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Retail Insider “Consumer Behavior & Retail Economy Report”: Canada’s Market Grows Increasingly Divided

By
Lee Rivett
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A new Retail Insider Report, Q2 2026 Consumer Behavior and Retail Economy: A Market Increasingly Divided, authored by Craig Patterson, examines how consumer spending patterns and broader economic conditions are reshaping Canadian retail. Part of the Retail Insider Reports series, the report draws on Retail Insider’s reporting, public company disclosures, and broader economic research to identify developments most relevant to retail decision-makers. Retail Insider Reports are designed to deliver executive-level insights across major retail sectors and can be accessed through the Retail Insider Report Hub.

The report examines two closely connected areas: Consumer Behavior, including shopping habits, spending priorities, demographics, loyalty, purchasing decisions, and evolving customer expectations; and the Retail Economy, covering retail sales, inflation, employment, consumer confidence, interest rates, tariffs, trade, and other economic indicators. Together, they provide context for understanding how Canadians are spending and how retailers are adapting.

General Themes

  • A More Polarized Consumer — Canadians continue spending, but purchases are becoming increasingly selective as households prioritize value and essential goods.
  • Affordability Drives Decisions — Housing costs, food prices and broader economic uncertainty continue to influence purchasing behaviour across income groups.
  • Value and Premium Outperform — Discount retailers and premium brands continue to show relative strength while much of the middle market faces mounting pressure.
  • Retail Real Estate Continues to Diverge — Canada’s strongest shopping centres attract investment and leading retailers while secondary assets face redevelopment and competitive challenges.
  • Experience Still Matters — Food, entertainment and experience-focused retail concepts continue attracting consumers despite broader spending caution.
  • Operational Challenges Persist — Labour shortages, consumer trust concerns and evolving public policy continue to influence retailer strategy and operations.

Retail Insider Coverage

Retail Insider’s reporting throughout the quarter helped document many of the trends explored in the report. Coverage included weakening consumer spending intentions, Canada’s shrinking middle class, shopping centre performance, Toronto’s active retail leasing market, international retailers entering Canada, wholesale expansion strategies, labour challenges in foodservice, and the growing issue of AI-generated fake product reviews.

The report also connects individual stories into broader market patterns. Coverage of Yorkdale Shopping Centre, CF Toronto Eaton Centre, CF Pacific Centre, Primaris REIT, Choice Properties, Zellers and TJX illustrates how investment, leasing activity and consumer demand continue concentrating around Canada’s strongest retail assets and operators rather than being evenly distributed across the market.

Broader Industry Coverage

Beyond individual news developments, the report suggests Canadian retail is increasingly characterized by structural divergence rather than broad-based growth. Affordability pressures continue to influence purchasing decisions, while premium consumers remain comparatively resilient, creating opportunities at both ends of the market but increasing pressure on retailers positioned in the middle.

The report also points to continued concentration in retail real estate, with international expansion and investment focused primarily on Canada’s leading urban retail nodes. At the same time, retailers are navigating operational issues that extend beyond consumer demand, including staffing, transparency, competition policy and evolving expectations around trust and authenticity.

Editor’s Take

The report argues that Canada’s retail market is no longer defined simply by consumer caution but by growing separation between winners and losers. Value retailers, premium concepts, dominant shopping centres and retailers able to combine convenience, loyalty and compelling customer experiences continue to demonstrate resilience. Meanwhile, affordability pressures, weaker discretionary spending and structural challenges facing secondary retail assets suggest success increasingly depends on aligning with where consumer demand and investment are concentrating, rather than relying on broad market growth.

Readers can explore the complete Q2 2026 Consumer Behavior and Retail Economy: A Market Increasingly Divided report, along with the full collection of Retail Insider Reports, through the Retail Insider Report Hub. The report offers additional analysis and sector-specific insights for retailers, landlords, developers, brands, consultants and investors seeking to better understand the forces shaping Canada’s retail economy.

Mondetta Returns to Physical Retail at Holt Renfrew as National Expansion Takes Shape

By
Craig Patterson
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Mondetta Originals pop-up ON3 at Holt Renfrew, 50 Bloor St. W. in Toronto, July 10, 2026. Photo: Craig Patterson

On the third floor of Holt Renfrew’s Bloor Street flagship in Toronto, one of Canada’s best-known apparel names is beginning a new chapter in physical retail.

Mondetta Originals opened a colourful pop-up on June 29 within ON3, Holt Renfrew’s extensively redeveloped third floor. The temporary shop is scheduled to run until Thursday July 16, placing the Winnipeg-founded brand in a flexible activation zone that has hosted a changing roster of international and Canadian labels since the floor’s transformation.

For Mondetta, the pop-up is an early step in a much larger plan.

Georgi Gvakharia, Senior Vice President and Global Head of Retail at Mondetta Clothing, told Retail Insider that the company is developing a new generation of permanent Mondetta stores, with the first locations targeted for fall 2027 and a longer-term Canadian network that could ultimately reach roughly 20 stores.

Aurora Retail Group is representing both Mondetta and Modern Ambition in their Canadian retail expansion strategies. Jeff Berkowitz, Co-CEO of Aurora Retail Group, is leading the real estate search as the company evaluates locations for permanent stores across the country.

The planned locations are expected to span approximately 3,000 to 5,000 square feet, depending on the market and available real estate. Winnipeg is confirmed as one of the first cities, while the company is evaluating opportunities in western Canada as it works toward a possible launch of two or three stores at roughly the same time.

“It’s a great introduction, or really a reintroduction, of the brand to consumers from a direct-to-consumer perspective,” Gvakharia said of the Holt Renfrew pop-up.

Forty years after Mondetta was founded in Winnipeg, the company is preparing to rebuild a direct physical relationship with Canadian consumers.

Mondetta Originals pop-up ON3 at Holt Renfrew, 50 Bloor St. W. in Toronto, July 10, 2026. Photo: Craig Patterson

A Physical Reintroduction at Holt Renfrew

Gvakharia said the Holt Renfrew activation is significant because it gives Canadian consumers their first current opportunity to walk into a physical store, see and feel Mondetta Originals product and buy it in person.

The collection has been available online, but the Bloor Street pop-up marks a return to physical consumer-facing retail for Originals.

“Originals is the DNA of the brand,” Gvakharia said. “That’s where Mondetta began in 1986.”

He pointed to the flag-bearing shirts and other pieces that helped introduce Mondetta to consumers and became closely associated with the company during its early growth.

Georgi Gvakharia

The timing of the activation is deliberate. Gvakharia said major international football events created a natural backdrop for a brand whose identity has long been tied to flags, countries and ideas of global connection.

The pop-up sits within ON3, the extensively redeveloped third floor of Holt Renfrew’s 50 Bloor Street West flagship.

The history of the space gives the Mondetta placement added context. ON3 has become a visible setting for temporary activations involving both major international labels and Canadian brands introducing new concepts or reconnecting with consumers.

“We had the opportunity to partner with Holt Renfrew on a pop-up here at the Bloor Street flagship,” Gvakharia said. “It’s a very beautiful, colourful shop on the third floor.”

He said sales and customer response have been strong. Gvakharia also said Mondetta is discussing other opportunities with Holt Renfrew, though he declined to provide details.

Forty Years After Mondetta’s Founding

Mondetta traces its origins to Winnipeg in 1986 and became widely recognized for flag-bearing apparel that turned international identity into a distinctive fashion statement.

The company’s own historical account traces its beginnings to homemade T-shirts sold from a pushcart before the idea for flag apparel emerged after one of the founders saw a German flag attached to a Volkswagen Beetle.

The concept became central to Mondetta’s early identity. The name reflects the same global outlook. Mondetta combines “monde,” the French word for world, with a suffix intended to convey the idea of a smaller, more connected world.

Over time, the business expanded well beyond the flag apparel that many consumers still associate with the name.

Gvakharia described the broader brand structure as including Mondetta Originals, the main Mondetta label focused on everyday essentials, and MPG, or Mondetta Performance Gear, centred on active and performance apparel. Modern Ambition, the company’s newer premium menswear concept, is developing separately through its own store expansion.

The coming Mondetta stores are expected to bring several parts of that business into a single consumer-facing environment.

Image: Mondetta Clothing

New Stores Planned for Fall 2027

Gvakharia said the company is targeting fall 2027 for the first permanent locations under the new Mondetta concept, with tentative timing around August or September.

Winnipeg will be among the first.

“Winnipeg is definitely going to be one of the first locations,” he said, adding that the company is considering launching two or three stores simultaneously.

Beyond Winnipeg, the initial real estate search appears to be weighted toward western Canada.

Gvakharia specifically mentioned Calgary and Edmonton among markets being evaluated.

“We want to start in the west and then gradually move east,” he said.

At the centre of the concept will be what Gvakharia described as everyday essentials.

“It will be hoodies, T-shirts, fleece and the kinds of pieces we think of as everyday essentials,” he said.

The company uses “World Outfitters” as a tagline for Mondetta, extending the international identity that has shaped the brand since its early years.

Mondetta Originals will be incorporated into the stores, as will MPG.

“Mondetta Originals will be sold through the stores, and there will also be an MPG shop featuring Mondetta Performance Gear,” Gvakharia said. “The goal is to bring the broader Mondetta family together.”

The planned format extends well beyond a heritage revival. Originals gives the company a recognizable connection to its past, while everyday essentials and performance apparel broaden the offer into a larger lifestyle proposition.

That distinction is important. Mondetta is not preparing a chain of nostalgia-driven flag-shirt stores. It is developing a multi-category retail concept intended to present the wider brand to consumers.

Mondetta Originals pop-up ON3 at Holt Renfrew, 50 Bloor St. W. in Toronto, July 10, 2026. Photo: Craig Patterson

A New Consumer Collection Under Normand Brouillette

The physical retail rollout will be accompanied by a new consumer collection being developed under creative director Normand Brouillette.

Gvakharia said Brouillette and his team had been working on the collection for approximately three months at the time of the interview, with the assortment being developed for Mondetta’s renewed direct-to-consumer push.

Normand Brouillette

The appointment brings an interesting strand of Canadian fashion history into the company’s next phase.

Brouillette previously held a senior creative role at Jacob, the once-prominent Canadian fashion chain. He was the retailer’s artistic director during a period when Jacob remained a significant national apparel name.

His earlier career also included work far removed from conventional chain retail. Media reports connected Brouillette with handmade gowns created for Kim Cattrall and Angelina Jolie.

That combination gives Mondetta a creative director with experience across very different parts of the fashion business.

Jacob offered exposure to the demands of designing for a scaled Canadian retail organization. His red-carpet work points to a more elevated and image-driven side of design.

The background is especially relevant because Mondetta is not simply reproducing archive product. It is developing a new collection while preparing permanent stores, expanding its digital consumer offer and determining how a 40-year-old Canadian brand should present itself to a new generation.

“We’re preparing to bring the collection directly to consumers next fall,” Gvakharia said.

DTC First as Mondetta Seeks Control of the Experience

The company plans to prioritize its own direct-to-consumer channels before pursuing a broader expansion through wholesale.

Historically, Mondetta product was available through multi-brand retailers. Gvakharia said the company now wants to establish the next version of the brand through channels where it can control how consumers encounter it.

“Right now, we want to focus on our own direct-to-consumer business so we can properly introduce the brand and the experience we want customers to have,” he said.

That control extends from product presentation to store design and staff interaction.

“I think it is critical at the beginning of a DTC rollout that consumers truly experience the brand,” Gvakharia said. “We want to control that experience from the product itself through to what happens in the store.”

The objective is to establish recognition and a loyal customer base before widening distribution.

“We want to build that fan base first, and then we can explore broader wholesale opportunities,” he said.

The approach marks a notable shift from the wholesale channels through which many consumers encountered Mondetta in earlier decades. This time, the company wants to define the product, environment and customer relationship itself before broadening distribution.

Gvakharia did not rule out future wholesale opportunities. He also pointed to possible concession formats, shop-in-shops and collaborations as the wider business develops, including opportunities outside North America.

Digital Rebrand Sets Up the Next Phase

The physical strategy is being accompanied by a broader digital refresh. Gvakharia said Mondetta has completed a significant rebranding of its online presence and is preparing to introduce a dedicated direct-to-consumer collection through the website.

“We’ve completely refreshed the online side of the brand, giving it a new look and feel,” he said.

The current digital presentation gives Mondetta Originals and the company’s heritage a visible role while positioning Mondetta as a broader apparel business.

Gvakharia said the new consumer collection could become available online several months before the first permanent stores open. The sequence points to a phased reintroduction: a refreshed digital identity, selective physical activations such as Holt Renfrew, a new consumer collection online and then permanent stores beginning in fall 2027.

Mondetta-owned Modern Ambition opened a Toronto store last week at 101 Yorkville Avenue. Photo: Modern Ambition

Up to 20 Stores Envisioned Across Canada

The longer-term plan is substantial. Gvakharia told Retail Insider that the company sees potential for roughly 20 Mondetta stores across Canada.

Such a network would represent a significant return to direct physical retail for the Winnipeg-based company and would operate alongside the separate growth of Modern Ambition, which is pursuing its own national store rollout.

For Mondetta, the immediate focus is on refining the concept, developing the collection and securing the first locations. Stores in the 3,000-to-5,000-square-foot range would allow the company to present heritage, everyday essentials and performance product within a single branded environment.

The company remains headquartered in Winnipeg and also maintains an office in Shanghai, an office in Jordan and a showroom in New York City, according to Gvakharia. As its consumer business expands, he said additional satellite offices could eventually be considered, potentially including Toronto.

For now, the most visible expression of the strategy is temporary. Inside Holt Renfrew’s ON3 environment, Mondetta Originals is reconnecting physically with Canadian consumers while a much larger retail plan develops behind the scenes.

Forty years after the company was founded, Mondetta is preparing permanent stores, a new consumer collection under Normand Brouillette and a direct-to-consumer network that could ultimately reach roughly 20 locations.

The flag-bearing apparel provides the clearest link to the brand many Canadians remember. The larger task now is defining the Mondetta they will encounter next.

More from Retail Insider:

New Retail-Theft Sentencing Rules Take Effect in Canada July 15

By
Lee Rivett
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Retail theft and retail crime in a store. Photo: Halton Police Service

New federal bail and sentencing reforms taking effect July 15 will introduce a specific sentencing measure aimed at commercially motivated retail theft, as governments and industry groups continue to raise concerns about repeat offending, organized resale networks and violence affecting retail workers.

The Bail and Sentencing Reform Act, also known as Bill C-14, received royal assent on June 15 and includes more than 80 changes to the Criminal Code and related legislation.

Among the retail-specific changes is a new aggravating factor that courts must consider when sentencing an offender who committed an eligible property offence with the intention of selling, bartering or fraudulently returning the stolen merchandise.

The federal government has described the measure as a response to organized retail theft. The wording enacted by Parliament, however, is not limited to activity involving a formally organized criminal group.

The Criminal Code provision focuses on the commercial intent behind the offence, whether the property was stolen for resale, barter or fraudulent return, rather than the structure or sophistication of the people involved.

Prosecutors will not necessarily have to prove that an offender belonged to a criminal organization. The aggravating factor could apply to coordinated theft rings and professional shoplifters supplying resale networks, along with individuals stealing merchandise for commercial gain without a formal connection to organized crime.

The change gives legal recognition to a category of theft that retailers say increasingly extends beyond isolated shoplifting incidents and into repeat offending, professional resale channels and fraudulent-return activity.

New Rule Applies at Sentencing

The retail provision applies after an offender has been convicted. It does not create a new offence called organized retail theft, establish a mandatory minimum sentence or automatically require incarceration. Judges will continue to consider the full circumstances of the offence and offender and impose a proportionate sentence.

The new factor signals that theft carried out for resale, barter or fraudulent return should be treated as more serious than an otherwise comparable offence committed without a commercial motive.

It can apply to several offences involving stolen property, including theft, robbery, break-and-enter, possession of stolen goods and trafficking in property obtained through crime.

The inclusion of fraudulent merchandise returns is particularly relevant to retailers. Return schemes can involve stolen goods being brought back to stores for cash, gift cards or other forms of credit, sometimes using counterfeit or improperly obtained receipts.

The effect of the new rule will depend on the evidence presented in each case. Prosecutors may seek to establish commercial intent through surveillance, communications, online marketplace activity, repeated thefts of similar merchandise, possession of large quantities of tagged goods or links between incidents at multiple stores.

Retail loss-prevention records and cooperation between retailers, police and Crown prosecutors could therefore become increasingly important when commercially motivated theft cases reach sentencing.

Retail Measure Is Distinct from Wider Bail Changes

Although the legislation is commonly described as a bail and sentencing package, its most direct retail-specific amendment concerns sentencing.

Bill C-14 does not establish a blanket reverse onus for people accused of repeat shoplifting. Under a reverse-onus bail provision, an accused person must demonstrate why detention is not justified, departing from the usual process in which the Crown must justify detention.

The legislation creates or expands reverse-onus provisions in several areas, including violent offences, organized-crime-related auto theft, extortion, home invasion, human trafficking and certain repeat violent offending.

Those broader changes could still intersect with retail crime where an alleged incident involves violence, weapons, organized criminal activity, breaches of release conditions or a qualifying record of violent offending.

The law also directs courts to consider the number and seriousness of an accused person’s outstanding charges when assessing whether detention is necessary to maintain confidence in the administration of justice.

That may be relevant in cases involving people accused of committing repeated offences while already facing unresolved charges. It does not mean every person charged with multiple shoplifting incidents will automatically be detained.

Retail Industry Welcomes the Change

Retail Council of Canada has supported the reforms, arguing that retail crime has become a growing public-safety concern and a significant financial and operational burden.

RCC president and CEO Kim Furlong said the legislation gives the justice system stronger tools to address repeat offenders, disrupt organized crime and better protect retail workers.

The organization has repeatedly drawn attention to violence and threatening behaviour during theft incidents, along with the effects of crime on employees, customers and store operations.

Retailers have responded by increasing security spending, changing store layouts, restricting access to certain merchandise and instructing employees not to intervene directly when theft occurs.

Those measures can affect the shopping experience and create additional costs for businesses and consumers. In some stores, frequently targeted products are placed behind locked fixtures or removed from open shelves, requiring customers to ask employees for assistance.

RCC has estimated total retail shrink in Canada at approximately $9 billion annually. Shrink includes inventory losses linked to several causes, including external theft, employee misconduct, administrative errors, damage and other discrepancies.

The figure should not be interpreted as a direct measurement of merchandise stolen by organized retail criminals. It nevertheless reflects the broader financial pressure facing retailers as theft, security and inventory-control concerns grow.

An RCC study involving retailers representing more than 20,000 locations found that 76.2 per cent of respondents had experienced increased violence during theft incidents. Repeat offenders accounted for 17.7 per cent of reported arrests among participating retailers.

Latest National Data Show Continued Growth in Shoplifting

The latest complete national figures available from Statistics Canada show that police-reported shoplifting continued to rise in 2024.

Police services recorded 182,361 incidents of shoplifting valued at $5,000 or less, equivalent to 442 incidents for every 100,000 people. The rate increased by 14 per cent from 2023, marking a fourth consecutive annual increase, and was 66 per cent higher than it had been a decade earlier.

Statistics Canada has not yet released its full national police-reported crime results for 2025, meaning the 2024 results remain the most recent directly comparable national measure available as the reforms take effect.

The figures show a sustained increase in reported shoplifting, although they do not measure the full scale of retail theft or determine how much activity is tied to organized resale networks.

They also do not reveal how many unique offenders were responsible, the total value of the merchandise involved or how often an incident included threats or violence. Statistics Canada has noted that the increased availability of online police reporting may have contributed to some of the growth in recorded incidents.

More recent industry research points to growing concern about the severity of retail crime. Retail Council of Canada’s national study found that 76.2 per cent of participating retailers had experienced increased violence during theft incidents, while repeat offenders accounted for 17.7 per cent of reported arrests. The participating companies represented more than 20,000 retail locations across Canada.

Retailers have long argued that police statistics understate the problem because many incidents are never formally reported. Businesses may decide against reporting lower-value thefts because of the time involved, uncertainty about whether charges will proceed or difficulty identifying the offender.

That leaves a gap between incidents recorded internally by retailers and those appearing in national police data.

Implementation Will Determine the Impact

The new aggravating factor gives Crown prosecutors and judges an additional tool, but its influence will depend on how consistently it is used and how effectively cases are developed.

Retail Council of Canada has acknowledged that legislative reform alone will not resolve the problem. The organization has also called for stronger information sharing, adequate police and prosecution resources and better coordination across provincial and municipal boundaries.

Commercially motivated retail theft can involve offenders operating across several stores, shopping centres or jurisdictions. A series of incidents may initially appear unrelated unless retailers and police can connect the same individuals, vehicles, resale accounts or methods of operation.

The provincial administration of justice could also lead to differences in how the reforms are applied across Canada.

The federal government is responsible for the Criminal Code, while provinces and territories oversee much of the court system, Crown prosecution services and correctional infrastructure. Caseloads, resources and enforcement priorities vary between jurisdictions.

Crown attorneys have warned that the wider reforms could result in longer and more contested bail and sentencing hearings, placing additional pressure on courts, prosecutors and correctional systems.

Retail cases involving the new aggravating factor may require additional evidence and argument over whether an offender intended to resell, barter or fraudulently return stolen merchandise.

It may take time for courts to establish how much weight the factor should receive and what evidence is sufficient to prove the required intent.

Retail Impact Will Emerge Gradually

Retailers are unlikely to see a dramatic operational change when the legislation takes effect July 15.

The reform will become relevant as cases move through investigation, prosecution, conviction and sentencing. It could take months before the new factor begins appearing regularly in sentencing decisions and longer before appellate courts provide guidance on its application.

In the near term, the legislation is significant because it formally identifies theft for commercial gain as conduct warranting greater attention during sentencing.

Its longer-term importance will depend on whether police can build connected cases, prosecutors can establish commercial intent and courts apply the factor in a way that meaningfully distinguishes resale-driven theft from lower-level offending.

The reforms may also encourage closer cooperation between retailers and law enforcement, particularly where businesses can provide evidence linking incidents across multiple locations.

For retailers, the legislation represents federal recognition that theft committed for resale or fraudulent return has consequences extending beyond the value of the merchandise taken. It can affect employee safety, store operations, customer access to products and the cost of doing business.

The legal framework will be in place on July 15. Whether it produces measurable reductions in repeat and commercially motivated retail crime will depend on what happens after that date.

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Canadian Shoppers Choose by Mission, Not Channel, New Research Finds

By
Craig Patterson
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A retail worker and an employee in a luxury store. Retail staffing in Canada has its ups and downs says Suzanne Sears. Photo: RI/Google

Canadian retailers have spent years organizing strategy around channels. Physical stores have been modernized, e-commerce platforms expanded, apps launched, loyalty programs refined and fulfillment networks connected under the broad promise of omnichannel retail.

New Canadian research suggests shoppers may organize their behaviour differently. The central finding of The Canadian Shopper Sentiment Study: How Trip Purposes and Journeys Shape Shopper Decisions, conducted by Leger for Retail Council of Canada, is that consumers often begin with a purpose, with the choice of channel emerging from what they are trying to accomplish.

A shopper replacing an urgently needed item is likely to behave differently from someone browsing for inspiration. A routine grocery run creates different expectations from a considered electronics purchase, even when the same person is making both trips.

The channel follows the mission. That idea gives structure to a 60-page study based on an online survey of 2,014 Canadian shoppers conducted in February 2026, followed by six English- and French-language focus groups in March. The sample was nationally representative, and the stated margin of error was plus or minus 2.2 percentage points, 19 times out of 20.

The findings show Canadians moving across physical and digital touchpoints with considerable fluidity. In-store browsing was used by 66% of respondents during the research process, compared with 48% for retailer websites and 45% for search engines. Loyalty programs were used by 43%, while retailer apps, flyers, online marketplaces, word of mouth and in-store staff also played meaningful roles. AI assistants were already used by 11%.

Yet the same research found that physical stores remained the leading purchase channel. Fifty-eight per cent completed purchases in-store, compared with 39% online, while 62% took products home the same day. The resulting picture is more complicated than the familiar online-versus-offline debate: shoppers appear to be assembling their own journeys from the tools available to them, with priorities changing according to the job at hand.

Value Sets the Threshold

The study arrives while affordability remains a defining issue for Canadian households. Statistics Canada reported that prices for food purchased from stores rose 4.3% year over year in May 2026, the 16th consecutive month in which grocery inflation outpaced headline inflation.

The Bank of Canada’s second-quarter survey of consumer expectations also found that high prices and economic uncertainty continued to weigh on household spending plans. Its consumer indicator remained low as households described the economic environment as challenging, with affordability concerns continuing to influence spending behaviour.

That backdrop makes the RCC/Leger findings particularly timely, although the report paints a more nuanced picture than simple bargain hunting. It defines value for money as the perceived balance of price, quality and benefit, and that measure sits at a broadly similar baseline across the study’s three main shopping-mission groups. The larger differences appear after the shopper decides the value is acceptable.

For task and time-driven trips, stock availability becomes the leading differentiator, followed by factors including selection and location. Problem-solving and replacement trips also place heavy weight on availability, while staff knowledge and delivery costs become more important. Inspiration and impulse missions show another pattern, with delivery fees, loyalty benefits and easy returns taking on greater relevance.

Price can therefore establish the threshold for consideration without determining the entire outcome. An empty shelf may be decisive for someone trying to complete an urgent task, while broad assortment can create value for a customer open to discovery. Staff expertise may have little influence on a routine replenishment purchase and become essential when someone is comparing unfamiliar products. Value sensitivity remains central, but the mission determines which other expectations rise to the surface.

One Shopper, Different Missions

The report organizes shopping behaviour into three broad situations: Inspiration & Impulse, Task & Time-Driven, and Problem-Solving & Replacement. These categories are best understood as missions, not permanent consumer personas, because the same individual can move among them repeatedly.

Inspiration and impulse trips include deal-driven shopping, discovering new products, acting on recommendations and treating oneself or someone else. Task and time-driven trips include routine purchases, errands, specific events and urgent needs. Problem-solving and replacement trips centre on confidence, including comparing alternatives, replacing or upgrading products, solving a specific problem or researching a considered purchase.

Routine shopping remains the most common, with 63% of respondents reporting a routine or planned trip purpose. But the study also found substantial activity outside that pattern: 37% combined shopping with errands, 35% had shopped to treat themselves or someone else, 28% engaged in casual browsing and 24% had made an urgent or last-minute purchase.

Those missions carry different emotional states. Treat-yourself trips generated the highest positive mood at 76%, followed by deal-driven shopping at 71% and event shopping at 70%. Urgent trips were much more difficult, with only 45% registering a positive mood and 38% reporting a negative one, the highest negative reading among the trip types highlighted in the report.

The findings complicate the retail industry’s tendency to discuss “experience” as though every shopper is seeking entertainment, theatre or discovery. For a customer making an urgent purchase, accurate inventory, clear navigation, accessible staff and a fast checkout may define a high-quality experience. A discretionary shopper in a positive mood may respond far more strongly to visual merchandising, broad assortment and the possibility of finding something unexpected.

The study’s mindset data reinforce that distinction. Overall, 40% of shoppers were classified as efficiency-driven, compared with 29% who were value-seeking. Among task and time-driven shoppers, 57% were efficiency-oriented, while problem-solving shoppers also leaned heavily toward efficiency.

For retailers, the lesson is significant: speed and clarity should not be treated as the absence of experience. In many situations, successful completion is the experience the customer came for.

The Store Remains Part of the Research Engine

One of the strongest findings in the study concerns the role of physical retail before the transaction takes place.

In-store browsing was used by 66% of respondents during the research journey, making it the most widely used source in the study. It was also the most common first touchpoint, with 22% beginning there. Search engines and flyers were each used first by 12%, while retailer websites were the starting point for 10%.

That matters because stores are still often evaluated primarily by transactions completed within their walls. The research points to a broader role. A shopper may enter a store to inspect an item, compare sizes, assess quality, understand features or encounter a product for the first time, then use a phone to search prices, read reviews, check another retailer or complete the purchase through a different channel.

A focus-group participant in the study described examining products in-store and then checking online for a lower price. The behaviour illustrates how physical retail can function as part of the information architecture of shopping even when another channel ultimately receives the transaction.

It also raises an attribution question. If retailers assign most value to the final click or completed transaction, the contribution of stores to product discovery and validation may be understated. That is an inference from the cross-channel findings, but it follows from evidence showing consumers moving among physical and digital sources during the same journey.

The continued importance of stores is especially visible among task-driven shoppers. Seventy per cent completed purchases in-store, compared with 58% across the full sample, and 71% took the product home the same day. For someone trying to finish a task, immediacy remains a significant competitive advantage.

Different Missions Produce Different Journeys

Overall channel averages obscure meaningful differences in how shoppers research different kinds of purchases.

Inspiration and impulse shoppers were comparatively exploratory. Sixty-three per cent used in-store browsing, 56% retailer websites and 52% search engines, while loyalty programs and retailer apps also played a relatively strong role. Task and time-driven shoppers leaned more heavily on familiar retail cues: 70% used in-store browsing, 46% loyalty programs and 41% flyers, while use of retailer websites and search engines was lower. Problem-solving and replacement shoppers were more validation-oriented, with 64% using in-store browsing, 53% retailer websites and 52% search engines.

Those differences point to distinct jobs for retail touchpoints. A task-oriented customer may respond strongly to accurate stock visibility, a familiar loyalty offer and a convenient location. Someone solving a problem may need specifications, comparisons, reviews, knowledgeable employees and confidence that a return will be manageable. An inspiration shopper may be more receptive to assortment, recommendations and discovery.

Category behaviour reinforces the same point. Groceries and essentials were heavily purchase-driven, with 82% of respondents reporting a purchase in the previous 30 days. Electronics and technology showed a different pattern: 27% had researched the category, compared with 17% who purchased. Home, décor and improvement also attracted substantial research relative to recent buying.

The strategic requirements differ accordingly. In high-frequency essential categories, availability and replenishment can dominate because the need already exists. In considered categories, search visibility, accurate product information, comparison tools, reviews and staff expertise can shape the decision long before money changes hands.

A generic omnichannel strategy can miss that distinction. Having a store, website and app is one thing; understanding the role each needs to play for a particular mission is another.

AI Is Joining the Journey, Not Replacing It

Artificial intelligence is already visible in Canadian shopping behaviour, although the report suggests its role remains secondary to more established research sources.

Eleven per cent of respondents said they had used AI assistants during shopping research, but only 1% said AI was the first source used. That gap may be more revealing than the headline adoption figure. It suggests AI is entering the journey mainly as a tool for narrowing choices, comparing options and speeding up research, while stores, search engines and retailer-owned channels remain more common entry points.

Among AI users, 46% said it helped them find relevant products faster, 43% said it made comparing products or prices easier and 40% said it saved time. Thirty per cent reported greater purchase confidence.

The weaknesses were also visible. Twelve per cent perceived brand bias, 11% said they had been directed toward products that did not exist and 10% reported incorrect results.

The immediate retail implication is therefore less about autonomous agents suddenly taking control of commerce and more about how products and brands appear inside a new research layer. If shoppers increasingly ask AI systems to identify options, compare prices or narrow a shortlist, product data, discoverability, accuracy and brand representation may become competitive concerns even when the sale is completed through a conventional retailer channel.

Value Pressure Is Changing Brand Choice

The report’s private-label findings provide another view of how Canadian shoppers are recalculating value. Among consumers purchasing private-label products, 53% cited better price or value for money, 38% pointed to good quality for the price and 27% said quality was comparable with national brands.

The hierarchy suggests many consumers are actively assessing whether the quality difference between a retailer-owned product and a national brand justifies the price gap. The behaviour fits the study’s wider definition of value as a combination of price, quality and benefit.

Brand loyalty may therefore be becoming more conditional. A national brand that once benefited from habit or familiarity can face greater scrutiny when consumers are comparing alternatives and asking whether a premium remains justified. For retailers, private label can function as an affordability tool, a margin strategy and a test of trust, with the strongest opportunity emerging when shoppers view the quality-price trade-off as rational.

The Empty Shelf and the Silent Customer

The study’s most commercially important findings may be those related to operational failure. Seventy-two per cent of respondents experienced at least one shopping issue during the previous three months. Thirty per cent encountered an out-of-stock product or limited availability, making it the most common problem identified. Delivery delays affected 18%, while 15% reported long lines or difficulty getting help and 14% encountered store-navigation problems.

Those failures matter differently according to mission. For task and time-driven trips, stock availability is the leading differentiator once the value threshold is crossed. The same is true for problem-solving and replacement trips. An unavailable product can therefore do more than frustrate a customer; it can erase the purpose of the trip.

The report found that 37% switch retailers when an item is out of stock, while poor customer service was also a significant reason for switching. More broadly, the research describes shoppers changing retailers, changing channels or abandoning purchases when basic execution fails.

For retailers, this creates a measurement problem. Complaint systems capture customers who remain engaged long enough to report what went wrong. They may miss the shopper who sees an empty shelf and checks a competitor’s app, the customer who cannot find help and walks out, or the online visitor who opens another tab and completes the transaction elsewhere.

A low complaint rate can therefore create false reassurance. The absence of a complaint is not evidence of loyalty.

The same tools that help shoppers compare options also reduce the friction involved in leaving. Inventory accuracy, queue management, intuitive navigation, reliable delivery and accessible service should therefore be understood as competitive capabilities, not simply operating metrics.

What Retailers May Need to Rethink

Retail Council of Canada has framed the research partly through the lens of affordability, competition and consumer choice. That interpretation arrives as the federal Competition Bureau places renewed emphasis on affordability and choice in its 2026–27 annual plan, including investigations in sectors affecting essential household costs such as food and housing.

The study clearly demonstrates consumer mobility. Canadians compare options, use multiple research sources, switch channels and leave retailers when expectations are not met. Those behaviours do not, on their own, establish that every retail market is highly competitive; questions involving concentration, barriers to entry and pricing power require broader evidence.

The study’s strongest contribution is behavioural. It presents a consumer who is neither simply online nor offline, neither permanently loyal nor always deal-driven. The same shopper can be rushed on one trip, exploratory on another and deeply analytical on the next.

For years, retailers have invested heavily in digital transformation, modernized stores, e-commerce, loyalty systems, apps and fulfillment networks. The research suggests the next step may involve reversing the usual order of planning: begin with the mission, understand what could derail it, and then determine which store, website, app or fulfillment option is best equipped to help the customer finish what they came to do.

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CHFA launches Greenhouse program to support emerging Canadian wellness brands

By
Mario Toneguzzi
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CHFA photo
The Greenhouse: CHFA photo

The Canadian Health Food Association has launched a new program aimed at helping emerging natural, organic and wellness brands gain access to trade opportunities and industry connections as they expand their businesses.

The Greenhouse will make its debut at CHFA NOW in Toronto on Sept. 26 and 27, giving participating companies a presence on the trade show floor at an event focused on the natural, organic and wellness products sector.

The program is intended to support brands at different stages of growth by providing a lower-cost path to exhibiting at CHFA NOW and connecting them with retailers, distributors and other industry stakeholders. It includes two participation levels: Seed, for brands beginning their wholesale journey, and Scale, for companies expanding distribution and increasing buyer engagement.

CHFA photo
CHFA photo

“CHFA is mission-driven to play a direct role in supporting the growth of small Canadian brands that will shape the future of wellness,” said Aaron Skelton, President and CEO, CHFA. “We are proud to provide solutions to common obstacles faced by up-and-coming brands and accelerate the pathway to shelf, connecting them with leading retailers, distributors, and industry decision-makers.”

The association said brands accepted into The Greenhouse will receive access to CHFA NOW conference sessions, the CHFA Industry Achievement Awards, as well as educational resources and networking opportunities available throughout the year.

Companies participating through the Scale tier will also be eligible to apply for CHFA Launch Pad and take part in The Greenhouse Pitch Breakfast. The event will feature 15 randomly selected brands presenting their stories to a group of retailers.

The Greenhouse is the next evolution of its predecessor, Incubatory Alley, which included notable participants such as Beck’s Broth, Blume, Comeback Snacks, Guests on Earth, and LOOP. As CHFA aims to support the growth of small Canadian brands, The Greenhouse will be an intentionally curated program rooted in visibility, credibility, connection, and education. 

CHFA said the new program is structured around visibility, credibility, connection and education as the organization works to support smaller Canadian brands seeking to grow.

CHFA photo
CHFA photo

Participation in The Greenhouse requires an application and approval process. CHFA will assess applications and determine the appropriate program tier based on a business’s stage of development and other factors.

The Canadian Health Food Association is a national not-for-profit trade association representing manufacturers, retailers, wholesalers, distributors and importers involved in natural, organic and wellness products.

In an interview with Retail Insider, Skelton spoke about CHFA NOW and The Greenhouse.

Question: Why did CHFA decide to evolve Incubator Alley into The Greenhouse, and what gaps in the market or feedback from emerging brands drove this change?

Answer: Canada’s natural, organic and wellness industry is growing, creating exciting opportunities for entrepreneurs. But bringing an innovative product to market—and turning it into a successful business—is becoming increasingly complex.

We recognized that many emerging brands needed more than a place to exhibit. They needed more time to grow and practical support to answer the questions every founder faces: How do I approach retailers? When am I ready for a broker or distributor? How do I navigate regulatory requirements as my business grows?

That’s why we evolved Incubator Alley into The Greenhouse. It’s not just an exhibit space—it’s a growth platform that combines education, expert guidance and industry connections with opportunities to showcase products at CHFA NOW.

At CHFA, our role is to strengthen Canada’s natural, organic and wellness ecosystem. The Greenhouse is our investment in the next generation of Canadian entrepreneurs and the future of our industry.

Aaron Skelton
Aaron Skelton

Q: Many early-stage consumer brands struggle to secure retail listings—how does The Greenhouse materially improve their chances of getting onto store shelves beyond simply providing exhibit space?

A: Getting onto a retailer’s shelf starts long before the buyer meeting. Founders need to understand retailer expectations, navigate regulatory requirements, and clearly communicate what makes their product and business stand out.

That’s why The Greenhouse combines education with opportunity. Founders gain practical knowledge through Growth Sessions and expert resources, then put that learning into action at CHFA NOW through initiatives like CHFA Launch Pad, the Greenhouse Pitch Breakfast and dedicated retailer preview opportunities.

We’re not just helping founders get onto store shelves—we’re helping them build businesses that are positioned for long-term growth.

Q: What criteria does CHFA use to determine whether a brand qualifies for the Seed or Scale pathway, and what characteristics do you look for in applicants?

A: Every emerging brand is at a different stage of its journey, so we designed The Greenhouse to meet founders where they are.

Seed supports brands entering wholesale and looking to build awareness and retailer relationships. Scale is for businesses that have gained traction and are ready to expand distribution and engage buyers more strategically.

It’s not about creating two different programs—it’s about making sure founders receive the right support at the right stage of their business.

CHFA photo
CHFA photo

Q: From a retailer’s perspective, why should buyers make time to visit The Greenhouse, and what kinds of innovation or trends do you expect they’ll discover there?

A: Retailers come to CHFA NOW to understand where the natural, organic and wellness industry is heading, and The Greenhouse offers an early look at the entrepreneurs and innovations shaping that future.

This year, we’re seeing innovation across categories—from clean sun care and supplemented gum, reflecting growing interest in oral health, to new flavours in supplemented beverages. These are the kinds of products that signal where consumer demand is heading and give retailers an opportunity to discover emerging brands early.

We also recognize that buyers have limited time. That’s why our Retailer Breakfasts and our dedicated buyer hour is an important place to be for an early look at the trends shaping the industry and the emerging brands leading them.

Q: Looking ahead, how will CHFA measure the success of The Greenhouse, and what outcomes would demonstrate that the program is making a meaningful impact on Canada’s emerging wellness brands?

A: Of course, we’ll measure success by strong participation. The Greenhouse sold out months before the show and continues to have a growing waitlist, which tells us there’s a real need for this kind of program.

But the real measure of success comes after the show. We want to see these brands grow—expanding their retail distribution, building lasting relationships with buyers and eventually graduating from The Greenhouse to exhibit independently at CHFA NOW. Seeing brands that started in The Greenhouse on retail shelves across Canada will be one of the clearest indicators that the program is doing what it was designed to do.

At the end of the day, if we’re helping Canadian entrepreneurs build stronger businesses and bringing more innovative natural, organic and wellness products to consumers, then The Greenhouse is achieving exactly what we set out to accomplish.

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Kicking Horse Coffee launches Cool Mule cold brew blend as Canadian brand targets new growth

By
Mario Toneguzzi
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Kicking Horse Coffee photo
Kicking Horse Coffee photo

Kicking Horse Coffee, born in a garage in Invermere, B.C. 30 years ago and still roasted in Canada, recently launched Cool Mule: its first-ever blend built specifically for cold brew and iced coffee. A medium roast developed from the ground up to shine cold, with notes of peach, milk chocolate, and nectar.

100% Fairtrade and certified organic, roasted right here, and the fastest-growing Canadian coffee brand since 2024. Their newest blend Cool Mule is available now nationally at Costco and at kickinghorsecoffee.ca for $36.99, a limited-time summer release.

In an interview with Retail Insider, Melanie Smith, Senior Marketing Director, Innovation, talked about the company.

Question: What drove the decision to launch Cool Mule as Kicking Horse Coffee’s first blend specifically designed for cold brew and iced coffee, and why now?

Answer: Cold coffee is one of the fastest-growing segments in Canadian coffee. We know coffee drinkers, especially younger ones, love an iced coffee in the afternoon and it’s an occasion we haven’t historically had an option for. That’s a massive opportunity, and we weren’t going to half-ass it. Cool Mule is our first whole bean blend that is specifically crafted for cold. It’s a medium roast with balanced acidity, so the sweetness – peach, milk chocolate, syrupy nectar tasting notes – comes through when it’s cold-brewed.

Melanie Smith
Melanie Smith

Q: How does Cool Mule fit into Kicking Horse Coffee’s broader product and growth strategy, particularly as consumer demand for cold coffee continues to evolve?

A: Cool Mule is the centerpiece of our summer strategy and our fourth seasonal limited edition offering. These seasonal releases have become a real part of how we grow the brand and bring new consumers in. We’re the fastest-growing Canadian coffee brand since 2024, bringing in 1.5 million incremental consumers, and new occasions including cold coffee is where we see the next wave of growth coming from. It’s a huge and growing segment, especially with younger drinkers. Cool Mule is our way into that occasion, especially during the warmer months when we know cold coffee consumption peaks.

Q: The brand has been roasted in Canada for 30 years. How important is the ‘Made in Canada’ aspect of the business in today’s retail environment, and has consumer interest in Canadian products changed recently?

A: We’ve been roasting in Invermere, British Columbia for 30 years. We started in a garage in the Rockies, and we’re still there, employing over 150 Canadians coast to coast. Consumer interest in Canadian products has absolutely increased, but for us it’s how we’ve always operated.

We’re actually hiring nearly 40 new people at our Invermere facility by the end of this year, which is about a 25% increase in our workforce, so we have no plans of slowing down!

Q: Costco is a major national retail partner for this launch. What role do large-format retailers play in your distribution strategy, and how do you balance that with direct-to-consumer sales through your website?

A: Cool Mule is a milestone for us, in that it’s the first seasonal limited edition offering we’ve launched nationally at Costco. That matters even more right now because more Canadians are brewing coffee at home. 

National distribution at Costco puts us in front of those consumers inmarkets where we’re actively growing. Direct-to-consumer plays a different role – that’s where we build the direct relationship with our consumers. We launched both channels at the same time on purpose: Costco gets us reach in new markets, DTC keeps us tight with the people who already know us.

Kicking Horse Coffee
Kicking Horse Coffee

Q: Kicking Horse Coffee says it has been the fastest-growing Canadian coffee brand since 2024. What factors have been driving that growth, and where do you see the biggest opportunities for expansion going forward?

A: We’re hellbent on being Fairtrade and organic, and that commitment is exactly what’s driving our growth. We’ve grown household penetration by 3.9 points and brought in 1.5 million incremental consumers. Looking ahead, cold coffee is one of our biggest opportunities. It’s where younger consumers already are, and it’s an occasion we haven’t owned yet. Building further into Eastern Canada is the other big lever. 

We’ve got a strong foothold out West, and Cool Mule launching nationally at Costco is a meaningful step into growing our brand in the East.

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Supernatural launches immersive wellness studio focused on sound and sensory experiences

By
Mario Toneguzzi
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Supernatural photo
Supernatural photo

Supernatural has launched The Portal, an immersive wellness studio in Toronto’s Yorkville neighbourhood that is designed around sound, frequency, nervous system regulation and group experiences.

The new studio expands Supernatural’s wellness offerings with classes, workshops, Listening Lab sessions and private experiences focused on sound meditation, breathwork, movement and storytelling. The company said the space is intended to provide a shared environment where sound is experienced through the body as well as heard.

The launch comes as Supernatural positions The Portal within the growing category of wellness experiences focused on emotional wellbeing, sensory immersion and connection. The company said the studio is built around six programming pillars: Energy, Sound, Breath, Body, Move and Mind.

Located at Supernatural’s Yorkville flagship at 55 Avenue Road, The Portal is designed to transform the room itself into part of the sound experience, with vibrations moving throughout the space as participants engage with rhythm, resonance and frequency.

“In The Portal, listening becomes something the whole body does,” says Louise Upperton, Programming Director and sound meditation practitioner at Supernatural. “You feel the vibration before the music fully arrives. But what makes the space truly powerful is the shared experience. There’s something deeply human about listening and breathing in rhythm with others and reconnecting through sound together.”

Louise Upperton
Louise Upperton

The studio’s programming includes facilitators working across sound, movement, mindfulness and somatic practices, with experiences aimed at combining multiple wellness approaches in a group setting.

Dave Sorbara
Dave Sorbara

“The Portal was designed to change how the body experiences sound,” says Dave Sorbara, creator of RE Frequency Therapy. “These experiences are designed to unlock the body’s full capacity to listen deeply, not just through the ears. The ears and the body form a holistic listening system that can be leveraged for presence and connection.”

Supernatural said The Portal differs from traditional sound environments by creating an experience in which sound and vibration are integrated into the physical space rather than delivered only through audio.

Supernatural photo
Supernatural photo

The company said the studio reflects increasing consumer interest in experiences centred on nervous system regulation, emotional wellbeing and collective participation.

The Portal is now open at Supernatural Yorkville, with programming available through the studio’s booking platform.

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Little Bellies expands nationwide at Walmart Canada with new organic baby and toddler snacks

By
Mario Toneguzzi
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Little Bellies photo
Little Bellies photo

Little Bellies, Canada’s fastest-growing baby snack brand, is expanding nationwide at Walmart Canada with five new organic snacks designed to support babies and toddlers at every developmental stage.

The expansion includes two new Organic Mini Pick-Me Sticks for7+months, plus three new products for toddlers 12+ months, including the brand’s new Organic Nibbles made with puffed corn stars and real freeze-dried fruit, along with Organic Strawberry & Apple Sandwich Cookies.

Designed with age-and-stage development in mind, the range introduces little ones to new flavours, shapes, and textures that support self-feeding and exploration. All products are made with carefully selected organic ingredients and contain no artificial colours, flavours, or additives.

“Expanding our range at Walmart is an exciting milestone for Little Bellies as we continue to grow across North America. For us, it has always been about giving parents more confidence in the baby and toddler snack aisle. We’re proud to be even more accessible to families across Canada,” said Clive Sher, Managing Director of Every Bite Counts Pty Ltd (EBC) owns and distributes the Little Bellies range of children’s foods.

In an interview with Retail Insider, Sher talks about the company’s growth and plans for the future.

Question: Little Bellies describes itself as Canada’s fastest-growing baby snack brand. What factors have been driving that growth, and why is Walmart Canada an important milestone in your retail expansion strategy?

Answer: Little Bellies was launched 15 years ago in Australia and has developed a unique positioning and philosophy around supporting parents and their children through each age and stage of baby and toddler snacking. This positioning, our deep and strict brand guidelines and our innovative portfolio of organic snacks has raised the benchmark for infant and toddler snacking in Canada and has really resonated with Canadian parents. Little Bellies has always had a deep commitment to making the best quality organic food as accessible as possible. This partnership with Walmart, a leading retailer in this space, helps us deliver on this commitment.

Clive Sher
Clive Sher

Q: The baby and toddler snack category has become increasingly competitive. How is Little Bellies differentiating itself for both parents and retailers? 

A: Little Bellies really differentiates ourselves in three key ways.  Our unique approach to designing our products to support a child’s developmental stages means we’re helping parents feel confident in introducing new textures, flavours, and with their baby’s self-feeding skills.  Second, we continue to innovate in the baby and toddler category.  Finally, we engage with parents in a personal way that recognizes the stress of navigating what products to introduce in a way that is supportive, not overwhelming. There can be a lot of guilt associated with shopping in this category and we recognize that, and guide parents through it. 

Q: Your products are designed around different developmental stages. How closely do you work with child nutrition or feeding experts when developing new snacks and textures? 

A: We have a very experienced in-house product development and quality team. We also work closely with feeding specialists and other experts to gather feedback and additional insights, marrying their expertise with our own commitments to safe ingredients and quality products.

Q: What made Walmart Canada the right partner for this expanded launch, and what does nationwide distribution mean for the brand’s growth plans in Canada? 

A: Walmart is an incredible retailer and partner who have a strong commitment to being accessible to all consumers. At Little Bellies, we believe in providing the best quality products that are accessible and affordable and this launch with Walmart takes us one step further on this journey. We believe we are only just getting started in Canada and have strong plans to continue to innovate and deliver meaningful products that improve the lives of the youngest consumers and make the parenting journey that much easier for Canadian families. 

Little Bellies photo
Little Bellies photo

Q: As consumers continue to look for healthier and more transparent food options, what trends are you seeing in the baby food and snack category, and how is Little Bellies responding to those evolving expectations?

A: The journey first time parents go on when introducing foods is riddled with many different feelings not the least of which is stress and guilt. A lot of this is associated with shopping in the baby food category.  Parents are looking for greater transparency, simpler ingredients, and brands they can trust.  At Little Bellies, we have a very strict set of nutritional and ingredient guidelines which dictate what is and isn’t allowed and each age and stage. This comprehensive commitment to only delivering the very best products allows consumers to shop our assortment with confidence. Our goal is to make it easier for parents to shop the category and to let parents know they can feel comfortable with putting their trust in us. 

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Bank of Canada holds interest rates steady as Canadian economy shows stronger-than-expected resilience

By
Mario Toneguzzi
-
Mikhail Nilov photo
Mikhail Nilov photo

With the economy showing more resilience than expected after a rollercoaster start to the year, the Bank of Canada’s recent decision to hold rates steady comes as little surprise, says CPA Canada’s (Chartered Professional Accountants of Canada) chief economist.

“Just a few months ago, Canada was facing a technical recession and had lost more than 100,000 jobs. Today, the outlook is stronger,” says David-Alexandre Brassard. “Economic growth has exceeded expectations, employment has rebounded and the economy has proven more resilient than many anticipated.”

Recent economic data points to stronger momentum, with April recording the strongest growth since summer 2025 and job gains in recent months nearly offsetting earlier losses. Meanwhile, core inflation has remained close to the Bank of Canada’s two per cent target despite volatility in global oil markets.

While uncertainty surrounding the Canada-U.S. relationship remains, Brassard notes that those risks are already reflected in most economic forecasts and have not materially changed the near-term outlook.

“The central bank is in a comfortable position right now,” says Brassard. “Inflation remains under control and there is no compelling reason to intervene on the policy front.

“The next move could ultimately go either way, but for now the strongest case is to remain on the sidelines and monitor incoming economic data.”

In an interview with Retail Insider, Brassard spoke about the current situation.

Question: The Bank of Canada held interest rates steady, citing a stronger-than-expected economy. What economic indicators do you see as the strongest evidence that Canada has turned a corner?

Answer: We are seeing signs that the economy is turning a corner, but it remains too early to tell. The indicator I’m watching most closely right now is job creation because it reflects economic and business optimism more than surveys do. If we manage to create jobs without the demographic growth to support them, then that is encouraging. GDP has been volatile in recent quarters, largely because of changes in international trade and inventories, mostly driven by American tariffs. Higher oil prices have also boosted GDP, but that is not exactly the brightest green light there is.

Q: You’ve said the central bank is in a “comfortable position” right now. What developments over the next few months could change that assessment and prompt either a rate cut or a rate hike?

A: There are two main scenarios which could change the Bank of Canada’s upcoming decision. The first is related to inflation. So far, it appears that the spike resulting from the Iran conflict has been mostly contained. If the conflict reignites or if oil prices translate into inflation, the Bank could decide to rate hike. The second would be economic underperformance in Canada, which could result from trade uncertainty, weaker demographics or slower global growth. This would also prompt a rate hike.

David-Alexandre Brassard
David-Alexandre Brassard

Q: Despite improved economic data, uncertainty around the Canada–U.S. relationship and CUSMA (Canada-United States-Mexico Agreement) remain. How significant are those risks for Canadian businesses, and which sectors are most exposed?

A: The absence of an agreed renewal to CUSMA means that uncertainty will remain and the current state of affairs is unchanged. That means sectoral tariffs will continue to hurt the manufacturing, transportation and warehousing industries, as well as wholesale trade. Recent economic data has been more encouraging, but the Canadian economy has struggled with growth and job creation, and investment levels have been flat since the tariffs were implemented. Therefore, the uncertainty around the Canada-U.S. relationships remains a major risk to the outlook.

Q: What does this more resilient economic outlook mean for Canadian consumers in terms of spending, borrowing, and confidence for the remainder of the year?

A: Wage growth has been strong enough to sustain consumption growth, but we have seen some consumer indicators worsen, including lower savings rates, higher mortgage delinquencies and more insolvencies. I expect consumer growth to remain relatively robust, but it is less likely to surprise to the upside. As for borrowing, we see consumer credit metrics for households being relatively stable, but mortgage borrowing should remain muted amid the slower housing market, with slow sales and declining prices.

Q: From a retail perspective, how are steady interest rates and improving economic conditions likely to affect consumer spending, retailer performance, and expansion plans, and what impact could broader economic trends still have on the retail sector?

A: For retail spending, we have seen it impacted slightly by the population declining, but it grew per capita on the back of higher wages. I expect modest growth, but again, keeping in mind that growth for the last few months has worsened consumers’ financial positions. With another three or four quarters of population decline, we should see constrained growth in retail spending.

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Maximizing the Retail Floor: The Strategic Value of Reclaiming Dead Space

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Retail Insider
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Behind the scenes of any retail store for decades has been cluttered with excess inventory, seasons’ worth of displays that are no longer current, holiday decorations from past years, and stacks of old cardboard boxes and filing.

Sometimes, filing papers for years after the fact. Many retailers have just come to accept that the backroom is a part of their business that they have to deal with. 

Switching to custom boxes that ship and store flat is one simple way retailers can cut down the backroom clutter that eats into usable floor space. But the math of retailing physical space has changed drastically over the last few years. With the cost of commercial real estate skyrocketing and a push to create an experiential retail environment, every square foot of retail space has to pull its weight.

So, storing filing, compliance documents, and old archives in a backroom of a retail store is no longer just an organizational issue; it is an issue that costs a retailer money, as every square foot that is not pulling its weight is taking away from the space’s profit.

But the math has changed! With the cost of commercial real estate shooting up (often doubling over the last few years) and everyone scrambling to create an “experience” retail space, every square foot of retail space must now generate as much, or more, revenue than it did in the past. 

Storing a bunch of old files, piles of compliance documents, and a stock of historical and redundant documents in the back room of a retail store is an expensive and unproductive overhead. 

It is a cost that is eating into the store’s revenue margins.

The Evolution of the Retail Floor

Now compare this to the backroom of a typical store. 

Spaces are closed off, dusty, contain outdated archives, and in some cases, old, broken fixtures. 

They don’t contribute to the brand image and take away from potential sales. 

To create a better retail experience, you must optimize every square foot to drive maximum revenue. 

This means taking a long, hard look at your backroom to identify ways to increase efficiency and remove any unnecessary items that take up valuable space.

Lost space hurts. 

Clutter on the sales floor can have customers looking frazzled, while clutter in the back room takes a huge toll on employees and store productivity. 

By removing administrative detritus from your store, you free up space to create more showroom and allow your customers the room to browse without feeling jammed. 

Every merchant needs to optimize every square foot of space to get the maximum return on their expensive store space.

Dead space equals dead revenue.

However, in today’s Retail Environment, to make money, every square foot needs to be optimized to generate as much revenue as possible. 

So, looking at the backroom and determining how to store everything there in the most effective manner to optimize as much space as possible in the front of the store is imperative. 

We may be viewing the backroom in a way that doesn’t give it the respect it deserves, helping the retailer optimize as much space as possible and maximize revenue in today’s competitive environment.

The Administrative Burden

All retailers in physical commerce generate a huge amount of paperwork, including receipts, supplier invoices, audit paperwork, personnel records, etc. 

A lot of this is required by law to be stored for many years, so it cannot simply be thrown away.

Those left to handle paper management can find themselves spending an inordinate amount of time dealing with paperwork, forms, etc. 

Most retailers will have employees who could be better utilized in areas of the business, such as training other employees, dealing with customer service issues on the sales floor, or addressing concerns from management. 

Paper management issues can and do hinder a retailer’s ability to service its customers properly and keep employees from being more productive in other retail functions. 

Mislabeling of boxes, deterioration of important papers due to moisture, and breaches of sensitive information are just a few of the reasons why retailers find themselves transferring archival-type functions to an off-site storage provider. 

A simple loss of an important compliance audit document, before the actual audit occurs, will keep any retailer up at night. 

The use of 24/7 online retrieval systems eliminates these problems and allows retailers to sleep better at night.

Beyond simple space constraints, storing documents in off-site self-storage facilities for a retail establishment creates a host of issues, including: being a significant waste of an employee’s time to retrieve a single document; being extremely cost-prohibitive; and exposing the retail establishment to liability. 

The smartest thing a retailer can do with documents is to use a document storage and management facility specializing in this area, such as Corodata record storage. 

They can clear out the back room of the establishment and store all critical documents securely, manage them, and make them easily accessible as needed for audits and compliance reviews.

By having a business’s documents stored off-site by a professional document storage company, such as Corodata record storage, a merchant can clear out all backroom space and have their vital documents stored, managed, and secured in a single location. 

That stored information can then be retrieved in a matter of hours whenever a merchant needs to refer to a document for compliance, tax, or legal reasons. 

All of this can be done by leaving the store’s daily operations to its staff and having the document storage company handle the storage, organization, and retrieval of all the store’s documents.

So, why keep struggling to build a makeshift archive in a space meant for commerce? It comes down to breaking old habits.

Reclaiming the Workspace for the Team

Beyond the opportunity to sell more products by reclaiming space for high-margin items, the biggest impact of clearing the clutter in your store’s backroom is on store morale and the efficiency of its operations. 

The backroom of the store is the behind-the-scenes area where employees perform the functions necessary to operate the store. In effect, the backroom of the store is the “workplace” of your employees. 

The energy in the backroom of the store will mirror that on the sales floor.

Think of the fulfillment of orders. Are your employees able to retrieve merchandise promptly? If the backroom of your store is cluttered with old files, paper, etc., it’s going to make your employees’ day more difficult. It creates a messy environment. 

A disorganized backroom causes stress for employees and reduces productivity.

Removing the archives from the backroom and keeping the area organized can have many positive effects for a store. 

For one, it can make the process of receiving and stocking shipments of new merchandise much more efficient. 

This, in turn, can help get the best, highest-margin products on the floor more quickly and also help keep customers waiting for items the store has in stock to a minimum.

A clean backroom sends a clear signal.

This will make your team members very happy and, most importantly, make them feel that their workspace is as important as the rest of the store.

Making the Shift

Changing from hoarding documents in the back of your store to keeping them off-site for optimal use by your company, with retrieval as needed, requires a change in how your store is operated. 

This can start with an audit of what documents are being stored in the back of your store, and then go on to establishing the length of time that certain types of documents will be kept, and then establishing protocols for storing and retrieving such documents once they are deemed to be no longer needed in the back of your store.

Audit Your Current Assets: The first step to changing how you store administrative documents is to identify what you currently have and categorize them as either needed for daily operations or purely historical or archival.

Set up Procedures: Review the documents you currently keep, and establish procedures for what you will keep on-site and what will go to off-site storage as soon as it is no longer current (i.e., digitize it and send it to storage as soon as it arrives).

Design for Experience: Use the newly recovered square footage to expand the sales floor, build a more comfortable employee break area, or create a dedicated station for processing online orders and returns.

The future of retailing will be about the most agile, organized, and customer-centric retailers in the market, protecting their margins, empowering their employees, and unlocking the full economic potential of their physical stores. By understanding the full costs of physical clutter and removing non-value-adding materials from their backrooms, retailers can do just that.

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