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Gen Z drives rapid food trends as brands turn to AI: Tastewise

cottonbro studio photo
cottonbro studio photo

Representing 40% of the global consumer base, Gen Z is now driving food and dining trends – and keeping up with them is becoming one of the industry’s biggest challenges.

Largely fueled by TikTok and Instagram Reels, Gen Z’s tastes shift faster than brands can respond. To win their palate, food must be daring and unique one week, then comforting and familiar the next.

To keep pace, four-fifths of the world’s leading food and beverage brands are turning to Tastewise – a human- and agent-powered food intelligence platform built exclusively for food & beverage.

Tastewise helps brands predict emerging food trends early and turn them into actionable go-to-market strategies before they peak. Already ahead of the curve on major Gen Z-driven trends:

  • Solo dining
  • The Filipino food boom
  • Increasing demand for spicy flavours
  • The rise of nostalgic beverages

Trusted by PepsiCo, Kraft Heinz, and Nestlé, Tastewise combines enterprise-grade AI with human-in-the-loop supervision to deliver narratives 10x faster, increase sales conversion by 25%, and reduce research costs by up to 65%.

Alon Chen
Alon Chen

Alon Chen, founder and CEO at Tastewise, said today’s food and beverage landscape is multifaceted; trends emerge across multiple environments and there are more options than ever before in home kitchens, retail aisles, restaurant kitchens, and more. 

“For Gen Z, especially, where new formats appear on platforms like TikTok week to week, the visible expression of a trend can change quickly. But the need driving that behaviour tends to be far more stable,” he said.

“That’s where Tastewise focuses: rather than tracking trends merely at the surface level, we identify and map the root consumer needs that drive them. This allows us to distinguish between a short-lived spike in attention and a broader, more durable shift in behaviour, and anticipate the next iteration of that consumer demand.

“The challenge for most companies today isn’t a lack of data, but the abundance of it. Businesses have more data than they can effectively synthesize. What’s often missing is the ability to connect signals across sources and determine whether they are statistically meaningful and consistently growing.

“This is where AI plays a critical role. By analyzing large-scale, continuously updated data across multiple touchpoints, we’re able to identify emerging patterns, validate whether they are gaining traction, and understand how they translate into real consumer behaviour.

“Once brands identify a trend, they need to act before the moment passes. Getting from idea to launch used to take months to years. However, agentic agents have really changed the pace, creating bolstering brands to operate at speed and scale that allows them to create competitive advantage, and turning insights into evidence-backed strategies, narratives, and assets in minutes.”

Balancing speed with the risk of chasing short-lived fads

Chen said the key is identifying the underlying consumers ‘why’ behind a trend. 

“Today it’s chocolate on Pringles, tomorrow it’s hot sauce in cereal, but the root reason for those trends is the consumers’ desire for bold flavours, a mix of sweet and sour, or sensory experiences,” he explained.

“The brands that focus on the root cause behind the signals will benefit from it as the trend gains traction. The value can be created only when there is a clear alignment between the trend, the target consumer, and the brand’s long-term strategy. The ability to segment these signals across different audiences is what allows brands to move with both speed and precision.

“Tastewise helps businesses decide what to pursue by analyzing how consumer needs translate into emerging trends, and by identifying which signals are statistically meaningful and worth acting on. Our synthetic consumer panels allow brands to better understand how specific audiences are likely to respond, enabling evidence-based decisions.”

Kampus Production photo
Kampus Production photo

Separating a micro-trend from a long-term consumer shift

Chen said micro-trends are expressions of emerging trends, just in more temporary or experimental formats. 

“The key is to understand what they signal. If consumers try something once and move on, it usually means the format itself is not sustainable, but the underlying need still exists and may reappear in different forms,” he said.

“Long-term shifts, on the other hand, build over time, showing steady growth in conversations, menu adoptions, and orders. They appear across multiple channels, such as social content and menu adoption. 

“For example, trends like ‘Girl dinner’ and solo dining show how people are moving toward autonomy and changing eating routines. The specific trend may evolve, but the underlying need is stable.  

“The key for brands is to understand the ‘why’ behind individual trends. At Tastewise, we help brands do exactly that by identifying how consumer needs translate into both short-term signals and long-term shifts, enabling them to invest with greater confidence.”

Tastewise photo
Tastewise photo

Combining AI with human insight

Chen said traditional market research is mostly limited by how fragmented and scattered it is to synthesize. 

“Brands are often dealing with massive volumes of data that aren’t easily connected to specific audiences or actionable decisions, which creates a lag between insight and execution,” he noted.

“Combining AI with human expertise makes it easier. AI can process continuously evolving data across multiple sources, identify statistically meaningful patterns, and surface insights. This allows brands to move from scattered signals to evidence-based direction.

“At Tastewise, this approach is built around three principles: insights that are tailored to each brand (bespoke), consistently reproducible across datasets (repeatable), and transparent in how conclusions are reached (explainable). 

“By handling the heavy lifting of data processing and pattern recognition, AI frees up teams to focus on what humans do best, which is creativity, strategy, and culinary innovation. Our proprietary AI agents bring speed, scale, brand and domain expertise to this work – from trend identification to marketing campaign creation, essentially the entire lifecycle of a product from ideation to launch – to allow businesses to move faster than ever.

“For brands today, the question is no longer whether to use AI, but how to integrate it effectively to operate at the speed and scale the market now demands.”

Tastewise Cofounders Eyal Gaon (Left) Alon Chen (Right)
Tastewise Cofounders Eyal Gaon (Left) Alon Chen (Right)

Practical ways to use data-driven tools

Often, the most obvious opportunities are the least ideal ones for small brands to pursue. Big players have already noticed, dominate the shelves, and have deep pockets to win market share, said Chen.

“However, with the right insights, small brands can identify high-potential trends – emerging flavour preferences, subtle dietary shifts, or underserved consumer segments – that offer an entry point into the wider market.  Poppi is a good example. Instead of trying to compete against PepsiCo or Coca-Cola directly, it found and captured its own niche – gut-friendly soda – before the big players arrived,” he added.

“Where R&D, testing, and validation costs were once a barrier, agentic workers change the equation, giving smaller brands access to a large team at a third of the price. 

“Through our synthetic consumer panels, brands can have a deeper understanding of audiences. It helps them to identify which ingredients are generating buzz, which channels their audience uses, and how to refine concepts faster and far more cost-effectively than traditional consumer research.

“However, for me, the biggest advantage our technology provides is confidence. Getting a product on shelves isn’t cheap, and smaller players can’t afford failed launches as legacy brands can. Having the right tools to enter any space with conviction, whether it’s an internal product pitch meeting or a retail buy-in meeting to land a crucial contract, is what separates market winners from the rest.”

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MINISO Hello Kitty Pop-Up Draws Crowds at STC

Crowds at the Miniso Hello Kitty pop-up at Scarborough Town Centre in Toronto. Photo: Oxford Properties

A first-to-Canada retail activation is already proving its appeal, as MINISO’s Hello Kitty and Friends pop-up has drawn significant crowds at Scarborough Town Centre. The limited-time experience, which opened on April 25 and runs through May 24 in Centre Court, is showcasing the growing strength of character-driven retail in Canadian shopping centres.

The pop-up features more than 500 products tied to Sanrio, including collectibles, plush items, and accessories. Among the highlights is the Racing Club Collection Vinyl Plush Pendant Surprise Box, an item exclusive to Canadian pop-ups, further reinforcing the sense of scarcity and urgency driving traffic to the activation.

 

Strong Opening Day Signals Consumer Demand

Early performance points to strong consumer interest. According to Oxford Properties, the opening day drew significant crowds, with fans lining up ahead of the public opening and maintaining steady foot traffic throughout the day. Social media activity also accelerated quickly, underscoring the cultural resonance of the concept and the continued popularity of globally recognized character brands.

The grand opening featured early access for invited guests, followed by a public opening at 10:00 AM. A Sanrio mascot made appearances throughout the morning, contributing to an interactive and highly shareable in-mall experience.

“This exclusive pop-up experience will resonate with the wider community and reinforce STC as a cultural destination. We’re proud to bring one-of-a-kind retail experiences to Centre Court and create an exciting activation with engaged and enthusiastic fans. This is about fun, fandom and friendship in the heart of the community,” said Karen Calibuso-Kwa, Scarborough Town Centre Marketing Manager. “This is more than a pop-up; it is a must-visit experience.”

Crowds at the Miniso Hello Kitty pop-up at Scarborough Town Centre in Toronto. Photo: Oxford Properties
 

Part of MINISO’s Shift Toward IP-Led Retail

The MINISO Hello Kitty pop-up Canada activation reflects a broader strategic shift for the retailer. In recent years, the company has transitioned from a general merchandise model to an IP-focused retail strategy centered on licensed collaborations and collectible-driven assortments.

This evolution has been supported by rapid expansion across Canada. MINISO surpassed the 100-store mark nationally in late 2025 and now operates approximately 110 locations across the country, forming part of a broader North American network approaching 300 stores.

The retailer’s “Super IP + Super Store” approach emphasizes character partnerships, with Sanrio among its top-performing collaborations alongside other global brands. This shift has repositioned stores as destinations for fandom and discovery, rather than purely transactional retail environments.

Larger Formats and Experiential Concepts Gain Traction

MINISO has also introduced new store formats designed to enhance customer engagement. The “MINISO LAND” concept at West Edmonton Mall, spanning more than 1,000 square metres, represents the brand’s largest Canadian location and features thousands of SKUs within an immersive themed environment.

In Toronto, the CF Toronto Eaton Centre location has evolved into an “IP Collection” hub, showcasing multiple licensed partnerships through dedicated in-store zones. These environments are designed to appeal to collectors and fans, reinforcing repeat visits and longer dwell times.

The Scarborough Town Centre pop-up builds on this strategy in a temporary format, allowing MINISO to create a high-impact retail moment while testing demand for immersive concepts in a condensed footprint.

Crowds at the Miniso Hello Kitty pop-up at Scarborough Town Centre in Toronto. Photo: Oxford Properties

Pop-Ups Reinforce the Role of Shopping Centres as Destinations

The success of the MINISO Hello Kitty pop-up Canada launch highlights the growing importance of experiential retail in Canadian malls. Landlords are increasingly leveraging pop-ups to generate excitement, drive traffic, and position centres as cultural and community destinations.

For brands, these activations offer a platform to showcase exclusive products, connect directly with consumers, and amplify engagement through social media. In this case, strong opening-day performance suggests that character-driven retail continues to resonate, particularly when paired with limited-time availability and interactive elements.

As the pop-up continues through May, it is expected to remain a draw for both dedicated fans and casual shoppers, reinforcing the role of immersive retail experiences in today’s evolving market.

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Canadian Retail Sales Show Uneven Growth as Wellness Spending Surges

Image: Healthy Planet

February delivered 4.0% YOY growth across All Stores, with discretionary momentum holding firm: All Stores less Automotive, Food, and Pharmacies climbed 5.6% YOY. Overall, growth was uneven, with consumers spending more on health and wellness while pulling back on electronics and alcohol. Three main factors drove February’s results. First, Health and Personal Care Sales increased 9.1% YOY as consumers invested more in wellness products and treatments. Second, Beer, Wine and Liquor Stores fell -5.2% YOY, likely reflecting pricing and product shift from American stock. Third, Electronics and Appliance Stores dropped -14.0% YOY due to RAM supply shortages and weak housing market demand.

The strength in Health and Personal Care reflects broader wellness trends. Social media platforms are driving interest in daily wellness routines and turning them into mainstream consumer behaviours. At the same time, the increased prevalence of GLP-1 drugs are reinforcing this shift. We see the ripple down effect as consumers using these treatments are eating out less and buying more specialty foods (up 5.5% year over year), while also spending more on beauty, skincare, and ongoing health routines. The recent approval of a generic version of Ozempic in Canada could improve affordability and access. The key question is whether broader adoption will increase total spending or moderate it as prices come down.

 

Beer, Wine, and Liquor Stores declined -5.2% YOY, a reversal that appears to be driven by supply and product mix changes in addition to a drop in demand. Retailers who stockpiled American liquor through early 2025 have largely run dry; U.S. products began pulling off shelves last March, leaving consumers with a different mix of products. The decline may reflect lower volumes as shoppers adjust to fewer familiar or preferred options, in addition to the broader trend of moderation tied to wellness behaviours and reduced consumption. Either way, the easy value that U.S. imports once provided is gone, and retailers are navigating an environment with uncertain consumer tolerance.

Electronics and Appliances Stores fell -14.0% YOY. Supply constraints, particularly around key components such as RAM, continue to limit availability, with tight global memory supply driven in part by strong demand from AI infrastructure and data centre buildouts, which is absorbing a larger share of industry capacity. At the same time, demand is also soft. A flat housing and condo market means fewer moves and delayed appliance purchases and upgrades. Consumers are holding onto products longer and replacing them less often.

As we move into spring, JCWG is thinking about:

  • Will generic GLP-1s accelerate spend shift or plateau it by normalizing costs and broadening access?
  • Can electronics recover without a RAM supply reset, or will AI demand keep consumer tech starved through 2026?
  • If housing stays stagnant, how long does appliance demand remain muted? What does this mean for retailers’ inventory and promotional strategies?
  • How are YOU positioning wellness products and services to benefit from GLP-1-driven behaviour changes?

Retail Sales by Product Category, Same Month Comparison

Sales for the Month of FebruaryFeb-26Feb-25YOY
All Stores59,612,45457,311,8274.01%
Motor Vehicle and Parts Dealers15,869,13414,991,8405.85%
Gasoline Stations5,620,1365,893,747-4.64%
All Stores Less Automotive38,123,18436,426,2404.66%
Food and Beverage Stores11,783,64711,550,4712.02%
Supermarkets and Other Grocery Stores*8,717,8348,454,5363.11%
Convenience Stores583,564569,7552.42%
Specialty Food Stores856,700811,7945.53%
Beer, Wine and Liquor Stores1,625,5491,714,385-5.18%
Health and Personal Care Stores5,770,0515,288,2739.11%
All Stores Less Automotive, Food, and Pharmacies20,569,48619,587,4965.01%
General Merchandise Stores9,055,6008,368,9448.20%
Furniture, Home Furnishings, Electronic and Appliance Stores2,703,1692,864,155-5.62%
Furniture Stores929,631940,753-1.18%
Home Furnishings Stores617,591579,9236.50%
Electronics and Appliance Stores1,155,9471,343,479-13.96%
Clothing and Accessories Stores2,776,8072,654,4364.61%
Clothing Stores2,169,8682,031,0666.83%
Shoe Stores242,992245,258-0.92%
Jewellery, Luggage and Leather Goods Stores363,947378,113-3.75%
Sporting Goods, Hobby, Book and Music Stores3,457,7273,162,4429.34%
Building Material and Garden Equipment2,576,1852,537,5181.52%
Miscellaneous Store Retailers2,430,3012,196,07210.67%
Cannabis Retailers440,520408,2167.91%
Foodservices and Drinking Places7,442,4616,952,3967.05%

Retail Sales by Store Category, Year to Date Comparison

Year-to-Date Sales Ending FebruaryFeb-26Feb-25YTD
All Stores121,196,314117,837,6352.85%
Motor Vehicle and Parts Dealers31,010,35930,812,8550.64%
Gasoline Stations11,474,74012,066,576-4.90%
All Stores Less Automotive78,711,21574,958,2045.01%
Food and Beverage Stores24,489,40223,673,2123.45%
Supermarkets and Other Grocery Stores*18,244,38117,460,9924.49%
Convenience Stores1,191,1361,178,5941.06%
Specialty Food Stores1,718,3881,614,7956.42%
Beer, Wine and Liquor Stores3,335,4973,418,829-2.44%
Health and Personal Care Stores11,975,07610,932,4279.54%
All Stores Less Automotive, Food, and Pharmacies42,246,73740,352,5654.69%
General Merchandise Stores18,339,58016,934,4348.30%
Furniture, Home Furnishings, Electronic and Appliance Stores5,708,9976,146,657-7.12%
Furniture Stores1,969,9962,047,799-3.80%
Home Furnishings Stores1,249,3251,219,3262.46%
Electronics and Appliance Stores2,489,6762,879,531-13.54%
Clothing and Accessories Stores5,639,6205,404,8094.34%
Clothing Stores4,428,8874,200,1365.45%
Shoe Stores510,961517,105-1.19%
Jewellery, Luggage and Leather Goods Stores699,772687,5701.77%
Sporting Goods, Hobby, Book and Music Stores7,187,8056,521,29210.22%
Building Material and Garden Equipment5,370,7375,345,3730.47%
Miscellaneous Store Retailers4,998,9804,460,67112.07%
Cannabis Retailers918,759846,0728.59%
Foodservices and Drinking Places15,161,90114,269,1206.26%

Ecommerce Sales

Feb-26Feb-25
Ecommerce Sales, YTD3,894,9403,764,5432.30%
Ecommerce Sales, YOY4,071,615 3,985,9602.15%

Regional Sales, Year to Date Comparison

RegionYear-to-Date, 2026Year-to-Date, 2025YTD
British Columbia16,858,30914,958,58312.70%
Vancouver8,739,1198,666,0530.84%
Alberta15,823,25714,958,5835.78%
Prairies*7,921,5137,785,2901.75%
Ontario45,597,43444,678,5992.06%
Toronto21,206,02720,702,7992.43%
Québec26,336,46225,372,0143.80%
Montréal12,959,08812,725,1891.84%
Atlantic Canada8,214,8887,984,0862.89%
Territories444,450441,1180.76%

NATIONAL RETAIL BULLETIN

Stay up to date with JCWG’s monthly analysis on U. S. and Canadian retail sales.

 

More from Retail Insider:

Daily Synopsis: Apr 30, 2026

Retail Insider’s latest articles are listed below, followed by Canadian Retail News From Around the Web. Highlights include the end of traditional anchor stores reshaping Canadian malls through subdivision and mixed-use redevelopment. Reitmans is marking its centennial with a new logo and a revamped store concept for a refreshed customer experience. Aritzia’s U.S. expansion underscores its rise as a North American retail powerhouse. Together these stories and others show Canadian retail evolving to remain relevant in diverse and competitive markets.

 

🗞️ The Day’s Retail Insider Article List

 

🌐 Canadian Retail News From Around the Web

Casavogue Expands Offering with Furniture Warehouse in Saint-Léonard

Image: Casavogue

For more than five decades, Casavogue has served Montréal customers with a curated selection of high-end furniture designed for the entire home. In addition to its established showroom, the company is now highlighting another component of its offering: a dedicated warehouse location where customers can discover a wide range of furniture at reduced prices.

Located in Saint-Léonard, the Casavogue warehouse provides access to a variety of products for the living room, bedroom, and dining room, with discounts of up to 65% off. The space offers an opportunity for customers to explore additional inventory while benefiting from more accessible price points across key furniture categories.

A Complementary Destination for Home Furnishings

The warehouse broadens Casavogue’s selection with an extended range of furniture beyond the main showroom, from sofas and armchairs for the living space to beds and storage for the bedroom, along with dining tables and chairs designed to suit a variety of interiors.

This additional location offers greater flexibility for those looking to furnish a space or take advantage of promotional pricing, while still accessing products aligned with Casavogue’s focus on quality and design.

Charles David Barroco bedroom set. Image: Casavogue

Accessing Value Across the Home

With discounts of up to 65%, the warehouse allows customers to explore options for refreshing multiple rooms within a single visit. Whether updating a living area, completing a bedroom, or furnishing a dining space, the selection supports a variety of needs and budgets.

The warehouse format also encourages discovery, with inventory that may vary over time, offering customers an opportunity to find pieces that complement their existing interiors or inspire new design directions.

Visit the Casavogue Warehouse

The Casavogue warehouse is open on Thursdays and Fridays, offering customers the opportunity to explore the selection in person.

The warehouse is located at 8195 Rue Lafrenaie, Saint-Léonard, QC H1P 2B1.
Opening hours: Thursday and Friday: 10:30 a.m. to 4:00 p.m.

For more information, call 514-722-5828.

Charles David Novara sectional sofa. Image: Casavogue

RCC Names 2026 Excellence in Retailing Awards Finalists

ERA Winners

The Retail Council of Canada has announced the finalists for its 2026 Excellence in Retailing Awards, spotlighting companies that are shaping the future of Canadian retail across customer experience, operations, marketing, and sustainability.

This year, 64 finalists were selected across 10 competitive categories, representing a broad cross-section of the industry. The list includes major national chains, specialty retailers, financial institutions, and emerging brands, reflecting the increasingly interconnected nature of retail in Canada.

 

Kim Furlong, President and CEO of the Retail Council of Canada, emphasized the significance of the recognition.

Kim Furlong
Kim Furlong

“To be named an ERA finalist is to stand among the most accomplished in Canadian retail,” she said. “In a complex and demanding year, these organizations demonstrated the kind of leadership and forward momentum that defines excellence.”

Broad Representation Across Canadian Retail

The 2026 finalist roster includes a wide range of prominent retailers and organizations such as Walmart Canada, Loblaw Companies Limited, IKEA Canada, Sephora Canada, and The Home Depot Canada, alongside specialty and emerging brands including Silk & Snow, Surmesur, and Hillberg & Berk.

Financial and telecommunications players such as CIBC, Bell, and Rogers Communications Inc. are also represented, highlighting the continued convergence between retail, services, and customer experience ecosystems.

Grocery and food retail remains strongly represented, with companies including Sobeys Inc., Longo’s, Farm Boy Company Inc., and Pattison Food Group among the finalists.

Industry Themes: Canadian Focus, Experience, and Technology

This year’s finalists reflect several key themes shaping the retail landscape.

 

A growing “buy Canadian” movement has gained traction, with retailers placing increased emphasis on domestic sourcing, Canadian-made products, and local brand partnerships. This shift comes amid broader economic pressures and heightened consumer awareness around supporting local businesses.

At the same time, experiential retail continues to evolve. Retailers are investing in physical environments designed to engage customers beyond the transaction, creating spaces that foster brand loyalty and community connection.

Technology is also playing a more visible role. Artificial intelligence is being deployed across both customer-facing and operational functions, from personalization and inventory management to supply chain optimization.

Sustainability remains another defining priority. Finalists across multiple categories demonstrate that environmental initiatives are increasingly aligned with business performance, rather than treated as separate efforts.

RCCSTORE26 to Showcase Industry Leadership

Winners will be announced at the Excellence in Retailing Awards Gala, taking place during RCCSTORE26 on June 2 and 3. The annual conference is expected to feature more than 75 speakers and attract retail leaders from across Canada and internationally.

The event will also recognize Awards of Distinction recipients, including Michael Brownstein, CEO of Browns Shoes, and Jillian Harris, Co-Founder of The Jilly Box.

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One Year After Hudson’s Bay’s Collapse, Retail Reshaped

Bay Street entrance to Hudson's Bay Queen Street on Saturday, April 26, 2025. Photo: Craig Patterson

In late April 2025, liquidation signs appeared in the windows of Hudson’s Bay Company’s flagship on Queen Street in Toronto, and five others. For many Canadians, the sight of “70% OFF” banners draped across the historic building marked the moment when the company’s fate became undeniable.

One year later, the collapse of Hudson’s Bay continues to reverberate across the Canadian retail landscape. What began as a restructuring effort under creditor protection evolved into a full liquidation that ended the operations of North America’s oldest company and left a significant void in shopping centres, downtown cores, and the national retail psyche.

The Final Days of a 355-Year-Old Institution

Hudson’s Bay filed for protection under the Companies’ Creditors Arrangement Act in March 2025, but it was the events of April that sealed its fate. Early in the month, the company paused its loyalty program and stopped accepting gift cards, leaving many customers with stranded balances.

By April 24, court filings indicated there was little chance of securing a buyer for the remaining business. The company announced the liquidation of its final six stores, including its Toronto Queen Street flagship, Yorkdale Shopping Centre location, Hillcrest Mall, downtown Montreal store, CF Carrefour Laval, and CF Fairview Pointe-Claire.

Within days, liquidation sales were underway across all remaining locations. By the end of the month, the company had effectively lost its ability to continue operations, burdened by approximately $2 billion in liabilities and minimal available cash.

Liquidation at Hudson’s Bay Queen Street in Toronto, April 25, 2025. Photo: Craig Patterson

Why Hudson’s Bay Failed

The company’s collapse was driven by a combination of structural challenges and strategic missteps, with some blaming owner and Governor Richard Baker.

Hudson’s Bay had struggled for years with declining department store traffic, rising operating costs, and an increasingly fragmented retail environment. Leadership instability further compounded the problem, with multiple executive changes over more than a decade.

A pivotal moment came in late 2024 with the separation of Saks Global into a standalone entity. This move effectively detached the Canadian Hudson’s Bay stores from their most valuable luxury associations, leaving the domestic business exposed and financially strained.

Without a compelling value proposition or the capital required to modernize, the company was unable to compete in a retail landscape increasingly defined by specialization, speed, and experience.

Bay Street entrance to Hudson’s Bay Queen Street on Saturday, April 26, 2025. Photo: Craig Patterson

The Aftermath: Assets, Leases, and Lost Jobs

Following the liquidation announcement, the dismantling of Hudson’s Bay accelerated.

In May 2025, Canadian Tire acquired the company’s intellectual property, including its name, coat of arms, and iconic multi-coloured stripes, for approximately $30 million.

At the same time, efforts to salvage the company’s physical footprint proved unsuccessful. B.C. entrepreneur Ruby Liu attempted to acquire a portfolio of leases to launch a new department store concept, but the plan ultimately collapsed following a court decision in late 2025.

The human impact was significant, with thousands of employees affected by the closures and limited recourse available due to creditor structures.

Hudson’s Bay stripes marketing images for Canadian Tire, spring 2026. Image: Canadian Tire

The State of the “Stripes” One Year Later

One year after liquidation began, the most visible remnant of the Hudson’s Bay Company is no longer a department store, but a brand.

Following its acquisition of HBC’s intellectual property, Canadian Tire has emerged as the primary steward of the “Stripes,” repositioning them as a proprietary product line rather than a legacy retail identity.

On May 1, 2026, Canadian Tire is set to launch its first internally designed Hudson’s Bay Stripes summer collection, marking a shift from selling residual liquidation merchandise to treating the brand as a premium in-house offering alongside established labels such as NOMA and CANVAS.

While the department stores themselves have disappeared, the brand persists through shop-in-shop formats within Canadian Tire and Mark’s locations across the country, extending its presence in a fundamentally different retail context.

The Real Estate Reality: Subdivision Replaces the Department Store

The liquidation of Hudson’s Bay left behind approximately 15 million square feet of vacant retail space across Canada, triggering one of the largest repositioning efforts in the country’s retail real estate history.

Rather than seeking a single anchor tenant to replace Hudson’s Bay, landlords have largely shifted to a multi-tenant strategy. Approximately 64 percent of former HBC space is expected to be subdivided into mid-sized units ranging from 15,000 to 40,000 square feet, according to JLL.

This approach reflects a broader rethinking of anchor tenancy, as shopping centres prioritize flexibility and diversification over reliance on large-format department stores.

Saks Fifth Avenue in the Hudson’s Bay building in downtown Toronto on Saturday, April 26, 2025. Photo: Craig Patterson

New Tenants Signal a Shift in Retail Mix

A diverse mix of tenants is beginning to fill former Hudson’s Bay locations, illustrating how the retail landscape is evolving.

Value-oriented retailers have been among the most active, with TJX Companies banners such as Winners, Marshalls, and HomeSense expanding into several suburban spaces.

At the same time, international entrants are targeting these locations as part of their Canadian expansion strategies. Greek retailer JUMBO S.A. is expected to enter the market in 2026, with former Hudson’s Bay locations under consideration for its large-format stores.

Experiential and lifestyle uses are also gaining traction. Some properties are being converted into fitness facilities such as Altea Active, as well as entertainment concepts including The Rec Room and emerging recreational uses such as pickleball courts.

Reimagining the Flagships

While suburban locations are being repositioned relatively quickly, flagship downtown properties present a more complex challenge.

In Montreal, a proposed $400 million redevelopment led by the James Bay Eeyou Corporation and JHD Immobilier aims to transform the former Sainte-Catherine Street store into a cultural and heritage destination focused on the history of the fur trade and Indigenous relations, including an Indigenous-led hotel and museum.

Other downtown flagships will see proposals following sales and strategy development. Such proposals highlight the growing importance of mixed-use and culturally driven redevelopment in revitalizing large-scale urban retail spaces.

Liquidation signs in the windows of Saks Fifth Avenue in the Hudson’s Bay Queen Street building in downtown Toronto on Saturday, April 26, 2025. Photo: Craig Patterson

The Challenges Ahead

Despite steady progress, the transition is not without hurdles.

Subdividing large-format department stores is both complex and costly. Retrofitting spaces originally designed for a single tenant requires extensive upgrades to building systems, with costs exceeding $150 per square foot in some cases.

There is also a significant time lag. While a majority of the space is expected to be committed by 2027, many locations may remain under construction or partially vacant until 2028 due to the scale of redevelopment required.

A Structural Reset for Canadian Retail

The collapse of Hudson’s Bay did not simply mark the failure of a single retailer. It signaled the end of the traditional department store model as a dominant force in Canadian retail.

In its place, a more fragmented and flexible ecosystem is emerging, defined by a mix of value retailers, international entrants, and experiential concepts. At the same time, the role of large anchor tenants is being redefined, with fewer single operators occupying massive footprints.

One year later, the physical presence of Hudson’s Bay may be fading, but its impact continues to shape how retailers, landlords, and consumers navigate the future of Canadian retail.

The stripes remain, but the Bay itself is gone.

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Jobs declining in the retail sector: Statistics Canada

Vitaly Gariev photo
Vitaly Gariev photo

In February, payroll employment in retail trade fell by 5,900 (-0.3%), following a decline of 7,000 (-0.4%) in January and an increase of 4,700 (+0.2%) in December 2025, according to a report released by Statistics Canada on Thursday.

On a year-over-year basis, payroll employment in retail trade was down by 26,400 (-1.3%) in February 2026. The year-over-year decline in February was broad-based, with the largest losses being recorded in clothing and clothing accessories retailers (-9,500; -5.6%), grocery and convenience retailers (-5,900; -1.4%), department stores (-5,800; -5.9%) as well as building material and supplies dealers (-3,200; -2.3%), said the federal agency.

Over the same period, payroll employment in warehouse clubs, supercentres and other general merchandise retailers was up 5,100 (+3.2%) despite widespread year-over-year declines, it said.

“Payroll employment in accommodation and food services decreased by 4,100 (-0.3%) in February, more than offsetting the gain recorded in January (+3,100; +0.2%). The monthly decline in February was led by full-service restaurants and limited-service eating places (-3,600; -0.4%) and special food services (-1,400; -1.8%),” added Statistics Canada.

“On a year-over-year basis, payroll employment in accommodation and food services was up slightly (+1,200; +0.1%) in February.”

The report said the overall number of employees in Canada receiving pay and benefits from their employer—measured as “payroll employment” in the Survey of Employment, Payrolls and Hours—decreased by 60,200 (-0.3%) in February, following an increase of 44,300 (+0.2%) in January. On a year-over-year basis, payroll employment was virtually unchanged in February.

In February, monthly payroll employment declines were led by transportation and warehousing (-14,000; -1.6%), administrative and support services (-7,500; -0.9%), retail trade (-5,900; -0.3%), construction (-4,200; -0.3%) and accommodation and food services (-4,100; -0.3%), it said.

Meanwhile, the number of job vacancies was little changed, at 497,200 in February. On a year-over-year basis, job vacancies were down by 29,000 (-5.5%), it added.

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Canadian GDP rises slightly in February: Statistics Canada

August de Richelieu photo
August de Richelieu photo

Real gross domestic product (GDP) was up 0.2% in February, with goods-producing industries driving the growth for the second consecutive month, reported Statistics Canada on Thursday.

Goods-producing industries grew 0.4% in February, driven by expansions in manufacturing and mining, quarrying, and oil and gas extraction. Services-producing industries edged up 0.1%, as rebounds in transportation and warehousing and wholesale trade were largely offset by contractions in the public sector, said the federal agency.

Statistics Canada said the manufacturing sector led the growth in February, rising 1.8% in the month. This was the largest monthly growth in the sector since January 2023 (+2.2%) and was driven by a 3.6% expansion in durable-goods manufacturing industries.

It said the wholesale trade sector rose 0.9% in February, largely offsetting January’s decrease. Motor vehicle and motor vehicle parts and accessories merchant wholesalers (+6.1%) led the growth in February, corresponding to increased production of motor vehicles as well as higher exports and imports of passenger cars and light trucks and motor vehicle engines and parts.

Statistics Canada said advance information indicates that real GDP was essentially unchanged in March. Increases in wholesale trade and transportation and warehousing were offset by decreases in retail trade and mining, quarrying, and oil and gas extraction. Owing to its preliminary nature, this estimate will be updated on May 29 with the release of the official GDP by industry data for March.

“With this advance estimate for March, information on real GDP by industry suggests that the economy expanded 0.4% in the first quarter of 2026.”

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Canadian small business sales decline, modest March rebound amid cash flow strain: Xero

Ron Lach photo
Ron Lach photo

Xero, the global small business platform, released on Thursday its quarterly Xero Small Business Insights (XSBI) report, a snapshot of the health of the Canadian small business sector based on actual aggregated and anonymized data from 12,000 Canadian small businesses using Xero, including sales performance, late payments, and time-to-be-paid.

The report revealed that Canadian small business sales remained in sharp decline through the first two months of 2026, but returned to positive growth in March, for the first time since September 2025. While March sales growth offered a rare bright spot, longer payment wait times and higher late payments suggest continued cash flow pressures facing the Canadian small business sector, said Xero.

Sales declines deepen, with an unexpected March rebound

In the quarter to March 2026, Canadian small business sales fell 4.0% year-over-year (y/y), a larger decline than the 1.8% y/y drop in the December quarter (revised up from -4.1% y/y). After dropping 2% in December, small business sales growth tumbled further in early 2026, dropping 10.1% y/y in January, followed by a 2.9% y/y decline in February, said the report.

Xero said a rare bright spot came in March, when sales rose 1.0% y/y, the first positive monthly result in five months. However, this remains well below the series’ historical monthly average of 4.3%. In fact, over the past three years, monthly sales growth has only exceeded the historical average in four months, a reflection of the prolonged period of economic turbulence and macroeconomic uncertainty, and its continued impact on Canadian small businesses.

Louise Southall
Louise Southall

“Poor sales results driven by ongoing macroeconomic tensions are continuing to impact the ability of small businesses to pay their bills and manage cash flow. While the modest rise in March sales is welcome, it remains well below long-term averages, and we’ve seen only four months of above-average growth in the past three years,” said Louise Southall, Economist at Xero.

“The recent spike in gasoline prices is a fresh headwind that could weigh on both costs and sales in the months ahead, as small businesses navigate the long-term impacts of fuel costs and small business customers have less to spend on non-fuel purchases.”

Cash flow pressures build as payment times lengthen

Reflecting consumers’ contracting budgets, small businesses were paid increasingly late in the quarter, reversing a recent period where payment times and late payments had been quicker than historical averages. Small businesses waited, on average, 29.8 days for their invoices to be paid in the March quarter, up from 27.2 days in the December quarter. Late payments, the time between a payment due date and when payment was actually received, rose to 11.6 days, up from 10.5 days the previous quarter.

Ashalee Mohamed
Ashalee Mohamed

“Small business owners across Canada have already navigated a prolonged stretch of tough trading conditions, and they now face a new set of challenges with the recent jump in fuel prices,” said Ashalee Mohamed, Country Manager for Canada at Xero.

“Rising costs are hitting bottom lines at the same time as customers have less disposable income to spend. It’s a difficult combination, especially when cash flow is already under pressure from longer payment times. During periods of uncertainty that are largely outside their control, the best thing small business owners can do is focus on what they can influence: managing cash flow closely, encouraging prompt payment, and continuing to deliver great service to their customers.”

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