well beyond an initial vehicle inquiry. Communications can continue through shopping, financing and delivery, and later into maintenance, service, retention and eventually another vehicle purchase.

StoriBot’s automotive applications are designed to support those interactions. Potential uses include vehicle and inventory marketing, personalized lead follow-up, CRM-based communications, email and text campaigns, social media and advertising, sales materials and service-retention programs. Harris sees an opportunity to connect those activities instead of treating each interaction as a separate marketing exercise.

A dealership could provide StoriBot with inventory information, brand standards, current offers, customer profiles, CRM stages, reviews and previous marketing campaigns. The system could then identify gaps in how vehicles or the dealership are being presented.

One example would be marketing a vehicle almost exclusively around specifications and price without addressing how it fits a particular customer’s needs or priorities. The platform could use that information to produce vehicle stories, salesperson follow-ups, emails, advertising concepts and social content adapted for different channels.

Harris ultimately wants those communications assessed against business measures including response rates, appointments, qualified leads, conversion, gross profit, service retention and referrals.

Joe Colangelo

Grocery and CPG Offer Another Retail Opportunity

Grocery and consumer packaged goods represent another potential market because retailers in the sector already possess large amounts of customer and transactional information.

Loyalty programs can give grocers insight into purchasing behaviour, basket composition, promotions and product preferences. The challenge is turning that first-party information into relevant communications without overwhelming customers or compromising privacy and trust.

Harris believes StoriBot could add another layer to that personalization, using customer information to shape communications around different needs and behaviours instead of relying predominantly on broadly distributed promotional messages.

The company also sees applications across specialty retail, hospitality, home improvement and other multi-location businesses. Harris said its strongest opportunities tend to involve categories where purchasing decisions are influenced by trust, emotion or personal identity in addition to price.

Building the Business

StoriBot is generating contracted enterprise revenue while building out its leadership team. Harris said the company currently has approximately US$60,000 in contracted annual recurring revenue across two enterprise customers. He emphasized that not all of that revenue comes from retailers. The financial figures were provided by the company and have not been independently verified.

The leadership group includes Harris as founder and CEO; Tamara Rosenblum, chief marketing officer; Dawit Netere, chief technology officer; Joe Colangelo, partner and chief operating officer; and Nathalia Servetnyk, chief financial and risk officer.

Colangelo brings a lengthy retail operating background to the company. He said he led the launch of Petro-Points in 1994 as part of his senior retail-downstream leadership responsibilities at Petro-Canada, which operated an approximately 3,500-location national retail network at the time. His background also includes senior downstream leadership with Gulf Oil and 14 years as owner and president of Contemporary Office Interiors.

Servetnyk is a Ukrainian-Canadian legal, financial-services and business professional who leads StoriBot’s financial, governance and risk-management functions.

Harris said StoriBot has received its first outside investment through a SAFE agreement and is undertaking a US$2-million SAFE financing round. The company plans to use additional capital for platform development and integrations, customer acquisition and repeatable enterprise implementations.

StoriBot has set an internal objective of reaching approximately US$2 million in annual recurring revenue within 18 months as it converts more of its enterprise pipeline and expands adoption. Harris emphasized that the figure represents an operating target, not a forecast or guaranteed result.

Can Narrative Become the Differentiator?

Underlying StoriBot’s business model is a broader argument about where generative AI is heading. As retailers and other businesses gain access to increasingly capable tools for producing text, imagery and marketing material, Harris believes simply generating additional content will offer diminishing competitive advantage. StoriBot instead focuses on identifying the difference between what an organization believes it is communicating and what customers are actually receiving.

In practice, that means examining which messages are connecting, which are being ignored or misunderstood, what information or emotional elements may be missing and whether changes to those communications improve business results.

“As AI-generated content becomes commonplace, simply producing more material will not create differentiation,” Harris said. “The competitive advantage will come from meaning, authenticity, consistency and the ability to connect a narrative to measurable behaviour.”

StoriBot uses Narrative Intelligence™ as the proprietary term for its methodology and platform. Harris describes the concept as a systematic approach to analyzing, governing and measuring the narratives organizations use in customer communications. The company is seeking to establish it more broadly as a recognized business discipline.

StoriBot has also received external recognition for its technology. The company was named Specialist AI Platform of the Year, 2026–2027 through the Corporate LiveWire Global Awards and received a Global Recognition Award for Innovation, 2026 from Global Recognition Awards. Harris said external recognition has helped open conversations with prospective enterprise customers, partners, employees and investors, while acknowledging that longer-term success will ultimately depend on customer results.

Retail Case Studies Are the Next Test

Over the next 12 to 24 months, StoriBot plans to convert more of its pipeline into paying customers while expanding its CRM and data integrations. Within retail, Harris wants to establish automotive and grocery case studies demonstrating measurable changes in customer engagement, conversion, retention and operating productivity.

That will be an important measure of StoriBot’s retail proposition. Generative AI has already demonstrated that retailers can create considerably more content with fewer resources. StoriBot’s next objective is to demonstrate that applying greater structure, relevance and consistency to those communications can produce measurable commercial results.

CF Fairview Pointe Claire Launches The B!G TV: A 27-Foot Retro Experience

By
Mario Toneguzzi
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Cadillac Fairview photo
Cadillac Fairview photo

CF Fairview Pointe Claire, in the Cadillac Fairview umbrella, has launched a unique television experience for visitors to the Montreal area mall. 

The B!G TV (La GRANDE télé) is a 27-foot, analog-style television setup in Centre Court with free programming including dynamic, interactive entertainment which runs until November 9.

The towering installation is designed as a giant vintage TV, complete with retro wood panelling and oversized channel knobs. Guests are encouraged to take charge and turn the giant dials to flip channels, trigger nostalgic static effects, and control what they see on screen, said the shopping centre.

Lynn Fitzpatrick
Lynn Fitzpatrick
Cadillac Fairview photo
Cadillac Fairview photo

“At its heart, this experience is about bringing people together,” said Lynn Fitzpatrick, General Manager, CF Fairview Pointe Claire. “Beyond our retail and dining offerings, we’re committed to delivering truly memorable experiences at our centre, and we can’t wait to see how our guests connect and engage with this unique installation.”

The B!G TV will feature live scheduled events Thursday through Sunday, broadcasting exclusive retailer promotions and community highlights Monday through Wednesday.

Weekly Programming includes

  • Thursdays (5 PM – 8 PM) – Game On: Giant retro video game showdowns with EB Games, chess tournaments and interactive trivia with live prize giveaways.
  • Fridays (4 PM & 6:30 PM) – Cozy Movie Nights: Screenings of family classics like Shrek 2, Ratatouille, Coco, and Monsters Inc., featuring lounge seating and complimentary refreshments from DAVIDsTEA.
  • Saturdays (8:30 AM – 9:30 AM) – Morning Wellness: Stretch and yoga sessions hosted in Centre Court offered by lululemon.
  • Sundays (1 PM – 3 PM) – Live Local Stage: Live music sets and local dance performances.

Cadillac Fairview  is one of the largest owners, operators, investors and developers of best-in-class office, retail, multi-family residential, industrial and mixed-use properties in North America. Wholly owned by the Ontario Teachers’ Pension Plan, with assets under management of $26 billion, CF manages a portfolio of landmark properties across Canada.

Cadillac Fairview photo
Cadillac Fairview photo

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Donatella Versace and REVOLVE launch joint venture focused on beauty and fashion

By
Mario Toneguzzi
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REVOLVE image
REVOLVE image

Donatella Versace and REVOLVE Group Inc. are launching a joint venture that will create a new independent beauty and fashion business, with the venture initially targeting consumers in the United States, Latin America, Asia-Pacific and the Middle East. Additional markets may be considered over time as the venture evolves, said officials in a news release.

The new business will combine Donatella’s creative direction and cultural influence with REVOLVE’s digital commerce platform, technology, consumer intelligence and operating capabilities. The companies said the venture is intended to develop products and experiences around the way younger consumers discover, shop and engage with fashion and beauty.

New business to begin with beauty

Donatella will serve as chief creative officer and lead the venture’s creative vision, including its identity, products, collaborators and broader cultural positioning.  REVOLVE will provide capabilities spanning digital commerce, technology, consumer intelligence, operations, marketing and community engagement.

The venture will initially launch in the beauty category, with its name, creative direction and first product launch expected to be disclosed in the coming months. The companies said additional markets could be considered as the business develops.

“I believe creativity should be fearless, inclusive and alive in the world. I have always been inspired by the next generation, in music, film, art and, of course, fashion. This partnership gives me the freedom to speak to that generation in a completely new and personal way, through beauty and fashion. REVOLVE understands something I believe deeply: culture comes from connection. Together, we want to create that connection with a new voice, a new look and a new energy,” said Versace.

The companies said the venture will seek to combine fashion, beauty, entertainment, talent, creators and community through content, experiences, conversation and commerce. The business is being established as an independent venture centred on Donatella’s creative vision.

Raissa Gerona, Donatella Versace, Michael Mente
Raissa Gerona, Donatella Versace, Michael Mente

Revolve brings digital retail platform

REVOLVE, which trades on the New York Stock Exchange under the symbol RVLV, said its role will include providing the infrastructure and technology needed to operate the new business. The company operates the REVOLVE and FWRD retail platforms and has built a model around digital commerce, social media, creators and its consumer community.

“Donatella is one of the defining creative voices of our time. This partnership gives that vision an entirely new platform and the freedom to build something from the ground up,” said Michael Mente, Co-Founder and Co-CEO, REVOLVE Group.

“By combining Donatella’s creative authority with REVOLVE’s technology, infrastructure and global reach, we have an opportunity to create something genuinely distinctive — and build it for the long term,” said Mike Karanikolas, Co-Founder and Co-CEO, REVOLVE Group.

“Donatella has an extraordinary instinct for what the next generation wants and an unmatched ability to connect fashion with culture. That is what makes this partnership so exciting,” said Raissa Gerona, President of Brand and Partnerships, REVOLVE Group.

The companies said the new venture will draw on Donatella’s decades of work in fashion, music, entertainment and popular culture, as well as  REVOLVE’s relationship with millions of consumers and its network of talent and creators.

Donatella to lead creative direction

Donatella became artistic director of the House of Versace in 1997 following the death of her brother, Gianni, and led its creative direction for nearly three decades, according to the release. Her career has included collaborations and relationships with figures in music and entertainment, as well as work with younger designers including JW Anderson, Anthony Vaccarello, Christopher Kane and Kim Jones.

The release said Donatella has received international honours including the Fashion Awards’ Fashion Icon Award and Italy’s Grand Ufficiale dell’Ordine al Merito della Repubblica Italiana.

REVOLVE was founded in 2003 by co-CEOs Michael Mente and Mike Karanikolas. The company sells apparel, footwear, accessories, beauty and home products through its REVOLVE and FWRD segments, using a shared platform.

The company said its community includes millions of consumers, thousands of global fashion influencers and more than 1,600 emerging, established and owned brands.

The companies described the joint venture as the beginning of a broader business, with its first product and brand details to be announced in the coming months.

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Tourism spending on the rise: Statistics Canada

By
Mario Toneguzzi
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Cascade Shops in Banff. Photo: Tourism Alberta

Real tourism gross domestic product (GDP) in Canada rose slightly by 0.4% in the second quarter, following a 0.5% increase in the first quarter, according to a report by Statistics Canada.

By comparison, economy-wide real GDP by industry increased 0.9% in the second quarter. Tourism GDP accounted for 1.77% of nominal GDP in the second quarter, virtually unchanged from the first quarter. Tourism spending in Canada rose 0.3% in the second quarter as spending by international visitors grew 1.0%, said the federal agency.

“Driven by the accommodation (+0.8%) and food and beverage services (+1.0%) industries, tourism GDP continued an upward trend in the second quarter of 2026 that began in the second quarter of 2022. The increases in the accommodation and the food and beverage services industries in the second quarter of 2026 coincided with the 2026 FIFA World Cup, as Canada hosted 10 games in Vancouver and Toronto in the second quarter,” it said.

Statistics Canada said spending by international visitors grew 1.0% in the second quarter, the same pace as the previous quarter. Spending on non-tourism products such as groceries (+1.8%), passenger air transport (+0.9%), and accommodation services (+0.8%) contributed the most to the increase in the second quarter.

Sainte-Catherine Street in Montreal (Image: Montreal Tourism / k_photographyca)

Overnight travel from countries other than the United States grew 2.5% in the second quarter, while overnight travel from the United States edged up 0.2%. Total arrivals from the 15 countries that played World Cup games in Canada in June increased 28.6% year over year. International visitors accounted for 25.6% of tourism spending in Canada in the second quarter, up from 25.4% in the previous quarter, it noted.

“Domestic tourism spending by Canadian residents was unchanged in the second quarter, after edging down 0.1% in the first quarter. Decreased spending on passenger air transport (-1.3%) and vehicle fuel (-2.8%) constricted overall growth in the second quarter,” said Statistics Canada.

“The number of jobs attributable to tourism increased 0.4% in the second quarter, the same pace as in the first quarter. By comparison, the economy-wide number of jobs was up 0.2% in the second quarter.

The food and beverage services (+0.9%) and recreation and entertainment (+1.4%) industries contributed the most to the job gains in the second quarter. Growth was partially offset by lower tourism jobs in the accommodation (-0.5%) and travel services (-1.2%) industries.”

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Pharmacy Brands Canada Grows to more than 300 Locations in Canada

By
Mario Toneguzzi
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Pharmacy Brands Canada photo
Pharmacy Brands Canada photo

Pharmacy Brands Canada (PBC), an independent Canadian pharmacy banner, continues to grow its footprint across the country.

“Surpassing 300 locations is about more than scale. It represents the strength of independent pharmacy and the trust owners place in PBC,” said Jon Johnson, CEO of Pharmacy Brands Canada. 

Jon Johnson
Jon Johnson
Pharmacy Brands Canada photo
Pharmacy Brands Canada photo

“Our goal has always been to give independent owners the support and resources they need to succeed while keeping control of their businesses. We understand that every owner has different goals, and we provide flexible options to help them grow and serve their communities on their own terms.” 

Johnson said PBC’s growth has accelerated across the country, with particularly strong expansion in Ontario, where the network has added more than 50 locations over the past two years, establishing a significant and growing presence in the province.

He said the milestone demonstrates PBC’s commitment to empowering pharmacy owners to remain independent while providing the resources, purchasing power, and support of a national banner network.

To support unique ownership goals, PBC said it offers three flexible partnership models:

  • Full Banner Program: Comprehensive banner services, and end-to-end operational support;
  • Economic Plus: Full banner support paired with scalable economic benefits;
  • OpenRx: A flexible program allowing independent pharmacy owners to manage their own generic formulary while benefiting from PBC’s competitive wholesale pricing, purchasing power, and program support.

Johnson said all PBC members benefit from marketing support, store design and conversion guidance, financing solutions, preferred vendor pricing, and dedicated clinical programs, all with no banner fees. PBC also partners exclusively with Canadian-owned wholesalers, reinforcing its commitment to supporting local businesses.

Pharmacy Brands Canada photo
Pharmacy Brands Canada photo

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From The Desk: Retailers adapt formats and expansion amid labour, cost and consumer shifts

By
Retail Insider
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It was another busy week for Canadian retail, with expansion, new store concepts and shifting real estate strategies continuing to reshape the market.

One thing that stood out was how differently retailers are approaching growth. Some are expanding through new locations and franchising, while others are investing more heavily in existing stores, relocating to stronger spaces or experimenting with smaller formats. For landlords, that is also changing how space is being leased and repurposed, particularly as larger vacancies create opportunities for new uses and different combinations of tenants.

There were also some interesting signals in the broader economy. Retail employment has remained relatively resilient in parts of the market, even as consumers continue to be selective with spending and retailers contend with higher operating and supply-chain costs. That makes the investment we’re seeing in new stores and expansion particularly noteworthy.

Food and grocery were part of the conversation as well, including continued growth among health-focused and plant-based brands. Taken together, this week’s stories show a Canadian retail market that remains active, but where growth is increasingly being approached on a brand-by-brand and market-by-market basis.

Here are some of the stories and developments that caught our attention this week.

Retailer News

Starbucks is closing about 250 stores in North America while updating more than 1,000 locations with cozier seating, warmer designs and neighbourhood-inspired elements to improve customer experience and operational flow. This move reflects a focus on optimizing their retail and real estate portfolio to strengthen community connections and support long-term growth rather than simply expanding square footage.

Tommy Gun’s Original Barbershop plans to add over 80 new stores globally through franchising, addressing skilled labour shortages by emphasising career development and technology-driven customer experience. MEC is testing a smaller 2,200-square-foot format in Whistler with a curated inventory tailored to local outdoor activities, relying on its larger online assortment to meet demand, signalling a new direction in how retailers serve regional markets. These developments signal how Canadian retailers and franchise brands are adjusting physical formats and operational models to address labour challenges and meet regional customer needs more precisely.

Payroll employment in Canadian retail increased by 1.3% between February and July 2026, adding 25,300 jobs driven by clothing, motor vehicle, general merchandise, and food and beverage retailers. This employment gain contrasts with declines in wholesale trade and reflects a labour market recovery in essential retail segments that supports ongoing consumer access despite economic uncertainty.

Retail sales dipped 0.7% in July as eight of nine subsectors posted declines, including a 1.9% drop in general merchandise sales after a strong June, indicating softer consumer spending in some areas. However, RBC reports broadening consumer spending growth in August across discretionary and essential categories, suggesting resilience amid inflationary pressures like higher gasoline prices and trade uncertainties. This mix of weakening monthly sales data and expanding spending patterns points to uneven consumer demand that retailers and landlords must monitor carefully when planning inventory and leasing strategies.

Retailer People News

Tara Tomulka, founder of Rawcology, has transformed her personal health journey into a growing business that meets rising consumer interest in plant-based, organic, low-sugar snacks. Her background in holistic nutrition informs the brand’s focus on healthier, fibre- and protein-rich packaged foods, helping Rawcology expand into major retailers including Costco while navigating the challenges of scaling better-for-you offerings across Canadian and international markets.

Retailer Op-Eds

The rise in diesel costs across Canada is adding new pressure to the grocery supply chain, which could prompt retailers to reconsider pricing strategies in the near term. Retailers and suppliers will need to monitor fuel prices closely as these cost increases ripple through distribution networks, potentially eroding margins or transferring expenses to consumers.

Editor’s Take

Canadian retail investment hasn’t stopped, but it is becoming more targeted. Tommy Gun’s, Osmow’s and DAVIDsTEA are expanding, while retailers including Starbucks and MEC are experimenting with different store sizes and formats. The common thread is less about expansion for its own sake and more about putting the right concept into the right market.

Retail real estate is going through a similar adjustment. Some of the most interesting activity is happening in former department store spaces, where landlords have an opportunity to introduce several tenants instead of finding another single large-format replacement. Central Walk’s plans for former Hudson’s Bay space and Cadillac Fairview’s redevelopment of the former Nordstrom at CF Rideau Centre illustrate how dramatically these properties can change. Grocery, restaurants, entertainment and specialty retail can also generate traffic differently than the department stores they replace.

The economic picture remains mixed. Retail employment has increased in several categories even as Statistics Canada reported a modest decline in July retail sales. At the same time, higher transportation costs and tariff uncertainty are creating additional pressure for some retailers and suppliers.

What I find particularly interesting is that none of this points to a Canadian retail market moving uniformly in one direction. Some retailers are opening stores, others are shrinking formats, and landlords are breaking apart some of the largest spaces in the country. Capital is still being deployed, but increasingly with a closer eye on location, format and operating economics.

This Week’s Articles

Retailer News

Retailer People News

Retailer Op-Eds

News From Around the Web

Daily Synopsis: September 25, 2026

By
Retail Insider
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Welcome to the Daily Synopsis by Retail Insider. We hope you enjoy the 9 articles we published covering key developments in Canadian retail. Here are a couple highlights with a full list of the day’s articles thereafter.

Starbucks is closing about 250 underperforming North American stores while refreshing over 1,000 locations to feature cozier seating and neighbourhood-inspired designs, aiming to boost customer engagement. MEC is testing a smaller format with a new 2,200-square-foot store in Whistler Village, focusing on curated local product selections supported by expert staff. Lavazza plans to more than double its North American business by 2028, expanding distribution and consumer engagement in Canada, particularly in underrepresented Western markets.

Tommy Gun’s Original Barbershop plans to open more than 80 new franchised locations across Canada and internationally, addressing skilled labour shortages through an internal training platform. Guac Mexi Grill marks its 10th anniversary with 56 franchise locations and aims to add 10 to 15 restaurants annually while expanding into the U.S. and India. Both brands focus on quality, technology, and franchisee support to drive growth and diversify their market presence in service and food retail sectors.

🗞️ The Day’s Retail Insider Article List

🌐 Canadian Retail News From Around the Web

American Energy Security: Why Domestic Oil Production and U.S. Refineries Matter

By
Retail Insider
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By Adam Ferrari, CEO of Phoenix Energy

As geopolitical tensions and concerns over shipping routes in the Middle East and other key oil-producing regions contributed to upward pressure on global crude oil prices during the spring of 2026, many Americans became concerned about how those developments could affect the cost of living and everyday life.

Periods of market uncertainty are also a reminder of why American energy independence remains important. American energy independence doesn’t just come down to how much oil we produce. Producing oil is the first step, but where crude oil is refined and the petroleum products that refineries are designed to produce are all important parts of the equation. 

Today’s energy markets remind us that oil production, transportation, and refining are all part of one interconnected system. Ongoing concerns regarding the Strait of Hormuz have highlighted how quickly uncertainty can affect global energy markets. The issue isn’t just access to crude. It’s also where and how crude can be processed into usable products when supply chains face disruption.

The first requirement for energy security is producing enough crude oil domestically. Without a healthy upstream industry drilling and producing new wells, there would be nothing for refineries to process. But production alone isn’t enough. The crude also needs to move through pipelines, storage facilities, and refineries before it reaches consumers as usable fuels.

The U.S. produces a significant amount of the world’s oil supply. Based on the EIA’s 2026 outlook, U.S. petroleum and other liquid fuels production accounts for about 22% of global output, making the U.S. the world’s largest producer. But crude isn’t the end product as it has to be processed into usable products like gasoline, diesel, and jet fuel. Producing end products requires specialized refineries. Refining capacity refers to the amount of crude oil refineries are capable of processing over a given period and the types of crude those facilities are designed to handle.

Not all refining capacity is created equal. Some refineries are limited to basic distillation, while more complex facilities can process heavier crude more efficiently. That distinction matters because capacity, configuration, and location all influence how much usable fuel can actually reach the market.

It’s also important to recognize that not all types of crude and refining capacity are perfectly aligned. The U.S. has built one of the world’s most sophisticated refining systems over many decades. Many Gulf Coast refineries were optimized to process heavier crude because of historical supply patterns. At the same time, shale development dramatically increased production of light sweet crude. The result is a highly integrated market where imports, exports, and blending all help match different crude types with the refineries designed to process them.

When global supply chains are disrupted, countries with domestic refining capacity are in a more advantageous position than those that rely more heavily on imported refined products or foreign processing. 

When there are disruptions, some parts of the world are more affected than others because of refining capacity, or a lack of it. Europe has been structurally short on middle distillates like diesel and jet fuel and relies on imports to meet its domestic needs. Recent disruptions tied to conflict in the Middle East have pushed European refined product markets to elevated levels. When disruptions hit, prices can move up quickly because they don’t have enough domestic refining capacity to absorb the shock.

The U.S. is generally better positioned than our European counterparts in regard to domestic energy production. We’ve seen modest increases in throughput and refinery utilization in recent years, along with higher production of key transportation fuels. That has contributed to the U.S. meeting domestic demand while also continuing to export refined products into global markets.

That doesn’t mean the U.S. is without price increases “at the pump” (or in the air or at the checkout line). Many energy commodities are still priced in a global market, and when global prices rise, those costs often flow through to consumers regardless of where the barrels are produced or refined.

With domestic refining capacity, the U.S. is better insulated from price fluctuations than some other countries, but not immune to them. 

One important consideration is not just access to crude oil, but also where and how that crude can be refined into usable products when supply chains are disrupted. Recent EIA outlooks still point to robust global production and the potential for supply to exceed demand as disruptions ease. 

Energy security isn’t determined by any single part of the industry. It depends on the entire system working together. From drilling new wells and transporting crude oil to refining it into fuels, this entire system powers homes, businesses, farms, airlines, and manufacturing. Periods of geopolitical uncertainty remind us that each link in that chain plays an essential role.

This article is provided for general informational purposes only and reflects the author’s views based on publicly available information as of the date of publication.

— Adam Ferrari is CEO at Phoenix Energy. He has nearly 20 years of experience in the oil and gas industry, following receipt of his bachelor’s degree in Chemical Engineering, magna cum laude, from the University of Illinois at Urbana-Champaign. He began his career with BP America in the Gulf of Mexico, then spent a stint in investment banking at Macquarie Capital, before transitioning back to the operating side with the then-start-up Halcón Resources Corporation. Following his tenure at Halcón, Adam pursued entrepreneurial opportunities in the mineral acquisitions side of the oil and gas industry, which ultimately led him to Phoenix Energy. 

Aritzia’s Store Network Has Shifted South as U.S. Expansion Accelerates

By
Lee Rivett
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Aritzia Atlanta. Photo: Aritzia.

Aritzia now operates more boutiques in the United States than in Canada. At the end of the first quarter of fiscal 2027, the Vancouver-founded retailer had 76 U.S. boutiques and 67 in Canada, excluding four Reigning Champ stores. Of the 12 to 13 new boutiques planned for fiscal 2027, 11 to 12 are expected to open in the U.S.

Revenue has moved even further south. U.S. sales increased 54.5% year over year to $638.1 million in the latest quarter and accounted for 67.1% of company revenue. Canadian revenue increased 25% to $313 million.

The Canadian business is still growing quickly, but most of that growth is coming from established boutiques and e-commerce. Aritzia is spending on Canadian real estate, though increasingly on larger or repositioned stores instead of adding large numbers of locations.

In the U.S., management has identified 180 to 200 locations that meet its site criteria, compared with 76 boutiques at the end of fiscal 2026. It is a measure of potential sites, not an opening commitment, but the difference between the two countries is becoming clear in Aritzia’s capital allocation.

Article Contents

Canada: Fewer New Doors, Larger Stores

Some of Aritzia’s most important Canadian stores are getting substantially larger. At Oakridge Park in Vancouver, the company returned this year to the shopping centre where its first standalone boutique opened in 1984. That store was about 1,500 square feet. The new Oakridge location is roughly 10,000 square feet.

Aritzia has also expanded at CF Toronto Eaton Centre and is developing a four-level flagship at CF Pacific Centre in downtown Vancouver, taking part of the former Nordstrom space at Robson and Howe. At approximately 41,800 to 42,000 square feet, it will be more than four times the size of a standard Aritzia boutique.

Management said two Canadian boutique repositions completed over the past year were performing well, with another Canadian reposition planned for the second quarter. Recent reporting and earnings commentary do not indicate a broad Canadian closure program.

The economics of the Canadian business give Aritzia room to be selective. Canadian revenue rose 25% in the first quarter without a large new-store program, supported by comparable sales and digital growth. More capital can therefore go into proven locations where additional square footage has a better chance of producing additional sales.

Most new square footage is going to the U.S. At Aritzia’s July annual meeting, CEO Jennifer Wong said total company square footage was expected to grow in the low teens during fiscal 2027, with the vast majority of that increase in the United States.

Aritzia Oakridge Park

The U.S. Expansion Is Moving Beyond First Stores

Part of Aritzia’s U.S. pipeline is still about entering new cities. Birmingham, New Orleans and St. Louis were among the new markets identified for fiscal 2027.

Another part involves adding stores within markets where Aritzia is already established. The company opened at Perimeter Mall in Atlanta on September 19, adding to its existing boutique at Lenox Square. Dallas is also receiving another location, while the wider pipeline has included Fort Worth, Cleveland, Las Vegas, Carlsbad and The Woodlands in Texas.

Management’s 180-to-200-store estimate is therefore less dependent on finding an equivalent number of new cities. Large metropolitan markets can support multiple boutiques where trade areas are distinct and existing demand is strong.

Atlanta is a relatively small example of that approach. Aritzia can continue entering new cities while adding second and subsequent stores in larger markets. Its ability to do both rests heavily on the economics of recent openings.

Aritzia’s standard boutique model is roughly 10,000 square feet, around $1,000 in annual sales per square foot, about $10 million in annual revenue and approximately $4 million of net investment. Management targets payback within 12 to 18 months. Recent boutiques have been paying back in less than a year on average.

U.S. stores are also reaching productive sales levels sooner. Historically, Canadian boutiques tended to open closer to mature productivity, while U.S. stores took several years to ramp. CFO Todd Ingledew told analysts in July that newer U.S. stores are now opening much closer to maturity, with the fiscal 2026 cohort particularly strong.

Faster maturation reduces the drag created by each new class of stores. Aritzia can add square footage without carrying the same volume of underproductive locations for several years after opening.

Bigger Stores Have Not Hurt Productivity So Far

Aritzia has increased the size of its stores at the same time it has accelerated U.S. expansion. The average boutique was about 6,000 square feet a decade ago, later moved toward 8,000 square feet and is now generally above 10,000 square feet. New boutiques planned for fiscal 2027 were expected to average around 11,000 square feet.

Management says stores above 10,000 square feet are producing sales per square foot comparable with Aritzia’s smaller boutiques. If that performance holds, larger stores allow the company to generate more revenue from each opening without giving up the productivity that has supported its recent payback periods.

There is a practical limit to how far that can be extrapolated. A 76-store U.S. network still gives Aritzia considerable freedom to choose strong malls, streets and trade areas. Moving substantially closer to 180 or 200 stores means working through a much larger range of locations, including more midsized metropolitan markets.

At that point, the quality of the remaining real estate becomes as important as the number of sites management has identified.

Canadian Infrastructure Is Still Part of the Expansion

Aritzia’s U.S. store count is growing faster, but Canada continues to support much of the infrastructure behind the business. A new 380,000-square-foot distribution centre in British Columbia went live in May using goods-to-person automation. Management said the facility ramped within weeks and was designed to improve picking speed and order accuracy. The company has indicated that its next major distribution expansion will be in the U.S.

The store program is also becoming more capital-intensive. Aritzia expects roughly $250 million in capital cash expenditures in fiscal 2027, including about $210 million tied to new and repositioned boutiques expected to open during fiscal 2027 and fiscal 2028.

Its first-quarter filings disclosed a 50/50 joint venture with an unnamed third party involving a property intended for a future boutique. Aritzia contributed US$1 million in equity and provided a US$27 million loan carrying a 10% annual return, due in April 2029. The company has not identified the property, partner or country, so there is no basis to connect the transaction with a known store project.

Aritzia spent decades building a dense Canadian network before its U.S. expansion reached its current scale. The Canadian business is now showing how much revenue growth can come from established stores, e-commerce and selective investment in larger locations.

The U.S. still has substantially more room for new stores. Recent openings are paying back quickly, larger boutiques are maintaining reported productivity, and U.S. stores are reaching mature sales levels sooner than they once did.

Those economics will determine how much of the 180-to-200-store site pool Aritzia ultimately pursues. The relevant number is not how many potential locations management can identify, but how many can produce returns comparable with the stores being opened today.

More From Retail Insider

Starbucks undertakes massive refresh of North American locations and closing 250 stores

By
Mario Toneguzzi
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Starbucks photo
Starbucks photo

Coffee giant Starbucks is closing about 250 of its location and has launched a rollout of its coffeehouse uplifts across Canada, part of its “Back to Starbucks” strategy to bring “more comfortable seating, warmer designs, and neighbourhood-inspired details” to its locations. 

The company says a refresh of Starbucks cafés is designed to bring customers back to what they love most about the coffeehouse: great coffee, craft, connection, and community.

At the same time, in a note, Mike Grams, the company’s Chief Operating Officer, said: “We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance. As a result, we will close approximately 250 coffeehouses later this week. This represents approximately 1% of our more than 18,000 North America coffeehouses.

“Every year we close some coffeehouses and open others as part of managing our portfolio. And as we shared previously, we remain excited about the significant long-term growth opportunity ahead in North America. We are actively developing a strong pipeline of new coffeehouses and remain committed to growth in North America.”

Starbucks photo
Starbucks photo

Starbucks said customers visiting their uplifted neighbourhood coffeehouses will experience:

  • More – and cozier – seating, including couches and lounge chairs that invite customers to stay awhile.
  • Warmer colours, textures, and layered designs that create a relaxed, welcoming feel.
  • Locally-inspired touches, including neighborhood inspired art, photography and design elements that reflect neighbourhood’s character.
  • A redesigned espresso bar offering a closer view of the craft behind every beverage.
  • Improved order flow, including dedicated space for customers ordering ahead in the Starbucks app.
Dawn Clark
Dawn Clark
Mike Grams

“We want our coffeehouses to feel welcoming, where our customers will want to stay longer, connect more and feel at home. Every uplift starts with the neighborhood and is tailored to reflect the community it serves,” said Dawn Clark, senior vice president, global design & concepts at Starbucks. 

“We sat in each store and asked ourselves, ‘What could we keep? What’s great about this? What’s the history of this place? What is this community like?’” she said. “…  At that point it felt like we had a whole new approach to design, which was much more rooted in our heritage and will create an experience that is more richly sensorial.”

Starbucks photo
Starbucks photo

By the end of 2026, more than 1,000 coffeehouses in North America will be uplifted, with plans for more in the years to come, said Starbucks.

“Early results from uplifted coffeehouses in New York City and Southern California are already showing promise. Customers are staying longer, visiting more often, and sharing positive feedback. This transformation goes beyond design — it is about shaping the future of gathering spaces, strengthening community ties and creating places people love,” it said.

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Starbucks photo
Starbucks photo
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