Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Former exterior entrance to the Hudson's Bay store at Toronto's Yorkdale Shopping Centre on Monday, May 12, 2025. Photo: Craig Patterson
A major leasing dispute at Canada’s most productive shopping centre has been resolved in court, with Oxford Properties successfully blocking a proposed department store concept from taking over the former Hudson’s Bay anchor at Toronto’s Yorkdale Shopping Centre. The ruling is expected to influence how large vacant department store spaces are repositioned across the country in the wake of Hudson’s Bay’s restructuring.
The decision centres on a proposed sublease that would have seen Fairweather-controlled Les Ailes de la Mode occupy the roughly three-level former Bay space at Yorkdale. The court ultimately determined that the arrangement was not commercially viable, siding with Oxford’s argument that the tenant would not be appropriate for the luxury-focused centre.
Ontario Superior Court Justice Jessica Kimmel refused to approve the proposed sublease that would have installed Les Ailes de la Mode in the former Hudson’s Bay space. The judge concluded that the plan was not commercially sound or viable within the context of the receivership and the long-term economics of the property.
In her ruling, Justice Kimmel determined that the proposed arrangement did not meet the threshold of being commercially reasonable, effectively preventing the department store concept from proceeding at Yorkdale under the terms advanced by the receiver and RioCan.
The ruling brings a decisive end to a high-profile Yorkdale anchor dispute that had pitted Oxford Properties against RioCan and the proposed operator. It also underscores the court’s willingness to weigh long-term asset strategy and positioning when evaluating restructuring proposals involving major retail spaces.
Former Hudson’s Bay at Toronto’s Yorkdale Shopping Centre is one of the stores jointly owned by RioCan. Photo: Greg Southern
Key Parties in the Yorkdale Anchor Dispute
Oxford Properties, the institutional owner and manager of Yorkdale, has long positioned the centre as a premier luxury shopping destination. The company argued that it must maintain strict control over the tenant mix and brand positioning of its anchor spaces.
RioCan REIT, which held the Hudson’s Bay lease interest through a historical joint venture with HBC, had supported the proposed sublease to Fairweather and its Les Ailes concept. The REIT viewed the arrangement as a way to restore income to the space following Hudson’s Bay’s creditor protection filing and subsequent store closures.
Hudson’s Bay had operated the Yorkdale location as a major anchor before its financial collapse. The store’s closure left the large space in receivership, triggering the dispute over how it should be re-tenanted.
Fairweather Ltd., controlled by retail entrepreneur Isaac Benitah, proposed to install a large Les Ailes de la Mode department store in the space under a long-term sublease. The concept was presented as a mid-tier department store that would include apparel, footwear, home goods, and accessories.
The court-appointed receiver, FTI Consulting, supported the Fairweather proposal as a way to preserve value for creditors by bringing in a replacement tenant quickly.
Oxford’s Concerns Over Brand Fit and Long-Term Value
Oxford’s opposition to the proposed tenant focused on both brand positioning and financial considerations. The company argued that Fairweather and its Les Ailes concept were inconsistent with Yorkdale’s luxury orientation and would undermine decades of curated tenant mix strategy.
Oxford maintained that the proposed operator lacked experience running a store of more than 300,000 square feet and warned that the installation of a value-oriented department store could deter higher-end tenants. The landlord also argued that the concept’s perceived positioning could negatively impact the overall performance of the centre.
In a November affidavit, Oxford vice-president Nadia Corrado wrote, “I cannot overemphasize how inappropriate and detrimental it would be to have Fairweather occupy the most prominent premises at Yorkdale for even one year, much less the next 50 years as contemplated by the proposed Fairweather transaction.”
She added, “This would have the effect of compromising decades of significant investment and planning by Oxford and create a cascading negative effect for Yorkdale’s existing tenants.”
Oxford also emphasized the financial structure of the proposed deal. Before Hudson’s Bay’s collapse, the Yorkdale store paid approximately $2.8 million annually in rent. The proposed Les Ailes sublease would have generated about $1 million per year or 12 percent of gross sales until 2029, a structure Oxford argued would lock in a below-market anchor and impair long-term asset value.
Shuttered Hudson’s Bay store at Toronto’s Yorkdale Shopping Centre on the evening of June 1, 2025. The Yorkdale store is part of the RioCan JV. Photo: Craig Patterson
RioCan and Fairweather Argued for Viable Replacement Tenant
RioCan supported the sublease, arguing that Fairweather was a creditworthy operator capable of taking over the large space. The REIT maintained that bringing in a new tenant would help stabilize the asset and support loans tied to the joint venture.
RioCan also pointed to the Benitah family’s experience across multiple retail banners. The group has operated chains such as International Clothiers and Fairweather, and previously controlled home goods banners Bombay and Bowring. More recently, the family acquired the intellectual property for the Zellers brand from Hudson’s Bay and began relaunching it in a former Bay location in Edmonton.
RioCan told the court that the Les Ailes concept planned for Yorkdale would differ from the value-oriented Fairweather banners. The proposed store was described as a mid- to high-end department store carrying a mix of branded and private-label merchandise across apparel, footwear, housewares, accessories, and confectionery.
Suppliers including Reebok, Chaps, Billabong, and Laura Ashley had reportedly committed to supplying the store, according to court filings cited by RioCan.
History of Les Ailes de la Mode
Les Ailes de la Mode originated in Quebec in the 1990s as a fashion-forward regional department store chain. The first location opened in 1994 at Mail Champlain in Brossard, inspired by an upscale, service-oriented department store model.
Early stores featured experiential elements such as in-store restaurants, coffee shops, play areas for children, and live piano music. The chain expanded to major Quebec malls, including Carrefour Laval and Place Sainte-Foy, before opening a flagship in downtown Montreal in 2002.
In 2005, the chain was sold to the Fairweather Group, controlled by the Benitah family. Under the new ownership, the concept shifted toward a discount-oriented model focused on private labels and clearance merchandise from Fairweather’s other banners. Over time, several locations closed and the brand lost much of its original profile.
Court filings in 2025 and 2026 outlined plans to revive the brand as a full-line department store in former Hudson’s Bay locations, including sites in Montreal and Quebec City. The Yorkdale proposal was part of that broader strategy.
Financial and Operational Context
The Yorkdale anchor dispute unfolded within the broader restructuring of Hudson’s Bay and the wind-down of its department store chain. The closures left multiple large anchor boxes across Canada in receivership, creating tension between landlords, creditors, and potential replacement tenants.
At Yorkdale, court filings described significant deferred maintenance at the former Bay site. Immediate repairs were estimated in the multi-million-dollar range, with additional capital required over several years.
Oxford argued that accepting a discounted, lower-profile anchor would compromise the long-term positioning of one of Canada’s highest-grossing shopping centres. The landlord maintained that it would prefer a vacant space over an unsuitable anchor that could negatively affect other tenants and future leasing opportunities.
Broader Implications for Department Store Redevelopment
The outcome of the Yorkdale anchor dispute reflects a broader national challenge facing landlords and creditors as they work to reposition large department store spaces left behind by Hudson’s Bay.
Across Canada, property owners are attempting to maintain brand positioning and long-term value, while receivers and creditors seek income-producing tenants to stabilize assets. The Yorkdale decision signals that courts may consider the strategic positioning of a property when evaluating such proposals.
With the Les Ailes plan blocked at Yorkdale, attention is likely to shift toward alternative uses for the space. Oxford has not publicly outlined its next steps, but the landlord has historically taken a highly curated approach to anchor replacements and luxury expansions.
Harry Rosen and other stores at CF Polo Park in Winnipeg. Photo: Cadillac Fairview
After a challenging period marked by inflation, interest rate pressure, and declining consumer confidence, the Canadian apparel market delivered a stronger than expected performance in 2025. According to newly released data compiled by Randy Harris, publisher of Canadian Apparel Insights at Trendex North America, apparel sales are on track to increase by approximately 8.5 percent, reversing a 2.8 percent decline in 2024.
Harris notes that while final totals will not be confirmed for several months, the direction of the market is already clear. Apparel emerged as one of the stronger performing retail categories in Canada during 2025, despite ongoing economic uncertainty and structural disruption across the sector.
The rebound was not evenly distributed. Instead, 2025 exposed widening fault lines between retailers that adapted quickly to shifting consumer priorities and those that entered the year with structural weaknesses.
Value Dominates Consumer Apparel Spending Decisions
One of the defining characteristics of the Canadian apparel market in 2025 was the consumer’s increasing focus on value. Harris points to a combination of negative economic headwinds and declining confidence that reshaped purchasing behaviour across income groups.
Randy Harris
Rather than abandoning apparel purchases altogether, many consumers recalibrated how and where they spent. Price sensitivity increased, promotional responsiveness intensified, and perceived value became more important than brand loyalty. This shift influenced everything from assortment planning and pricing strategies to store traffic patterns and inventory management.
Retailers that were able to clearly communicate value, whether through pricing, quality, or versatility, were better positioned to retain customers. Those that relied on legacy brand equity without adjusting to the new value equation struggled to maintain momentum.
Resale Apparel Moves From Alternative to Mainstream
The growing emphasis on value directly contributed to the continued rise of resale apparel. Trendex estimates resale apparel sales in Canada increased by approximately 16.7 percent in 2025, making it one of the fastest growing segments within the broader apparel market.
Harris attributes this growth to several converging factors. Economic pressure pushed more consumers to seek lower priced alternatives, while the number of resale outlets and platforms continued to expand. At the same time, consumer attitudes toward secondhand apparel evolved, with resale becoming increasingly normalized across age groups.
The expansion of resale has meaningful implications for traditional retailers, particularly those operating in entry level and mid priced segments. As resale gains share, it adds a new layer of competition that did not exist at scale a decade ago.
Omnichannel Execution Becomes a Baseline Requirement
By 2025, omnichannel retailing was no longer optional. Harris notes that the success of retailers such as Harry Rosen, Aritzia, and Groupe Dynamite reinforced a critical reality for the industry. From the consumer’s perspective, seamless integration between physical stores and digital platforms is now expected.
Retailers that invested heavily in e commerce infrastructure, inventory visibility, and fulfillment flexibility benefited from stronger engagement and higher conversion rates. Those that underinvested or treated digital as a secondary channel experienced stagnation, even as overall market sales increased.
The result was a widening performance gap between omnichannel leaders and laggards. In 2025, execution mattered more than intent, and the cost of falling behind became increasingly visible.
Aritzia at CF Masonville in London, ON. Photo: Cadillac Fairview
Apparel Sourcing Continues to Diversify Beyond China
China remained Canada’s largest apparel sourcing market during the first ten months of 2025, accounting for approximately 34 percent of apparel imports. Imports from China increased by an estimated 3.8 percent during the period.
However, Harris highlights that apparel imports from other countries grew at significantly faster rates. Vietnam, Bangladesh, Cambodia, India, and Indonesia all posted double digit growth, reflecting a continued shift toward lower cost sourcing markets.
This diversification has had a direct impact on pricing dynamics within the Canadian apparel market. Combined with aggressive promotional activity at retail, the migration away from higher cost production helped push apparel inflation into negative territory.
Apparel Prices Decline Despite Broader Inflation
In contrast to many other consumer categories, apparel prices in Canada declined in 2025. Trendex estimates apparel inflation fell by approximately 0.6 percent during the year.
For consumers, lower prices provided some relief amid broader cost of living pressures. For retailers, however, the environment created additional margin pressure, particularly for those already contending with rising labour, occupancy, and logistics costs.
Promotional intensity increased across much of the market, reinforcing value driven behaviour while compressing profitability. The pricing environment further rewarded scale and operational efficiency, advantages that smaller and highly leveraged retailers often lacked.
Canadian Apparel Exports Perform Better Than Expected
Despite tariff uncertainty and geopolitical friction, Canadian apparel exports showed surprising strength in 2025. Apparel exports to the United States increased by approximately 14.8 percent during the first ten months of the year, while total apparel exports rose 7.7 percent overall.
Exports to China declined sharply, falling more than 30 percent, but this was partially offset by a significant increase in exports to Hong Kong. According to Harris, the data suggests Canadian apparel suppliers were able to navigate trade challenges more effectively than anticipated, particularly in the US market.
Only six apparel retailers filed for creditor protection in Canada during 2025, a relatively modest number given the scale of disruption in the sector. However, the list included several high profile names, including Hudson’s Bay, Ssense, Frank And Oak, Comark, Claire’s Canada, and Boutique le Pentagone.
Harris attributes these failures to a combination of poor management decisions, adverse economic conditions, and highly leveraged balance sheets. While the number of filings was limited, their impact was significant, accelerating store closures, job losses, and consolidation across the industry.
Foreign Apparel Retailers Continue to Target Canada
The Canadian apparel market continued to attract foreign entrants in 2025. Eleven international apparel retailers entered the market during the year, up from eight in 2024. Only two of the new entrants were US based, highlighting Canada’s appeal beyond North American brands.
The influx increased competitive intensity in major urban centres and further fragmented consumer attention. For domestic retailers, the continued arrival of foreign brands added pressure to differentiate and sharpen value propositions.
Luxury Apparel Rebounds as Market Reshapes
Luxury apparel sales in Canada increased by an estimated 4.1 percent in 2025, despite the exit of Saks Canada and Nordstrom and ongoing challenges at Ssense. Harris notes that growth was driven primarily by high income consumers and foreign visitors taking advantage of the weaker Canadian dollar.
Traditional aspirational luxury consumers remained cautious, constrained by economic uncertainty. At the same time, an increase in luxury store openings raised questions about whether new supply expanded the market or simply divided existing demand into smaller pieces. Holt Renfrew lost market share during the year, underscoring the shifting dynamics within the luxury segment.
E Commerce Growth Remains Uneven Across the Sector
Apparel e commerce growth improved modestly in 2025, increasing by an estimated 3 to 4.2 percent after a weaker 2024. However, Harris emphasizes that growth was highly uneven.
Retailers that invested aggressively in digital capabilities, including Aritzia and Groupe Dynamite, recorded double digit e commerce growth. Many traditional apparel chains, by contrast, reported minimal or no growth, reinforcing the divide between digitally advanced operators and those struggling to keep pace.
Dynamite at Royalmount in Montreal. Photo courtesy of Dynamite
Market Leaders Extend Their Advantage
No Canadian apparel retailers delivered stronger sales growth in 2025 than Aritzia and Groupe Dynamite. During the first nine months of the year, Groupe Dynamite’s sales increased approximately 33.3 percent, while Aritzia’s rose 36.5 percent.
Both retailers achieved double digit growth in Canada and the United States, demonstrating the benefits of scale, brand clarity, and disciplined execution. Their performance further highlighted the increasing polarization of the Canadian apparel market.
Structural Change Defines the Path Forward
In Harris’s assessment, the performance of the Canadian apparel market in 2025 reflects more than a cyclical rebound. The year exposed structural shifts toward value, resale, omnichannel execution, and operational discipline that are unlikely to reverse.
While overall sales growth was strong, success was concentrated among retailers with the capital, infrastructure, and strategic clarity to adapt. As the industry moves further into 2026, the lessons from 2025 are clear. The market is growing, but it is less forgiving, and the gap between winners and losers continues to widen.
Eddie Bauer’s Canadian store network is entering a decisive chapter, after the brand’s North American store operator filed for Chapter 11 protection in the U.S. on February 9, 2026. The process is designed to keep stores trading while the company seeks a buyer, but liquidation activity and parallel Canadian proceedings point to a controlled wind down if bids do not materialize.
For Canadian retailers and landlords, the headline is more about what happens when a legacy, mall-based fleet runs into structural headwinds. As retail expert David Ian Gray, an instructor in retail studies, sees it, this moment reflects the cumulative outcome of ownership choices, pricing strategy, and a category that has moved on.
“I don’t see this as another story of retail not working,” Gray said. “I saw this as inevitable at some point.”
The most important detail for Canadian readers is that the Chapter 11 filing centres on the store-operating entity, not the Eddie Bauer brand itself. In modern retail, those are often separate assets. The operating company can restructure, sell, or close stores, while the brand owner continues to license the name through other channels.
David Ian Gray
That separation matters because it changes what “Eddie Bauer exits Canada” could actually mean. The most visible version of the brand, the mall and outlet storefronts, may shrink sharply or disappear.
However, the label can persist through e-commerce and wholesale relationships if the brand owner and its partners choose to keep it in market.
Gray views that as the likely long-term shape of the business if the stores go dark. “Authentic Brands still owns the IP, so the brand doesn’t go away,” he said. “The store operation closes, and then you push the label into wholesale.”
How many stores are in Canada, and why the count is moving
Eddie Bauer remains a national, mall and outlet-focused chain with a meaningful presence in Ontario and stores across multiple provinces. The chain has about 30 stores in Canada, half in Ontario.
That footprint is now subject to a buyer search and liquidation dynamics. In plain terms, the Canadian fleet is in play. Some locations may be sold and continue operating under new ownership. Others may liquidate and close. A full exit from Canadian brick-and-mortar retail becomes the base-case outcome if the sale process fails to generate a viable bid.
David Ian Gray’s thesis: “harvest mode” ownership limits reinvention
Gray’s analysis focuses on the incentives created by licensing and private equity-backed structures. He describes these models as inherently focused on generating cash from brands for as long as possible. This suggests they will optimize smaller investments over shorter cycles rather than funding a long-term rebuild.
“Brands that are under private equity, or licensing, are often in what I’d call harvest mode,” Gray said. “Those models are designed to extend a life, not necessarily to reinvigorate a brand.”
He pointed to the licensing model as one where the brand owner’s job is to maximize returns on the intellectual property through partners that sell product, rather than operating a costly turnaround inside a large store network. “They are what they are,” he said. “Their structure doesn’t naturally lend itself to a deep brand reinvestment cycle.”
Gray’s central point is that, once a legacy brand becomes dependent on discounting and volume, the runway for a reset shortens. “Customers become hooked on the deals and buy the name on sale, no longer seeing the product itself as meaningful. Eventually you hit a point where it’s a pure harvest,” he said. “That harvest can be short or long, but you’re heading there.”
Former Eddie Bauer at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Eddie Bauer’s brand drift: from outdoor credibility to perpetual discounting
Eddie Bauer’s original identity was built on outdoor credibility and durable, technical product for its era. Gray says that positioning faded decades ago, replaced by a more general, mid-priced mall assortment that often relies on promotions to drive traffic.
“If you walk into an Eddie Bauer today, it’s always on sale,” Gray said. “There’s rarely a feeling of what’s new.”
He also described a cycle that many mall apparel chains fall into as traffic softens and costs rise.
“Perpetual discounting erodes brand value,” he said. “Then the economics push you to cut corners, make product cheaper, and chase sales, and it becomes very hard to reverse.”
That view is not about one season’s performance. It is about a strategy that can keep stores operating for years while steadily reducing the brand’s power to command full price. From Gray’s perspective, the Chapter 11 filing is simply the moment when a long-running decline becomes visible in court.
Why the economy and tariffs matter, but do not explain everything
Gray acknowledges that external conditions can accelerate a reckoning. He referenced broader headwinds, including consumer caution and tariff uncertainty, as factors that can shorten the timeline for marginal fleets.
“It might have happened later if the economy was stronger and there weren’t as many headwinds,” Gray said. “It could have gone on for years, but I don’t think it was ever going to rebound.”
That framing is useful for Canadian readers because it avoids the trap of treating the bankruptcy as a single-cause event. Inflation, weaker discretionary spending, and supply chain disruption can squeeze a mall-based apparel operator. Still, Gray argues those pressures land harder when a mid-market brand lacks product leadership and relies on promotions as its default proposition.
The most likely next step if stores close: wholesale and marketplace distribution
If the store operator cannot find a buyer, Eddie Bauer’s physical retail presence may collapse quickly. Gray’s view is that the label could then re-emerge through wholesale channels where the brand name still carries enough recognition to move units, even if the brand experience is no longer controlled by its own stores.
“I could see it going wholesale,” he said. “Costco is an obvious example, and there are other pathways.”
He also raised the possibility of the product showing up through outdoor and sporting retailers, even if it is not positioned as a premium technical competitor. “You could see it appear in places like MEC,” he said, emphasizing that this would be a channel decision rather than a return to brand leadership.
This is where the Eddie Bauer Canada bankruptcy story becomes more nuanced than a typical retailer liquidation. Canadian consumers might lose the stores but still see the label in-market, separated from its historic mall footprint.
The competitive set has changed, and the winners invest relentlessly
Gray contrasts Eddie Bauer’s trajectory with brands that have sustained momentum through long-term investment in product, innovation, and brand building. He pointed to outdoor labels that take a patient view and continue to fund development rather than leaning on discount dependency.
“Some of the leaders have maintained relentless focus on product quality, product innovation, and brand reinvestment,” Gray said. “They behave like they intend to be here for a long time.”
The implication is straightforward. If a brand stops being chosen for product and starts being chosen mainly for promotions, it becomes increasingly difficult to re-establish full-price credibility. That is not only a consumer perception issue. It is also an economic one. Promotions become baked into planning, and the cost structure adapts to a lower margin reality.
What a true reboot would look like, and why David doubts it happens here
Gray does see a theoretical path where Eddie Bauer could rebuild its proposition. His prescription resembles the kind of strategy that requires patience, capital, and tolerance for short-term pain.
“There is still a ghost of an iconic brand there,” he said. “But a real reboot would mean fewer stores, a tighter assortment, and a renewed focus on core icon products.”
He also stressed the necessity of breaking the discount cycle. “You would have to get out of the perpetual sale environment,” he said. “You’d have to accept some unprofitable years and invest in brand building again.”
However, he does not believe the current structure is built for that. “I can’t see them doing it,” he said. “They’re not designed to operate like that.”
That is the heart of Gray’s argument. In his view, licensing and private equity structures can keep a brand alive longer, but they often close the door on the kind of long-term reinvestment that creates a true second act.
Implications for Canadian malls: backfilling mid-size apparel boxes
If Eddie Bauer’s Canadian stores close, the impact will be uneven. Prime malls and high-traffic outlet centres may backfill quickly, especially if they can subdivide space or attract expanding value, athleisure, and off-price retailers. Secondary centres and smaller markets may feel the vacancy longer, particularly where demand is more limited.
In that sense, Eddie Bauer’s situation becomes a broader mall story. Mid-market apparel boxes have been under pressure for years, and every liquidation forces landlords to re-merchandise space in a market where tenants increasingly want either smaller footprints or experiential buildouts that are more expensive to execute.
For employees, the store count implies several hundred front-line roles at risk in Canada, plus field management positions. Even when stores remain open during a restructuring, uncertainty often leads to reduced hours, uneven inventory flow, and retention challenges. In many cases, the human impact arrives before the final court orders do.
A balanced view on private equity and licensing, without romance
Gray is careful about how he critiques private equity. He acknowledges it can provide exits for owners, keep brands alive for consumers who still want access, and extend employment for some staff.
“I’ve been very critical of some private equity,” he said. “But the alternative is sometimes an ownership group can’t make it happen, and no one else steps in.”
His point is that these models have predictable behaviour. “They do what they do,” he said. “We just need to understand the implications.”
That may be the most useful takeaway for Canadian retail readers. Whether the player is private equity or a licensing platform, the core question is not morality. It is incentives. What time horizon is the owner operating on, and what kind of investment is realistic under that structure?
Retail staffing and employment, jobs. Photo: RetailNext
Canada’s latest employment data points to a labour market that appears stable on the surface but is undergoing deeper structural shifts, according to Suzanne Sears, CEO of Best Retail Careers International Inc. and Luxury Careers International. In an interview with Retail Insider, Sears said recent numbers reflect not simply economic cycles but changing social values, career expectations, and migration patterns that are reshaping the Canadian retail labour market.
January’s national jobs report showed employment declining by about 25,000 positions, while the unemployment rate fell to 6.5 per cent from 6.8 per cent in December. That drop was largely driven by fewer people actively searching for work rather than a surge in hiring. At the same time, retail employment remained essentially flat, with only a small uptick of about 0.1 per cent in the broad wholesale and retail trade category.
Suzanne Sears
Sears said those headline figures mask significant underlying trends. “We did lose 25,000 jobs in total, but the unemployment rate went down. How does that happen? It happens because a significant number of people simply left the workforce,” she said.
Aging Workforce and Youth Returning to School
One of the most notable forces shaping the Canadian retail labour market is demographic change. Sears said a growing number of older workers are exiting the workforce altogether.
“A big chunk of that is the seniors aging out saying, ‘I’m done with this,’” she said.
At the other end of the demographic spectrum, Sears pointed to youth employment trends that are diverging from expectations. While there had been widespread concern about a lack of part-time jobs for young workers, she said the situation changed rapidly in recent months.
“In the fall, megatons of part-time jobs were created and youth took them. They ditched them in unprecedented numbers. Where did they go? They all went back to school or training,” she said.
According to Sears, that trend reflects a broader generational shift in attitudes toward work and career paths. “You can see a society saying, ‘I’m not going to work at Ford like my dad did.’ The sector that I’m working in doesn’t pay, so I’m going back to school.”
She added that the number of young people returning to advanced education has been “really quite shocking,” suggesting a long-term change in labour supply across several industries.
Manufacturing Declines and Service Sector Growth
The January data showed notable declines in manufacturing employment, down about 2.3 per cent, while sectors such as recreation, restaurants, and cultural services posted gains. Sears said those shifts reflect both economic pressures and changing consumer priorities.
“You see manufacturing losing jobs, but mostly that manufacturing that’s losing jobs are the ones that are in trade and tariff sectors,” she said. “People are not waiting around for manufacturing to crash altogether. They’re actively shifting away.”
At the same time, she pointed to strong employment growth in experience-based sectors. “You can see the recreation industry, restaurant industry, growing by leaps and bounds,” she said.
Retail, by comparison, showed little change. “Retail just basically stayed the same. It’s a little bit increased actually, which is surprising when you had big employers shutting,” she said. “But somehow retail keeps reabsorbing the people.”
Statistics Canada data supports that view. While the household-based Labour Force Survey shows retail employment roughly flat, payroll data from late 2025 indicates a gradual erosion of brick-and-mortar retail jobs, particularly in discretionary categories such as apparel and general merchandise.
Population Shifts Reshape Retail Geography
Beyond employment figures, Sears said migration patterns are transforming Canada’s economic landscape. She noted that the country’s three largest cities are all experiencing population outflows.
“All three major cities, Vancouver, Toronto, Montreal are in the same boat. They’re all losing population,” she said. “That’s the biggest issue we have going, is the exit from the cities.”
By contrast, several provinces are seeing growth. January’s data showed employment increases in Alberta, Saskatchewan, and Newfoundland and Labrador. Sears said those trends reflect broader lifestyle changes.
“The population is on the move. The population is changing priorities for retail,” she said. “If you’re selling fast, hectic, crazy, it’s just not going to work.”
She suggested Canadians are shifting toward a slower, more experience-driven lifestyle. “Canada has decided to have a more European culture. We’re probably less American today than we were even a year ago in what we value.”
Changing Attitudes Toward Work and Lifestyle
Sears said the labour market changes are tied closely to evolving social values. She pointed to back-to-office mandates that took effect at the start of the year as an example.
“You see a great number of these back-to-work mandates that kicked in on January 1st. Women decided they weren’t going back. There’s a huge number who simply said, that was it,” she said.
According to Sears, these decisions reflect a broader re-evaluation of priorities. “Canadians have had a change of heart about how they live, where they live, what they call work. Values have changed. Quality of lifestyle has become much more important.”
Those shifts are also influencing spending patterns. Sears said experience-oriented sectors are benefiting from the change. “It’s a great time if you’re in the events business,” she said.
Regional Divergence and Economic Outlook
Provincial employment trends are also diverging. Ontario saw a decline of about 67,000 jobs in January, while Alberta gained about 20,000. Sears said Alberta’s performance reflects both population growth and economic momentum.
“Alberta’s been strong. It’s actually doing quite well in jobs and it’s gained some population,” she said.
She added that the Maritime provinces have also attracted new residents, reinforcing the theme of population redistribution across the country.
Despite the soft January data, Sears remains optimistic about the broader outlook. “By Q3, I think you’re going to see we’re in a much stronger position. I think it’ll be a good year,” she said.
She expects unemployment to trend lower over the next year. “We should be somewhere around six per cent by this time next year, if not slightly better,” she said.
Sears pointed to infrastructure spending and new trade agreements as factors that could support employment growth. “With all these investments starting to have shovels in the ground, I honestly think there’s nowhere to go but up.”
Wage Growth and Consumer Spending Implications
Average hourly wages rose 3.3 per cent year over year in January to about $37.17. Sears said ongoing labour force exits could push wages even higher.
“The more people who drop out of the workforce, which is a continuing trend, the higher the wages will be,” she said. “The higher the wages, the more disposable cash Canadians will have to drive the consumer economy.”
That dynamic could support retail sales even in a slower employment environment, particularly if consumers shift spending toward experiences and lifestyle-focused goods.
Discount Retail Careers Versus Luxury Pressure
Sears also highlighted contrasts within retail employment, particularly between discount chains and luxury stores. She said discount retailers are increasingly seen as long-term career options.
“Dollarama actually is a career now. It’s absolutely a career, and it’s a respectable one,” she said. “People love working for these guys. They like how they’re treated.”
She noted similar sentiments among employees at other value-focused chains. “People love working for Giant Tiger. Absolutely love it,” she said.
In contrast, Sears said luxury retail environments often carry higher pressure and internal competition. “You get a lot more discontent in luxury, primarily because the pressure’s so high,” she said.
She described scenarios where competition for high-value sales creates tension among staff. “In a luxury store, you might have lost a $100,000 sale. The pressure is intense.”
Retail Stability Masks Structural Change
Overall, the Canadian retail labour market appears relatively stable at a national level, with only modest month-to-month fluctuations. However, Sears said that stability hides deeper structural shifts driven by demographics, migration, and changing values.
“It’s not a great jobs report, but it’s very telling if you know how to read the data,” she said. “Canadians are adapting and shifting. They’re changing their values, their expectations, their directions.”
Sears believes the current period may ultimately be seen as a turning point. “If we look back in five years, we’ll say this was the birth of Canada as a going-forward nation,” she said.
Loblaw Companies Limited is continuing its push into value-oriented grocery retail with the opening of a new co-located Maxi and Pharmaprix in Mont-Laurier, Quebec. The project reflects the company’s ongoing focus on hard discount banners and integrated pharmacy services as central elements of its national growth strategy.
The Mont-Laurier development represents a multi-million-dollar investment and is expected to create approximately 95 jobs in the region. Located on Albiny-Paquette Boulevard, the site pairs a full-service discount grocery store with a modern pharmacy under one roof, reinforcing Loblaw’s emphasis on convenience, value, and accessible health services.
The opening forms part of a broader Loblaw discount expansion that is reshaping the company’s store network across Canada as consumers continue to seek lower prices amid elevated living costs.
New Maxi and Pharmaprix Hub in Mont-Laurier
The new Mont-Laurier location brings together two of Loblaw’s most prominent banners in Quebec. Maxi serves as the company’s primary hard discount grocery format in the province, while Pharmaprix operates as the Quebec equivalent of Shoppers Drug Mart.
The co-located model allows customers to access food, pharmacy services, beauty products, and everyday essentials in a single trip. The new Pharmaprix includes a full-service pharmacy and a clinical care space designed to provide services such as chronic disease management and vaccinations.
Across the country, Pharmaprix and Shoppers Drug Mart together account for more than 1,350 locations, giving Loblaw one of the most extensive pharmacy networks in Canada. The company has increasingly integrated this network with PC Optimum rewards and expanded in-store clinics to drive traffic and convenience.
Maxi at the Centre of Quebec Discount Strategy
Maxi has become a central pillar of Loblaw’s growth plans in Quebec. The banner now operates more than 200 stores and is positioned as the company’s lead discount food retailer in the province, offering a broad assortment focused on everyday low prices.
Over the past two years, Loblaw has opened or converted more than 90 Maxi and No Frills locations across Canada. The expansion reflects a multi-year shift toward hard discount formats, which have outperformed conventional banners as shoppers trade down in response to inflation and higher interest rates.
The Mont-Laurier opening aligns with this Loblaw discount expansion, which prioritizes formats that deliver strong value while maintaining product variety and freshness.
Part of a National Hard Discount Growth Plan
The new Quebec location is one component of a much larger capital program. For 2025, Loblaw allocated approximately $2.2 billion to capital projects across its Canadian operations. The investment includes about 80 new stores, more than 300 grocery and pharmacy renovations, and the continued build-out of a major automated distribution centre in East Gwillimbury, Ontario.
Of the 80 planned stores, roughly 50 are expected to be hard discount locations under the Maxi, No Frills, and related banners. The company has framed this as part of a broader five-year commitment to invest more than $10 billion by 2030, with discount formats identified as a top priority.
Recent activity underscores the scale of the shift. In 2023, Loblaw opened 31 new discount stores across Canada. The following year, it introduced additional initiatives including small-format No Frills locations and a pilot ultra-discount concept under its No Name private label.
By late 2025, the company reported opening 19 Maxi and No Frills locations in a single quarter, remaining on track to complete roughly 76 new stores for the year, nearly two-thirds of which were hard discount formats.
Expansion Beyond Quebec
While Maxi has long been concentrated in Quebec, Loblaw has begun testing the banner’s appeal in other Francophone markets. In April 2025, the company announced plans for a 15,000-square-foot Maxi store in Caraquet, New Brunswick, marking the banner’s first expansion outside its home province.
The Caraquet location, expected to create more than 30 jobs, is positioned as a test of the Maxi model in similar linguistic and cultural markets. The store will feature the banner’s “Imbattable” price-match policy, PC Optimum rewards, and a focus on local products.
This move signals Loblaw’s intention to grow Maxi into a broader regional and potentially national discount banner, complementing No Frills, which dominates the company’s discount presence outside Quebec.
No Frills in Downtown Toronto. Photo: Ritchie Po.
Discount Formats Leading Performance
Loblaw executives have repeatedly pointed to hard discount formats as the company’s strongest performers in food retail. By late 2025, the company said No Frills and Maxi were outpacing conventional banners such as Loblaw and Real Canadian Superstore in sales growth.
Management commentary has described discount as a “unique opportunity” to bring value-oriented stores to communities that may previously have been served only by higher-priced conventional formats or competing banners.
Early 2026 openings, including the Mont-Laurier Maxi and Pharmaprix and a new No Frills in Burnaby, British Columbia, demonstrate that the Loblaw discount expansion remains active. The Burnaby store is promoted as the city’s first No Frills, highlighting the company’s strategy of moving discount formats into underserved markets.
Supply Chain Investments to Support Discount Growth
The company’s capital plan also includes major supply chain upgrades intended to support high-volume, low-cost discount operations. A 1.2-million-square-foot automated distribution centre in East Gwillimbury is designed to improve efficiency and replenish discount stores more effectively.
Since 2020, Loblaw reports having invested more than $8 billion in expanding and upgrading its store network and supply chain. These investments are intended to improve cost management while enabling the continued rollout of new discount and small-format stores.
A Multi-Year Shift Toward Value
The Mont-Laurier opening illustrates how Loblaw is aligning its real estate and capital strategy with a prolonged consumer focus on value. With roughly 50 hard discount stores planned in the 2025 program and additional openings already underway in early 2026, the company is entering the next phase of a multi-year push into lower-priced formats.
Through the expansion of Maxi, No Frills, and ultra-discount concepts, Loblaw is repositioning its store network around value-driven formats that reflect current shopping behaviour. The Mont-Laurier Maxi and Pharmaprix serve as a local example of a national strategy that continues to shape the company’s growth trajectory.
The annual ranking recognizes brands that are not only performing at a high level today but are actively shaping the future of the sector through innovation, resilience, franchisee support, and long-term growth, said the magazine.
“Standing out among hundreds of franchise brands spanning multiple industries, Pizza Pizza distinguished itself through exceptional performance across the EF100’s core evaluation criteria, including franchisee support, innovation, community engagement, longevity, and future potential,” said Elite Franchise.
“Being named Canada’s #1 Franchise two years in a row is a tremendous achievement, and one that we do not take lightly,” said Paul Goddard, CEO, Pizza Pizza Limited. “I am incredibly proud of the team behind this result and grateful to be a part of a company that continues to raise the bar for itself.”
The EF100 Top Five franchises for 2026 include:
Pizza Pizza
A&W Food Services of Canada
McDonald’s Restaurants Canada
Snap-on Tools Canada
Boston Pizza
“Earning a spot in the EF100 reflects more than performance, it reflects the strength behind the brand,” said Scott English, Founder and Global Brand Director of Elite Franchise. “We continue to see franchise systems raise standards and push the boundaries by evolving support structures and investing in long-term people-first growth.
Scott English
The EF100 Canada 2026 rankings will be officially celebrated at a live awards ceremony on March 26 in Toronto.
Sherry McNeil
Sherry McNeil, President & CEO of the Canadian Franchise Association, said: “Canadian franchisors continue to raise the bar. The systems recognized through the EF100 demonstrate innovation, operational strength, and a long-term commitment to sustainable growth. These brands showcase the strength and impact of franchising in Canada.”
Featuring a youth-designed graphic by Ottawa artist Hailey-Lynn, selected through an OAG-led workshop, the shirt is available now in select Giant Tiger stores and online at GiantTiger.com, with 100% of profits raised from the sale of this shirt donated to KHP to support e-mental health services for youth across Canada, explained officials in a news release.
“Partnerships like this help amplify youth voices because it’s truly created by youth, for youth,” said Andy Akangah, Illustrator, Comic Book Artist, and Workshop Facilitator. “As a self-taught artist, I know how hard it can be to find guidance early on, so being able to share what I’ve learned and create space for young artists to explore their voices is incredibly meaningful.
Andy Akangah
“We’re not speaking for them, we’re giving them the tools, the platform, and the support to tell their own stories, especially around issues like mental health and belonging. What’s just as powerful is how much they teach me in return; their creativity, honesty, and perspective are inspiring every time.”
Last summer, the OAG hosted a youth workshop for artists aged 15–25, facilitated by Akangah. Participants created original shirt designs, with all works to be featured in a public exhibition at the OAG until April 12. Hailey-Lynn’s standout design entitled Be the Light was selected as the official artwork for this year’s shirt.
Through its Anti-Bullying campaign, Giant Tiger has raised more than $350,000 to date to help fund KHP e-mental health services, creating real impact in communities across Canada.
“With more than 260 locally owned stores across Canada, it’s our store owners, Team Tiger members, and customers who help turn these initiatives into real impact for youth in their communities. Together, we’ve raised more than $350,000 to help fund Kids Help Phone’s e-mental health services, demonstrating the meaningful difference we can make when we work together. Each shirt also includes a detachable Kids Help Phone contact card that can be shared or saved, ensuring support is accessible when it matters most and highlighting how these programs continue to create lasting change for youth across Canada.”
“The Ottawa Art Gallery knows art can open doors for young voices, transform communities and change lives. This Anti-Bullying Day collaboration with Giant Tiger and Kids Help Phone places youth creativity at the forefront of an imperative national conversation about kindness, mental health, and community care. Through it, young artists are able to share their perspectives and help other youths across Canada feel seen, heard, and supported, which is so deeply important,” said Alexandra Badzak, Director and CEO, Ottawa Art Gallery.
Alexandra Badzak
KHP is Canada’s only national 24/7, free, confidential, and multilingual e-mental health service. Youth across Canada can connect any time at KidsHelpPhone.ca.
“Bullying can have a lasting impact on a young person, and access to support in the moment can be life-changing,” said Jenny Yuen, Group Head & Executive Vice President, Strategic Partnerships and Government Relations. “Hailey-Lynn’s powerful design is a reminder of the strength and creativity young people bring to conversations about mental health. Through Giant Tiger’s ongoing commitment and this powerful youth-designed initiative, more young people across Canada will know they’re not alone and that help is always within reach. Every shirt sold helps ensure youth can connect to free, confidential support whenever they need it most.”
The restaurant will open in Ajax, Ontario, bringing the brand’s Italian-inspired dining experience to a new community in Eastern Canada.
The company said the announcement builds on previously confirmed new locations at Vaughan Mills (Vaughan, Ontario) and in Westboro (Ottawa, Ontario), following Recipe’s acquisition of existing Western Canadian restaurants and a national development agreement with Darden Restaurants, Inc.
Details regarding construction timelines and an anticipated opening date for the Ajax location will be shared as development progresses, it said.
“We’re taking a thoughtful approach to growth as we bring the Olive Garden brand to more Canadians,” said Yianni Fountas, Chief Operating Officer of Olive Garden Canada. “Following Vaughan Mills and Westboro, Ajax stands out as a strong market with clear demand, making it a natural next step in our GTA growth strategy.”
The brand has more than 920 restaurants and employs more than 96,000 team members. It is a division of Darden restaurants.
Recipe Restaurant Group International is Canada’s largest full-service restaurant company. Recipe has nearly 1,100 restaurants located across Canada, and an international presence in the United States and the Middle East. The company’s portfolio of brands includes Swiss Chalet, St-Hubert, Harvey’s, Montana’s, Olive Garden, New York Fries, Kelsey’s Original Roadhouse, East Side Mario’s, Original Joe’s, State & Main, Anejo, The Burger’s Priest, The Landing Group, Elephant & Castle, Fresh Kitchen + Juice Bar, The Pickle Barrel, Blanco Cantina and Bier Markt.
Tim Hortons says $1.3 million was raised through the sale of Special Olympics Donuts, with 100% of proceeds donated to Special Olympics Canada.
“This campaign shows what’s possible when Canadians choose to include,” says Gail Hamamoto, CEO of Special Olympics Canada. “Every Special Olympics Donut purchased will help open doors for athletes of all ages and abilities across the country – fueling confidence, connection, and opportunity through sport.
Gail Hamamoto
“We are deeply grateful to our partner Tim Hortons, their restaurant owners, team members, guests, our Special Olympics community and every supporter who believes in the power of inclusion- in sport and in life.”
The funds raised from Special Olympics Donuts support year-round, inclusive sport programs for more than 40,000 athletes with intellectual and developmental disabilities in communities across Canada, said officials.
Axel Schwan
“We’re so proud of Tim Hortons restaurant owners and their team members from across the country for raising $1.3 million through Special Olympics Donuts,” said Axel Schwan, President of Tim Hortons. “Thank you to Tim’s guests for their incredible support. Your generosity is helping to make sports more accessible for Special Olympics athletes.”
