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Knix Founder Joanna Griffiths Steps Down After 14 Years as Nicole Tapscott Takes Leadership

By
Craig Patterson
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Knix Founder Joanna Griffiths at the Bloor Street Holt Renfrew Knix pop-up, March 2025. Image: Knix/Holt Renfrew

Knix is entering a pivotal moment in its history as founder Joanna Griffiths steps away from the company she launched in Toronto in 2013, handing leadership to veteran consumer brand executive Nicole Tapscott during a period of continued retail expansion in Canada and the United States.

The Globe and Mail first reported Griffiths’ departure. Griffiths later confirmed the news in a post on social media, saying the time felt right to step away after 14 years building Knix and four years leading the business following its acquisition by Swedish health and hygiene company Essity. She said she is looking forward to spending more time with her family while watching the company continue to grow.

Tapscott, Knix’s Chief Commercial Officer, will become President. The appointment suggests a carefully planned succession rather than a shift in strategy. Since joining Knix, Tapscott has taken on an increasingly visible role in the company’s commercial growth, helping lead retail expansion, wholesale partnerships and international development as the brand continues to evolve.

The leadership change closes an important chapter for one of Canada’s most recognizable consumer brands. Griffiths built Knix from a startup into an international business, while Tapscott now assumes responsibility for guiding a company that has grown into a sophisticated omnichannel retailer with global ambitions.

Knix on Queen Street West
Knix on Queen Street West in Toronto – Photo by Dustin Fuhs

Building a Modern Canadian Retail Brand

When Griffiths founded Knix, she set out to address a gap in the women’s intimates market through products designed around comfort, function and innovation. The company became widely recognized for helping pioneer leakproof underwear while building a brand that encouraged more open conversations around women’s health and everyday needs.

Knix’s growth was driven by more than product innovation. Griffiths cultivated a highly engaged customer community through education, authentic storytelling and direct engagement with consumers, helping establish Knix as one of Canada’s most successful digitally native retail brands.

As the business matured, Knix successfully expanded beyond ecommerce into physical retail, demonstrating that online-first brands could build productive store networks without abandoning their digital strengths. Today, the company operates stores in major Canadian markets and continues to expand its brick-and-mortar presence while maintaining a strong ecommerce business.

That success attracted international attention. In 2022, Essity acquired an 80 per cent stake in Knix in a transaction valuing the company at approximately US$400 million. Griffiths remained as President following the acquisition, providing continuity as the business entered its next stage of growth under global ownership.

Her departure effectively completes that transition, marking the first time the company will operate without its founder leading the organization.

Nicole Tapscott
Nicole Tapscott

An Experienced Successor

Tapscott brings an unusually strong background for the role. Before joining Knix, she helped launch and grow Casper’s Canadian business before moving to Toronto-based jewellery retailer Mejuri, where she served as Chief Marketing Officer during a period of rapid international expansion. Earlier in her career, she worked with the World Economic Forum in Geneva on global engagement initiatives, building experience across digital strategy, brand development and organizational growth.

She joined Knix as Chief Marketing Officer before expanding into the role of Chief Commercial Officer, reflecting her growing responsibilities across marketing, ecommerce, retail operations and commercial strategy.

Retail Insider readers have seen that evolution firsthand. Earlier this year, Tapscott discussed Knix’s partnership with Holt Renfrew, the company’s growing store network and its broader retail strategy as it continued expanding beyond its direct-to-consumer roots.

Her work has also been recognized across the industry. The Association of Canadian Advertisers awarded Tapscott its 2025 Gold Medal for leadership in Canadian marketing, and she has since been recognized by Strategy magazine for her contributions to brand building.

Rather than recruiting an executive from outside the organization, Knix has elevated a leader who has already helped shape many of the initiatives now driving the company’s growth.

The Business She Inherits

Tapscott assumes leadership at a time when Knix continues to expand across multiple channels.

The company has announced plans to grow its Canadian store network to more than 30 locations, including its first Atlantic Canadian store, while continuing to invest in premium shopping destinations. It has also broadened its wholesale strategy through partnerships including Holt Renfrew in Canada while expanding its presence in the United States through company-operated stores and carefully selected retail partners.

The company’s approach illustrates how its strategy has evolved over time. During Knix’s earlier years, Griffiths emphasized direct-to-consumer distribution, allowing the brand to build close relationships with customers while maintaining control over the shopping experience.

Today, Knix continues to prioritize its own stores and ecommerce business, but it is selectively expanding wholesale partnerships from a position of strength. Years of brand building, customer loyalty and operational growth have given the company greater flexibility in deciding where and how consumers encounter the brand.

That measured approach reflects the evolution of a business that is no longer defined by a single sales channel but by an integrated retail ecosystem spanning ecommerce, company-operated stores and wholesale distribution.

Knix at CF Rideau Centre in Ottawa. Photo supplied

Looking Ahead

Leadership transitions are defining moments for founder-led businesses, particularly when the founder has become closely associated with the brand itself.

For Knix, however, the transition appears less about changing direction than ensuring continuity as the company enters a new stage of maturity. Tapscott inherits a business with a loyal customer base, an expanding store network and the backing of a global consumer products company. Her challenge will be to preserve the brand’s distinctive voice while continuing to scale its retail footprint and deepen its presence in international markets.

Griffiths leaves behind one of Canada’s most notable retail success stories of the past decade, having transformed a Toronto startup into a globally recognized brand that reshaped the intimates category. The next phase of Knix’s evolution will be led by an executive who has already helped guide many of the company’s recent strategic decisions, offering continuity as the business continues its expansion.

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MTY Food Group to close 68 of its corporate locations in the coming months

By
Mario Toneguzzi
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MART PRODUCTION photo
MART PRODUCTION photo

MTY Food Group Inc., one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported Friday its financial results for its 13 week period of 2026 ended May 31, 2026, indicating a decrease in revenue and same store sales as it announced it will be closing 68 of its corporate locations in the coming months.

Following a detailed review of its portfolio, the company said it has made the decision to close 68 of its corporate locations in the coming months, which had combined losses of over $10 million in the last 12 months.

The early termination of the related leases remains to be negotiated with the landlords and can fluctuate depending on the term left of each specific lease and the terms of those leases. The estimated total cost is expected to range between $10 million and $12 million. This will affect free cash flows in the short term, but will help teams focus on healthier, more profitable locations in the future. Estimated completion of all the closures and lease buyout negotiations will take between six and nine months, it explained.

“MTY continues to navigate a dynamic operating environment. The macro-economic conditions continue to create short term headwinds and the Company continues actively implementing a range of strategic initiatives to position the business for growth once the environment improves. These include, and are not limited to, driving menu innovation, leveraging data and AI to improve our understanding of customers and improve communications with existing, lapsed and potential guests, maintaining product quality and consistency, enhancing both online and in-store customer experiences, and reinforcing a strong value proposition across its banners,” it said.

“The pipeline of future locations remains strong as MTY continues to see strong demand for its brands. It anticipates an improvement in the pace of openings in the coming quarters and remains confident in its ability to achieve net location growth in the future.

“Management notes that certain macroeconomic and policy-related uncertainties could affect performance. To date MTY has only seen modest direct impacts from tariffs, and although the exact impact is difficult to measure, the increases in oil and gas prices has undoubtedly affected consumer confidence and spending in restaurants.

“In both Canada and the US, the Company primarily sources products domestically, which helps limit the potential exposure to tariffs. Oil and gas prices may have longer impacts should the war in the Middle East continue primarily impacting supply chain costs and margins for franchisees, corporate stores and the retail segment. Management remains confident in its ability to navigate potential impacts through its strong supply chain and procurement capabilities, strategic menu adjustments, and, when necessary, pricing actions.

“Management expects stability in normalized adjusted EBITDA margins across each of its segments, though the Company may experience some fluctuations in corporate store margins. Overall, management remains confident about its ability to drive margin improvement through positive unit growth, enhanced efficiencies, and an ongoing reduction in the number of less profitable corporate stores.”

Eric Lefebvre
Eric Lefebvre

“Our second quarter results reflected continued pressure on consumer spending and a challenging operating environment,” said Eric Lefebvre, Chief Executive Officer of MTY. “Despite these headwinds, our asset-light and diversified model continued to generate strong free cash flow from operations, and we remained focused on executing against our development pipeline, with positive store openings progressing in line with our plans and a strong slate of openings expected through the balance of the year.”

“We are also taking decisive action to improve the quality and profitability of our corporate store portfolio. Following a detailed store-by-store review, we have made the decision to close 68 underperforming corporate-owned locations over the next nine months. This is a decisive step to address underperforming assets and improve the overall quality of our corporate store portfolio. While this action will reduce our store count in the near term, we believe it will strengthen the business over the long term by reducing losses and allowing us to focus resources on our strongest opportunities. We remain committed to disciplined execution, strong cash generation and creating long-term value for shareholders.”

At the end of the 13 week period, MTY’s network had 7,040 locations in operation, of which 6,808 were franchised or under operator agreements and 232 were corporate-owned. The geographical split among MTY’s locations remained stable year-over-year at 57% in the US, 35% in Canada and 8% International.

During the 13 week period, MTY’s network opened 84 locations (2025 period – 76 locations) and closed 78 others (2025 period – 77 locations), resulting in net positive store growth of 6 locations (2025 period – net decrease of 1 location).

System sales were $1.4 billion in the 13 week period, a decrease of 3.5% compared to the same period in 2025. Excluding the impact of foreign exchange, which accounted for 49% of the decrease, organic system sales decreased 1.7%, with the US in line with the overall figure and Canada down 2.7%, it said.

Same-store sales decreased 2.1% year-over-year in the 13 week period. By region, Canada and the US were relatively similar with decreases of 1.8% and 2.2%, respectively while International experienced a 5.2% decrease.

Digital sales remained resilient in the 13 week period of 2026 at $284.2 million, including the impact of foreign exchange rates, representing 21% of total sales. As a % of total system sales, digital sales remained stable representing 20.7% of system sales compared to 20.8% in prior year.

MART PRODUCTION photo
MART PRODUCTION photo

Company revenue was $279.9 million in the second quarter, a decrease of 8.2% compared to the same period in 2025, primarily attributable to lower revenue from corporate stores, which was tightly correlated to a decrease in the number of corporate-owned locations, as well as lower revenue from turnkey projects and the impacts of foreign exchange, said MTY.

Net income attributable to owners totaled $15.4 million, or $0.67 per share, in the second quarter compared to $57.3 million, or $2.49 per share, for the same period in 2025. The change was primarily due to lower adjusted EBITDA and a stronger Canadian dollar relative to the US dollar which resulted in a loss of $7.6 million in the 13 week period compared to a gain of $35.0 million in the 2025 period. The 2026 period was also impacted by a $7.5 million impairment loss on right-of-use assets, resulting from managements decision to close 68 corporate locations compared to an impairment of $0.2 million in prior year.

Normalized adjusted EBITDA, which excludes acquisition-related expenses and SAP project implementation costs, was $60.2 million, a decrease of $9.8 million compared to 2025. The change was due to reduced profitability from corporate operations mostly in the U.S. and International segment together with lower contributions from franchising operations. These factors reflected continued pressure from commodity and other operating costs, as well as softer consumer spending in certain markets, added the company.

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Montreal-based Richelieu Hardware sees 3.9% sales growth in Q2

By
Mario Toneguzzi
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Photo- Richelieu
Photo- Richelieu

Montreal-based Richelieu Hardware has reported its financial results for the second quarter ended May 31, with overall sales of $532.1 million, up 3.9% from a year ago.

“Our principal market segments continued to perform well during the second quarter, generating sales growth of 5.5% in Canada and 4.4% (US$) in the United States. Total sales increased by 3.9% to reach $532.1 million; on a constant-currency basis with 2025, this increase would have been 5.0%,” explained Richard Lord, President and Chief Executive Officer.

“In the manufacturers market, where sales totalled $473.7 million, the 3.8% increase was driven equally by internal growth and acquisitions. Sales to hardware retailers and renovation superstores market increased by 4.2% to $58.4 million. 

“We remained focused on our expansion strategy to seize new acquisition opportunities. On May 1, 2026, we acquired Fini U.V. International Inc. (Finium) in Quebec, followed by the acquisitions of Distributions Air-Cube Inc. (Solutions Acoustiques) in the Greater Montreal Area on June 26, 2026 and Winnec Inc. (Winnec) in the Greater Toronto Area on July 8, 2026. These three recent acquisitions represent $27 million in additional annual sales, while bringing valuable market expertise, new customers and future synergies through specialized products that complement our diversified offering. 

“At Richelieu, we continue to differentiate ourselves by offering design and space planning professional products that reflect the latest market trends. The addition of Finium and Solutions Acoustiques strengthens our leadership in decorative and acoustic solutions—two fast-growing market segments—while further expanding our presence among architects and designers across North America. This strategy builds on the recognition we received earlier this year with our Best of KBIS award in the Decorative Hardware category and reflects our commitment to remaining a leader in innovation and product differentiation.

Lord said the current economic environment is also creating attractive acquisition opportunities in its target markets. 

“We continue to evaluate several opportunities and remain well positioned to pursue those that meet our strategic criteria and contribute to our long-term growth,” added Lord. 

Following the acquisition of three McKillican American distribution centres in Oregon and Washington State during the first quarter, Richelieu acquired Finium on May 1, a distributor and manufacturer based in Frampton, Quebec, specializing in premium decorative and acoustic wall covering panels for residential and commercial applications. On June 26, it completed the acquisition of Solutions Acoustiques, which operates in the Greater Montreal Area as a specialized distributor of standard and premium acoustic products recognized for their performance and architectural design. This acquisition was followed by the acquisition of Winnec on July 8, a specialized hardware distributor operating three distribution centres in the Greater Toronto Area. 

Over the coming periods, Richelieu said it will integrate these new operations while continuing to execute its strategy of innovation and expansion across the North American market.

HIGHLIGHTS OF THE SECOND QUARTER ENDED MAY 31, 2026 

  • Sales of $532.1 million, up 3.9%, including $291.1 million in Canada and US$175.5 million in the United States, up 5.5% and 4.4% (US$), respectively; 
  • EBITDA of $56.1 million – EBITDA margin of 10.6%;
  • Net earnings attributable to shareholders of $23.2 million, or $0.42 per diluted share;
  • Adjusted cash flows from operating activities of $47.9 million, or $0.87 per diluted share;
  • Expansion: 1 acquisition (QC) on May 1, 2026, and 2 new acquisitions completed on June 26 and July 8, 2026 (QC and ON), adding $27 million in annual sales. 

FIRST-HALF

  •  Sales of $995.6 million, up 4.4%, including $540.9 million in Canada and US$331.1 million in the United States, up 4.5 % and 7.5 % (US$) respectively;
  • EBITDA of $99.4 million – EBITDA margin of 10.0%;
  • Net earnings attributable to shareholders of $37.6 million, or $0.68 per diluted share;
  • Adjusted cash flows from operating activities of $85.8 million, or $1.56 per diluted share;
  • Strong financial position as at May 31, 2026, with working capital of $629.5 million (ratio of 3.0:1)
  • Quarterly dividend of $0.1566 per share payable on August 7, 2026, to shareholders registered as of July 23, 2026. 

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Costco Canada Sales Growth Moderates as Warehouse Expansion Continues

By
Lee Rivett
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Image: Costco Canada

Costco’s Canadian sales continued to grow in June, although at a more moderate pace following several months of unusually strong gains for the warehouse retailer.

Comparable sales in Canada increased 3.7 per cent during the five-week period ending July 5, 2026. When the effects of gasoline prices and foreign exchange are removed, Canadian comparable sales rose 4.9 per cent, indicating that underlying demand remained healthy despite a noticeable deceleration from earlier in the fiscal year.

The latest results arrive as Costco undertakes a significant expansion of its Canadian warehouse network. Retail Insider recently reported on a series of new locations planned or under development across the country, including warehouses serving rapidly growing suburban communities and markets where existing stores are experiencing capacity pressures.

Together, the sales and real estate activity offer a broader picture of Costco’s Canadian strategy. Growth may be settling into a more sustainable range after an exceptionally strong period, but the company continues to generate enough momentum to support substantial long-term investment in the market.

Canadian Growth Returns to a More Moderate Pace

Costco’s June performance was considerably softer than the double-digit reported comparable sales increases recorded in Canada during several earlier periods.

Canadian comparable sales rose 10.7 per cent during Costco’s fiscal third quarter, or 6.2 per cent after adjusting for gasoline prices and foreign exchange. April comparable sales increased 11.5 per cent as reported and 7.6 per cent on an adjusted basis.

June’s 3.7 per cent reported increase therefore represents a clear moderation. However, the monthly result does not necessarily point to a significant deterioration in Costco’s Canadian business.

For the first 44 weeks of fiscal 2026, Canadian comparable sales remained 8.5 per cent above the previous year. Adjusted comparable sales were up 7.2 per cent over the same period, providing a more representative view of Costco’s performance than a single five-week reporting window.

The figures suggest Costco continues to attract additional spending from Canadian members, even as the extraordinary growth recorded earlier in the year begins to normalize.

Foreign exchange also weighed heavily on the reported result. Costco said currency movements reduced Canadian comparable sales by approximately three percentage points in June. Higher gasoline prices offset part of that pressure, which helps explain why the reported and adjusted figures were separated by 1.2 percentage points rather than the full currency impact.

The adjusted result of 4.9 per cent is therefore the more useful indication of activity within Costco’s Canadian warehouses.

Expansion Plans Signal Confidence in Canada

Costco currently operates 115 warehouses in Canada and has been advancing one of its most active development pipelines in years.

Retail Insider recently identified numerous traditional warehouse projects that are planned, under construction or preparing to open across several provinces. The activity includes stores in expanding metropolitan areas, secondary markets and communities where Costco appears to see room for additional capacity.

The development strategy is notable because new Costco warehouses require large sites, substantial capital investment and a sufficiently broad trade area to support the company’s high-volume operating model. The retailer must also be confident that a new location can attract enough members and sales without excessively weakening nearby warehouses.

Costco said cannibalization reduced company-wide comparable sales by approximately half a percentage point in June, illustrating one of the considerations involved as the chain adds locations. The company did not provide a separate cannibalization figure for Canada.

In some Canadian markets, a new warehouse can relieve pressure on an existing high-volume store while creating a more convenient option for members who previously travelled considerable distances. Costco can therefore expand its reach while improving the shopping experience within established markets.

The sustained Canadian sales gains recorded during fiscal 2026 provide a supportive backdrop for that investment. Even after June’s moderation, Costco is expanding from a position of strength.

Value Proposition Remains Central to Costco’s Performance

Costco’s resilience reflects a retail model that is particularly well suited to an environment in which households remain concerned about affordability.

The company’s membership structure creates recurring fee revenue while encouraging shoppers to consolidate purchases and visit regularly. Its limited product assortment allows Costco to buy large quantities from suppliers, maintain rapid inventory turnover and concentrate sales within a relatively small number of items compared with a conventional supermarket or mass merchant.

This operating model supports Costco’s reputation for value while helping the retailer maintain a distinctive mix of groceries, general merchandise and seasonal products.

Kirkland Signature is also an important competitive advantage. Costco’s private-label assortment spans food, household products, apparel, health products and other categories, giving the retailer greater control over product specifications and pricing.

For consumers, Kirkland Signature can provide an alternative to higher-priced national brands while carrying Costco’s implicit endorsement of the product. For the retailer, it strengthens differentiation because many of the items cannot be purchased from a competing supermarket, warehouse club or mass merchant.

That combination of value, quality and exclusivity can be especially effective when consumers are scrutinizing household expenses but remain reluctant to compromise on product quality.

Costco also attracts a broader customer base than retailers positioned strictly around discount pricing. Its warehouses serve value-conscious families, small businesses and relatively affluent households, allowing the company to participate in essential spending while also generating sales from discretionary categories.

Food and Essential Categories Support Traffic

Costco did not disclose Canadian sales by merchandise category in its June update, meaning company-wide category results should not be treated as a precise description of Canadian purchasing patterns.

Globally, however, food and sundries posted low- to mid-single-digit comparable sales growth, with food, candy and frozen products among the stronger departments. Fresh food sales increased in the mid-single digits, led by bakery and meat.

Non-food comparable sales were positive in the mid- to high-single-digit range, with jewelry, home furnishings and major appliances among the better-performing areas.

Ancillary businesses recorded growth in the high-20-per-cent range, supported by gasoline, pharmacy and hearing aids. Gasoline sales were influenced heavily by higher prices, with the average worldwide selling price per gallon up 22.4 per cent from the previous year.

Digitally enabled comparable sales rose 20.9 per cent globally, or 21.5 per cent after adjusting for currency. Although Costco remains overwhelmingly centred on physical warehouses, the digital result shows that online channels are becoming a larger complement to the in-store business.

Total company net sales reached US$29.24 billion for the five-week June period, an increase of 10.6 per cent from US$26.44 billion a year earlier.

Costco Adds Pressure to Canada’s Grocery Market

Costco’s continued growth has implications for Canada’s major grocery and mass-market retailers.

The company competes for a substantial share of household spending across food, pharmacy, household necessities, apparel, electronics, furniture and other categories. A member visiting Costco for groceries may also purchase products that would otherwise have been bought from a supermarket, drugstore, department store, home furnishings retailer or general merchandise chain.

Its expansion therefore adds capacity to several retail categories at once.

Costco’s scale also allows the company to sharpen consumers’ expectations around unit pricing and private-label quality. While package sizes and upfront basket costs may be higher, members frequently assess value based on the cost per unit and the perceived quality of the merchandise.

That dynamic can place pressure on conventional retailers whose customers increasingly compare prices across channels and divide spending among supermarkets, discount stores, warehouse clubs and online platforms.

Canada’s concentrated grocery market makes Costco’s position particularly significant. Although it operates fewer locations than the country’s largest supermarket groups, each warehouse can draw from an extensive geographic area and generate substantial sales volumes.

The retailer’s growing store network will make Costco more accessible to additional households while increasing competition for grocery spending in the communities it enters.

A Stronger Measure Is the Longer-Term Trend

June’s results show that Costco Canada is no longer growing at the extraordinary reported rates seen earlier in fiscal 2026. That moderation is worth noting, particularly if it continues through subsequent reporting periods.

It would be premature, however, to view one month of slower growth as evidence of a meaningful weakening in the business.

Adjusted Canadian comparable sales still increased 4.9 per cent in June, while the first 44 weeks of the fiscal year produced adjusted growth of 7.2 per cent. Those are substantial gains for a mature retailer operating an established network of more than 100 Canadian warehouses.

The company’s expansion plans provide another indication of its long-term outlook. Costco is committing capital to additional locations at a time when many retailers remain selective about physical growth and consumers continue to manage elevated household costs.

June may mark a return to more typical growth following an exceptional start to the year. Costco’s broader Canadian trajectory, however, remains firmly positive as the retailer builds additional capacity and seeks a larger share of consumer spending across the country.

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Daily Synopsis: Jul 9, 2026

By
Retail Insider
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Welcome to the Daily Synopsis by Retail Insider. We hope you enjoy the articles we published today covering key developments in Canadian retail.

7-Eleven Canada expanded the Slurpee brand to celebrate its 60th anniversary with new packaged sodas, confections, and promotional events aimed at driving traffic. Vestis Fashion Group returned to Oakridge Park in Vancouver with Max Mara boutiques, reinforcing luxury retail growth. Joseph Tassoni returns to The Well in Toronto with his “Natural Authority” fashion experience, blending sustainability, art, and community. Winners/HomeSense announced its first Fort McMurray store near the new Walmart Supercentre at Parsons Creek Town Centre. Dollarama is shifting focus from store expansion toward convenience-driven locations and consumables growth, especially in Western Canada.

Retail Insider also published updates on Aritzia, which reported a 43.4% increase in Q1 fiscal 2027 net revenue fueled by strong U.S. and digital sales. Honestly Good Chicken Fingers appointed Naomi Kempkes as President to lead Canadian and U.S. expansion. KITS Eyecare achieved record revenue in Q2 2026 led by glasses sales. Additionally, D Spot Dessert Café opened its first U.S. location in Dallas and industry findings showed appliance customers prefer reliability over smart features.

🗞️ The Day’s Retail Insider Article List

🌐 Canadian Retail News From Around the Web will return on Monday. Have an excellent weekend.

Q2 2026 Consumer Behavior and Retail Economy: A Market Increasingly Divided

By
Craig Patterson
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As part of Retail Insider Reports, this Q2 2026 Consumer Behavior and Retail Economy Report draws on Retail Insider reporting, public company disclosures, and broader economic research, this report identifies the developments and market dynamics most relevant to Canadian retail decision-makers. The full report series is available through the Report Hub.

This report examines Canada’s retail sectors of:

  • Consumer Behavior: includes shopping habits, spending priorities, demographics, loyalty, purchasing decisions, and evolving customer expectations; and
  • Retail Economy: includes retail sales, inflation, employment, consumer confidence, interest rates, tariffs, trade, and other economic indicators.

*****

Canadian retail in Q2 2026 continued to navigate an environment shaped by consumer caution, affordability pressures, and structural shifts in retail real estate and spending patterns.

The Canadian consumer has not stopped spending. Instead, spending has become more selective and more polarized.

Consumers continue to prioritize essentials, seek value, and carefully evaluate discretionary purchases. At the same time, premium consumers and prime retail locations continue to demonstrate resilience, creating a market that is increasingly divided between winners and losers.

This widening divide can be seen across multiple dimensions of Canadian retail. The gap between value and premium continues to expand, the gap between top-performing shopping centres and underperforming assets continues to widen, and spending patterns increasingly vary by income level and category.

The result is a Canadian retail landscape that increasingly resembles a K-shaped economy, where value and premium segments continue to perform relatively well while the middle of the market faces mounting pressure.

Market Context: Affordability Becomes the Defining Consumer Issue

Although inflation has moderated from its peak levels, affordability remains one of the defining issues facing Canadian consumers.

Higher housing costs, elevated food prices, and persistent economic uncertainty continue to shape purchasing decisions. Retail sales remain mixed, with headline growth masking weakness in several discretionary categories.

Consumers have become more deliberate in their spending behaviour. Many households are delaying larger purchases, seeking promotions, trading down in certain categories, and prioritizing essentials over discretionary items.

At the same time, higher-income consumers remain comparatively resilient and continue to spend on experiences, travel, premium products, and luxury goods. This divergence increasingly defines the Canadian retail economy.

Broad Overall Themes

Canadian retail in Q2 2026 reflected several interconnected themes:

  • Consumer spending remains cautious and increasingly value-driven.
  • Affordability pressures continue to reshape purchasing decisions.
  • The retail market is becoming more polarized between value and premium segments.
  • Retail real estate performance continues to diverge between dominant and secondary assets.
  • Experience-led and food-focused retail formats remain areas of relative strength.
  • International retail expansion continues to concentrate in Canada’s prime urban nodes.
  • Labour, trust, and policy challenges continue to create operational pressures.
Consumer Caution and Value Prioritization Continue

Canadian consumers remain cautious and selective.

Research released during the quarter showed weakening intentions to spend on discretionary categories such as apparel and furniture, while value-oriented categories remained comparatively resilient.

This cautious behaviour is not affecting all consumers equally. Lower-income households continue to face the greatest financial pressure, while middle-income consumers increasingly feel squeezed by higher living costs and elevated housing expenses.

At the same time, value retail continues to broaden its appeal. Dollar stores, discount grocery formats, off-price retailers such as TJX banners, and even the renewed ambitions of Zellers increasingly appeal to consumers across income groups, suggesting that value-seeking behaviour has become mainstream rather than a niche response to economic stress.

Large-scale loyalty programs and digital ecosystems are reinforcing this trend by helping consumers maximize value and optimize spending.

The resilience of discount and off-price retailers further suggests that value is becoming a structural consumer preference rather than merely a temporary response to inflation.

Canadian consumers are not necessarily spending less—they are increasingly spending differently.

Affordability Pressures and Food Inflation Continue to Shape Behaviour

Food affordability remains one of the most significant pressures facing Canadian households.

Although overall inflation has moderated, food prices continue to rise faster than many consumers would prefer, and affordability concerns remain deeply embedded in consumer sentiment.

This dynamic is contributing to increasing market segmentation. Many households continue to trade down in quality, reduce discretionary food purchases, and seek private-label alternatives, while higher-income consumers remain more willing to spend on premium and convenience-oriented products.

The result is a grocery market that increasingly reflects Canada’s widening economic divide.

Retailers continue to respond through discount expansion, loyalty initiatives, and efforts to improve operational efficiency. The Grocery Code of Conduct and broader discussions around competition policy and internal trade barriers also reflect growing interest in improving affordability and market function.

Retail Real Estate Polarization Continues to Intensify

One of the most pronounced developments in Canadian retail remains the growing divide between dominant and secondary retail assets.

Top-tier shopping centres such as Yorkdale Shopping Centre, CF Toronto Eaton Centre, and CF Pacific Centre continue to generate exceptionally strong sales productivity, maintain high occupancy levels, and attract premium tenants and international brands.

At the same time, many mid-tier malls continue to face redevelopment challenges, rising vacancies, and increasing competitive pressure. The gap between the strongest and weakest retail assets continues to widen.

Recent commentary from major landlords, including Primaris REIT and Choice Properties, further suggests that significant value remains embedded within Canada’s strongest urban retail portfolios despite near-term market challenges.

Meanwhile, former Hudson’s Bay locations, property-control issues, and redevelopment constraints continue to shape the long-term evolution of Canadian retail real estate by influencing where investment, redevelopment, and competitive opportunities can emerge.

The polarization of Canadian retail real estate increasingly appears to be structural rather than cyclical.

Experience-Led and Food-Focused Retail Continue to Gain Momentum

Despite consumer caution, certain categories continue to demonstrate resilience.

Food, fitness, entertainment, and experience-led concepts remain among the most active leasing categories in major urban markets.

Toronto’s retail leasing market increasingly reflects demand for food-led, convenience-oriented, and social concepts that encourage visitation and repeat engagement.

Emerging concepts such as book bars, romance-focused bookstores, interactive retail concepts, and social gathering places suggest that consumers continue to seek experiences that extend beyond traditional transactions.

Retailers increasingly recognize that physical spaces must offer consumers reasons to visit that go beyond merchandise alone.

Experience-led retail should not be overstated as a universal solution. However, carefully curated concepts that combine convenience, food, social interaction, and entertainment continue to demonstrate meaningful demand in dense urban environments.

International Retail Expansion Remains Highly Concentrated

International retailers continue to view Canada as an attractive market, but expansion remains highly concentrated in Toronto’s prime retail nodes.

The majority of recent international entrants have selected Toronto for their first Canadian locations, with Yorkdale Shopping Centre and the Bloor-Yorkville corridor continuing to attract outsized attention.

Luxury and experiential brands dominate many of these entries, reinforcing the strength of Canada’s leading urban retail markets while simultaneously widening the gap between prime and secondary locations.

The continued concentration of luxury investment in Toronto’s prime retail corridors suggests that premium demand remains healthy but increasingly focused on a limited number of high-performing markets.

Luxury demand remains sensitive to currency movements, tourism patterns, and broader geopolitical uncertainty. However, Canada’s top luxury corridors continue to attract investment and remain among the country’s strongest retail environments.

The Canadian retail landscape is increasingly characterized by concentration rather than broad-based expansion.

Labour, Trust, and Policy Challenges Persist

Operational challenges remain significant for many retailers.

Labour shortages continue to affect foodservice operators, particularly in rural markets and smaller communities where staffing challenges can limit operating hours and growth opportunities.

At the same time, consumer trust is emerging as an increasingly important issue. Concerns around fake online reviews, AI-generated content, food fraud, and transparency continue to raise questions about authenticity and confidence in the marketplace.

Retailers that invest in trust-building initiatives, verified reviews, and credible consumer engagement may be better positioned to strengthen customer relationships and protect brand equity.

Broader policy issues—including affordability measures, labour policy, competition enforcement, regulatory reform, and ongoing discussions around internal trade barriers—will continue to influence the operating environment for Canadian retailers.

Editor’s Take

Q2 2026 Canadian retail was increasingly defined by a widening divide.

Consumer caution remains widespread, yet spending has not collapsed. Instead, purchasing behaviour has become more selective and segmented.

Retailers focused on value, convenience, essentials, and loyalty ecosystems remain well positioned to capture resilient demand. At the same time, premium concepts and prime urban retail nodes continue to outperform, benefiting from affluent consumers, international investment, and strong market fundamentals.

The middle of the market appears increasingly challenged. Middle-income households face affordability pressures, many discretionary categories remain under pressure, and secondary retail assets continue to struggle with redevelopment challenges and changing consumer preferences.

Experience-led and food-focused retail concepts demonstrate that consumers remain willing to spend on experiences that offer convenience, community, and social engagement.

At the same time, affordability concerns, labour shortages, and growing questions around trust and transparency continue to create uncertainty and operational complexity.

The next phase of Canadian retail may be defined less by broad market growth and more by how effectively retailers position themselves within an increasingly divided marketplace.

The market is increasingly splitting between operators that can deliver value, convenience, trust, and experience at scale and those exposed to structural real estate challenges and weakening discretionary demand.

Representative Articles

Q2 2026 Convenience Retail: Food-Led Formats and Digital Loyalty Redefine the Channel

By
Craig Patterson
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As part of Retail Insider Reports, this Q2 2026 Convenience Retail Report covers Q2 2026 developments in the Canadian convenience retail sector. Drawing on Retail Insider’s coverage, company disclosures, and broader market research, it identifies the key market dynamics, trends, and commercial implications shaping the sector. The full report series is available through the Report Hub.

This report examines Canadian convenience retail, including convenience stores, fuel retailers, grab-and-go foodservice, neighbourhood retail, tobacco alternatives, beverages, and related convenience formats.

*****

Canadian convenience retail entered Q2 2026 in a period of meaningful transformation. Long anchored by fuel and tobacco, the sector is becoming more food-led, digitally connected, and loyalty-driven as operators look for new growth engines and more resilient store economics.

The Canadian convenience store industry now represents an estimated $11.3 billion market, with more than 7,500 stores operating nationwide. Convenience stores are also expected to contribute more than $4 billion to Canada’s foodservice industry in 2026, underscoring the growing importance of prepared foods, beverages, and meal occasions to the channel.

The shift is not about abandoning fuel. Fuel remains a critical traffic and profitability driver. The bigger change is that leading operators are layering foodservice, beverages, loyalty, digital tools, and more modern store formats onto that core business.

Canadian convenience retail is beginning to look less like a traditional fuel-and-tobacco channel and more like a hybrid of convenience store, quick-service restaurant, small-format grocer, and digital loyalty platform.

Market Context: Convenience Remains Resilient

The Canadian convenience industry remains resilient, but its growth profile is changing.

Statistics Canada data showed gasoline stations and fuel vendors remained among the stronger contributors to retail growth in recent months, with gasoline station sales rising 12.4 per cent month over month in March, driven largely by higher prices. That reinforces the continued importance of fuel to the sector’s economics.

Foodservice is becoming a more important growth lever. Convenience stores’ contribution to Canada’s foodservice industry is expected to surpass $4 billion in 2026, with growth moving beyond snacks and packaged beverages into breakfast, lunch, dinner, coffee, and grab-and-go meal occasions.

The sector’s challenge is not declining relevance. Rather, it is evolving from a legacy model built around fuel, tobacco, and packaged goods into a broader daily-needs platform capable of serving consumers at multiple points throughout the day.

Broad Overall Themes

Canadian convenience retail in Q2 2026 was shaped by several interconnected trends. Food-forward formats continued to reshape store economics as operators invested in prepared meals, coffee programs, and grab-and-go offerings. Convenience stores also expanded their role as neighbourhood food destinations, capturing more meal occasions and grocery top-up trips.

Digital loyalty became more sophisticated, moving beyond simple rewards programs toward platforms built around personalization, payments, and customer engagement. Beverage innovation emerged as another key growth driver, while network optimization and store modernization gained importance as operators adapted to changing consumer habits and declining tobacco sales.

Fuel remained a foundational part of the business, but increasingly as the starting point for broader customer relationships rather than the sole driver of profitability.

Retail Insider Coverage

Food-Led Formats Are Reshaping Store Economics

Foodservice has become one of the most important growth drivers in convenience retail.

Retailers are investing in fresh food, prepared meals, grab-and-go products, coffee, and meal bundles to capture a larger share of daily consumer spending. These investments are pushing convenience stores closer to quick-service restaurants and small-format food retailers.

The shift was visible in 7-Eleven’s broader move toward food-forward formats. The company announced the closure of 645 stores as part of a strategy to move away from smaller, tobacco-dependent locations and toward larger, more food-led stores. That decision illustrates how difficult it can be to retrofit older convenience formats for a market where prepared food, fresh offerings, and stronger store economics matter more.

Circle K is also pushing further into foodservice. Couche-Tard has outlined plans to open 750 new stores by 2030, with foodservice and loyalty playing central roles in the strategy. In Canada, meal bundles already account for a meaningful share of Circle K’s food sales, pointing to the growing importance of value-oriented food offers in the convenience channel.

The broader story is clear: convenience stores are increasingly competing for meal occasions. Coffee, breakfast, lunch, dinner, snacks, and beverages are becoming part of a more complete daily-use proposition.

Convenience Stores Are Becoming Neighbourhood Food Destinations

The role of the convenience store is expanding.

A modern convenience store can still be a place to buy fuel, tobacco, lottery products, and packaged snacks. Increasingly, however, leading operators are designing stores around more frequent consumer needs: a morning coffee, lunch on the go, a quick dinner solution, a cold drink, or a grocery top-up trip.

This gives the channel a broader role in local communities. Convenience stores are not full grocery stores, and they are not traditional restaurants. They are becoming increasingly competitive in the space between the two.

That positioning matters because consumers continue to value speed, proximity, and convenience. Operators that can capture multiple visits across the day will have more resilient traffic and more diversified revenue streams.

Beverage Innovation Becomes a Growth Driver

Beverages remain one of the most important categories in convenience retail, and the channel is becoming increasingly attractive for emerging and differentiated brands.

Retail Insider’s coverage of Jones Soda’s expansion into approximately 700 additional Circle K stores in Eastern Canada demonstrates how convenience retail can become a platform for brand discovery. The expansion increased Jones Soda’s Canadian footprint by approximately 75 per cent year over year and included frozen and fountain beverage offerings.

That matters because it shows convenience retail is not simply a distribution channel. It can also be a testing ground for differentiated beverages, limited-time products, fountain innovation, and impulse-driven formats.

For retailers, stronger beverage assortments can create traffic, support margins, and encourage repeat visits. For brands, convenience stores offer broad reach and immediate-consumption occasions that are difficult to replicate elsewhere.

Digital Loyalty Programs Become Operating Systems

Loyalty programs are becoming more strategic in convenience retail.

Scene+’s expansion to Shell Canada locations nationwide is a clear example of fuel and convenience purchases being integrated into broader loyalty ecosystems. Customers can earn and redeem rewards through everyday fuel and in-store purchases, making convenience retail part of a larger household value proposition.

Cascadia Liquor’s The Den Rewards also points to a more experiential version of loyalty. The program combines points with app-enabled ordering, tastings, masterclasses, and customer engagement tools. While Cascadia is not a traditional convenience chain, the model illustrates where loyalty is heading: beyond discounts and toward a fuller relationship with the customer.

For convenience operators, loyalty now touches personalization, payment, targeted offers, customer data, digital ordering, and retention. The strongest programs are becoming operating systems that help retailers understand customers and encourage repeat visits.

Tobacco Decline Accelerates Transformation

Tobacco decline remains one of the most important forces reshaping convenience retail.

Industry data indicates tobacco sales have fallen approximately 26 per cent since 2019. That decline is pressuring older convenience formats that were built around tobacco, packaged goods, and quick fuel-adjacent transactions.

The shift toward foodservice, beverages, loyalty, and store modernization is partly a response to that decline. Retailers are pursuing new categories because they see growth opportunities, but also because they need to replace a traditional profit engine that has become structurally challenged.

This helps explain why operators are becoming more disciplined about their networks. Stores that cannot support foodservice, digital engagement, modern merchandising, or stronger customer missions are increasingly vulnerable to closure, conversion, or repositioning.

Network Optimization Separates Modern Formats from Legacy Stores

The convenience industry is not expanding in a simple straight line.

Operators are investing in modern stores while pruning older and less productive locations. That two-track strategy is becoming increasingly important as the sector shifts toward food-led formats and stronger digital engagement.

7-Eleven’s closure program reflects the challenge facing legacy stores that are too small, too tobacco-dependent, or poorly suited to fresh food and modern customer expectations.

Couche-Tard’s strategy points in the other direction: expansion, rebuilds, relocations, and modernized stores designed around foodservice, beverages, fuel, and loyalty. The company has also reported strong Canadian performance, supported by fuel execution and market share gains, even as tobacco remains a headwind.

The lesson is that convenience retail success is increasingly about the quality of the network rather than the size of the network alone.

Fuel Remains Critical

Fuel remains central to the economics of convenience retail.

Gasoline continues to drive traffic and profitability, and it will likely remain essential for many operators for years. The more important change is that fuel visits are becoming opportunities to sell more than fuel.

The strongest convenience operators are layering food, beverages, loyalty, and digital engagement onto fuel trips. A customer who stops for gas may also buy coffee, a meal bundle, a cold beverage, or a grocery top-up item while earning rewards through a loyalty program.

The next phase of the sector will not be defined by abandoning fuel. It will be defined by turning fuel visits into broader convenience occasions.

Broader Industry Coverage

Digital Payments and Mobile Engagement Continue to Gain Importance

Digital payments and mobile engagement are becoming increasingly important to the convenience channel.

For retailers, digital tools support faster transactions, loyalty participation, personalized offers, and customer retention. They also provide better insight into purchasing behaviour across fuel, food, beverages, and in-store categories.

As the channel becomes more food-led and loyalty-driven, digital infrastructure will become more central to execution. Convenience retail has always been about speed. The next phase will require speed combined with data, personalization, and seamless engagement across channels.

Competition Continues to Expand

Convenience retailers increasingly compete with a wider range of operators.

A modern convenience store can compete with quick-service restaurants for meal occasions, coffee chains for morning traffic, grocers for top-up trips, and beverage retailers for impulse and immediate-consumption purchases.

That broadening competitive set increases the importance of execution. Food quality, beverage assortment, pricing, loyalty, cleanliness, speed, and store location all matter.

Convenience retail is still about convenience, but the definition of convenience is expanding.

Editor’s Take

Q2 2026 shows Canadian convenience retail entering a new phase.

Fuel remains important, and the sector is not moving away from fuel as a core traffic driver. However, fuel and tobacco are no longer enough to define the future of the channel.

The most important shift is the rise of a more diversified convenience model built around foodservice, beverages, loyalty, digital engagement, and stronger store networks.

The 7-Eleven closure plan illustrates the pressure facing older, tobacco-dependent formats. Circle K’s expansion strategy shows the other side of the market: larger, more modern stores built around food, beverages, fuel, and loyalty. Jones Soda’s Circle K expansion demonstrates the growing importance of convenience as a beverage innovation channel, while Scene+ and Cascadia show how loyalty is becoming a more sophisticated engagement tool.

The strongest operators are increasingly monetizing multiple customer occasions throughout the day. A single store can serve a morning coffee trip, a lunch visit, an afternoon beverage stop, a fuel purchase, a quick dinner solution, and a grocery top-up mission.

That is the real transformation. Canadian convenience retail is becoming more than a place for fuel and packaged goods. It is evolving into a broader daily-use platform that serves consumers across multiple needs and occasions.

Looking ahead, the key questions will be how quickly foodservice can scale profitably, whether loyalty programs can meaningfully change customer behaviour, how operators replace declining tobacco revenue, and which store formats can support the next generation of convenience retail.

The winners will likely be those that use fuel traffic as a foundation while building stronger food, beverage, loyalty, and digital ecosystems around it.

Representative Articles

Q2 2026 Canadian Discount, Value and Off-Price Retail: Shape of the Next Phase of Canadian Retail

By
Craig Patterson
-

As part of Retail Insider Reports, this Q2 2026 Discount, Value and Off-Price Retail Trends Report covers Q2 2026 Canadian value retail trends. Drawing on Retail Insider coverage, company announcements, industry research, and broader market context, it identifies the key dynamics shaping discount retail, grocery, off-price expansion, and value-driven consumer behaviour in Canada. The full report series is available through the Report Hub.

This report examines Canada’s retail market segments of:

  • Discount retail: includes retailers built around explicit low-price positioning, simplified operations, limited-service formats, and aggressive value propositions;
  • Value retail: includes retailers competing through affordability, everyday value, efficient operations, and strong price-to-quality positioning for cost-conscious consumers; and
  • Off-Price retail: includes retailers selling branded merchandise below traditional retail pricing through closeouts, excess inventory, opportunistic buying, and treasure-hunt merchandising.

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Canadian value retail entered a new phase in Q2 2026.

Discount retail is no longer a niche segment serving financially constrained consumers. It has become a mainstream retail force influencing where Canadians shop, how retailers expand, and the types of tenants landlords increasingly seek to attract.

No retailer better illustrates this shift than Dollarama, which now reaches nearly every Canadian household and has become one of the country’s most influential retailers.

Although inflation has moderated from recent peaks, many Canadians remain highly selective with their spending. Seeking value has become increasingly normalized across income levels, with consumers often blending premium purchases and discount shopping within the same trip or broader shopping journey.

Importantly, many shopping behaviours that emerged during the inflationary period now appear to be becoming permanent.

The quarter saw major growth from Dollarama, continued momentum in discount grocery, expansion by off-price retailers, and increasing evidence that affordability-focused formats are helping reshape retail real estate strategies across the country.

These developments point to a broader shift: value is no longer simply a price point. It is increasingly becoming one of the defining forces shaping Canadian retail strategy.

Market Context: Value Shopping Becomes Mainstream

Canadian consumers remain cautious despite some improvement in inflation and interest rate expectations.

Statistics Canada data showed that retail spending remained uneven during the quarter, reinforcing the idea that consumers continue to prioritize affordability and carefully manage discretionary spending.

At the same time, value shopping has become normalized.

Discount retail now serves consumers across virtually all demographic groups. Higher-income households continue to seek deals and convenience, while middle-income consumers have become increasingly comfortable mixing premium purchases with lower-cost shopping.

Seeking value is increasingly viewed as a smart shopping behaviour rather than a financial necessity.

This represents an important shift in Canadian retail. Consumers are not only looking for the lowest price. They are looking for practical value, convenience, private label, discovery, recognizable brands at reduced prices, and affordable small indulgences.

Consumers increasingly expect low prices to be paired with convenience, design, discovery, and enjoyable shopping environments.

For many Canadians, dollar stores have evolved from occasional bargain destinations into regular shopping stops for everyday needs.

The result is a retail environment where value-oriented operators are increasingly influencing broader industry strategies.

Broad Overall Themes

Canadian value retail in Q2 2026 reflected several interconnected themes.

  • Value shopping has become increasingly mainstream across income levels.
  • Dollarama has become the clearest example of value retail’s move into the centre of Canadian consumer behaviour.
  • Discount grocery has become a core competitive battleground.
  • Off-price retail continues to win by combining affordability with branded merchandise and treasure-hunt discovery.
  • Affordable discovery concepts such as Flying Tiger and MINISO are adding novelty, design, and experience to the value retail landscape.
  • Value-oriented retailers are increasingly influencing real estate decisions and backfilling large-format vacancies.
  • Private label and trading-down behaviours remain important.
  • International retailers continue to see opportunity in Canada’s value segment.
  • Regional and community-based retailers continue to play a meaningful role in the retail landscape.
Dollarama Becomes the Face of Mainstream Value Retail

No retailer better illustrates the mainstreaming of value retail than Dollarama.

The Montreal-based chain surpassed 1,700 stores during the quarter and reported more than $1.8 billion in quarterly sales, reinforcing its position as one of Canada’s most important retailers.

Equally notable is the breadth of its customer base. Dollarama reaches approximately 96 per cent of Canadian households, demonstrating that value retail now appeals to consumers across virtually all income groups.

Dollarama’s continued growth reflects several broader trends.

Consumers increasingly appreciate convenience and everyday low prices. Suppliers increasingly recognize the chain’s scale and influence. Landlords value the traffic, frequency, and stability the company generates.

The company has evolved well beyond its origins as a traditional dollar store. It has become a household replenishment destination, a seasonal-shopping destination, an impulse destination, and a convenience stop for millions of Canadians.

As assortments expand, dollar stores increasingly function as neighbourhood convenience retailers for many consumers.

That matters because Dollarama’s success is changing how suppliers think about distribution. Major brands can no longer treat dollar stores as peripheral channels. In many categories, Dollarama has become too large and too widely used to ignore.

Dollarama’s performance illustrates a broader truth about Canadian retail: value shopping is no longer a temporary response to inflation. It has become a deeply embedded consumer behaviour.

Discount Grocery Becomes a Strategic Battleground

Value continues to shape Canada’s grocery industry.

Empire’s acquisition of wholesale food distributor Mayrand and FreshCo’s continued expansion into Atlantic Canada highlight the growing importance of discount formats and value propositions.

FreshCo’s expansion is particularly noteworthy because it demonstrates how discount grocery continues to penetrate new markets and repurpose existing retail space. The banner’s Atlantic expansion includes locations in former grocery and large-format retail spaces, including part of a former Hudson’s Bay location.

These moves show that discount grocery is not simply about price. It is also about real estate, regional positioning, loyalty programs, private label, local assortment, and market coverage.

Private label also continues to gain importance.

Consumers remain highly focused on value and are increasingly willing to experiment with store brands and lower-cost alternatives.

The grocery sector has become one of Canada’s most competitive value battlegrounds, with retailers investing heavily in price, assortment, loyalty programs, and owned brands.

Value has become a core competitive strategy in Canadian grocery retail.

Value Retail Reshapes Canadian Retail Real Estate

One of the quarter’s most interesting developments was the growing relationship between value retail and commercial real estate.

In an environment where some landlords continue to grapple with large-format vacancies and changing tenant mixes, discount chains and off-price operators are increasingly being viewed as dependable traffic drivers and practical backfill solutions.

In some cases, affordability-focused retailers are becoming among the few tenants capable of absorbing large-format vacancies while generating frequent customer visits.

FreshCo’s use of former retail space is one example of this trend.

Zellers has similarly demonstrated how value-oriented concepts can repurpose underutilized locations and generate significant consumer interest. The retailer’s new standalone Toronto store on Orfus Road and its continued use of experiential activations illustrate how value retail can help breathe new life into large-format space while attracting shoppers through affordability, nostalgia, and discovery.

Another example is Greek retailer JUMBO, which has secured a large-format location at Vaughan Mills in the Greater Toronto Area. The retailer’s entry into a former Toys “R” Us space demonstrates continued international interest in Canada’s value segment and further illustrates how value-oriented concepts are increasingly being considered for major retail vacancies.

Off-price retailers are also securing prominent space. Winners’ new location at Square One Shopping Centre in Mississauga is notable because Square One is one of Canada’s largest and most important shopping centres.

TJX Canada’s expansion into markets such as Fort McMurray, Alberta, also demonstrates the breadth of off-price demand across both major urban centres and regional markets.

For landlords, the appeal is clear. Affordability-focused retailers can generate frequent visits, broad demographic reach, and reliable traffic. That makes them attractive tenants at a time when many property owners are reassessing tenant mixes, anchor strategies, and large-format vacancy solutions.

Value retail is increasingly shaping leasing strategies and tenant mix decisions across Canadian real estate.

Off-Price Retail Continues to Win

Off-price remains one of the strongest-performing segments of Canadian retail.

TJX Canada continues to expand its Winners, Marshalls, and HomeSense banners while reporting strong sales performance. The company now operates more than 500 stores nationally, underscoring the scale and maturity of the off-price segment in Canada.

The category succeeds because it combines affordability with discovery.

Consumers can find recognizable brands at lower prices, while changing assortments create a treasure-hunt experience that encourages repeat visits.

This model appeals across income levels. Cost-conscious consumers value savings, while higher-income shoppers may visit for discovery, brands, home goods, fashion finds, and the satisfaction of getting a deal.

The success of off-price retail shows that value does not have to feel purely functional. It can also be engaging, enjoyable, and aspirational.

Affordable Discovery Continues to Resonate

Retailers such as Flying Tiger and MINISO demonstrate another side of the value market.

These concepts combine accessible prices with novelty, design, character licensing, giftability, and frequent assortment changes. The shopping experience is central to the appeal.

Consumers increasingly seek small indulgences, gifts, and impulse purchases that feel affordable but still provide enjoyment and discovery.

This is not traditional discount retail. It is affordable discovery retail.

Zellers also demonstrates that value retail increasingly extends beyond low prices and into experience, community engagement, and emotional connection.

The retailer has previously outlined ambitions to grow to as many as 100 stores over time. Whether that goal can ultimately be achieved remains uncertain, however, given intense competition in the discount sector and questions around product differentiation in an increasingly crowded value marketplace.

These concepts occupy a unique position within the value spectrum and continue to attract younger consumers, families, and shoppers looking for low-ticket items that feel fun, useful, or giftable.

For landlords, these stores can add visual interest, impulse traffic, and younger consumer appeal to malls and urban retail environments.

Private Label and Trading Down Persist

Private label remains an important part of the Canadian value story.

Consumers continue to demonstrate a willingness to purchase lower-cost alternatives, particularly in grocery, household products, and everyday essentials.

Trading down remains evident in several categories, even as inflationary pressures have eased.

Many consumers have permanently adjusted their shopping habits and continue to prioritize value and affordability.

No Name’s experiential marketing and continued private-label relevance illustrate how value brands are evolving beyond basic price messaging. Private label can now carry its own identity, humour, cultural relevance, and shopper loyalty.

The success of private label demonstrates that value perceptions can change over time. Consumers are increasingly comfortable balancing premium purchases with lower-cost alternatives.

Regional Retailers Continue to Serve Important Niches

While national chains dominate much of the discussion around value retail, regional and community-based retailers continue to play an important role.

Retailers such as Giant Tiger and Peavey Mart maintain strong customer relationships and serve markets that may be underserved by larger national chains.

Their success illustrates that value retail is not one-size-fits-all. Different regions require different assortments, price strategies, store formats, and community connections.

For some customers, value is not only about price. It is also about convenience, familiarity, local relevance, and trust.

Editor’s Take

Q2 2026 showed that value retail has moved firmly into the centre of the Canadian market.

Discount formats are no longer viewed primarily as defensive retailers serving financially stressed consumers. They have become mainstream shopping destinations that influence consumer expectations, competitive strategy, supplier relationships, and real estate decisions.

Dollarama’s continued growth demonstrates the broad appeal of value retail across income groups. Its scale, store count, household penetration, and supplier influence make it one of the most important retailers in Canada.

Discount grocery remains a major competitive battleground as retailers seek to strengthen their value credentials through new banners, regional expansion, private label, loyalty programs, and real estate repositioning.

Off-price retailers continue to expand into both major urban centres and regional markets, while affordable discovery concepts such as Flying Tiger and MINISO illustrate the enduring appeal of novelty and accessible price points.

The continued evolution of Zellers also suggests that value retail can be experiential, nostalgic, and community-oriented while still maintaining a strong affordability proposition.

At the same time, landlords increasingly view value-oriented retailers as traffic drivers and solutions for large-format vacancies. Interest from international retailers such as JUMBO also suggests that Canada’s value segment continues to offer attractive long-term opportunities despite increasing competition.

The next phase of Canadian retail may be defined less by who can offer the lowest price and more by who can deliver compelling value, convenience, and discovery to increasingly selective consumers.

Value in Canada is no longer simply a response to economic uncertainty. It has become a permanent and increasingly sophisticated force shaping how Canadians shop, how retailers compete, and how landlords think about the future of their properties.

Representative Articles

Q2 2026 Luxury: Control, Concentration and the Rise of Canada’s Premier Retail Nodes

By
Craig Patterson
-

As part of Retail Insider Reports, this Q2 2026 Luxury Retail Trends Report draws on Retail Insider coverage, company announcements, industry research, and broader market context, it identifies the key dynamics shaping luxury real estate, flagship strategy, customer experience, and brand positioning in Canada. The full report series is available through the Report Hub.

This report examines Canada’s luxury retail market, including brands positioned at the highest end of the market and characterized by exceptional craftsmanship, heritage, exclusivity, prestige, and premium customer experiences. Coverage includes luxury fashion, jewellery, watches, beauty, accessories, and related retail developments.

*****

Canadian luxury retail entered a more strategic phase in Q2 2026.

Rather than pursuing broad expansion, luxury brands increasingly focused investment on a small number of highly productive retail destinations while seeking closer ownership of customer relationships, inventory, and brand presentation.

The quarter saw major investments at Vancouver’s Oakridge Park, continued evolution in Toronto’s Yorkville district, growing confidence in Calgary’s luxury market, and increased emphasis on service, clienteling, and immersive brand environments.

At the same time, luxury geography continued to shift. Some legacy locations lost tenants while carefully curated retail districts and integrated developments attracted international brands and significant investment.

These developments point to a luxury market that is becoming more strategic, with brands investing selectively in environments capable of supporting long-term growth and deeper customer relationships.

Although luxury represents a relatively small portion of Canada’s overall retail market, it often serves as an early indicator of broader shifts in real estate strategy, customer expectations, and experiential retail.

Market Context: Luxury Investment Becomes More Selective

The Canadian luxury market continues to mature despite broader economic uncertainty and softer growth in some global luxury markets.

International luxury demand has moderated in parts of China and Europe, and the global luxury sector is experiencing slower growth than in recent years. Yet Canada continues to attract meaningful investment from international brands, suggesting confidence in the country’s affluent consumer base and premier retail destinations.

Luxury brands continue to be supported by resilient spending among affluent households, even as broader discretionary spending remains under pressure.

Rather than expanding broadly, luxury brands are investing in fewer stores, larger flagship environments, and highly productive ecosystems capable of supporting immersive experiences and long-term client relationships.

This is creating a winner-take-most dynamic in Canadian luxury retail.

A small number of destinations—including Oakridge Park, Yorkdale, Yorkville, and Vancouver’s luxury corridors—are attracting a disproportionate share of investment.

At the same time, brands are reducing their reliance on wholesale channels and favouring directly operated stores that provide greater stewardship over merchandising, pricing, inventory, and customer relationships.

Broad Overall Themes

Canadian luxury retail in Q2 2026 reflected several interconnected themes.

  • Luxury investment is increasingly gravitating toward a small number of dominant retail ecosystems.
  • Brands are pursuing greater ownership of distribution and customer relationships through flagship stores and standalone boutiques.
  • Service culture and immersive experiences are becoming important competitive differentiators.
  • Integrated developments are reshaping luxury geography by combining retail, residential uses, hospitality, dining, offices, and cultural programming.
  • Luxury resale is becoming increasingly mainstream and is emerging as a complementary channel that broadens access to designer brands.
  • Human capital and store execution are becoming more important as luxury brands compete through relationships and personalized service.
  • International brands continue to view Canada as a long-term luxury market despite softer global conditions.
Canada’s Luxury Geography Is Being Redrawn

One of the quarter’s most important developments was the continued reshaping of Canada’s luxury geography.

Vancouver’s Oakridge Park emerged as a major new luxury destination, drawing brands from legacy locations and introducing one of the strongest luxury lineups ever assembled in Canada.

The relocation of Ferragamo from its longtime Robson Street address to Oakridge Park illustrated this shift particularly well. The brand had operated from 918 Robson Street since 1982, making its move symbolic of changing luxury dynamics in Vancouver.

The closure of St. John’s last Canadian boutique at the Fairmont Hotel Vancouver also underscored how legacy luxury locations continue to evolve.

Toronto’s Yorkville district likewise strengthened its position as one of Canada’s premier luxury neighbourhoods. The opening of Alice + Olivia’s first Canadian store and Frette’s first Canadian boutique reinforced Yorkville’s role as a preferred destination for international luxury brands entering the Canadian market.

Yorkdale also continues to reinforce its position as Canada’s leading enclosed luxury destination and one of the country’s primary gateways for international brands.

The luxury story is also broadening geographically. Hermès’ decision to open its first standalone Alberta boutique on Calgary’s Stephen Avenue suggests growing confidence in Calgary’s luxury market and demonstrates that affluent Canadian consumers increasingly support multiple luxury districts beyond Toronto and Vancouver.

While Toronto and Vancouver continue to attract most luxury investment, other markets remain important destinations. West Edmonton Mall continues to house a notable collection of luxury brands, including Louis Vuitton and Gucci, while CF Chinook Centre remains one of Canada’s most productive luxury shopping destinations.

Montreal also remains an important luxury market. Royalmount’s emergence as a new mixed-use destination is adding another dimension to the city’s luxury landscape and may create future opportunities for premium brands.

The broader trend is clear: luxury retail is increasingly polarizing around a smaller number of highly productive destinations that can offer affluent consumers a compelling mix of shopping, dining, hospitality, culture, and residential density.

Flagships and Direct Ownership Become Strategic Priorities

The quarter also highlighted luxury brands’ increasing desire to shape customer relationships more directly.

Luxury brands are investing heavily in flagship stores and directly operated boutiques that allow them to manage pricing, assortment, visual presentation, clienteling, and customer data.

Chanel opened its largest Canadian boutique.

Canada Goose unveiled a new global store concept in Vancouver.

Giorgio Armani announced plans for its first standalone Canadian boutique alongside Canada’s first Armani Café.

Brunello Cucinelli continued to invest in premium environments, while international luxury jeweller Chow Tai Fook entered the Canadian market.

Hermès’ move from a department store concession to a standalone boutique in Calgary further illustrates this trend.

The continued decline of traditional wholesale and department store channels is accelerating brands’ desire for directly operated stores and closer stewardship of the customer journey.

For luxury retailers, direct ownership of the customer relationship is increasingly becoming a strategic imperative.

Hospitality Becomes the New Luxury Standard

Luxury retail increasingly resembles hospitality.

Stores are being designed as environments where customers can spend time, develop relationships, and engage with brands more deeply.

Armani’s decision to open Canada’s first Armani Café alongside its Oakridge boutique is one of the clearest examples of this trend.

Canada Goose’s new retail concept similarly emphasizes discovery and personalized service.

This aligns with a broader global movement. Luxury brands including Louis Vuitton, Dior, Gucci, Tiffany, and Armani are increasingly integrating cafés, restaurants, and lifestyle experiences into their retail strategies.

Clienteling is also becoming increasingly important. Luxury sales associates are evolving into relationship managers who build long-term connections with customers, curate experiences, and facilitate repeat business.

The physical store remains critical in luxury retail, but its role is changing. Stores are increasingly functioning as brand environments and service destinations.

Oakridge Park Emerges as Canada’s New Luxury Powerhouse

No development better illustrates the quarter’s themes than Oakridge Park.

The Vancouver project opened with approximately 500,000 square feet of retail and one of the strongest luxury lineups ever assembled in Canada.

The initial tenant roster includes Louis Vuitton, Prada, Miu Miu, Valentino, Loewe, Loro Piana, Moncler, Dolce & Gabbana, Tiffany & Co., Rolex, Harry Rosen, and many others.

Chanel’s new store is now the largest in Canada.

Canada Goose selected the project for the Canadian debut of its new global concept.

Giorgio Armani’s first standalone Canadian boutique and Canada’s first Armani Café are also slated for the development.

Additional openings, including Veronica Beard’s third Canadian store and Vince’s reimagined concept, further reinforce the project’s position as a luxury ecosystem.

Oakridge Park demonstrates how integrated developments can become powerful luxury environments by combining retail with residential density, transit connectivity, dining, and public spaces.

The project has altered the luxury landscape in Vancouver and may influence luxury real estate strategies across Canada.

Luxury Resale Moves Into the Mainstream

Luxury resale continued to mature during the quarter.

Retailers such as Mine & Yours and Angels Wear Preloved demonstrate that secondary luxury markets are becoming increasingly sophisticated and accepted by consumers.

Partnerships between resale platforms and traditional luxury retailers further suggest that the secondary market is evolving into a complementary channel rather than a disruptive force.

Resale is also broadening access to luxury goods, particularly among younger consumers who may be entering the category through pre-owned products.

Human Capital Becomes a Competitive Advantage

As luxury retail becomes increasingly service-oriented, people are becoming an even more important differentiator.

Clienteling, personalized service, product expertise, and relationship building are increasingly central to luxury performance.

Luxury brands continue to invest heavily in training, leadership, and store execution because customer relationships are often as important as the products themselves.

Luxury increasingly competes through relationships, cultural relevance, and personalized service rather than store count alone.

Jewelry and Omnichannel Continue to Evolve

Fine jewellery and watches remain among the more resilient segments of global luxury spending.

The continued prominence of Tiffany & Co., Rolex, and Chow Tai Fook within Canada’s luxury landscape reflects the enduring strength of jewellery and timepieces among affluent consumers.

Meanwhile, beauty and omnichannel concepts such as Rennaï illustrate how digital engagement and physical environments continue to complement one another.

Editor’s Take

Q2 2026 showed that Canadian luxury retail is increasingly becoming a winner-take-most business.

A small number of premier ecosystems are attracting a disproportionate share of investment, while brands seek closer ownership of customer relationships and create elevated environments that justify premium positioning.

Oakridge Park emerged as the clearest example of this trend, while Yorkville and Yorkdale continue to reinforce their positions as Canada’s most important luxury destinations. Calgary’s growing luxury confidence and Montreal’s evolving opportunities suggest that additional markets may continue to emerge.

The growing emphasis on directly operated stores also signals an important shift. Luxury brands increasingly want greater influence over pricing, inventory, merchandising, and customer relationships while reducing dependence on wholesale channels.

Dining concepts, personalized service, clienteling, and immersive environments are increasingly essential components of premium brand positioning.

The next phase of Canadian luxury retail will likely be defined less by the number of stores brands operate and more by where they choose to invest, how closely they manage the customer relationship, and whether they can create memorable environments that justify premium positioning.

Luxury in Canada is becoming increasingly strategic, relationship-driven, and experience-oriented. The Canadian luxury market is entering a more mature phase, where success increasingly depends on location, service, and the ability to create environments that foster long-term customer relationships.

Representative Articles

Q2 2026 Loss Prevention & Security: The Expanding Perimeter of Retail Risk

By
Craig Patterson
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As part of Retail Insider Reports, this Q2 2026 Retail Loss Prevention & Security Report analyzes Canadian retail trends by sector, market segment, ecosystem category, channel, and broad industry theme. Drawing on Retail Insider reporting, industry research, and public data, this report examines the evolving risk landscape facing Canadian retailers and how loss prevention functions are changing in response. The full report series is available through the Report Hub.

This report examines retail loss prevention, physical security, cybersecurity, fraud prevention, shrink reduction, payments security, and retail risk management.

*****

Retail risk in Canada is becoming more complex, more costly, and in some cases more dangerous.

Retailers are contending with rising organized retail crime and violence while simultaneously confronting cyber threats, fraud, and operational vulnerabilities that are expanding the responsibilities of loss prevention teams well beyond traditional theft prevention. The perimeter of retail risk has expanded dramatically.

Loss prevention is no longer simply about protecting merchandise. It is becoming an enterprise-wide discipline focused on protecting people, inventory, data, operations, and customer trust.

Market Context: Retail Risk Continues to Evolve

Canadian retailers face risks that are becoming both broader and more interconnected. The industry continues to contend with organized retail crime, repeat offenders, employee safety concerns, and growing levels of violence during theft incidents. At the same time, retailers have become deeply dependent on digital infrastructure, exposing them to cyber threats, payment fraud, and operational vulnerabilities that would have been considered information technology issues only a few years ago.

Security, operations, technology, and customer experience are now deeply interconnected within modern retail organizations. Retailers are responding by investing in new technologies, strengthening partnerships with law enforcement, redesigning stores, and adopting more sophisticated approaches to risk management.

Broad Overall Themes

Canadian retail loss prevention and security in Q2 2026 reflected several interconnected themes:

  • Organized retail crime and violence remain major challenges.
  • Retail crime is reshaping store operations and investment decisions.
  • Retailers continue to balance security measures with customer experience.
  • Security technology investment continues to accelerate.
  • Fraud and financial crime are becoming more sophisticated.
  • Cybersecurity is emerging as a core retail risk.
  • Operational integrity and data accuracy are becoming loss prevention issues.
  • Collaboration between retailers, law enforcement, and governments is increasingly important.
Organized Retail Crime and Violence Escalate

Retail crime has become one of the most significant challenges facing Canadian retailers, with theft now costing businesses more than $9 billion annually and shrink estimated to account for approximately 1.5 per cent of total retail sales.

The seriousness of the issue is underscored by the fact that Retail Council of Canada-led retail crime blitzes resulted in the seizure of 121 weapons in 2024. More than three-quarters of retailers reported increased violence during theft incidents, and 81 per cent said organized retail crime offenders had become more violent.

The issue has evolved well beyond merchandise loss. Organized retail crime increasingly affects employee safety, customer experience, insurance costs, and retailers’ willingness to invest in certain communities and locations. For frontline employees, the threat of violence and intimidation has become one of the most serious workplace issues facing the retail industry.

Repeat offenders accounted for 17.7 per cent of arrests during RCC-led enforcement initiatives, illustrating the persistent nature of the challenge. Safety concerns can also make it more difficult to recruit and retain employees, particularly in locations experiencing persistent crime and disorder.

For many retailers, organized retail crime has become both a business issue and a public safety issue.

Retail Crime Reshapes Store Operations and Investment Decisions

The impact of retail crime is having a growing influence on operational decisions.

Retailers are redesigning stores, increasing security staffing, installing barriers, limiting access to high-theft merchandise, and making difficult decisions about where and how they operate.

Recent Canadian examples illustrate the severity of the issue. 7-Eleven warned that multiple locations in Winnipeg could face closure due to crime and theft concerns. In Vancouver, London Drugs closed its Woodward’s location in the Downtown Eastside after years of operating losses and persistent safety challenges.

In Toronto, Dudley’s Hardware publicly cited break-ins, vandalism, and neighbourhood safety concerns as contributing factors in its decision to downsize and eventually close its long-standing downtown location.

In other communities, retailers have reduced operating hours, limited product availability, increased security investments, or reconsidered future expansion plans. In some cases, persistent crime and safety concerns are affecting access to essential retail services as retailers reconsider operating hours, investment plans, and even the viability of certain locations.

The economics can become particularly challenging in certain retail categories. Statistics Canada reports that health and personal care stores, including drugstores and pharmacies, generated a pre-tax profit margin of approximately 5.7 per cent in 2023. Industry sources say some urban drugstores have experienced exceptionally high shrink rates, illustrating how theft can quickly overwhelm store profitability and threaten the viability of individual locations.

The loss of pharmacies, convenience stores, and other essential retailers can also have broader implications for communities, particularly in urban neighbourhoods where residents depend on nearby services.

In these situations, crime is no longer simply a security issue; it becomes a fundamental business and investment issue.

Balancing Security and Customer Experience

Retailers face a difficult balancing act.

Measures designed to reduce theft can sometimes create new challenges for customers. Locked merchandise, barriers, increased product controls, and enhanced security procedures may help reduce shrink, but they can also create friction that discourages purchases and negatively affects the shopping experience.

This challenge is becoming increasingly measurable. Research from DALBAR and Competitor IQ found that 38 per cent of shoppers abandoned purchases because of security measures and in-store friction.

The industry is also continuing to evaluate the role of self-checkout. While self-checkout can improve convenience and reduce labour requirements, many retailers have reported higher levels of shrink and fraud in certain store formats, particularly in categories such as drugstores and convenience retailing.

The challenge for retailers is finding the right balance between protecting merchandise and preserving convenience and trust.

Retailers Respond with New Security Measures

Retailers are responding with a combination of technology, store redesign, and operational changes.

Investments in artificial intelligence, video analytics, electronic article surveillance, access-control systems, product locking, and security personnel continue to rise. Some retailers are also deploying body cameras, improving incident reporting systems, and increasing employee training.

Partnerships between retailers and law enforcement agencies have also expanded, with companies increasingly sharing information and intelligence related to organized retail crime patterns and repeat offenders.

The growing adoption of these measures underscores how loss prevention is evolving from a shrink-control function into a broader business discipline focused on safety, resilience, and operational continuity.

Fraud Expands Beyond Traditional Theft

Retail risk now extends well beyond traditional theft prevention.

Retailers are contending with return fraud, chargeback abuse, gift card scams, account takeovers, identity fraud, and other forms of first-party fraud that can generate significant financial losses.

Equifax Canada recently reported that first-party fraud increased by 31 per cent year over year, illustrating how economic pressures and digital commerce are creating new challenges for retailers and financial institutions.

These forms of fraud can be difficult to detect because they often exploit digital systems, customer service policies, and payment processes rather than physical stores.

Retailers are also paying closer attention to cargo theft and supply chain vulnerabilities, recognizing that risk increasingly extends beyond the four walls of the store.

Cybersecurity Becomes a Core Retail Risk

Retailers now depend heavily on technology to operate their businesses.

Payments, loyalty programs, customer data, inventory systems, mobile applications, and digital commerce platforms all rely on secure technology infrastructure. As a result, cyberattacks have become a major business risk.

Ransomware attacks, data breaches, phishing campaigns, and AI-enabled cyber threats have the potential to disrupt operations, compromise customer information, and damage brand trust.

The financial consequences can be significant. IBM recently reported that the average cost of a Canadian data breach reached nearly $7 million in 2025.

Retailers’ growing dependence on digital ecosystems means cyber incidents now have direct implications for customer trust, business continuity, and corporate reputation. Cybersecurity has become a core component of loss prevention rather than simply an information technology function.

Protecting digital assets is now fundamental to protecting the business itself.

Data Integrity and Operational Resilience Become Security Issues

Some of the most important loss prevention challenges are operational rather than criminal.

Inventory accuracy, audit trails, handheld devices, supply chain integrity, and data governance all have significant implications for shrink and profitability.

Inventory inaccuracies can lead to phantom inventory, replenishment problems, fulfillment errors, lost sales, and operational inefficiencies that directly affect financial performance.

As retailers become more dependent on technology and data, operational integrity itself is becoming a critical component of loss prevention. The modern loss prevention function now sits at the intersection of physical security, operational excellence, and technology management.

Policy, Enforcement and Industry Collaboration

Governments, retailers, and law enforcement agencies are increasingly recognizing the seriousness of retail crime.

Recent federal legislative changes targeting repeat offenders and organized retail crime, including tougher bail provisions and new aggravating factors related to retail theft, demonstrate growing political attention to the issue.

At the same time, retailers continue to call for stronger enforcement, greater information sharing, and increased collaboration between industry participants and police agencies.

Addressing retail crime will require sustained cooperation between retailers, governments, law enforcement agencies, landlords, and local communities.

Editor’s Take

Q2 2026 demonstrated that Canadian retail loss prevention is entering a new era.

Organized retail crime remains a serious and growing challenge, with increasing violence affecting retailers, employees, and customers across the country. At the same time, fraud, cyber threats, operational vulnerabilities, and data integrity issues are expanding the responsibilities of loss prevention professionals well beyond traditional theft prevention.

The economics of theft are also becoming more difficult to ignore. Rising shrink, security investments, and fraud losses place upward pressure on operating costs and can influence pricing, capital allocation, and investment decisions. In some retail categories, sustained shrink can threaten the viability of individual locations and influence decisions around store investment, operating hours, and long-term market presence.

Retailers that continue to view loss prevention primarily as a shoplifting issue may be underestimating the breadth of today’s risk environment.

The most resilient retailers will increasingly treat loss prevention as an integrated discipline that protects people, inventory, data, operations, and customer trust.

The perimeter of retail risk continues to expand, and the consequences now extend far beyond merchandise loss to include employee safety, customer experience, operational resilience, and the long-term viability of certain retail locations.

Representative Articles

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