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Design-Led Retail Repositioning by Vancouver’s Black Label Designs

Pria Rajput. Photo: Black Label Designs

In an era where experience drives retail, hospitality, and mixed-use success, Vancouver-based Black Label Designs is leading a quiet revolution. Founded by Pria Rajput, the firm is repositioning underperforming properties into dynamic, revenue-generating destinations by treating design not as decoration, but as strategy. 

Pria Rajput. Photo: LinkedIn.

In a Q&A with Retail Insider, Rajput shares how her multidisciplinary firm integrates architecture, interiors, and brand identity to drive performance and emotional connection — whether for a legacy restaurant, transit-adjacent strip mall, or new mixed-use development in Squamish.

“We treat every square foot as investable equity,” says Rajput. “Design isn’t just about how a space looks — it’s about how it performs.”

A Strategic Repositioning Approach

Black Label Designs refers to itself not simply as a design studio but as a “branding-and-design repositioning strategist.” For developers, landlords, and hospitality groups, that distinction is meaningful.

“We audit a property through three converging lenses: asset value, brand story, and guest experience,” explains Rajput. “Then we choreograph those elements so the space starts performing like a business engine, not just a backdrop.”

One example she shares is a heritage hotel restaurant with strong bones but lagging traffic. Instead of gutting the space, Black Label Designs salvaged original millwork, refreshed the visual identity, and re-mapped circulation.

“We created a coffee-to-cocktail concept that works from 7 a.m. to midnight,” she says. “Six months later, seat turns were up 35 percent, the grab-and-go counter added a new revenue stream, and bar sales surpassed previous full-day totals — all without a costly rebuild.”

From Fashion Shoots to Design Strategy

Rajput’s unconventional path to leading a design firm helps explain her unique lens.

“Before architecture and interiors, I ran a hair-and-makeup studio as a creative director,” she shares. “I was curating lighting, music, and palettes for shoots. That taught me that great design is a mosaic of emotion, function, and atmosphere.”

Her multidisciplinary career spans beauty, branding, and large-scale architectural projects. Founding Black Label Designs allowed her to unite those experiences into a cohesive offering.

“Space, story, and operations must dance together or the experience falls flat,” she notes.

That philosophy now underpins projects across Canada and internationally, from New York to Dubai.

Rooted in Vancouver, Working Nationally

While now headquartered in Vancouver, Black Label Designs works across Canada with a growing portfolio.

“Vancouver is a city where design, culture, and commerce intersect,” Rajput says. “There’s a strong appetite for intentional, community-driven spaces. But our studio has always been national. We’re set up to work remotely and on the ground.”

One of the most anticipated projects currently underway is in Squamish, where the team is reimagining a long-vacant site into a food and entertainment destination.

“Picture a dark, unused space,” she says. “We saw a chance to flip it into a regional draw. Think chef-driven kiosks, rotating pop-ups, intimate performance corners — a flexible plaza for markets and music.”

Though branding and tenant details remain under wraps, community and operator interest has been “electric.”

“We’re layering the experience so it feels both rooted in Squamish’s mountain-to-sound heritage and forward-looking. More to come soon,” Rajput adds.

One Studio, Two Disciplines: Design and Branding

What makes Black Label Designs stand out in a crowded field is its dual offering of interior design and branding services — a rare combination under one roof.

Most studios do interiors or branding, not both. Fewer still do both with a strategic lens grounded in business goals,” says Rajput.

The firm’s integrated model means messaging, customer journey, visual identity, signage, and spatial layout are all created as one system.

“That saves time, avoids misalignment, and results in spaces that are beautiful, branded, and revenue-aware,” she says. “We think holistically, whether it’s naming a concept, planning the back-of-house, or laying out the customer journey.”

Metrics That Matter

Rajput and her team don’t just design — they measure. Key metrics include dwell time, spend per square foot, energy usage, and brand sentiment.

“Those numbers tell you whether the space is delivering both economic and emotional returns,” she says.

Black Label Designs uses dashboards integrating tenant POS data and visitor analytics to track real-time performance, enabling clients to move beyond subjective aesthetic judgments.

Unlocking Hidden Value

Rajput is especially enthusiastic about overlooked real estate and adaptive reuse opportunities.

“Under-loved strip centres near transit, heritage buildings with boutique landlords, hospitality groups exploring wellness amenities — these are the spaces we love,” she says. “They’re ripe for blending narrative, architecture, and commerce.”

The firm’s recent refresh of 49th Parallel Coffee Roasters’ flagship illustrates that approach. The redesign increased seating by 45 percent, added a branded merchandise area, and introduced layout changes that aided content creation for marketing.

“We aligned story, layout, and brand touchpoints — lighting, scent, digital — to reignite emotional connection. The results spoke for themselves,” Rajput notes.

Planning for the Future

Looking ahead, Rajput envisions a future where Black Label Designs is embedded earlier in the development process.

“We want to be strategic partners at the acquisition stage,” she says. “That means helping investors assess upside potential before the deal closes.”

To that end, the firm is investing in research, data partnerships, and a growing library of adaptive reuse case studies.

“We’re building tools that support better decision-making — combining gut and data, creativity and commercial logic,” she says.

Helping Brands Break Through Stagnation

Rajput is also increasingly approached by retailers stuck in dated environments or brand fatigue.

“It usually starts with a gap between what a brand promises online and what customers feel in-store,” she explains. “Those gaps bleed revenue.”

Black Label Designs begins by clarifying a brand’s story and translating it into the physical experience. That could mean reshaping sightlines, updating merchandising zones, or adding tactile brand moments.

“Too many brands start to blend in,” says Rajput. “Our job is to help them stand out again — with intention.”

Design as a Business Lever

At its core, Black Label Designs operates with the belief that design is a business lever, not a luxury.

“Design is profit strategy,” Rajput asserts. “It converts tired square footage into top-performing assets.”

Clients include developers, operators, and even healthcare providers. Across sectors, Rajput and her team focus on balancing aesthetics with performance, blending emotional resonance with measurable ROI.

“We’re not just about beauty — we’re about outcomes,” she says. “Whether it’s dwell time, sales per square foot, or tenant mix, our work is grounded in results.”

Black Label Designs. Photo: Black Label Designs

A Distinctive Blend of Art and Strategy

Founded more than a decade ago, Black Label Designs brings together branding, interiors, and architectural design with a refined aesthetic and entrepreneurial drive. The firm is known for fusing classic and contemporary styles, sourcing one-of-a-kind pieces from global and local artisans, and crafting immersive environments tailored to brand stories.

Rajput’s background in makeup artistry, sculpture, and branding continues to influence the firm’s human-centred design philosophy. And despite its boutique size, the firm handles projects with national and international reach — from hospitality to mixed-use developments, retail to wellness.

“Design is about more than style,” says Rajput. “It’s about solving problems, telling stories, and creating spaces people want to return to.”

Final Word

As retail, hospitality, and real estate markets shift rapidly, Black Label Designs offers a nimble, imaginative partner for brands and owners seeking to evolve.

With Rajput at the helm, the Vancouver-based studio delivers design with depth — emotionally compelling, brand-aligned, and bottom-line driven. Whether repositioning a forgotten plaza or redefining a flagship store, Black Label Designs proves that thoughtful design is no longer a luxury — it’s essential infrastructure for growth.

“The goal is to make spaces that people love, and investors prize,” says Rajput. “Because when design and strategy align, real estate doesn’t just work — it thrives.”

Läderach to Open Bloor Street Store and Expand in Canada

Future Läderach at 110 Bloor Street West in Toronto. Photo: Craig Patterson

Swiss premium chocolatier Läderach will open a new location at 110 Bloor Street West in Toronto later this year, marking the brand’s first Canadian store outside of an enclosed shopping centre. The boutique will add to the growing mix of high-end retailers on Canada’s most prestigious shopping street.

The upcoming Bloor Street store will occupy a narrow retail space of just over 1,000 square feet, situated between the Winners/HomeSense entrance and the Alexander Wang boutique, which opened in November 2023. The building, managed by Salthill Capital and owned by ProWinko, has become a magnet for luxury and lifestyle brands.

Previously, the space had been slated for French fashion brand Anne Fontaine, which signed a lease during the pandemic but never opened. Leasing for Läderach was negotiated by Casdin Parr of Odyssey Retail Advisors and Jason Richter of Capricorn Retail Advisors, while the property was co-listed by the CBRE Urban Retail Team alongside Carmen Siegel of Cushman & Wakefield.

An official opening date has not yet been announced, but the location is expected to debut before the end of the year.

Photo: Läderach
Photo: Läderach

Bloor Street’s Continued Evolution

The addition of Läderach to Bloor Street aligns with the corridor’s transformation into Canada’s leading luxury street retail destination. Over the past five years, the stretch between Bellair Street and Avenue Road has attracted major international brands. In the summer of 2024, Saint Laurent unveiled a 10,000-square-foot flagship in the same building, while Paris Baguette and Mandy’s Salads opened nearby, adding to the vibrant retail mix.

Bloor Street has long been synonymous with high-end retail, anchored by Holt Renfrew’s flagship store. The arrival of Läderach reinforces the street’s appeal as a destination for premium experiences, from fashion to fine dining and, now, artisanal Swiss chocolate.

Future Läderach at 110 Bloor Street West in Toronto. Photo: Craig Patterson

Additional Canadian Openings This Month

Alongside the Bloor Street news, Läderach is continuing its Canadian expansion with two new locations opening this month. A boutique at CF Sherway Gardens will cater to West Toronto shoppers, while another at CF Richmond Centre will mark the chocolatier’s first entry into British Columbia.

These openings are part of a steady rollout that began in 2019 when Läderach launched its Canadian flagship at CF Toronto Eaton Centre. Since then, the brand has expanded to Yorkdale Shopping Centre, Square One Shopping Centre, and York Mills Centre, with more growth anticipated in the months ahead.

Läderach’s expansion in Canada forms part of a broader North American growth plan, which accelerated after it assumed several leases previously held by Godiva following that brand’s market exit. By introducing a “bean-to-bar-to-store” model, Läderach differentiates itself in a competitive market for premium chocolate.

Läderach Yorkdale Store in 2022 (hence the face masks) (Image: Läderach)

A Global Brand with Swiss Heritage

Founded in 1962 in Ennenda, Switzerland, Läderach is a family-owned chocolatier recognized for its commitment to freshness, artisanal craftsmanship, and Swiss quality. The company oversees its entire production process, from cocoa bean sourcing to in-house manufacturing, ensuring every product meets strict quality standards.

Läderach’s signature offering, FrischSchoggi™, is a standout feature in its boutiques. Customers can choose from an assortment of chocolate slabs, broken to order and sold by weight. Other products include pralines, truffles, seasonal assortments, and single-origin chocolate bars, all crafted in Switzerland.

Today, Läderach operates more than 200 boutiques across 21 countries, along with a growing e-commerce presence. Its global reputation has been enhanced by high-profile openings, including a flagship on New York City’s Fifth Avenue and its recent debut in Puerto Rico.

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Food Prices Surge in Canada as Eggs Highlight System Flaws

Woman shopping for eggs in a grocery store. Image: eggs.ca

Many food items are significantly more expensive at the grocery store today than they were a year ago in Canada. Leading the pack is rice, with a year-over-year increase of 48.9%, according to Statistics Canada. The spike is largely driven by export restrictions in key producing countries such as India and Thailand. Grapes come second with a 34.1% jump, likely the result of Canadian grocers pivoting away from U.S. suppliers this past winter—many stores carried grapes from South Africa, Peru, and Chile instead.

Other notable price increases are linked to Ottawa’s retaliatory tariffs, especially on U.S. goods like coffee and oranges. These items have risen well over 25% in the past year—an outcome that was both foreseeable and politically driven.

But what stands out in the data is the rise in prices for supply-managed commodities, especially eggs. Canada’s egg sector is governed by supply management, which theoretically ensures price stability by matching domestic production to demand through quotas and tariff protections. In practice, however, external shocks can still ripple through the system.

The most significant of these shocks has been the avian influenza outbreak, which has led to the culling of over 14 million birds in Canada in recent months. This has put immense pressure on egg supply across the country, even within a regulated framework.

In the U.S., the same virus made headlines when egg prices surged earlier this year, increasing by as much as 53% in some states. Even now, in June 2025, the average retail price of eggs in the U.S. remains 27.3% higher than a year earlier.

Canada hasn’t escaped the impact. Despite supply management, egg prices are up 12% nationally over the past year. In 2017, it wasn’t uncommon to find a dozen eggs for under $3. Today, anything under $4.50 is seen as a deal. The national average now hovers just below $5.

This begs the question: If we have supply management, why the price hikes?

Egg prices in Canada are being driven by a combination of biological and structural factors. The avian flu’s impact on domestic flocks has reduced supply, while the market’s rigidity—designed to avoid surplus—offers little flexibility to respond to rapid shifts in production. While the system can dampen extreme volatility, it cannot fully shield consumers from inflationary shocks.

What’s particularly telling is the variation in prices across provinces, despite the existence of a national quota system. In British Columbia, where the avian flu hit hardest, prices have barely budged—up just 0.4% over the past year. In Alberta, they rose by 1.2%. Ontario saw a 7% increase. But in Quebec, prices jumped an eye-watering 28%, rivaling the U.S. spike—even though Quebec’s egg sector is also supply-managed. Nova Scotia saw a more moderate rise of 6.2%.

That level of disparity—more than a dollar a dozen between provinces—raises questions about the consistency and fairness of price transmission under supply management. Unlike dairy boards, which often act independently and defensively, egg boards across provinces have historically worked more collaboratively. That makes the interprovincial variation even more puzzling—and concerning.

Another trend this summer is the decline in promotional pricing. Eggs, once a staple of grocery flyers, are rarely discounted today. When they are, the discounts are modest. This week, the lowest advertised price is $3.89 for a dozen Grade A large eggs—offered not by a grocer, but by a pharmacy chain. Most retailers are charging well above $4.50, despite summer usually being a low-demand period when sales are common.

Clearly, affordability is slipping, even for staples like eggs, often regarded as one of the most accessible forms of animal protein. While supply management provides critical support to producers and helps ensure domestic food sovereignty, it must not lose sight of the consumer.

The egg sector’s strength lies in its ability to coordinate across provinces—a feature not shared with other supply-managed commodities. If there’s one system capable of improving affordability and transparency, it’s this one. Now is the time for egg producers and boards to demonstrate leadership—not just in ensuring supply, but in addressing regional inequities and restoring consumer trust.

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Saje Natural Wellness expands retail presence with launch in 1st national retailer, Ulta Beauty

Saje Natural Wellness launches in The Wellness Shop at Ulta Beauty

Saje Natural Wellness, a leader in North America for 100% plant- powered essential-oil remedies, has announced Ulta Beauty as the brand’s first-ever national retail partner.

The brand’s bestsellers are now available in 200+ Ulta Beauty stores across the U.S, as well as online at ulta.com. The partnership underscores Ulta Beauty’s continued commitment to the fast-growing wellness space as a strategic priority, creating a natural fit as they bring Saje Natural Wellness’s functional, plant-based solutions to millions of new guests nationwide. 

Laura Beres
Laura Beres

“At Ulta Beauty, we’re committed to evolving with our guests and bringing forward the most innovative, trusted solutions in wellness,” said Laura Beres, vice president of wellness, Ulta Beauty.

“We’re thrilled to be the exclusive retail partner for Saje Natural Wellness and to welcome them into The Wellness Shop at Ulta Beauty. As a category leader in essential oil-based remedies, Saje Natural Wellness brings a differentiated, plant-powered approach that complements our growing wellness assortment in a truly unique way. Their high-quality, efficacious formulas tap into the proven power of essential oils to support sleep, stress relief, pain management and more – helping our guests feel good from the inside out.”

As a pillar brand within The Wellness Shop at Ulta Beauty – the retailer’s dedicated destination for holistic wellbeing – Saje Natural Wellness will be featured prominently in participating locations across the wellness wall, rolling out to 50 additional stores later this year, becoming available in over 250+ Ulta Beauty stores by the end of 2025, according to a news release.

This partnership signals a strategic shift for the brand as it deepens its investment in the U.S. market. With an increased focus on retail partnerships, media visibility, and influencer collaborations, Saje Natural Wellness is laying the groundwork for long-term growth and establishing a more substantial footprint in the U.S. wellness space – making functional wellness more accessible to people across the country, it said.

“As Nature’s Farmacy, Saje Natural Wellness’s 100% plant-powered remedies are proven, safe and effective solutions for pain, sleep, stress and more. Their mission is to empower everyone to live their life to the fullest, naturally, with products designed to fit seamlessly into routines. Backed by science and rooted in century-old traditions, Saje Natural Wellness’s cruelty-free products are blended to perform without artificial fragrances, parabens, SLS, and other harmful chemicals,” according to officials.

“For over three decades, Saje Natural Wellness has redefined the wellness space by championing the power of 100% natural remedies for the mind, body, and spaces. With a deep understanding of individual needs, the brand delivers purposefully crafted, plant-based solutions that support physical, mental, and environmental well-being helping people feel better, naturally.”

Saje Natural Wellness will be launching at Ulta Beauty with 48 products.

Barbara De Laere
Barbara De Laere

“At Saje Natural Wellness, our mission has always been to connect people to the healing power of plants through 100% natural, proven remedies,” said Barbara De Laere, CEO of Saje Natural Wellness. “We believe wellness should be accessible to all, and Ulta Beauty’s unmatched reach and commitment to discovery make them the ideal partner to help us do just that. This partnership marks a pivotal first step in our long-term U.S. expansion strategy as we bring our plant-powered solutions to more people than ever before.”

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INDOCHINO and Nordstrom deepen partnership with another 5 new shop-in-shops across U.S.

INDOCHINO at Nordstrom (CNW Group/Indochino Apparel Inc.)

INDOCHINO, the global leader in made‑to‑measure apparel, and Nordstrom, the leading fashion retailer, have announced the opening of five new INDOCHINO shop‑in‑shops within Nordstrom stores.

These new locations reinforce the brands’ shared commitment to personalized style and exceptional customer service, according to a news release.

New Locations Include: 

  • Nordstrom Aventura Mall, Aventura, FL 
  • Nordstrom Boca Raton, FL 
  • Nordstrom Park Meadows, Lone Tree, CO 
  • Nordstrom Woodfield, Schaumburg, IL 
  • Nordstrom Southcenter Mall, near Seattle, WA 

“With these additions, INDOCHINO now operates in 33 Nordstrom locations, placing its made‑to‑measure experience within easy reach of more than 90% of U.S. consumers,” it said.

Image: Drew Green, INDOCHINO CEO

“We are thrilled to bring our made‑to‑measure experience to these exciting new Nordstrom locations,” said Drew Green, President and CEO of INDOCHINO. “This expansion reflects the continued success of our collaboration and growing consumer demand for personalized fashion—from Aventura and Boca Raton to Woodfield and Southcenter, we’re delivering quality tailoring with accessibility and ease.” 

What customers can expect, according to Green: 

  • A personalized appointment with an INDOCHINO Style Guide 
  • Selection from hundreds of premium fabrics, linings, and customization touches including lapels, buttons, monograms, and more 
  • Measurements taken in‑store; garments delivered to the customer’s doorstep in approximately three weeks 
  • Complimentary simple alterations through Nordstrom’s renowned tailoring services 

INDOCHINO is a global leader in made-to-measure apparel. Founded in 2007, the brand offers customizable garments crafted to each customer’s precise measurements and delivered directly to their door with almost 60 showrooms and its Nordstrom shop-in-shops across North America.

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Slate Grocery REIT reports Q2 2025 results, continued demand for retail space

Source- Slate REIT
Source- Slate REIT

Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, announced Thursday its financial results and highlights for the three months ended June 30, indicating a continued demand for retail space.

“The strength of our portfolio is reflected in another quarter of healthy same-property NOI growth, supported by sustained demand for our high-quality spaces and consistent double-digit renewal spreads. At the same time, we remain focused on prudently managing the REIT’s balance sheet and upcoming debt maturities. Against a backdrop of favorable fundamentals and attractive supply-demand dynamics in the grocery-anchored sector, we believe our portfolio – anchored by below-market rents – is well positioned to drive stable growth and long-term value,” said Blair Welch, Chief Executive Officer of Slate Grocery REIT.

Highlights

  • Several consecutive quarters of strong leasing volumes at attractive spreads continued to drive same-property Net Operating Income growth of 3.6% or $5.7 million on a trailing twelve-month basis, adjusting for completed redevelopments
    • The REIT completed 423,894 square feet of total leasing in the quarter; renewals were completed at 13.8% above expiring rents, and new deals were completed at 28.8% above comparable average in-place rent
    • Portfolio occupancy remained stable at 94.0% as at June 30, 2025
    • The REIT’s average in-place rent of $12.77 per square foot remains well below the market average of $24.00, providing significant runway for continued rent increases
  • The REIT has only $171.4 million of debt maturing through the end of 2026, at the REIT’s proportionate interest, which represents just 12.3% of the total debt outstanding and provides a stable outlook for the REIT’s near-term financing costs
    • During the second quarter, the REIT refinanced a four-property portfolio for $39.3 million and entered into a credit facility totaling $17.4 million at attractive spreads, highlighting continued demand for high-quality grocery-anchored real estate assets in the lending space
    • Subsequent to quarter end, the REIT amended two of its existing interest rate swaps, extending the total maturity to 2.8 years and achieving a blended weighted average interest rate of 5.0% on a proportionate interest basis
    • The REIT’s current portfolio valuation continues to provide significant positive leverage; this attractive valuation, combined with continued NOI growth, is expected to increase portfolio valuation over time
  • The REIT’s units continue to trade at a discount to net asset value, presenting a compelling investment opportunity for unitholders looking for an attractive total return

Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate. The REIT owns and operates approximately $2.4 billion of critical real estate infrastructure across major U.S. metro markets that communities rely upon for their everyday needs. 

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Restaurant Brands International Inc. reports Q2 2025 results with “great progress” advancing strategic priorities

Image: Tim Hortons

Restaurant Brands International Inc. reported Thursday financial results for the second quarter ended  June 30.

“We made great progress in the second quarter advancing our strategic priorities, with improved sales trends and strong execution led by our two largest businesses, Tim Hortons and International. Across the system, we’re seeing strong franchisee alignment, impactful marketing, and focused operational initiatives drive meaningful improvements in the guest experience. With positive momentum heading into the back half of the year, we remain confident in our ability to deliver 8%+ organic Adjusted Operating Income growth in 2025.”said Josh Kobza, Chief Executive Officer of RBI.

Josh Kobza
Josh Kobza.

Restaurant Brands International Inc. is one of the world’s largest quick service restaurant companies with over $45 billion in annual system-wide sales and over 32,000 restaurants in more than 120 countries and territories.

RBI owns four of the world’s most prominent and iconic quick service restaurant brands – Tim Hortons, Burger King, Popeyes and Firehouse Subs.

FINANCIAL HIGHLIGHTS

(Compared to last year’s quarter)

  • System-Wide Sales Growth 5.3 %;
  • System-Wide Sales $11.853 billion US;
  • Comparable Sales 2.4 %;
  • Net Restaurant Growth 2.9 %;
  • System Restaurant Count at Period End 32,229;
  • Total Revenues $2.41 billion compared to $2.08 billion last year.

“For the second quarter, the increase in Total Revenues was primarily driven by higher Supply Chain Sales due to increases in commodity prices, System-wide Sales, and CPG net sales, partially offset by a $10 million unfavorable FX Impact. Excluding the FX Impact, Total Revenues increased $63 million,” said the company.

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Canadian Tire Corporation reports “strong” Q2 2025 results

Image: Canadian Tire

Canadian Tire Corporation, Limited announced Thursday financial results for its second quarter ended June 28.

“In Q2, Canadians came to us for the great seasonal products and value they were seeking, driving strong sales and revenue growth. In a dynamic consumer environment, customers continued to turn to us for the items they need for life in Canada,” said Greg Hicks, President and CEO, Canadian Tire Corporation.

“Our True North strategy is underway and moving at pace. Since March, we have rolled out new store concepts, invested in transformative technology, expanded Triangle Rewards loyalty partnerships, and secured the considerable privilege of stewarding HBC’s great Canadian brands forward. Our team is committed to our Canadian prosperity, and I celebrate their efforts.”

Greg Hicks
Greg Hicks

SECOND-QUARTER HIGHLIGHTS

  • Consolidated comparable sales were up 5.6%, with growth in all banners and provinces led by CTR in Western Canada.
    • CTR comparable sales were up 6.4% in the Company’s most discretionary quarter, with strong growth across CTR’s four largest divisions. Being ready for spring/summer drove growth of more than 8% in Seasonal and Gardening. Automotive grew for the 20th consecutive quarter.
    • SportChek delivered its fourth consecutive quarter of comparable sales growth, up 3.9%, driven by sales of footwear and hardgoods categories, such as golf.
    • Mark’s comparable sales were up 1.0%. Industrial footwear and workwear categories grew, partially offset by softer casualwear and outerwear sales.
  • Loyalty sales outpaced non-loyalty sales growth in the quarter; both saw strong growth as Canadians made more trips to CTC banners.
  • Retail Revenue was up 5.3% or 9.0% excluding Petroleum, as the business responded to sales growth.
  • Diluted EPS was $2.04, down $1.52 mainly due to the $1.03 loss on discontinued operations for results up to the May 31st completion of the Helly Hansen sale and expenses related to the Company’s True North transformation.
  • Normalized for the True North expenses, Diluted EPS (Continuing Operations) was $3.57, down $0.15. Normalized IBT was down $10.9 million to $296.0 million. Growth in normalized retail IBT of $17.6 million was more than offset by lower income from other segments, including lower Financial Services IBT due to investments in the business.
  • Retail Return on Invested Capital (ROIC), calculated on a trailing twelve-month basis, was 10.3%, compared to 9.0% at the end of Q2 2024. This was driven by increased earnings and lower invested capital.

Canadian Tire Corporation, Limited has been a Canadian business since 1922. At its core are retail businesses, each designed to serve life’s pursuits: Canadian Tire, offering products spanning Living, Playing, Fixing, Automotive, and Seasonal & Gardening, bolstered by its PartSource and Party City banners; Mark’s, a leading source for casual and industrial wear; SportChek, Hockey Experts, Sports Experts and Atmosphere, offering the best brands of active wear and gear; and Pro Hockey Life, a hockey specialty store catering to elite players. CTC’s banners, brand partners and credit card offerings are unified through its Triangle Rewards loyalty program – a linchpin of CTC’s customer-driven strategy. With nearly 12 million members, Triangle integrates first-party data to deliver valuable rewards and personalized experiences across nearly 1,700 retail and gasoline outlets. CTC also operates a retail petroleum business and a Financial Services business and holds a majority interest in CT REIT, a TSX-listed Canadian real estate investment trust.

STRATEGIC HIGHLIGHTS

  • During Q1 2025, CTC launched its True North transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments in digital and store experiences; an expanded Triangle Rewards loyalty system; more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company.
  • The transformation is underway, with progress on a number of fronts.
    • At the end of June, 21 of the 54 store enhancement projects planned for 2025 had been completed across eight provinces and territories, with store enhancement representing approximately $116 million of operating capital expenditure in the first half. Projects completed included:
      • 14 CTR store refreshes, including a store relocation in Kingston, Ontario.
      • Five Mark’s store refreshes, including its ninth Bigger, Better, Bolder store in Ancaster, Ontario.
      • SportChek’s second Destination Sport store in Toronto, Ontario.
      • The Company also extended its PHL presence into Saskatchewan, with the opening of a new store in Regina.
    • The revised go-to-market strategy for its Atmosphere business is well underway with 15 of 17 previous stand-alone sites now co-located within SportChek stores.
    • The expansion of Triangle Rewards remains on track, with the expected launch of loyalty partnerships with RBC (announced in March 2025) and WestJet (announced in May 2025) by the first half of 2026.
    • The Company’s Owned Brands portfolio continues to be a fundamental element to its core retail portfolio and product assortment. On May 15, 2025, the Company entered into a definitive agreement to become the home of iconic Canadian brands and other intellectual property of the Hudson’s Bay Company (HBC). This includes the HBC Stripes and various HBC company names, logos, designs, Coat of Arms and brand trademarks.
    • The previously-announced investments for the initiatives that underpin the True North strategy are underway, as is the implementation of the previously-announced operating structure to drive increased agility and efficiency. The reorganization of corporate teams under the new structure is expected to be completed by the end of Q3 2025, with initial savings beginning in Q4 2025.

FOR MORE INFORMATION

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Pet Valu Shares Surge After Q2 Beat, Stifel Ups Target to $40

Pet Valu Ottawa (Image: Fox Contracting)

Shares of Pet Valu Holdings Ltd. (PET-TSX) climbed 8% on Tuesday following a strong second-quarter performance and positive outlook, according to a research note by Stifel analyst Martin Landry. The firm increased its 12-month price target from C$33 to C$40, maintaining a Buy rating on the stock, citing accelerating same-store sales, improving customer traffic, and strategic investments in high-growth categories.

The upgraded outlook comes as Pet Valu reported its first quarter of positive store traffic in six quarters, signalling a turnaround for Canada’s largest specialty pet retailer. Stifel noted that management commentary indicates momentum is continuing into the third quarter, with expectations for same-store sales growth to accelerate through the second half of the year.

Quarterly Results Beat Expectations

For Q2 2025, Pet Valu posted earnings per share of $0.38, a 5% year-over-year increase and ahead of both Stifel’s and consensus estimates of $0.33. Same-store sales rose 2.6%, beating projections of 2%. This improvement follows a period of declining traffic and reflects the success of recent merchandising initiatives.

Revenues reached $280.6 million, up 5.8% from Q2 2024, while operating income increased to $43.2 million. Adjusted EBITDA grew 4.2% to $60.2 million, resulting in an adjusted EBITDA margin of 21.4%.

Given the strong performance, the company revised its 2025 EPS guidance to a range of $1.63 to $1.68, up from prior estimates. Stifel adjusted its forecast to $1.69 for 2025 and $1.89 for 2026, reflecting sustained operational improvements.

Target Price Increased to $40

Stifel attributes the higher price target to stronger forecasts and slightly expanded valuation multiples. The firm’s valuation model averages three methods:

  • A 12x multiple applied to 2026 estimated EBITDA
  • A 21x multiple on 2026 EPS
  • A discounted cash flow analysis using a 9% discount rate

This approach suggests upside potential from the current share price of C$35.92, which is near its 52-week high of C$36.

Leadership Transition Announced

In addition to the earnings release, Pet Valu announced a leadership change. Current CEO Richard Maltsbarger, who guided the company through its 2021 IPO, will step down on September 21, 2025, transitioning to a Senior Advisor role until April 2026. Greg Ramier, President and COO, will assume the CEO role earlier than expected.

Stifel views the timing as favourable, given the company’s positive trajectory. Ramier, credited with introducing merchandising and promotional planning tools, has played a key role in reversing traffic declines.

Focus on High-Growth Culinary Category

Pet Valu is investing in its culinary category, which includes frozen raw and gently cooked pet foods. The company is rolling out a new store format with additional freezer space, enhanced displays, and employee training to improve product knowledge. According to Stifel, this initiative targets a faster replenishment cycle—customers purchasing fresh pet foods typically return every two weeks, compared to monthly visits for dry kibble—supporting ongoing traffic growth.

Supply Chain Upgrades Near Completion

The retailer is also finalizing a $100 million supply chain modernization project. The last phase, involving its Calgary distribution centre, is expected to be completed in early Q3. While these upgrades will create temporary cost pressures of about $0.12 per share in 2025, management expects the investments to drive efficiency and earnings growth in 2026 and beyond.

A Defensive Sector with Long-Term Appeal

Stifel emphasized Pet Valu’s positioning in a resilient industry. The Canadian pet food market has declined only once in the past 30 years, making it a defensive play during economic uncertainty. Although valuation multiples have risen modestly, they remain within historical norms. Further share price expansion will likely hinge on sustained same-store sales growth in the mid-single-digit range.

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Canada’s Food Sector Faces Hidden Risks Despite 93% Tariff Exemption Claim

Trucks at a Canada-US border crossing, being affected by tariffs. Image: Peacebridge.com

Since August 1, many Canadian commentators have downplayed the impact of the 35% tariffs the United States has imposed on select Canadian goods, citing the Canada–United States–Mexico Agreement (CUSMA) and its oft-repeated claim that 90% to 93% of Canadian exports remain exempt. While technically true, this statistic masks the much more complicated—and far less reassuring—reality for Canada’s agri-food sector.

A prominent December 2024 study from the University of Sherbrooke concluded that 93% of Canadian exports to the U.S. are tariff-exempt. On paper, that number may seem comforting. But it tells only part of the story—especially when it comes to food. Tariff exemptions are not automatic. To qualify for duty-free access under CUSMA, Canadian agri-food products must meet strict rules of origin and complex documentation standards. For many small and mid-sized food processors, these bureaucratic hurdles are burdensome and costly. Products with mixed or processed ingredients—such as snack bars, frozen meals, or nut butters—often fall into grey zones that create uncertainty at the border. The result? Products deemed “exempt” in theory may still be delayed, penalized, or rejected in practice.

Most analyses, including the Sherbrooke study, fail to account for this nuance. As a result, the 93% figure is not only misleading—it’s largely irrelevant for food companies navigating real-world trade.

Worse still, these studies often overlook the geopolitical dynamics shaping food trade. Under Donald Trump, tariffs have become less about technical qualifications and more about political leverage. The real risk today isn’t simply tariffs themselves—it’s the mere threat of tariffs. Many Canadian food exporters have already lost long-standing American customers spooked by the unpredictability of trade with Canada. Even in the absence of formal tariffs, the perception of risk is enough to drive U.S. buyers toward domestic suppliers. That’s the real game Trump is playing—and winning. Whether a product qualifies for exemption no longer matters if market confidence is eroded.

And make no mistake: for the food industry, where net margins are often razor-thin—typically in the range of 2% to 10%—a 35% tariff is not just inconvenient; it’s existential. It can erase profitability overnight, making entire product lines unviable and undermining long-term investment.

There is no country in the world currently protected by trade agreements in any meaningful way. If you provoke Washington, tariffs—or their threat—will follow. Since Trump’s return, no countries have drawn more retaliatory attention than China and Canada. Both have responded with countermeasures, unlike Japan, South Korea, the U.K., or the European Union—all of which have successfully negotiated more stable trade terms and now face significantly lower tariff exposure than Canada.

Since Mark Carney became Prime Minister in March, Canada has faced more tariffs from the U.S., not fewer. His strategy—if it can be called that—appears to be waiting for the U.S. economy to falter under the weight of its own tariffs. But that’s a dangerous gamble. The American economy, for all its recent job market volatility, remains remarkably resilient. Betting against it has never been a winning strategy—just ask Warren Buffett.

Some Canadians might believe that reduced access to U.S. markets will lead to food surpluses here at home, pushing prices down. That’s a fundamental misunderstanding of how food economics work. Canadian food exporters rely on scale. Export markets allow companies to spread fixed costs and keep domestic prices affordable. If demand from U.S. buyers dries up, Canadian processors will have no choice but to raise prices domestically to stay afloat. The result? Higher—not lower—food prices for Canadian consumers.

In short, the 93% tariff exemption statistic may provide political cover or academic reassurance, but it is a mirage. For those of us who work with food companies, study supply chains, and understand export-driven pricing models, the message is clear: Canada’s food economy is far more exposed—and vulnerable—than many realize.

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