EPAM Global Loyalty Report reveals key consumer trends: Personalization, rewards, and AI drive engagement

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June 25, 2025

EPAM’s Consumer Loyalty Research: Global Insights analyzes responses from 10,000 consumers across eight global regions to uncover what drives loyalty today.

Only 20% of consumers actively use more than three loyalty programs, proving most programs struggle to stay relevant. This report identifies the features, channels, and strategies that keep customers engaged.

“Strong customer loyalty is a recognized competitive advantage. Research shows that brands invest on average one third of their total marketing budgets in loyalty programs. To stay ahead, leading brands are continually focused on the trends they need to consider. They must adapt to consumer expectations and competitor moves,” said Andrew Doyle, Managing Principal & Global Head of Loyalty, Promotions & Growth.

“Trends like hyper-personalization, real-time engagement and context-driven rewards are much discussed. But which of these do consumers truly desire and which can be adopted at scale? And how does this vary by market? We conducted a research study to answer these questions, with 10,000 consumers globally and market specific results.

“In this eBook, we present the global results. Designed for busy professionals, the content is clear, concise and accessible. However, if you’d like deeper insights tailored to a specific segment relevant to your business, don’t hesitate to reach out — we’d be happy to help.

This research was part of the production of the Global Customer Loyalty Report, where EPAM partnered with Antavo. The report also contains input of 2,600 loyalty professionals and analysis of 230 million loyalty member interactions. I strongly suggest you read the full report. The evolution of loyalty underscores the need for brands to innovate and adapt their

loyalty strategies. I hope this eBook empowers you to make informed, data-driven decisions as you build or revamp your loyalty strategy.”

The EPAM report said the primary reason most people engage with in loyalty programs is to earn rewards, discounts, or cash back on future purchases. Personalized offers and rewards come in second, while the added convenience of free shipping or returns is equally valued.

‘‘Rewards and discounts offer immediate value. However, combining monetary benefits with meaningful experiences creates a stronger connection. Personalized offers, exclusive events and VIP treatment tap into the emotional side of consumer behavior, making customers feel valued and connected to the brand. This emotional bond transforms a transactional relationship into lasting loyalty. This mix of rewards and engagement fosters exclusivity and belonging, drives repeat purchases and builds long-term brand advocates, even amidst competitive monetary incentives,” said Emma Kilczynski, Principal Business Consultant, EPAM.

The EPAM report said customization and gaming are the most valuable features in loyalty programs. According to the survey, most users either use or would use the customization feature if it were available; similarly, people either use or would use the gaming feature if it were available.

“Loyalty programs must offer a personalized experience that cater to customers’ unique expectations and engagement triggers. Data plays a crucial role in creating these personalized encounters. With restrictions on third-party data, the importance of first-party data becomes even more significant for brands. Harnessing first-party data can lead to a better understanding of customers and successful personalization efforts, thus creating stronger loyalty programs,” said Ward de Kruiff, Global Head of Web3 and Metaverse, EPAM.

EPAM said loyalty programs are evolving, shifting from simple transactional rewards to creating deeper emotional connections with consumers.

“While earning rewards, discounts or cash back remains a key motivator, features like personalization, gamification and perks like free shipping are becoming equally important. Consumers are most engaged when loyalty programs offer partnerships and unique, immersive experiences, making innovation and customization essential,” said the report.

“AI is transforming the loyalty program landscape, bringing hyper-personalization and real-time engagement into the mix. Even if not all consumers fully understand AI’s role, its ability to deliver tailored offers and experiences is quickly becoming a must-have for brands looking to build meaningful connections with their audience.

“As technology continues to advance, AI will play a central role in shaping the future of loyalty strategies, helping brands create programs that resonate with consumers on a deeper level. We are not certain what the future holds for consumer behavior, especially as more brands compete for attention and loyalty.”

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Retail Real Estate Veteran Tony Flanz Reflects on Industry Evolution, Personal Milestones, and Think Retail’s Boutique Edge

By

Mario Toneguzzi

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June 25, 2025

Tony Flanz, founder and principal of Think Retail, has long established himself as a go-to expert in Canadian retail real estate.

In a candid conversation, Flanz opened up about the evolution of his career, the industry’s shifting landscape, and why a boutique firm like his continues to thrive alongside industry giants.

The company is celebrating its 20th anniversary this year.

Flanz has been in the real estate industry since 1989. “I started at the Montrose Group, a private landlord in Montreal. I worked there for about 18 months and then moved to Morguard for six years. That was my first national company.” He began with the private landlord as a “junior leasing rep, working on their open-air plazas in the city,” and later helped Morguard lease the expansion of Place Rosemère, which opened in 1991—his first foray into national exposure.

His entry into commercial real estate had personal roots. “My family owned an open-air plaza in south Montreal. I worked with my mother managing and leasing it for several years—that was my entry point. I majored in political science and thought I’d become a lawyer. But I pivoted to real estate after graduating.”

Since then, his path has been laser-focused. “One hundred percent retail—since 1989.”

Ironically, he didn’t love shopping growing up. “I was the one running for the door,” he joked. “But I connected with the pace and the energy. It moves fast, and the products are fun. A lot of the companies I worked with sold things I personally liked, so I enjoyed reaching out to them.” He added, “I’m very socially driven, and retail lets me connect with all kinds of people. That ability to connect is critical for a national leasing professional.”

Think Retail today is a lean operation. “You’re looking at it,” said Flanz. “It’s just me, a bookkeeper, and an accountant. I don’t employ anyone directly—I subcontract everything.” That model, he explained, provides flexibility. “I can hire the best person in another city for a specific account if needed. I’m not locked into using a Think Retail office in Toronto, for example. That flexibility gives me access to better expertise than many larger firms.”

Flanz is also well-connected in the industry.

Asked what sets his boutique firm apart from national players, Flanz pointed to personal service and promotional strength. “First, I’m always accessible. If something’s important to my client, it’s important to me—any time, seven days a week.” On the promotional side, he added, “You’d think we were a company of 100 agents based on how aggressively we promote our clients’ successes.”

Despite being a solo operator, Flanz currently holds “around 10 to 15 national mandates.” By comparison, “(a national real estate firm), which might have 40 agents, might have the same number.”

A rare emphasis on clients over self-promotion also defines the Think Retail brand. “In 10 years of blogging, there’s only been one post about me. The focus is on our clients. Promoting their success has a huge impact on the deals we negotiate and the spaces we secure.”

Flanz describes his marketing strategy as either “cultivating demand” for established superbrands or “manufacturing demand” for emerging names. “When a landlord sees that a company hired Think Retail, it signals that the tenant is serious about its real estate and expansion plans.”

“When you increase demand, you can positively influence the financial aspects of a transaction.”

While 99% of Flanz’s work is tenant-focused, he occasionally takes on select landlord mandates. “I do 99% tenant work. Occasionally I’ll take on landlord work if it’s a unique, high-profile property—like 1181 St. Catherine, which we just sold. It was a beautiful building on a prime retail street and aligned with my clients’ needs.”

Flanz said Think Retail is fortunate to have worked with high-profile, best-in-class national and international brands, as well as innovative start-ups who went on to dominate and define the retail scene in Quebec and across the country.

“As we look back at our incredible clients and partners, we can’t help but be honoured, as well as a little awestruck, by the work we have done together to shape and define the retail landscape in Canada,” he said.

“That includes navigating major market entries into Canada for iconic brands, such as Le Creuset, Fossil, Carter’s Osh Kosh, Filson, Merrell, Pinkberry, Shinola, as well as internationals superstars, including Jeff de Bruges, Oscar Wylee, Wellensteyn, Panco, Crocs, Desigual, Columbus Cafe & Co, Sherwin Williams, Adopt, Change Lingerie and Lole to name but a few.

“We are honoured to have played a pivotal role in the market launch and subsequent growth of many incredible Canadian success stories, including KaleMart24, Skybird, Foodtastic, Patty Slaps, Rock’n Deli and Copper Branch. Plus, we have spearheaded international debuts for several Canadian clients, including Mia.”

When asked about the biggest industry changes in recent years, Flanz didn’t hesitate. “In the last few weeks, the closure of The Bay was huge. That’s the single biggest change we’ve seen in our retail careers.”

But he’s quick to point out the underlying trends. “Fast fashion, direct-to-consumer models, and consumer desire for instant gratification all contributed to it. People want things fast—and online retail caters to that. But there’s still something unique and exciting about the in-store experience that can’t be replicated online.”

On a technical level, video conferencing has been the most significant shift. “I probably do four video calls a day now—before the pandemic, maybe one a week. It used to be in-person meetings and tours; now it’s quick Google Meets or Teams calls that move things along much faster.”

Still, Flanz stays grounded—literally. “Yes, absolutely,” he said when asked if he still prefers walking retail streets. “But I also rely heavily on Google Street View now. It allows me to assess high street retail properties visually, quickly, and remotely.”

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JD Sports Opens Canadian Flagship on Robson Street

By

Craig Patterson

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June 25, 2025

Vancouver1 — JD Sports flagship store at 1042 Robson Street in downtown Vancouver. Photo: JD Sports

UK-based sports-fashion retailer JD Sports has officially opened its first Canadian flagship store in Vancouver at 1042 Robson Street, marking a milestone in the company’s aggressive expansion strategy across Canada. The flagship stands as the retailer’s most substantial investment in the Canadian market to date and is the 34th JD location in the country.

The flagship is more than just a store—it is designed as an immersive, high-energy destination offering exclusive brand partnerships, premium product assortments, and experiential retail elements that aim to redefine the sports fashion landscape in Canada.

“This launch of this landmark store signals the next phase of our expansion with 17 additional openings planned across Canada in the next 18 months,” said Gary Ochi, Chief Executive Officer of JD Canada. “We have designed this space to inspire our customers, offering them access to exclusive products, cutting-edge store design, and the best in sports fashion.”

JD Sports flagship store at 1042 Robson Street in downtown Vancouver. Photo: JD Sports

Strategic Location on Vancouver’s Premier Shopping Strip

Robson Street, Vancouver’s most iconic high street and cultural artery, serves as the ideal location for JD Sports’ Canadian flagship. The busy retail corridor is home to both international brands and local boutiques, with strong foot traffic from locals and tourists alike. This marks JD’s first exterior, street-front store in Canada, distinguishing it from earlier mall-based locations.

The flagship joins JD’s network of global destination stores that include notable flagships on Oxford Street in London, the Champs-Élysées in Paris, and Times Square in New York City.

The lease deal for the Robson Street space was negotiated by Jordan Karp of Savills Canada, who represents JD Sports in the country. Representing the landlord in the deal were Mario Negris and Martin Moriarty of Marcus & Millichap.

Vancouver-based design firm Cutler provided architectural and interior design services for the project.

Cutting-Edge Design Meets High-Octane Retail

The Robson Street flagship store is a striking addition to Vancouver’s high street, offering a dynamic and immersive environment that sets it apart from traditional sports retail. One of the most visually commanding features is its double-height shopfront, which adds an imposing presence to the streetscape. Atop this, JD has installed the largest LED display in its Canadian footprint, drawing inspiration from the bright lights of Times Square to engage passersby and create a sense of constant motion and energy.

Upon entering the store, customers step into a digitally enhanced portal that sets the tone for the experience inside. A custom-designed LED sushi stand greets visitors, adding a playful local twist to the high-tech surroundings. The space also features a DJ booth, reinforcing JD’s commitment to blending retail with the culture of music and street style. A dedicated click-and-collect station near the entrance caters to omnichannel shoppers seeking both convenience and immediacy.

Operational efficiency is a priority in the new flagship. The store is equipped with a dumbwaiter system that streamlines stock delivery, ensuring timely replenishment of popular products without disrupting the shopping experience. Complementing this is a state-of-the-art Stingray sound system—the same used by Nike in select locations—designed to immerse customers in an energetic soundscape that reflects the brand’s global aesthetic.

Within the store, shoppers will also find elevated “shop-in-shop” areas showcasing collections from top athletic and lifestyle brands, including Nike, New Balance, and Adidas. These curated spaces allow JD to highlight key product offerings while delivering a boutique-style presentation for each brand.

Adding to the store’s visual appeal, digital lightboxes are strategically placed throughout the interior to spotlight exclusive drops, brand storytelling, and campaign visuals. The digital infrastructure is central to JD’s experiential retail strategy, enhancing customer engagement and providing a platform to constantly refresh the in-store atmosphere.

Rapid Canadian Expansion Since 2021

JD Sports first entered the Canadian market in late 2021 with the opening of its debut store at CF Fairview Mall in Toronto. The retailer quickly made its intentions clear, launching 10 stores by the end of 2022 in cities including Hamilton, Brampton, Winnipeg, and Toronto.

By June 2025, JD Sports had expanded to 34 stores nationwide. The company now plans to accelerate that growth even further, with a goal of opening 17 additional Canadian locations by the end of 2026. The long-term ambition is to operate between 80 and 100 stores in Canada within five years of its initial entry.

Key to JD’s Canadian success has been its commitment to localization. Each store is designed to reflect the tastes and demographics of its local community.

Positioning JD as a Leader in Sports Fashion

JD Sports has been strategic in positioning itself as a premium, trend-forward brand that balances accessibility with exclusivity. The Robson Street flagship highlights this approach with exclusive “Global Access” products—limited-edition merchandise not available elsewhere in the country.

This positioning aligns with the company’s global brand vision: to inspire the emerging generation of consumers by connecting them to the culture of sport, music, and fashion. JD’s retail strategy is built on four pillars: prioritizing the JD brand, expanding through complementary concepts, evolving beyond physical retail, and creating value for its people, partners, and communities.

A Global Player with Canadian Momentum

As of May 2025, JD Sports operated 4,871 stores worldwide. The brand is a constituent of the FTSE 100 Index and continues to grow its omnichannel operations across North America, Europe, and Asia-Pacific.

With the Canadian flagship in Vancouver now open and a pipeline of new locations on the way, JD Sports is solidifying its commitment to becoming a household name in Canada’s sports-fashion space.

“Our ambition is to be the go-to destination for sports fashion in North America,” said Ochi. “The Robson Street store is just the beginning of what we plan to bring to communities across the country.”

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Canadians Cautiously Embrace AI in Customer Service

By

Craig Patterson

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June 25, 2025

image - 2025-06-24T150426.320 — AI in customer service. Image: Julien Florkin

Canadians are cautiously optimistic about the promise of artificial intelligence, especially in retail and customer service, according to new national data from Salesforce. But while many see AI as a tool to solve long-standing frustrations, concerns about trust, ethics, and transparency continue to hold back widespread adoption.

A new survey conducted by Salesforce in late May finds that over a third of Canadians are willing to engage with an AI agent—particularly if it means shorter hold times and less waiting. In fact, 55% say they “don’t care how they interact with companies—as long as issues are solved quickly.”

“Canadians are clearly frustrated with their current customer service experience,” said Adam Alfano, Executive Vice President of Global SMB and Emerging Products at Salesforce, who gave a keynote at the Salesforce Toronto World Tour. “This is an opportunity for businesses to rebuild consumer trust, not just by introducing AI, but by showing real outcomes and benefits.”

Adam Alfano, Executive Vice President of Global SMB and Emerging Products at Salesforce

Widespread Customer Frustration—and Hope for AI

The Salesforce survey, conducted in both English and French via the Angus Reid Forum, highlights long-standing pain points among Canadian consumers. Nearly 6 in 10 (59%) report that unhelpful or non-existent self-service is a top frustration. Over half complain about being passed between departments, while 45% say they spend too much time simply getting what they need.

It’s no surprise, then, that nearly 40% would be interested in interacting with an AI agent—if it could eliminate those inefficiencies.

“Agentic AI gives consumers what they’ve wanted for a long time: fast, accurate, and low-friction service,” said Alfano. “But adoption hinges on transparency and showing people what’s in it for them.”

A Divide Between Expectations and Understanding

Despite optimism, almost half of Canadians (49%) remain skeptical that agentic AI will actually lead to better customer experiences. This uncertainty reveals a critical gap in how AI is being communicated.

“Many Canadians don’t fully understand what agentic AI is,” said Alfano. “They assume it’s just another chatbot—but it’s far more intelligent and context-aware. Education is essential.”

Agentic AI differs from traditional automation by offering real-time decision-making, personalized responses, and an ability to integrate deeply with customer data. Alfano highlighted examples like SharkNinja and luxury brand Louis Vuitton as global leaders using this technology to create seamless, context-rich engagement across digital and physical touchpoints.

“Whether it’s a website chat, WhatsApp, or voice, agentic AI meets customers where they are and understands who they are,” Alfano explained.

Gen X and Boomers Lead the Way on AI Optimism

Interestingly, older Canadians appear more open to the potential of AI than their younger counterparts. According to the data, 45% of Gen X and Baby Boomers hold less negative views on AI, compared to 52% of Millennials and 58% of Gen Z.

“These are not traditionally tech-native generations,” Alfano noted, “but perhaps their greater exposure to frustrating service experiences makes them more eager for practical solutions.”

Workplace AI: Promise Meets Caution

The report also delves into workplace AI adoption, where perceptions remain mixed. While 37% of Canadians believe agentic AI could boost productivity, 34% say AI use at work feels wrong or unethical. Another 12% worry that their manager would disapprove of using AI tools—even if they’re effective.

Only 14% of respondents said they see clear value in their employer adopting AI to allow them to focus on more meaningful tasks.

“This is where leadership needs to step in,” said Alfano. “It’s not just about deploying AI—it’s about creating a culture that encourages its safe and ethical use.”

Salesforce’s Agentforce 3.0: Powering the Next Phase of AI

During his keynote, Alfano showcased Agentforce 3.0, Salesforce’s latest upgrade to its enterprise-grade AI platform. The update includes a new Agentforce Command Center, which provides real-time visibility into how AI agents are performing and interacting with both data and human teams.

Also unveiled was support for Model Context Protocol (MCP)—a new open standard allowing Salesforce agents to work with external AI services such as PayPal and Box, all within a secure and scalable environment.

“With Agentforce 3.0, we’re seeing AI agent usage rise 233% globally in just six months,” said Alfano. “In Canada, that momentum is just beginning.”

He cited the example of Young Drivers of Canada, where 70% of customer bookings and inquiries are now being handled through AI agents. “Their COO joked she’s become the ‘Chief Agentforce Officer’—that’s how much they’ve leaned into it,” Alfano added with a laugh.

Why Retailers Should Pay Attention

Retail, in particular, stands to gain from AI—but only if businesses act with intention. Alfano described a “race toward hyper-personalization,” where data from customer profiles, product telemetry, and purchase histories can inform smarter, faster decisions.

“In-store associates can now know who a customer is, what they’ve bought, and what they might want next—before they even ask,” he said. “AI enhances that human connection, not replaces it.”

He pointed to luxury retailers as early adopters in aligning AI with loyalty and experience. “The customer expects the same seamlessness across online, mobile, and physical stores. With agentic AI, we can finally make that happen.”

Building Trust Is the Path Forward

The key to unlocking AI in Canadian retail lies in three pillars, according to Salesforce:

Transparency: Businesses must clearly explain what agentic AI is and how it differs from chatbots.
Safety: Companies need to establish ethical use guidelines and offer training to support adoption.
Benefits: Real-world use cases, like reduced wait times or personalized product recommendations, must be clearly communicated to build trust.

As Alfano concluded, “AI is only as good as the data that powers it—and the humans who work alongside it. But when done right, it doesn’t just drive efficiencies. It delights.”

The survey results suggest that Canadians are not opposed to AI—they’re simply waiting to be shown the value. For retailers and employers alike, the message is clear: meet them with clarity, earn their trust, and the future of AI in Canada looks promising.

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IKEA halves restaurant prices to side with customers amid cost-of-living pressures

By

Mario Toneguzzi

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June 25, 2025

IKEA reduces food prices (photo credit IKEA)

Guided by the vision of creating a better everyday life for the many people, Ingka Group, the largest IKEA retailer, said on Wednesday it is stepping up efforts to support customers with low price while ensuring long-term growth.

In many IKEA markets around the world, the price of restaurant meals will be halved Monday through Friday, and children will eat for free.

IKEA Canada clarified that the 50% off discount applies for select main dishes for IKEA family members at IKEA restaurant locations across Canada, starting on July 10 through to the end of August. Offers vary by location and are available while supplies last. Every Wednesday, kids can enjoy a free meal with the purchase of an adult meal.

With hundreds of millions of guests visiting IKEA restaurants every year, the company aims to inspire a better everyday life through food that is healthier, more sustainable, and affordable. As part of ongoing investments in the in-store experience, Ingka Group is introducing this price drop to help people stretch their budgets, nourish their families, and find a little more joy, said the company in a news release.

For example, in France, the price of lunch for a family of four, which includes two hot-meals with meatballs for adults and two meals for kids, will cost EUR 6.96 instead of EUR 19.9. In addition, all restaurant guests will receive a EUR 5 voucher to use in-store, it explained.

“Food has always been very important for IKEA, and we wanted to enable even more people to enjoy our restaurant offer while exploring our home furnishing range,” said Tolga Öncü, Ingka Retail Manager (COO) at IKEA Retail (Ingka Group). “Securing the lowest possible price for our products is always our utmost goal, and this is even more important in today’s times of economic uncertainties and cost-of-living pressures.”

At the same time, IKEA is refreshing its food offer with new dishes inspired by Asian flavours, expanding affordable, healthy options for customers, added the company.

“We always look for ways to bring more variety to our food offer, especially with new plant-based options,” said Lorena Lourido Gomez, Global Food Manager, IKEA Retail (Ingka Group). “We will soon launch our very first falafel, adding this popular food to our restaurants and, later, to our Swedish Food Markets. Good quality, low price, and making a positive difference for the planet – those ingredients remain a guiding star for our food business.”

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Loblaw and Parmigiano Reggiano Break Cheese-Cracking World Record

By

Craig Patterson

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June 25, 2025

image - 2025-06-24T234102.766 — Photo: Parmigiano Reggiano

In a landmark celebration of culinary tradition and community, Parmigiano Reggiano and Loblaw Companies Ltd. have officially set a new GUINNESS WORLD RECORDS title for the most Parmigiano Reggiano wheels cracked simultaneously across multiple locations. The achievement took place on June 14, 2025, at exactly 12:00 PM EST, uniting Canadians coast-to-coast in a moment that combined culture, craftsmanship, and food appreciation.

The record-breaking initiative saw 1,672 wheels of the iconic Italian cheese cracked open across 452 Loblaw banner stores, surpassing the previous record of 1,209 wheels set in 2014. The central “hero” location for the event was Loblaws at Maple Leaf Gardens in downtown Toronto, where crowds of onlookers gathered for a live demonstration of the centuries-old art of cheese cracking.

Celebrating Heritage and Craftsmanship

The event coincided with Italian Heritage Month, making the achievement more than just a corporate milestone—it was a celebration of tradition and shared cultural appreciation.

“This achievement is more than just a number—it’s a celebration of tradition, passion, and the global love for Parmigiano Reggiano,” said Nicola Bertinelli, President of the Consortium of Parmigiano Reggiano. “Seeing thousands of Canadians come together to share in this moment is a powerful reminder of how food connects us. We are absolutely thrilled to set a new world record.”

Shoppers at participating stores experienced firsthand the rich history and craftsmanship behind each wheel of Parmigiano Reggiano. Cheesemongers showcased the traditional cracking method—a precise and time-honoured technique passed down through generations—to open the wheels, each weighing approximately 40 kilograms.

National Activation Across Loblaw Banners

The initiative involved a coordinated effort by Loblaw’s corporate and in-store teams, spanning across multiple banner stores including Real Canadian Superstore®, Fortinos®, Loblaws®, Zehrs®, and Your Independent Grocer®. At each location, customers were invited to taste freshly cracked cheese and learn about the significance of Protected Designation of Origin (PDO) certification, which ensures Parmigiano Reggiano is produced exclusively in specific Italian provinces using traditional methods.

“At Loblaw, we’re always looking for meaningful ways to celebrate food and culture with our customers,” said Joe Difalco, Vice President of Fresh Merchandising at Loblaw Companies Ltd. “Breaking this record alongside Parmigiano Reggiano was not just a milestone but an unforgettable experience that brought communities together across Canada.”

In addition to in-store demonstrations, the event featured celebrity chef David Rocco, photo opportunities, and interactive experiences that highlighted the unique qualities of Parmigiano Reggiano—often referred to as the “King of Cheeses.”

Official Recognition from Guinness World Records

The ambitious record attempt was overseen by GUINNESS WORLD RECORDS adjudicator Michael Empric, who travelled to Canada to validate the results. Following the event, he confirmed that all necessary criteria had been met.

“We are pleased to confirm that Parmigiano Reggiano and Loblaw Companies Ltd. have officially set a new GUINNESS WORLD RECORDS title for the Most parmesan cheese wheels cracked simultaneously (multiple venues),” said Empric. “The scale and coordination involved in this event were truly remarkable.”

The record is not only a promotional win for both Parmigiano Reggiano and Loblaw, but also a testament to consumer enthusiasm for authentic, high-quality food experiences—particularly those with deep cultural roots.

Building on a Legacy Record

This is not the first time Loblaw and Parmigiano Reggiano have collaborated to make history. In 2014, the two partnered to crack open 1,209 cheese wheels in a similar coast-to-coast initiative. That event set a precedent, but the 2025 edition has firmly raised the bar and reaffirmed Canadian consumers’ growing appetite for specialty cheeses.

The updated record of 1,672 wheels cracked represents not only the scale of coordination but also the evolving popularity of PDO-certified Parmigiano Reggiano in Canadian households. From gourmet food lovers to everyday shoppers, the cheese has become a staple for its rich, nutty flavour and centuries-old reputation for quality.

About Parmigiano Reggiano and the Consortium

Founded in 1934, the Consortium of Parmigiano Reggiano represents the interests of producers located within the strict Area of Origin—encompassing the provinces of Parma, Reggio Emilia, Modena, as well as portions of Bologna and Mantua. The cheese is produced using just three ingredients—milk, salt, and rennet—without additives, following techniques that have remained virtually unchanged for over 900 years.

Each wheel of Parmigiano Reggiano undergoes a rigorous quality test at 12 months of age. Only wheels that pass are branded with an oval “selection mark” and considered true Parmigiano Reggiano under European Union PDO standards.

This certification guarantees authenticity and supports producers by protecting the name and methods used in crafting one of the most prized cheeses in the world.

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Canada’s Food Inflation Cools as Tariffs Quietly Paused

By

Sylvain Charlebois

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June 25, 2025

Grocery store in Alberta. Photo: Craig Patterson

For the first time in 2025, food inflation in Canada has shown meaningful signs of easing. According to the latest Consumer Price Index (CPI) data released by Statistics Canada, the year-over-year food inflation rate dropped from 3.8% in April to 3.4% in May. That shift may seem modest, but in the high-stakes world of food affordability, it’s a significant directional change — and long overdue.

Just weeks ago, Canada had the second-highest food inflation rate among G7 nations. Now we’ve moved down to fourth place. It’s a welcome reprieve for Canadian consumers heading into the costly summer months, when fresh food demand typically peaks.

Regional Divergences: A Country Divided by Grocery Bills

Food inflation is not uniform across the country. New Brunswick currently leads the pack with the highest food inflation rate at 3.7%, while Manitoba boasts the lowest at 3.0%. Quebec sits at 3.1%, and Ontario at 3.6%. These regional differences reflect varying transportation costs, supply chain efficiencies, and even policy priorities.

At the category level, meat products and fruit continue to drive inflation higher. In the case of fruit, it’s largely a byproduct of ongoing substitution behaviours triggered by the informal boycott of American goods — a consumer protest that remains visible, though its intensity has waned compared to earlier in the year.

“Food prices are finally easing — not because of bold government action, but because Ottawa quietly got out of the way.”

A Growing Gap Between Food Prices and Everything Else

The real challenge, however, is not just the absolute level of food inflation — it’s the divergence from general inflation. Across the G7, food inflation is still outpacing overall inflation rates. Here’s the current gap between food inflation and general CPI for each country:

Japan: +2.8%
Italy: +2.0%
Canada: +1.7%
Germany: +1.2%
United Kingdom: +1.0%
France: +0.6%
United States: +0.5%

In Canada, this persistent gap means that even as overall inflation cools, Canadians are still feeling the pinch at the grocery store. It’s why food inflation hits differently — and politically — than other economic indicators.

Silent Shift: The Quiet Pause on Counter-Tariffs

One notable policy action may be contributing to the recent softening of food prices: the federal government’s quiet decision to pause many counter-tariffs on American imports, announced discreetly on May 7 during the peak of the so-called “Elbows Up” election campaign.

Prime Minister Carney has not publicly acknowledged the move, but make no mistake — this decision is having real economic impact. The pause affects products such as citrus fruits, coffee, tea, and alcohol — items disproportionately affected by the previous retaliatory tariff regime. These tariffs had distorted import flows, raised input costs for Canadian businesses, and, ultimately, inflated prices for consumers.

The fact that this pause has gone unmentioned by federal leadership raises questions about transparency. And while this is only a suspension — not a permanent repeal — the effect on pricing has been relatively quick. Both industry players and consumers will be hoping the pause becomes permanent.

GST Holiday: A Painful and Misguided Policy

While the counter-tariff pause has been helpful, other federal interventions have done more harm than good. Chief among them is the so-called “GST Holiday,” a policy that exempted groceries from the federal sales tax. Though designed to reduce consumer costs, it triggered logistical chaos, compliance headaches, and price distortions.

Since January, Canada’s overall food inflation surged from -0.6% to 3.8%. While inflation was bound to rise regardless, the GST holiday inadvertently contributed to pricing volatility across food categories. It was a costly lesson in how well-meaning policies can backfire in the real world of supply chains and consumer behaviour.

Lessons Learned: Government’s Role in Keeping Food Prices Stable

The lesson from the past year is clear: when it comes to food inflation, government intervention should be focused, measured, and limited. Supporting low-income households is one thing. Interfering with pricing mechanisms and trade flows is quite another.

However, that doesn’t mean government has no role to play. Creating the right conditions for market fairness and competition is essential — and that’s where the much-discussed Grocery Code of Conduct comes in.

Slated to be fully implemented by January 1, the code is designed to rein in supply chain bullying by dominant grocers. Listing fees, marketing levies, and chargebacks have long been used to squeeze suppliers, particularly small businesses. These costs inevitably make their way onto consumers’ receipts.

In theory, the Code will bring more discipline and transparency to these practices, leveling the playing field and increasing competition. That should — eventually — translate into fairer prices at the grocery store. But theory and practice don’t always align. Whether the code will have teeth remains to be seen.

A New Phase of Food Policy?

We are, perhaps, entering a new phase in food policy discourse — one in which the emphasis is less on micromanaging prices and more on enabling resilience, competitiveness, and fairness across the supply chain. That means letting markets work, while keeping a close eye on structural distortions like tariffs, regulatory overreach, and concentration of power among a few dominant retailers.

The good news is that food inflation is cooling. But it’s not happening because government mastered the problem — it’s because, in some cases, it finally stepped aside.

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Canadian Retail News From Around The Web For June 25, 2025

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Retail Insider

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June 24, 2025

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 48 hours.

Lululemon theft ring revealed: Organized crew suspected behind wave of shoplifted gear (CBC)

No Name brand in spotlight after concept of generic store goes viral | Food & Drink (Daily Hive)

Meat producers warn internal trade bill could cause blowback with trade partners – Canada News (Castanet)

Rural hardware store sees change over 75 years (The Record)

TTC Board Approves Motion to Explore Physical Merchandise Store (6ixRetail)

New Beer Store locations set to be shuttered, union fears more closures will follow (Global)

New downtown store celebrates Victoria’s balance of city life, outdoors (Goldstream News)

From cheques to biometrics, how we pay continues to evolve

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Retail Insider

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June 24, 2025

The way we pay has undergone a dramatic transformation. We’ve gone from waiting for cheques to clear to the now-familiar tap of your card, phone or watch to instantly pay for your purchases. This evolution has been driven by a relentless pursuit of convenience, speed and security. From chip technology to AI powered cybersecurity, Mastercard has always been at the forefront of this evolution, pioneering innovations that have reshaped commerce and empowered consumers and businesses worldwide.

Of course, this shift didn’t happen overnight. The cards in our wallet went from imprint machines to magnetic stripes. This step revolutionized transactions, making payments faster not just for consumers, but it dramatically reduced the amount of time businesses had to wait for payments to go through.

Security concerns led to the development of chip technology, which added an extra layer of protection against fraud. Then came tap, a truly contactless payment experience that has essentially eliminated the need to physically swipe or insert your card, making transactions even faster and more convenient.

“Tap now makes up roughly 80 per cent of all in-person transactions in Canada,” said Craig Reiff, Senior Vice President, Core Payments, Mastercard. “This widespread adoption is a testament to how easy the technology is to use, and the growing demand for a seamless experience.”

These innovations have been developed through a proactive focus on the growing demand from shoppers for a seamless payment experience, both online and in-store. In fact, Mastercard research* shows that 7 in 10 Canadians consider convenience the most attractive feature of digital payments. In today’s environment, businesses must think beyond the in-store experience and develop robust e-commerce strategies that provide the safe, easy and fast experiences that consumers expect.

As the digital economy grows, the payments landscape will continue to evolve. Mastercard is actively applying new technologies to make payments more secure, inclusive and accessible. Tokenization, for example, has become a cornerstone of secure online and in-app payments. Now, the company moves into the next phase, agentic payments, which integrates AI to revolutionize commerce.

Mastercard is also pushing the boundaries on how it can apply existing technology in new ways, such as embedding biometric authentication like facial recognition into the online payments space. This technology is already available and widely used in other applications and Mastercard is working to accelerate its adoption to improve the consumer experience as they pay for daily items. Instead of relying on one-time passcodes, consumers can simply scan their face for a much faster, and still secure, checkout.

Looking ahead, payment experiences will become even more seamless and integrated. Imagine a world where payments are embedded into everyday devices and interactions, from your car to your smart home. Or a world where biometric authentication becomes the standard, making payments not only more secure but also more personalized and convenient.

“Our focus on the specific needs of consumers drives us to develop innovative solutions that empower individuals and businesses to thrive in the digital economy,” Reiff added. “As the world’s largest payments network, we use our global expertise to accelerate the pace of progress and define the future of payments.”

Interested in reading more about the future of payments? Click here to read about the trends signaling how payments could evolve by 2030.

*The Mastercard survey was fielded in the spring of 2025. Response data are derived from a representative sample of the Canadian population (N = 2,000) that includes an oversample of small business owners (N= 200). The margin of error for commensurate nationally representative survey responses is ± 2.2% at the 95% confidence interval.*

*Partner Content. To work with Retail Insider, contact Craig Patterson at: craig@retail-insider-com

From Ceasefire to Crossroads: How the Iran-Israel conflict may reshape global supply chains

By

Mario Toneguzzi

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June 24, 2025

The current conflict in the Middle East, if prolonged, could cause retail price inflation, supply chain disruptions and shortages.

“In the wake of US-led strikes on suspected Iranian nuclear enrichment facilities and a now-brokered ceasefire between Iran and Israel, global supply chains are once again in the spotlight. The dust may have settled for now, but the implications for logistics, energy security, and global trade resilience are far from resolved. For supply chain and retail professionals, the question isn’t whether this recent disruption matters. It’s how much and how fast it could disrupt what you rely on,” said international supply chain expert Gary Newbury.

“Iran isn’t just a flashpoint nation. It’s a major energy and trade corridor linchpin. With the Strait of Hormuz carrying over 20% of the world’s oil supply, any instability in the region threatens more than just regional players. Retailers and manufacturers worldwide, especially those dependent on energy-intensive transport, petrochemical inputs, or high-volume shipping lanes, all need to watch this space carefully.

Gary Newbury

“Recent strikes have cast fresh doubt on Iran’s nuclear posture and its future stance on international agreements. Meanwhile, political leadership in the West has shifted. The current US administration has already signalled a harder line, with a “secure domestic base first” posture driving investment inward and reviewing trade dependencies. In this context, Iran’s next moves could swing supply chain risk dramatically in either direction.”

Two Diverging Paths

Newbury, Rapid Performance Recovery Specialist – B2C supply chains, explores the two most plausible trajectories:

1. Continued Compliance and Contained Risk

Under this path, Iran steps back from further nuclear enrichment, allows IAEA inspectors greater access, and preserves its existing trading relationships.

Implications:

Oil flows remain stable mitigating upward pressure on freight and energy costs.
Petrochemical exports (plastics, fertilizers, base oils) continue through existing channels.
Confidence returns to shipping lanes through the Gulf of Oman and Strait of Hormuz.
Logistics planners regain predictability across Asia-Europe and Gulf-to-India routes.

“This would be a welcome relief for retail operations already managing cost inflation and longer lead times across ocean freight and bulk materials,” said Newbury

2. Renewed Isolation and Eastern Realignment

In a more likely scenario, given post-strike tensions and the current US foreign policy stance, Iran could retreat from Western engagement and double down on partnerships with Russia, China, and others outside the G7 orbit.

Implications:

Partial or full disruption of oil exports westward, pressuring global energy prices.
Greater military presence or naval manoeuvres in the Strait of Hormuz, risking commercial vessel security.
Acceleration of Iran’s integration into eastward trade corridors (e.g., China’s Belt & Road, Russia’s INSTC).
US-led sanctions or secondary tariffs could push firms to unwind exposure.

“Retailers, especially those importing goods from Asia or relying on long-haul container movements, may face higher landed costs, tighter freight capacity, and renewed risk to reliability,” added Newbury.

Key Risks for Retail & Supply Chain Leaders

1. Fuel Cost Volatility Diesel, marine fuel, and aviation fuel are all sensitive to Middle East tensions. A $15–30/barrel surge in crude would impact truckload rates, last-mile delivery pricing, and even DC operating costs. This can affect retail margins adversely, quickly.

2. Routing Disruptions If shipping firms re-route vessels to avoid the Gulf, we could see congestion in the Suez and longer rotations on Asia-Europe trade lanes. Increased insurance premiums for risky waters are already being whispered about.

3. Inventory Planning & Supplier Strategy Instability means longer lead times, port delays, and uncertainty on component availability. Multi-sourcing, nearshoring, and risk-adjusted safety stocks are back on the table.

4. Regionalism Over Globalism The broader policy trend is clear: more governments want control over what gets made where. The Iran episode underscores the vulnerability of far-flung, single-point-of-failure supply chains.

Strategic Questions to Resolve Now

Are our key SKUs vulnerable to cost spikes in energy, petrochemicals, or transport?

Can our supply base flex if lead times extend by 2-4 weeks?

Are we overexposed to Gulf-based carriers or manufacturers that rely on open sea lanes in this region?

Have we modelled cost impacts at $120+/barrel crude?

Do we have regional alternatives, or at least trigger points to explore them?

“The Iran-Israel conflict may have hit pause, but the gameboard continues to shift into more uncertainty for supply chains. Retailers and logistics professionals don’t need to panic. They do need to scenario plan. Whether oil soars or shipping slows, those who anticipate disruption and act early will win. As always, it’s not just the headline that matters. It’s your commitment and reaction time that can really make a competitive difference,” concluded Newbury.

“The big question is: Are you already behind and drowning, competitively, or are you already prepared and ready to ride the surf?”

Bruce Winder, Retail Analyst & Author, said the current conflict in the Middle East, if prolonged, could cause retail price inflation, supply disruptions and shortages.

“If Iran blocks the Strait of Hormuz, oil supply could be constrained which would force up transportation costs for retailers which in turn would cause retail price inflation,” he said.

“Also, products sourced from that region could face delays or shortages due to rerouting of vessels. Transportation insurance premiums could rise as well, negatively impacting cost.

“Finally, consumer sentiment and thus spending could be reduced due to fear of geopolitical events and gas prices at pumps.”

George Minakakis, Founder and CEO of the Inception Retail Group, said supply chains are the most vulnerable strategic assets industries rely on everyday.

“Disruptions no matter what their source send shock waves to investors and business leaders. The situation in the Middle East is no exception if oil isn’t allowed to flow which is about 20 million barrels a day, will significantly push the cost of everything we purchase. At least temporarily. Even though, it’s oil the cost of shipping globally would increase, it’s not like we don’t already have enough issues with tariffs,” he said.

“We could see escalation in shipping container pricing, and if a conflict were to spread shipping could become dangerous, the Red Sea passage is still a volatile area and some 60% of ships avoid it and take the longer route around which increases shipping costs and over prices of products. As much as we think we can near shore or re-shore back to our own countries that’s not possible with everything there would be trade offs and all would cost a lot more.

“From the pumps, to shelves to the basket prices are impacted by everything from droughts to conflicts and while in some cases like tariffs can take months to filter through, conflicts that disrupt shipping lanes and energy prices have major ripple effects.

“The best situation is cease fires, followed by negotiated peace, everything else just leaves supply chains vulnerable.”

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