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4 Creative Retail Brand Activation Strategies, and the Brands Paving the Way for Each

By
Retail Insider
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In today’s crowded market, traditional advertising is no longer enough to capture consumer attention. People have learned to tune out generic ads, creating a challenge for retail brands that want to build a genuine connection with their audience. This is where retail brand activation comes in — the process of bringing a brand to life through memorable, engaging and interactive experiences.

Instead of just telling people about your brand, these strategies allow them to experience it firsthand, forging an emotional connection that turns passive consumers into active ambassadors. From immersive pop-ups to high-impact mobile campaigns, here are four creative brand activation strategies and the innovative companies paving the way for each.

1. AR Try-Before-You-Buy Experiences

Augmented reality (AR) has become an increasingly popular tool for creating compelling consumer experiences. This is part of a wider trend of “phygital” — or physical and digital — activations that leverage digitization to create unique physical interactions that immerse the target audience. A common example of this is in AR-powered mirrors, where customers can try on clothing and makeup virtually, helping them feel confident in their purchase.

Brand Spotlight: Sephora

Sephora has been a leading example of how to effectively integrate AR into branding and customer interaction. Its flagship Virtual Artist uses 3D mapping technology to turn your phone into a digital tester that feels like a magic mirror. Users can virtually try on makeup or use the color-matching feature by uploading a photo of themselves for product recommendations.

The company has also planted virtual mirrors stores nationwide, ensuring that walk-in customers get the immersive virtual experience that sets Sephora apart.

2. Vehicle Wrapping

Mobile brand activation utilizes the city itself as a canvas. The most effective brands today understand that waiting for a consumer to walk past a stationary billboard is not ideal. The more modern, effective and dynamic choice is to use high-visibility vehicle wraps to bring the message directly to urban areas with high traffic. This strategy brings in the high volume of eyes that traditional billboards do not.

Brand Spotlight: Good Traffic

GOOD TRAFFIC offers the best vehicle wrap advertising for retail brand activation by leveraging custom designs and high-end vehicles to ensure every asset reflects the brand. To bridge the gap between the physical and digital worlds, the activation can include digital retargeting and interior headrest displays as premium add-ons.

In 2024, GOOD TRAFFIC helped Netflix promote its miniseries Senna, a biopic of Brazilian three-time Formula One World Drivers’ Champion. The company executed a blitz for their client by deploying 360-wrapped rideshare cars across Las Vegas. The campaign made a memorable statement in the strip, gaining 18,115,000 impressions during the week leading up to the F1 race day.

3. Immersive Pop-ups

The modular pop-up is an excellent tool for market testing. It entails creating a temporary space within an established retail environment. Brands can generate a powerful sense of exclusivity and urgency without spending capital on a long-term lease. Focus on sensory design and personality to ensure attendees have a memorable experience.

Brand Spotlight: Glossier

Glossier has set a high standard for pop-up implementation and retail activation. Its 2026 strategies involve sensory zones where customers engage with its products in stylish, dynamic environments that photograph well. Offering location-exclusive merchandise means transforming a simple product into a statement.

During its Seattle residency, Glossier utilized a lush installation that brought significant organic reach, teaching brands that if your stores feel like art, people will be more inclined to visit.

4. Gamified Reward Systems

Gamification is a highly effective tool because it taps into the competitive side of the human brain. Getting customers to engage in physical activities for rewards captivates and educates them while connecting the fun experience with the company, ultimately creating a positive brand perception. Businesses that employ this method most effectively seamlessly integrate digital and physical experiences, forming an ecosystem that is consistent across all stores and apps.

Brand Spotlight: Nike

Nike has turned the hunt for exclusive footwear into a compelling real-world game. Through “SNKRS Stash” events, the SNKRS app uses clues and notifications to send users on a challenge — physically travel to a specific park, store or landmark. Once a user arrives, their phone’s GPS unlocks the exclusive opportunity to purchase a limited-edition product.

This strategy taps into people’s competitive nature and provides a clear prize, creating a memorable brand experience that goes far beyond a simple transaction.

Build a Brand That Resonates

At the end of the day, effective marketing is based on being adaptable in a rapidly evolving landscape. Trends will constantly evolve, and the brands that do not get lost in the noise and stay true to their core mission have the best chance at maintaining relevance. When retail brands look past gimmicks and create activation strategies that bring innovative, unique and valuable experiences for their customers, they set themselves apart from the crowd.

The Retail Race: Launching New Features Faster Without Breaking What Works

By
Retail Insider
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Retail has become one of the most competitive industries in the digital world. Customers expect constant innovation, from personalized recommendations to faster checkout experiences and flexible payment options. Brands are under pressure to launch new features quickly in order to keep pace with competitors and shifting consumer behavior.

In this blog, we explore how retail teams can release new features faster without disrupting the systems that already drive revenue. The key is finding the right balance between speed and stability so innovation strengthens the business instead of putting it at risk.

Why Speed Matters in Retail

Retail moves at a relentless pace. Timing can determine success or failure.

Key drivers of speed include:

  • Seasonal promotions and flash sales that demand rapid updates
  • Customer expectations for seamless digital and mobile experiences
  • Competitive pressure from global online marketplaces
  • Omnichannel operations across web, mobile apps, and physical stores
  • Constant experimentation with pricing, loyalty programs, and personalization

A delayed feature can mean lost revenue. A missed holiday update can mean losing customers to competitors. Speed is not simply a technical goal. It is a business necessity.

The Hidden Risks of Rapid Feature Releases

Moving fast without safeguards can introduce serious risks. Retail systems are interconnected, and even small changes can affect checkout flows, payment gateways, or inventory synchronization. A new promotion feature might unintentionally interfere with discount calculations or tax logic.

The impact of such disruptions can be immediate and visible. Customers encountering failed transactions or incorrect pricing may abandon their carts and leave negative reviews. Revenue loss during peak traffic periods can be substantial, and brand trust can erode quickly. Innovation without protection often creates more problems than it solves.

Building a Safety Net with Automated Testing

To innovate confidently, retail teams need a strong safety net. Automated testing provides continuous validation of core systems while allowing new features to be introduced at speed.

A robust automation strategy supports:

  • Continuous regression testing of critical user journeys
  • Validation of checkout, payment, and cart functionality
  • Early detection of integration issues
  • Faster feedback during development cycles

With a reliable testing automation tool like testRigor, teams can automate high-impact workflows in human-readable steps and reduce maintenance overhead. This enables frequent releases without sacrificing quality. Instead of slowing innovation, automation accelerates it by ensuring existing functionality remains intact.

Protecting What Already Works

Retail platforms rely on several foundational systems that must remain stable even as new features are introduced.

Checkout and Payment Systems

Checkout is the revenue engine of any retail operation. Even minor disruptions can result in abandoned carts and lost sales. Automated tests should consistently validate payment processing, discount application, shipping calculations, and tax rules.

Inventory and Order Management

Accurate inventory data is essential for customer satisfaction and operational efficiency. Changes to front-end features must not break backend synchronization. Automated validation helps ensure stock levels, order confirmations, and fulfillment workflows function properly.

Loyalty and Personalization Engines

Personalized offers and loyalty programs drive repeat purchases. However, new promotional features can conflict with existing reward logic. Continuous testing ensures that personalization rules and loyalty calculations remain accurate across updates.

Protecting these core systems ensures that innovation enhances the customer experience rather than undermining it.

Balancing Innovation with Stability in Omnichannel Retail

Retail today operates across multiple platforms. Customers browse on mobile apps, complete purchases on desktops, and pick up items in store. Backend systems connect web storefronts, payment providers, inventory databases, and customer profiles.

A change introduced on one channel can ripple across others. For example, updating a pricing engine for mobile must not create discrepancies on desktop or at point of sale systems. Unified testing across channels ensures consistent behavior across the entire ecosystem.

Integrating automated testing into CI pipelines allows validation to happen with every code change. This approach reduces last-minute surprises and supports continuous delivery without compromising stability.

Smart Strategies for Retail Teams

Retail teams can adopt practical strategies to balance speed and reliability.

1. Prioritize High-Impact User Journeys

Start by identifying critical flows such as product search, cart management, checkout, and order tracking. Automating these journeys protects revenue-generating features and reduces the risk of customer-facing failures.

2. Implement Continuous Integration and Testing

Make testing part of the development pipeline. Running automated tests with every code commit ensures issues are detected early, when they are easier and less costly to fix.

3. Monitor Production Performance

Testing does not stop at deployment. Monitoring real-world performance metrics helps teams detect unexpected behavior under live traffic conditions and respond quickly.

4. Invest in Scalable Tools and Collaboration

Choose automation solutions that scale with growing product complexity. Encourage collaboration between developers, QA, and operations teams so quality becomes a shared responsibility rather than a bottleneck.

Turning Speed into a Competitive Advantage

When retail teams consistently release features quickly and reliably, speed becomes more than an operational goal. It becomes a strategic differentiator. Customers gain access to new promotions, smoother checkout experiences, and improved personalization without encountering disruptive errors. This consistency strengthens brand trust and increases customer loyalty over time.

Reliable speed also empowers internal teams. Marketing can experiment with campaigns, product teams can test new capabilities, and leadership can respond rapidly to market changes. Instead of fearing system instability, the organization moves forward with confidence. Quality and speed reinforce each other, turning operational efficiency into measurable business growth.

Conclusion

The retail race demands both speed and precision. Launching new features quickly is essential for staying competitive, but breaking core systems can damage revenue and customer trust. The solution lies in building a strong testing foundation that protects what already works.

By investing in automated testing and integrating it into everyday development workflows, retail teams can innovate confidently. Speed and stability do not have to compete. When supported by the right strategy and tools, they work together to drive growth and long-term success.

Casavogue Now Open Sundays to Better Serve Montréal Clients

By
Retail Insider
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For more than five decades, Casavogue has welcomed Montréal families into its showroom to explore high-end furniture designed to shape everyday living. Established in 1972, the family-founded business has built its reputation on attentive service, curated collections, and a commitment to evolving alongside the needs of its clients. Now, in direct response to customer feedback and changing lifestyle patterns, Casavogue is announcing a meaningful update to its schedule.

Casavogue will now be open on Sundays from 9:30 AM to 5:00 PM, offering greater flexibility for families and professionals who prefer to visit on weekends.

Responding to Evolving Lifestyles

Over the years, shopping habits have shifted. Many clients balance demanding work schedules, family commitments, and social obligations throughout the week. As a result, weekends have become an important time for thoughtful decisions about the home.

The decision to open on Sundays reflects Casavogue’s attentiveness to these realities. By extending its hours, the showroom provides clients with additional time to explore collections at a relaxed pace, consult with staff, and make informed choices about high-end furniture for their living spaces.

Sunday access also allows couples and families to visit together, ensuring that key decisions about living room furniture, dining sets, and bedroom pieces can be made collaboratively.

Splendum Sectional Sofa by Charles David.

A Trusted Montréal Destination Since 1972

Founded in 1972, Casavogue remains rooted in its heritage as a family-founded Montréal showroom. The business has grown over the decades while maintaining its focus on quality craftsmanship, curated international brands, and personalized guidance.

The 38,000-square-foot, two-floor showroom continues to serve as a destination for those seeking high-end furniture across every major room of the home. From contemporary sofas and refined dining tables to complete bedroom collections, Casavogue offers a cohesive approach to furnishing that reflects both design sensibility and long-term value.

Greater Accessibility, Same Commitment to Service

While the hours are expanding, Casavogue’s core values remain unchanged. The showroom continues to prioritize attentive service, design expertise, and a welcoming environment that encourages thoughtful decision-making.

Beginning March 1, the showroom will operate under updated hours: 9:30 AM to 6:00 PM, Monday to Friday, and 9:30 AM to 5:00 PM on weekends.

Clients are invited to visit the showroom during its expanded schedule and experience the collections in person.

Casavogue is located at 8260 boulevard Saint-Michel, Montréal, QC H1Z 3E2.


For more information, call +1 514-360-3565 or book an appointment to receive personalized advice.

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*Retail Insider partnered with Casavogue for this announcement. To work with Retail Insider, email Craig Patterson at craig@retail-insider.com

Roots Appoints Rosie Pouzar as Chief Commercial Officer

By
Lee Rivett
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Rosie Pouzar
Rosie Pouzar

Toronto-based premium outdoor lifestyle brand Roots has appointed Rosie Pouzar as its new Roots Chief Commercial Officer. The appointment follows Pouzar’s tenure as Head of Omnichannel Growth at Roots, where she played a central role in advancing the company’s commercial performance across channels. The company trades on the Toronto Stock Exchange under the symbol ROOT and continues to position itself as a premium Canadian brand with global reach.

Meghan Roach, President and Chief Executive Officer of Roots, said the appointment supports the company’s broader growth ambitions.

“Rosie’s appointment is an important step in advancing our growth strategy,” said Meghan Roach, President & Chief Executive Officer, Roots. “She is a highly respected leader with a strong track record of driving performance and exceptional strategic clarity. As Chief Commercial Officer, Rosie will help sharpen our enterprise priorities and accelerate decision-making to unlock new areas of growth.”

The creation and formalization of the Roots Chief Commercial Officer role underscores the company’s intent to align commercial strategy, operational execution, and customer insight under a unified leadership structure. In an increasingly competitive retail environment, brands are placing greater emphasis on cross-functional leadership that can drive speed, clarity, and performance across both physical stores and digital platforms.

Background in Scaling National Retail Brands

Prior to joining Roots, Pouzar held senior leadership positions at Sephora Canada, including Senior Vice President, Retail and Chief Operating Officer. During her time there, she helped scale the business through a period of significant expansion, with a focus on operational excellence and strengthening in-store execution.

She is recognized for building high-impact partnerships and translating customer insight into actionable strategy. That capability, according to the company, will be central to her mandate as Roots Chief Commercial Officer as the brand seeks to deepen customer engagement and unlock incremental growth.

Earlier in her career, Pouzar held leadership roles at Cineplex and began her professional career at PwC. Her background includes a strong financial foundation, having earned both the Chartered Professional Accountant and Chartered Business Valuator designations. She holds a Bachelor of Business Administration from Wilfrid Laurier University.

Roots Outpost at 1096 Yonge Street in Toronto. Photo: Craig Patterson

Blending Commercial Discipline with Brand Sensibility

Roots described Pouzar as bringing a blend of commercial rigor and brand sensibility, combining data-driven decision-making with customer-centric thinking. In today’s retail climate, where brands must balance margin discipline with emotional resonance, that combination has become increasingly critical.

The company noted that she is passionate about building resilient, high-performing organizations capable of adapting quickly within an evolving commercial landscape. As Roots continues to operate more than 100 corporate retail stores in Canada, alongside two U.S. locations, an e-commerce platform, and an extensive partner-operated footprint in Asia, enterprise alignment will be key to sustaining performance across markets.

Executive Perspective on the Next Phase

Pouzar expressed enthusiasm about taking on the expanded leadership mandate.

“I am honoured to support this iconic brand in our next phase of growth,” said Rosie Pouzar, Chief Commercial Officer, Roots. “Roots has an incredibly powerful foundation, and I am excited to unlock new opportunities for long-term growth, while strengthening commercial capabilities and deepening our connection with our loyal customer base.”

The Roots Chief Commercial Officer appointment comes at a time when many Canadian retailers are refining their leadership structures to support omnichannel growth, operational efficiency, and brand clarity. For Roots, a company founded in 1973 that has grown from a small cabin in northern Canada into a global lifestyle brand, leadership alignment remains central to its long-term strategy.

Roots flagship store in downtown Vancouver. Photo: Brandon Artis

Corporate Overview

Established in 1973, Roots operates over 100 corporate retail stores in Canada and two stores in the United States. The brand also maintains more than 100 partner-operated stores in Asia and a dedicated Roots-branded storefront on Tmall.com in China, in addition to its e-commerce platform at roots.com.

The company designs, markets, and sells apparel, leather goods, footwear, and accessories across women’s, men’s, children’s, and gender-free categories. It also maintains wholesale relationships and licenses the brand to select partners selling to major retailers.

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Jimmy John’s Opens First Saskatoon Location

By
Craig Patterson
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Photo: Jimmy John's

The first Jimmy John’s Saskatoon restaurant has officially opened, marking the brand’s entry into Saskatchewan and another step in its Canadian expansion. Located at 120-225 Payne Bend, the restaurant began serving guests at 11 a.m. on February 24.

To mark the occasion, the first 100 guests received a complimentary 6-inch sandwich and fountain drink, generating early momentum for the new location.

The move into Saskatchewan reflects the brand’s continued push beyond its initial Ontario base. “Expanding into Saskatchewan is an important step in building Jimmy John’s nationally,” said Mike Warren, Director of Operations at Foodtastic, a Montreal-based restaurant franchisor and the master franchisor of Jimmy John’s in Canada. “We look forward to introducing the brand to a new market and to introducing more Canadians to what makes Jimmy John’s the Sandwich of Sandwiches, from fresh-baked bread and hand-sliced meats to our freaky fast service.”

 

The Saskatoon restaurant is locally owned and operated by franchisee Jenelle Diederichs. The opening brings new jobs to the market while delivering the brand’s in-store prepared sandwiches and rapid service model.

“Today is a proud moment for our team,” said Diederichs. “We are excited to open our doors and start serving Saskatoon officially. We look forward to welcoming guests and becoming part of the community.”

Guests can order from the full Jimmy John’s menu, with sandwiches prepared throughout the day. The Saskatoon location is open daily from 11 a.m. to 10 p.m.

 

From Ontario Debut to Western Canada Push

The opening of Jimmy John’s Saskatoon comes less than two years after the brand’s Canadian debut. The first location opened on November 19, 2024, in Etobicoke at 197 North Queen Street near Sherway Gardens. A second location followed at Fallsview Casino in Niagara Falls on August 27, 2025, expanding the brand’s presence in a high-traffic tourism corridor.

Throughout late 2025, the chain added several Ontario locations, including Vaughan and a flagship at 299 King Street West in Toronto’s Entertainment District. By the end of 2025, roughly 11 to 12 restaurants were operating nationally.

Expansion then shifted west. Manitoba saw the launch of the first Canadian drive-thru on Pembina Highway in Winnipeg. Alberta followed with early openings in Edmonton as part of the Western growth strategy.

This phased rollout aligns with Foodtastic’s clustering approach, which builds density in one region before accelerating into the next.

Adapting the Model for Canadian Consumers

Jimmy John’s Canadian strategy includes adjustments tailored to local preferences. Canadian restaurants launched with the option to toast any sandwich, diverging from the brand’s traditional U.S. focus on cold subs. The shift positions the chain more directly against established players in Canada’s quick-service sandwich segment.

The company has also emphasized its lettuce-wrapped “Unwich” as a low-carb option. In addition, suburban and Western expansion has leaned more heavily into drive-thru formats, reflecting demand for convenience-driven service.

Foodtastic CEO Peter Mammas has outlined a long-term goal of 200 Jimmy John’s locations across Canada over the next decade. With the Saskatchewan opening, that plan continues to advance.

A Brand Built on Operational Focus

Founded in 1983 by Jimmy John Liautaud in Charleston, Illinois, the company began with a $25,000 loan and a one-year deadline to turn a profit. After pivoting from a planned hot dog stand to sandwiches due to lower equipment costs, Liautaud opened the first shop in a converted garage near Eastern Illinois University.

Early growth was driven by direct campus marketing and delivery service, which later became central to the brand’s identity. A limited menu and streamlined operations helped define its “freaky fast” positioning.

The company began franchising in 1994 and expanded rapidly across U.S. college markets. Roark Capital Group acquired a majority stake in 2016, and Inspire Brands completed a full acquisition in 2019. Inspire also owns Arby’s, Dunkin’, and Buffalo Wild Wings.

As of 2026, Jimmy John’s operates more than 2,800 U.S. locations and is expanding internationally into Canada, Latin America, and South Korea.

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Sales at restaurants and bars sector decline in December, but annual sales surpass $100 billion in 2025: Statistics Canada

By
Mario Toneguzzi
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Photo: Mario Toneguzzi
Photo: Mario Toneguzzi

Total sales in the food services and drinking places subsector decreased 0.3% to $8.6 billion in December, according to a report released Wednesday by Statistics Canada.

Non-seasonally adjusted prices for food purchased from restaurants were up 8.5% in December when compared with December 2024. Unadjusted prices for alcoholic beverages served in licensed establishments increased 6.5% over the same period. These were particularly large increases in the year-over-year Consumer Price Index due to the tax break starting December 14, 2024, that lowered the price of food and some alcoholic beverages paid by consumers at restaurants, explained the federal agency.

In December 2025, the largest decrease in dollar terms came from lower sales at full-service restaurants (-0.4%), followed by limited-service eating places (-0.3%). Sales were also down at drinking places (-0.7%). Sales increased at special food services (+0.5%), said Statistics Canada.

In December, eight provinces saw decreased sales, with Quebec (-1.7%) posting the largest decline in dollar terms. Sales also fell across the east coast and the prairies. Ontario (+0.7%) and British Columbia (+0.3%) posted the only increases, it added.

“Annual sales of food services and drinking places totalled $101.4 billion in 2025, up 5.6% from 2024. Sales increased at limited-service eating places (+5.9%), full-service restaurants (+5.8%) and special food services (+5.7%) from 2024 to 2025. In contrast, sales at drinking places (-2.3%) were down in the same period. Sales were up in all provinces, and Ontario (+6.0%) recorded the largest dollar growth. Quebec (+5.1%), British Columbia (+4.8%) and Alberta (+5.9%) also posted significant dollar increases,” said the report.

Photo by Mario Toneguzzi
Photo by Mario Toneguzzi

“Limited-service eating places, also known as fast food or quick-service restaurants, recorded an increase of $2.6 billion from 2024 to total $47.3 billion in 2025. Each province experienced growth in the fast food industry, with the highest increase in dollar terms being in Ontario (+6.3%), followed by Quebec (+6.3%), Alberta (+5.1%) and British Columbia (+4.4%). Sales at limited-service eating places accounted for 46.6% of total sales in the food services and drinking places subsector.

“Sales in full-service restaurants increased by $2.4 billion from one year earlier to $43.6 billion in 2025. Sales were up in each province, driven by increases in Ontario (+5.3%), British Columbia (+6.2%), Quebec (+5.0%) and Alberta (+7.6%). Full-service restaurants represented 43.0% of total sales in the subsector.

“Prices continued to rise in this subsector. The prices for food purchased from restaurants increased 2.6% in 2025 compared with 2024, while the prices for alcoholic beverages served in licensed establishments increased 2.7% over the same period.”

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Patchwork approach threatens Canada’s internal trade progress: CFIB

By
Mario Toneguzzi
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Gustavo Fring photo
Gustavo Fring photo

Canada made unprecedented strides toward freer internal trade in 2025, but without coordinated implementation, expanded scope, and greater transparency, governments risk recreating the same fragmented system that has bogged down businesses for generations, finds the Canadian Federation of Independent Business (CFIB) in its latest State of Internal Trade: Canada’s progress on internal trade in 2025 snapshot.

The CFIB is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.

“2025 was a breakthrough year for internal trade,” said Keyli Loeppky, CFIB’s director of interprovincial affairs. “For the first time in decades, governments showed a real appetite for reducing barriers and moving toward a more integrated internal market. But to convert momentum into meaningful change, they must now follow through with clear implementation, consistency, and coordination.”

Keyli Loeppky
Keyli Loeppky

The CFIB said its 2025 Internal Trade Report Card, released June 30, 2025, recognized the significant progress made in the first half of 2025 with strong grades across several jurisdictions. Since then, provinces and the federal government have delivered several additional milestones, including additional mutual recognition legislation, eliminating internal trade exceptions and most recently signing the landmark pan-Canadian Mutual Recognition Agreement (CRMA).

While the new snapshot gives kudos to governments across the country for continuing to advance the ball, it also warns them of falling short of the goal line. For instance, mutual recognition legislation represents a promising step toward reducing internal trade barriers, its status varies widely across provinces and territories. Many jurisdictions have introduced legislation that is narrow in scope, excludes major sectors such as labour, food, alcohol, or services, or relies on subjective reciprocation requirements that limit its practical impact, said the CFIB.

Similarly, while Memoranda of Understanding (MOUs) can help signal political intent and encourage collaboration between governments, they rarely result in binding commitments or offer clear guidance for small businesses. Without transparency on timelines, outcomes, or alignment with legislation, MOUs often leave entrepreneurs uncertain about what changes–if any–will meaningfully occur, it said.

SeoRhin Yoo
SeoRhin Yoo

“The next six to 12 months will be critical for determining whether the momentum achieved in 2025 translates into durable, nationwide alignment,” said SeoRhin Yoo, senior policy analyst. “Governments must recognize that true progress is not measured by how many agreements are signed, but whether Canadian businesses and residents actually experience fewer barriers and lower costs when trading across provincial and territorial lines. At a time when Canada is facing an entrepreneurial drought, removing internal trade barriers is essential to encourage more small businesses to start up, scale, and expand across provincial borders.”

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VIDEO: Grocery Shift: Discount expansion, rising food inflation, trade uncertainty reshape market

By
Mario Toneguzzi
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Canada’s grocery industry is rapidly shifting toward discount formats as consumers grapple with persistent food inflation, according to Sylvain Charlebois of the Agri-Food Analytics Lab at Dalhousie University.

Speaking about current grocery trends, Charlebois said major chains are accelerating discount store expansion to meet growing demand from cost-conscious shoppers. He pointed to Metro’s plan to open 12 Super C locations, comparable to No Frills stores operated by Loblaw Companies Limited. Loblaw, he noted, recently announced plans to open 70 stores, convert several others, and retrofit nearly 200 locations. Discount banners anchored by private label products are currently strong performers for large grocers as shoppers seek value.

However, Charlebois’ analysis shows Canada’s grocery store density is declining. The country now has about 19 to 20 stores per 100,000 people, down from more than 22 per 100,000 in 2020 — a roughly six per cent drop. By comparison, the United States has held steady at 19 stores per 100,000 residents for several years. He suggested the shrinking per-capita store count raises competitive concerns.

On food prices, Charlebois said Canada currently has the highest food inflation rate among G7 nations. Even excluding the impact of last year’s GST holiday, he indicated Canada would still lead the group. Consumers are seeing elevated prices at meat counters, in center-store packaged goods, and increasingly in vegetables.

Geopolitical tensions and tariff uncertainty are also complicating food trade. Charlebois said Washington’s approach aims to slow globalization, creating unpredictability at the border despite some exemptions under existing agreements. He emphasized that the upcoming review of CUSMA will be critical for the agri-food sector.

Meanwhile, ethnic grocers and urban formats are expanding, offering competitive pricing and alternative supply chains that resonate with today’s value-driven consumers.

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Loblaw retail revenue surpasses $16 billion in 2025

By
Mario Toneguzzi
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Image: Loblaws

Loblaw Companies Limited, Canada’s food and pharmacy leader, and the nation’s largest retailerannounced Wednesday its unaudited financial results for the fourth quarter ended January 3, 2026, as retail revenue grew to $16.382 billion in 2025.

Loblaw said it delivered solid fourth quarter results, demonstrating strong execution against its strategic plan.

“Customer visits increased in the fourth quarter as Canadians recognized the differentiated value, quality, service, and convenience the Company offers across its nationwide network. This increased traffic resulted in continued market share gains across its banners. E-commerce sales experienced robust growth, as omnichannel convenience remained a customer priority,” said Loblaw.

“The Company continued to expand its offering, catering to customer demand for rapid delivery, prepared meals, and favourite PC® products. The Company continued to focus on providing value to Canadians by expanding its Hard Discount network this quarter, opening 15 No Frills® and Maxi® stores, providing convenient access to nutritious food at great prices for more Canadian families,” it said.

“The Company’s Super Market banners, including high-performing Fortinos and T&T® Supermarkets, attracted shoppers seeking full-service shopping with a focus on Canadian products, multicultural offerings, and innovative PC® Insider ReportTM products, enhanced by personalized PC OptimumTM loyalty offers and competitive prices. Food Retail same-store sales growth steadily improved through the quarter. Across Shoppers Drug Mart and Pharmaprix(MD), the Company continued to demonstrate momentum in front store, driven by strong beauty and over-the-counter (“OTC”) sales. Pharmacy and healthcare services was again led by strong growth in specialty prescriptions and healthcare services.”

Photo- Per Bank LinkedIn
Photo- Per Bank LinkedIn

Loblaw said its performance in the fourth quarter capped a successful 2025 as it continued to invest in its future growth by opening 77 new stores across its banners, and successfully ramping the first of two automated, one million square foot distribution centres.

“The previously announced sale of PC Financial to EQ Bank will streamline the Company’s operations, and the associated long-term strategic relationship as the exclusive financial partner of the PC Optimum loyalty program is expected to result in expanded growth of high-value, loyalty-based financial services customers. 2025 also marked significant growth rates in the Company’s margin accretive logistics as a service, retail media and Lifemark businesses. Loblaw is confident that its best-in-class assets, resilient business model and investments for the future position it well to meet the evolving needs of Canadians, creating a foundation for consistent and sustainable growth,” it said.

“We are pleased to deliver another year of consistent operational and financial performance, reflecting our continuous focus on retail excellence, strategic execution, leading digital engagement and adoption of Agentic AI,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our success reflects our commitment to being where our customers need us most, delivering unparalleled value and convenience across our many banners, combined with exceptional service from our dedicated colleagues coast-to-coast.” 

2025 FOURTH QUARTER HIGHLIGHTS

  • Retail revenue was $16,382 million, an increase of $1,657 million, or 11.3%.
    • On a 12-week comparable basis, revenue increased by 3.5%.
    • Food Retail (Loblaw) same-store sales increased by 1.5%.
    • Drug Retail (Shoppers Drug Mart) same-store sales increased by 3.9%, with pharmacy and healthcare services same-store sales growth of 5.6% and front store same-store sales growth of 2.2%.
    • E-commerce sales increased by 19.6%.
  • Retail gross profit percentage was 30.8%, a decrease of 10 basis points.
    • On a 12-week comparable basis, gross profit percentage was 31.0%, an increase of 10 basis points.
  • Retail operating income was $1,134 million, an increase of $341 million, or 43.0%.
  • Retail adjusted EBITDA was $1,775 million, an increase of $180 million, or 11.3%.
    • Selling, general and administrative expenses (“SG&A”) as a percentage of sales was 20.0%, a decrease of 10 basis points. On a 12-week comparable basis, SG&A as a percentage of sales was flat at 20.1%.
  • Net earnings available to common shareholders of the Company were $656 million, an increase of $194 million or 42.0%. Diluted net earnings per common share were $0.55, an increase of $0.17, or 44.7%.
  • Adjusted net earnings available to common shareholders of the Company were $794 million, an increase of $125 million, or 18.7%. Adjusted diluted net earnings per common share were $0.67, an increase of $0.12 or 21.8%.
    • On a 12-week comparable basis, adjusted diluted net earnings per common share increased by 10.9%.
  • Net capital investments were $677 million, which reflects gross capital investments of $722 million, net of proceeds from property disposals of $45 million.
  • Repurchased for cancellation 9.8 million common shares at a cost of $592 million. Free cash flow from Retail (continuing) operations was $1,239 million. 

2025 SELECT ANNUAL HIGHLIGHTS

  • Retail revenue was $63,903 million, an increase of $3,780 million, or 6.3%.
    • On a 52-week comparable basis, revenue increased by 4.4%.
    • Food Retail same-store sales increased by 2.3% and Drug Retail same-store sales increased by 3.9%.
    • E-commerce sales were approximately $4.6 billion, an increase of 18.1%.
  • Retail gross profit percentage was flat at 31.3%
    • On a 52-week comparable basis, gross profit percentage increased by 10 basis points.
  • Net earnings available to common shareholders of the Company were $2,667 million, an increase of $512 million or 23.8%. Diluted net earnings per common share were $2.22, an increase of $0.47, or 26.9%. The increase was primarily driven by the impact of lower costs related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation (“Shoppers Drug Mart”) and the favourable impact of lapping prior year charges.
  • Adjusted net earnings available to common shareholders of the Company were $2,913 million, an increase of $276 million, or 10.5%. Adjusted diluted net earnings per common share were $2.43, an increase of $0.29, or 13.6%.
    • On a 52-week comparable basis, adjusted diluted net earnings per common share increased by 10.7%.
  • Net capital investments were $1,789 million, which reflects gross capital investments of $2,062 million, net of proceeds from property disposals of $273 million.
  • Repurchased for cancellation, 34.8 million common shares at a cost of $1,875 million. Free cash flow from Retail (continuing) operations was $1,910 million.
  • In the third quarter of 2025, the Company completed a four-for-one stock split of its outstanding common shares. The stock split was implemented by way of a stock dividend, with shareholders receiving three additional common shares for each common share held. The stock split was effective at the close of business on August 18, 2025, for shareholders of record as of the close of business on August 14, 2025. All share and per share amounts presented herein have been retrospectively adjusted to reflect the stock split.

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Amazon Launches AI-Powered Creative Agent in Canada

By
Craig Patterson
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Amazon Creative Agent. Photo: Amazon

Amazon Ads has introduced a new AI-powered advertising tool for the Canadian market, marking a notable shift in how brands can develop creative campaigns. The launch of Creative Agent within Creative Studio gives advertisers access to a conversational, agentic AI partner capable of producing professional-quality ads in a matter of hours.

The arrival of Amazon Creative Agent in Canada signals a broader push to lower creative barriers for businesses of all sizes. By embedding the tool directly into Creative Studio, Amazon Ads enables advertisers to move from concept to finished video or display ads without relying on external production teams.

According to the company, Creative Agent supports the entire creative workflow. This includes product and audience research, brainstorming, storyboard development, scriptwriting, image generation, animation, voiceovers, music integration, and final ad delivery across multiple Amazon ad formats.

Amazon Creative Agent. Photo: Amazon

AI-Powered Creative Built on Retail Insights

Creative Agent is powered by Amazon’s retail insights, combining customer shopping signals with information drawn from an advertiser’s product pages, brand store, and website. The tool analyzes product features and brand positioning to generate concepts designed to resonate with specific target audiences.

Within Creative Studio, advertisers can access the tool through a “chat” interface. The system asks for relevant product pages, Amazon detail pages, brand guidelines, past creative assets, and intended audiences. From there, it produces multiple ad concepts and taglines, outlining how each idea was conceived and how it will appear visually to shoppers.

Advertisers can select a preferred concept or request additional variations. Once a direction is confirmed, Creative Agent generates detailed storyboards with scene-level scripts and visuals that can be edited and refined before final production.

This approach reflects Amazon’s emphasis on collaborative AI. The tool explains its reasoning at each stage, allowing advertisers to provide granular feedback and retain full creative control.

Amazon Creative Agent. Photo: Amazon

Reducing Cost and Time Barriers

Developing sophisticated advertising creative has traditionally required significant investment. Production budgets can reach tens of thousands of dollars, with timelines stretching over several weeks. Amazon positions Creative Agent as an alternative that compresses both cost and time.

The company states that advertisers can produce polished campaigns in just hours and at no additional cost. By automating elements such as scriptwriting, animation, and voiceover creation, the tool enables faster campaign launches and quicker response to market conditions.

“It’s not just about efficiency, it’s about democratizing access to premium creative capabilities that weren’t previously available to all brands,” explains Uri Gorodzinsky, Managing Director, Amazon Ads Canada and Mexico. “Creative Agent empowers businesses to test innovative concepts, work collaboratively in the moment, and produce polished advertising content, with no additional fees.”

For small and medium-sized retailers, the implications are significant. Shorter production cycles allow brands to respond quickly to seasonal shifts, emerging trends, or inventory changes. At the same time, the elimination of production costs lowers the barrier to experimentation.

Amazon Creative Agent. Photo: Amazon

Multi-Format Campaign Support

Creative Agent produces assets tailored for use across Amazon’s advertising ecosystem. These include Amazon DSP, Sponsored Display, Sponsored Brands, Sponsored Brands Video, and Streaming TV placements.

After finalizing storyboards and scripts, the tool generates complete multi-scene video ads and display creatives, including animations, music, and voiceovers. This multi-format support enables advertisers to maintain consistency across channels while optimizing for each placement type.

Amazon Ads notes that the conversational interface requires no specialized design training. Business owners or marketing teams can manage campaign development directly through the chat-based system, reducing reliance on external agencies.

Early beta testers reported that the workflow enhanced their own creative capabilities and accelerated campaign deployment.

“As a tech-focused partner, Xnurta is always seeking ways to drive more value and more easily create campaigns that scale countries,” said Kashif Zafar, CEO, Xnurta. “We are big believers in the power of GenAI creative to drive more brand engagement and sales for our clients and are excited to see Creative Agent expand to Canada – we are already mobilizing our creative team to utilize these tools on behalf of our Canadian clients,” he added.

Amazon Creative Agent. Photo: Amazon

Built on Amazon Bedrock Foundation Models

Creative Agent is built using AWS technology and foundation models available on Amazon Bedrock, including Amazon Nova and Anthropic Claude. Amazon says these models work together to support specialized AI agents while maintaining cohesive ad development.

In addition to Creative Agent, Amazon Ads offers other AI-powered creative tools such as Video Generator and Image Generator. These tools are designed to further streamline content production and enhance shopper engagement.

“AI is evolving at a remarkable rate,” notes Gorodzkinsky. “Creative Studio eliminates traditional obstacles around budget and timeline, democratizing access to the sophisticated, premium creative resources that were historically available only to major corporations. This marks just the start, the tools will evolve and improve continuously.”

Strategic Implications for Canadian Retail

The launch of Amazon Creative Agent Canada comes at a time when retailers are under growing pressure to stand out online. Digital advertising has become more complicated, and competition for consumer attention is increasing across e-commerce platforms and streaming services.

By combining AI-driven creative tools with Amazon’s retail data, the company is positioning its advertising platform as both a place to buy media and a tool to build ads. For Canadian retailers, this could help level the playing field by giving smaller brands access to creative production tools that were once limited to larger companies.

As generative AI becomes more common in retail marketing, the lines between strategy, creative work, and execution are becoming less distinct. Creative Agent moves toward a more integrated approach, allowing advertisers to create data-informed ads through a simple conversational interface.

For brands that advertise within Amazon’s ecosystem, Creative Agent adds another layer of automation to campaign development. Its long-term impact on agencies, in-house teams, and overall marketing strategies will become clearer as more Canadian advertisers begin using the tool.

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