Payroll employment in retail trade decreased by 6,600 (-0.3%) in January, partially offsetting the gain in December (+4,700; +0.2%). On a year-over-year basis, payroll employment in the sector was down by 29,900 (-1.5%) in January, reported Statistics Canada on Thursday.
The year-over-year payroll employment decline in retail trade in January was led by clothing and clothing accessories retailers (-8,400; -5.0%), grocery and convenience retailers (-7,700; -1.8%) and department stores (-7,100; -7.2%). These losses were partially offset by gains warehouse clubs, supercentres, and other general merchandise retailers (+3,200; +1.9%) and health and personal care retailers (+1,600; +0.7%), said the federal agency.
“In January, job vacancies were little changed across all sectors except for retail trade (+4,900; +10.5%). The monthly increase in job vacancies in retail trade was the first since July 2025. Despite the increase in the month, the number of vacancies in the sector in January 2026 was little changed compared with a year earlier,” said Statistics Canada.
The job vacancy rate corresponds to the number of vacant positions as a proportion of total labour demand.
On a year-over-year basis, job vacancies in January were down in five sectors and up in one. The largest year-over-year decreases were reported for health care and social assistance (-16,900; -15.4%), accommodation and food services (-8,300; -12.3%) and administrative and support, waste management and remediation services (-4,100; -14.5%). The only sector to report a year-over-year increase in job vacancies was finance and insurance (+2,100; +14.3%), it said.
Overall, the number of employees receiving pay and benefits from their employer—measured as “payroll employment” in the Survey of Employment, Payrolls and Hours—increased by 45,600 (+0.2%) in January following a decrease of 10,600 (-0.1%) in December. On a year-over-year basis, payroll employment was up by 33,500 (+0.2%) in January 2026, according to the report.
In January, monthly payroll employment increases were recorded in 9 out of 20 sectors, led by educational services (+20,000; +1.4%), followed by construction (+8,100; +0.7%), finance and insurance (+6,600; +0.8%) and health care and social assistance (+3,700; +0.1%). Monthly declines in January were concentrated in retail trade (-6,600; -0.3%), it said.
Meanwhile, in January, there were 492,400 vacant positions in Canada, little changed from December, when an increase of 23,700 (+4.9%) was recorded. On a year-over-year basis, job vacancies were down by 35,100 (-6.7%) in January 2026, added Statistics Canada.
Non-seasonally adjusted prices for food purchased from restaurants were up 12.3% in January when compared with January 2025. Unadjusted prices for alcoholic beverages served in licensed establishments increased 9.0% over the same period. These were particularly large increases in the year-over-year Consumer Price Index caused by the temporary GST/HST break in effect at the start of 2025, which lowered the prices consumers paid for food and some alcoholic beverages at restaurants, said the federal agency.
In January, the largest increase in sales came from special food services (+8.5%), followed by limited-service eating places (+1.1%). Higher sales were also observed in full-service restaurants (+0.2%) and drinking places (+1.4%). Year-over-year increases were observed at full-service restaurants (+7.7%), special food services (+11.6%) and limited-service eating places (+1.6%), whereas sales at drinking places (-0.7%) declined, said Statistics Canada.
It said sales increased in every province in January, largely led by Alberta (+3.1%), British Columbia (+1.9%), and Quebec (+1.3%).
Toronto’s Elm-Ledbury, a rental community by Fitzrovia, is emerging as more than a high-end rental address. The project’s retail component, known as The Mews, is being positioned as a meticulously curated urban destination in the Garden District, with boutique commercial spaces designed to serve both residents and the surrounding downtown neighbourhood. For Fitzrovia, the goal is clear: create a pedestrian-first retail environment that strengthens the residential experience above while helping shape a rapidly evolving part of the city.
Located near Queen and Church Streets, Elm-Ledbury consists of two rental towers with 542 suites and a public retail arcade that links Mutual and Dalhousie Streets. Rather than defaulting to conventional service tenants or large-format chains, Fitzrovia says it is pursuing operators that add character, convenience, and long-term value to the community. That strategy is already visible in the tenant mix, and there is more to come as leasing continues.
Vanessa Lynch, Sales Representative at DWSV Realty, said the retail at Elm-Ledbury was intentionally planned as part of the development from the outset.
“The Mews at Elm-Ledbury was designed to complement the architecture and the caliber of the residential offering,” she said. “The units are boutique in scale rather than oversized boxes, which creates the opportunity to curate experiential retail instead of more commodity-style uses.”
Elm — Ledbury Toronto Source: fitzrovia.ca
A European-Inspired Arcade in Downtown Toronto
At the heart of the project is The Mews, a cobblestone-lined pedestrian arcade with lush landscaping and brick-lined walkways that cut through the base of the development. Designed as a public-facing passage and gathering place, the space offers a more intimate and design-driven retail setting than a typical row of ground-floor storefronts.
Lynch described the atmosphere in visual terms. “It feels like you’re in Europe when you walk down the corridor where the retail units are,” she said.
The design intent matters. Elm-Ledbury is targeting residents who are drawn to a higher level of service, amenities, and finishes, and the retail is meant to reflect that positioning.
Prospective commercial tenants are even shown the residential amenities during tours to help them understand the audience they would be serving. Lynch said this approach helps retailers see “the type of community and residence that Fitzrovia is attracting” and how their businesses could fit into the overall environment.
That integration between residential and retail is central to Fitzrovia’s broader model.
Brandon Isenberg, Director of Retail Leasing at Fitzrovia, said the company’s leasing philosophy goes beyond simply filling space.
“The vision for our retail is to secure unique, amenity-driven concepts,” he said. “At the end of the day, it’s about giving people more reasons to want to live in our buildings.”
Elm — Ledbury Toronto Source: fitzrovia.ca
Retail Designed Around the Resident Experience
The Elm-Ledbury retail strategy reflects a wider approach Fitzrovia is applying across its portfolio. Isenberg said the company is less interested in pursuing the most conventional or highest-covenant deals that many landlords consider.
“We’re not solely focused on securing the highest covenant tenants or the highest rents,” he said. “Those factors matter, but we’re more interested in curating uses beyond traditional retail such as banks and pharmacies. We believe this approach is thoughtful and adds the most value for our residents.”
Instead, the company is focusing on food and beverage, boutique fitness, light grocery, services, and other operators that can enhance daily life for residents while also drawing visitors from the surrounding neighbourhood. Isenberg said the goal is to build a tenant mix that feels cohesive and complementary.
“I want to make sure there isn’t overlap in uses and that residents and the surrounding community have a range of options,” he said. “Food and beverage will be a major component here, along with service-oriented businesses.”
Existing Tenants Begin to Animate The Mews
Several tenants are already operating or preparing to open at Elm-Ledbury, helping establish the tone for the retail arcade.
Among the anchors is 10 DEAN, Fitzrovia’s in-house third-wave café and cocktail concept. Lynch described it as a strong social draw.
“Anytime you go in there, it’s busy,” she said. “You see people in suits and others more casual. People are having coffee, meeting friends, or working on their laptops.”
Bloomsbury Academy, a Montessori-inspired early childhood education centre, is another major component of the community. The concept reflects Fitzrovia’s focus on addressing everyday lifestyle needs within its communities. Isenberg said the offering is particularly valuable for young families living downtown.
“It makes the morning rush and evening pickup much easier for parents,” he said.
Rendezvous Barbershop is also open and, according to Lynch, “is doing very, very well.” Isenberg described it as a strong example of the kind of operator Fitzrovia wants in its buildings: design-conscious, useful, and community-oriented. Additional food concepts are also joining the mix. SOI Thaifoon, a local Thai restaurant with locations across the GTA, including Waterworks Food Hall, is expected to open shortly, while FAMO Sandwich Creations, which Isenberg described as a local east-end operator, is slated to open in June.
Together, these tenants help illustrate the type of environment Fitzrovia is building, one rooted in amenity retail that benefits the surrounding community rather than transactional convenience.
Elm — Ledbury Toronto Source: fitzrovia.ca
Two Retail Opportunities Remain Available
For prospective tenants, Elm-Ledbury currently offers two notable leasing opportunities.
The most significant space, a flagship restaurant unit of about 2,700 square feet, is currently under negotiation with a full-service food and beverage operator, with an announcement expected in the near future. Lynch said the unit was “intentionally designed for restaurant use” and includes infrastructure that is increasingly rare in new downtown developments. She pointed to 17-foot ceilings, floor-to-ceiling windows, a gas line, 400-amp, 600-volt power, shipping and receiving access, and a 600-square-foot wraparound patio.
The space also connects internally to the residential lobby, allowing the approximately 1,000+ residents above to access it year-round without going outside. Lynch said that level of planning gives the unit a real competitive advantage. “That foresight was built in from day one, so it allows a full-service restaurant operator to execute properly and not have a compromised version. It’s really a true flagship scale opportunity in a dense urban setting with strong visibility.”
Isenberg echoed that sentiment, describing it as “our flagship retail space” with “lots of natural light” and exposure onto Queen Street.
With the flagship restaurant space now under negotiation, two retail units remain available, approximately 1,400 square feet and 800 square feet in size. The larger unit was previously occupied by Aisle 24, an automated convenience concept that has since closed.
“We’ve had interest from various health and wellness concepts for this unit, uses that we really like as an addition to the tenant mix here,” said Isenberg.
Fitzrovia is seeking small-format operators that align with the project’s curated, amenity-focused retail vision.
A Neighbourhood in Transition
The leasing story at Elm-Ledbury is also tied closely to what is happening in the surrounding district. The area around Queen Street East, Church Street, Mutual Street, and Dalhousie Street is seeing sustained residential intensification and new investment, which is beginning to reshape both foot traffic and retail potential.
Lynch said the pocket is “undergoing significant transformation” and shifting toward a “more lifestyle-oriented mixed-use neighbourhood.” She cited strong pedestrian traffic, a large and growing nearby population, proximity to Toronto Metropolitan University, and easy access to the Financial District, St. Michael’s Hospital, CF Toronto Eaton Centre, and St. Lawrence Market.
According to figures shared during the interview, about 36,000 people live within 500 metres of the project, with population growth of about 20 percent projected over the next five years. That helps explain why Fitzrovia sees long-term promise in taking a more selective leasing approach rather than rushing to backfill vacant space.
The neighbourhood is also receiving hospitality investment. An AC Hotel by Marriott is planned nearby, adding another layer of confidence to the area’s evolution. Lynch said the hotel announcement is meaningful because “hotels don’t choose locations lightly. They really rely on strong demand drivers, safety improvements, and future growth forecasts.”
Retail as a Competitive Advantage for Rental Housing
Elm-Ledbury also reflects a broader shift in purpose-built rental development, where curated retail and in-house lifestyle brands are being used as differentiators. Fitzrovia already operates 10 DEAN and Bloomsbury Academy within its communities, and Isenberg said those businesses are part of a wider effort to create a high-service living environment.
“Everything comes back to the resident experience,” said Isenberg. “That means delivering an exceptionally high level of service and real, tangible benefits. Our residents get exclusive discounts at 10 DEAN and reduced tuition at Bloomsbury Academy.”
That philosophy extends to the community’s amenity package, which includes an official Toronto Raptors branded basketball court, a commercial-grade gym, ski and snowboard and Formula 1 simulators, penthouse rooftop lounges, and two penthouse pools with cabanas. These features make the community feel closer to a hospitality offering than a standard rental building. Retail at grade is meant to reinforce that identity rather than dilute it.
In that sense, Elm-Ledbury’s retail component is as much about placemaking as it is about leasing. The storefronts are intended to help animate the public realm, support the daily needs of residents, and create a destination in a part of downtown that is rapidly evolving.
Curated Leasing Over Quick Leasing
Perhaps the clearest message from both Lynch and Isenberg is that Fitzrovia is not in a rush to lease for the sake of leasing. The company believes the long-term success of the retail arcade depends on choosing the right mix.
“We’re taking the same approach across all of our projects, including Sloane, our three-tower development across from Yorkdale where we are marketing approximately 5,000 square feet of retail, and Marlow, our master-planned community with Hazelview, where about 45,000 square feet of retail is expected to deliver in Q2 and Q3 this year,” said Isenberg.
Healthy Planet is seeing a growing shift among Canadian consumers toward nutritious snacks and “micro meals” as busy lifestyles and rising costs reshape eating habits, according to Monica Walker, head of food and grocery at the retailer.
Walker said shoppers are increasingly building smaller, balanced meals using items such as yogurt, fruit, nuts and vegetables rather than relying solely on traditional grab-and-go protein or granola bars. She noted many consumers are paying closer attention to nutrition labels, moving away from high-sugar snacks and focusing on protein, fibre and lower sodium options.
Cost considerations are also influencing behaviour, Walker said, with some shoppers finding they can assemble healthier mini meals for roughly the same price as a single packaged snack. Beverage choices are evolving as well, with greater interest in low-sugar sodas and water as part of the micro meal approach.
To meet changing demand, Healthy Planet is adjusting merchandising strategies and product assortments. Walker said stores are expanding grab-and-go refrigeration sections, increasing healthier drink selections and prioritizing natural, organic and Canadian-sourced products. She added the retailer monitors international trends, including emerging interest in functional ingredients such as mushrooms, turmeric and herbal teas.
Walker said future store formats will continue to reflect consumer preference for convenient, partially prepared meal options that support healthier eating.
A breakfast-focused quick-service restaurant concept launched in Toronto in 2020 is aiming to accelerate its growth with plans to open about 11 new locations this year, as founder Jason Yu sets his sights on eventually building a 300-store network.
Yu, founder of Egg Club, said the brand currently operates nine locations after opening its first outlet on Sept. 12, 2020, at 88 Dundas St. East. The expansion push marks a significant step for a business that began as a niche concept designed to fill what he described as a gap between traditional fast-food breakfast offerings and sit-down dining.
“Our goal is 300 locations,” Yu said in an interview, adding that further announcements related to the company’s growth are expected later this year.
Identifying a market gap
Yu said the idea for Egg Club emerged in 2018 as he evaluated the competitive landscape for breakfast food. He observed what he believed were two dominant segments in the market: large quick-service chains offering speed and convenience, and full-service restaurants delivering higher-quality meals but requiring more time from customers.
“There’s nothing in between,” he said. “There’s no QSR for breakfast that’s made to order.”
Jason Yu
The concept he developed sought to position itself between those extremes by offering food priced slightly above mass-market fast food while emphasizing freshness and quality. The goal, he said, was to replicate elements of the sit-down dining experience while maintaining a takeaway-friendly model.
“That’s when I kind of saw the niche — why don’t we make it just a bit more expensive than [traditional fast food], make it made-to-order, a lot more high quality, like you’re sitting at fine dining, but at the same time it’s on the go,” he said.
Background in restaurants and training
Yu said his decision to pursue entrepreneurship was influenced in part by his upbringing. Born in South Korea and raised in Vancouver, he grew up in a family that operated restaurants and began helping in the business at age 14.
“Being a restaurateur is in my blood,” he said.
He later studied business management at Kwantlen Polytechnic University in Vancouver before enrolling in culinary school at the Art Institute of Vancouver. While he described his formal business education as less impactful than hands-on experience, he credited his culinary training with helping him develop Egg Club’s menu.
“Understanding the fundamentals — like how to cook eggs, what’s the temperature, what’s carryover cooking — all that stuff … definitely helped me a lot,” he said.
Yu said he personally designed the menu, which features items such as breakfast sandwiches made with Japanese milk bread, a product he believes helped differentiate the brand in its early days.
Egg Club Liberty Village (Image: Egg Club)
Managing risk and uncertainty
Like many entrepreneurs, Yu said one of the biggest challenges during the startup phase was uncertainty over whether the concept would resonate with customers.
He recalled spending days observing competitor locations and tracking customer volumes in an effort to assess market potential.
“I was sitting in a car for about five days, for 12 hours, looking at some competitors’ customers. I was counting customers,” he said. “But you’ll never know … when you go live, you’ll never know if the idea will work.”
The novelty of the offering also contributed to early concerns, he added, noting that customers were unfamiliar with some of the brand’s products.
“People had never seen Japanese milk bread with an egg inside and special sauce. There was nothing like it out there,” Yu said. “That was one of the scariest moments for us.”
Egg Club on Dundas in Toronto (Image: Egg Club)
Designing for scalability
Beyond establishing demand, Yu said Egg Club’s leadership focused early on building a model that could be replicated across multiple markets. Questions about franchisability influenced decisions ranging from menu development to operational procedures.
“Even on day one of the 2018 idea, I was always asking myself: is it franchisable?” he said.
He described the process as a balance between maintaining product quality and ensuring that systems were simple enough for franchisees to execute consistently.
“When we were making the sauce, we asked ourselves: is it franchisable? Is it easy for franchisees to understand?” he said. “At the same time, we had to make a delicious menu. That was another kind of engineering we had to think through.”
Yu said he believed from the outset that the concept had potential to scale, citing its relatively streamlined menu and what he characterized as a lack of direct competitors targeting the same segment.
“We were really in the blue ocean for this concept,” he said.
Photo: Egg Club
Expansion outlook
Now based in Toronto, Yu said Egg Club is focused on accelerating its physical footprint while maintaining momentum from its initial growth phase. The planned openings this year would more than double its current store count if completed as expected.
He suggested further developments are in progress but declined to provide specifics.
“Good things are coming for us at the moment,” he said. “We have big news coming this year as well that I cannot disclose right now.”
Looking ahead, Yu said the company intends to continue expanding as long as market conditions and operational performance support its ambitions.
“So we want to go as much as we can right now,” he said.
Beautiful row of shops on Ossington Avenue in Toronto. Image: CBRE Urban Retail Team
Toronto retail availability has tightened dramatically at the neighbourhood level, with some of the city’s most in-demand streets now fully leased.
According to JLL’s latest Toronto Urban Retail Report, both Ossington Avenue and Leslieville recorded 0.00% retail availability at the end of the fourth quarter of 2025, making them the tightest retail submarkets in the city. The figures highlight the intensity of demand for well-located, streetfront retail space in Toronto’s most active neighbourhood corridors.
Brandon Gorman, Executive Vice President at JLL Canada, said the lack of availability underscores just how competitive these streets have become.
“Ossington remains the tightest market in the city,” he said, noting that availability has effectively disappeared across multiple consecutive quarters.
Brandon Gorman
Neighbourhood Retail Demand Continues to Intensify
Ossington’s transformation over the past decade into a destination for independent retail, restaurants, and nightlife has made it one of Toronto’s most sought-after retail corridors. Limited inventory and strong consumer traffic have created a supply-demand imbalance that leaves little opportunity for new entrants.
Leslieville is now experiencing a similar dynamic. For the first time, the Queen Street East stretch between Booth Avenue and Leslie Street has reached full occupancy, reflecting growing demand for retail space in Toronto’s east end.
The appeal of these neighbourhoods lies in their ability to combine strong local customer bases with destination appeal. Retailers are drawn to the consistent foot traffic, curated tenant mix, and community-driven atmosphere that support long-term performance.
West Queen West and Summerhill Also Tight
Beyond Ossington and Leslieville, several other Toronto corridors are experiencing similarly tight conditions.
West Queen West continues to attract strong tenant interest, particularly east of Ossington, where available space is increasingly difficult to secure. Gorman noted that many tenants are actively searching for space in the area, but suitable options remain scarce.
“We have a number of tenants looking for space in this corridor and it simply does not exist – it is a very tight market.”
Midtown Toronto is also seeing strong demand. In the Summerhill area, availability is limited, and much of the upcoming retail supply is already attracting interest before completion. New developments, including One Roxborough, are expected to deliver additional space, but leasing activity suggests that demand will continue to outpace supply.
Queen St. E. in Toronto’s Leslieville. Photo: CASTILLO + PARDO
Yonge Street Sees Shift Toward Higher Quality Tenants
While some corridors are effectively fully leased, others are evolving as market conditions improve.
On Yonge Street, particularly between Gerrard and Bloor, leasing activity has increased as landlords gain greater confidence in offering longer lease terms. This shift has allowed higher-quality tenants to enter the market, replacing shorter-term or less established operators that previously dominated parts of the corridor.
Gorman said that smaller-format spaces are driving much of the activity, especially units under 2,000 square feet that can accommodate food and beverage concepts or boutique retailers.
In many cases, these spaces are attracting multiple offers, further illustrating the competitive nature of Toronto’s streetfront retail market.
Limited Supply Continues to Shape the Market
The lack of available space across Toronto’s neighbourhood corridors reflects a broader structural constraint. Unlike enclosed shopping centres, streetfront retail is inherently limited by geography, making it difficult to add new inventory in established areas.
At the same time, redevelopment activity can temporarily remove space from the market, further tightening availability. In some cases, landlords are holding properties for future projects, reducing the number of leasable units in the short term.
This combination of strong demand and constrained supply is expected to keep Toronto retail availability under pressure in the near term.
A Competitive Landscape for Retailers
For businesses looking to enter Toronto’s most desirable neighbourhoods, the current environment presents both opportunity and challenge.
While strong consumer demand and vibrant local economies offer compelling reasons to secure space, the lack of availability means that timing, flexibility, and location strategy are more critical than ever.
As Gorman noted, many of the city’s top-performing streets are no longer simply competitive, they are effectively full.
Shake Shack is partnering with Pizzeria Badiali with three exclusive menu items crafted by Ryan Baddeley, available for a limited time from April 6 to April 19, at four Shake Shack locations in Toronto (Yonge & Dundas, Union Station, Yorkdale Shopping Centre, and Yonge & Eglinton), and for pick-up and delivery through Uber Eats and Skip.
“Community has always been at the heart of what we do at Shake Shack Canada. Partnering with Pizzeria Badiali reflects our commitment to giving back and championing the local talent that makes Toronto’s food scene so vibrant,” said Billy Richmond, Business Director, Shake Shack Canada. “What Ryan has built is truly special – a neighbourhood favourite with real character – and we’re proud to showcase that energy on our menu.”
Billy Richmond
Formed in 2023, Shake Shack Canada is a partnership between Osmington Inc. and Harlo Entertainment Inc.—two Canadian-based private investment companies. It has plans to open at least 35 locations nationwide.
Founded by Baddeley, a fine-dining chef who traded tasting menus for the perfect New York–style slice, Pizzeria Badiali, located at the corner of Argyle and Dovercourt, has built its reputation since 2021 on authenticity, simplicity, and a focused commitment to doing one thing exceptionally well. More than a pizza shop, it’s a neighbourhood institution with a city-wide cult following, explained the brand.
“Badiali has always been about doing simple things really well. Shake Shack gets that. These three dishes are exactly what they should be, nothing more.” said Baddeley.
Daniel Neuhaus photo
The brands said each limited-edition dish begins with premium ingredients from both kitchens, crafted with care and quality that defines both brands. They describe the offerings:
Spicy Vodka Chicken Parm – Crispy, white-meat chicken breast layered over a Badiali and Shake Shack hot pepper mix, topped with Badiali’s spicy vodka rosé sauce, aged parmesan cheese, sliced mozzarella, and fresh basil on a toasted potato bun.
Pizza Fries + Creamy Pepperoncini Dip – Crinkle-cut fries dusted in Badiali’s pizza seasoning, finished with aged parm, and served with Badiali’s signature housemade pepperoncini dip.
Brio Chinotto Shake – Shake Shack’s vanilla frozen custard blended with Brio Chinotto, Toronto’s iconic soda, reimagined as a shake.
A consortium of experienced investors, composed of Group Society and Laurier Capital, has acquired Windsor Station, an architectural and historical gem nestled in the heart of Montréal.
This transaction marks the beginning of an ambitious revitalization project aimed at restoring this “exceptional asset and transforming it into a vibrant hub for Montréal’s workforce and community,” according to a news release.
The retail offering will be diversified and upgraded, including the arrival of a major new 10,000-square-foot restaurant adjacent to the Bell Centre on Avenue des Canadiens-de-Montréal. Additional retail and service concepts are currently being evaluated and will contribute to leasing new spaces while enhancing the experience of existing tenants, explained the consortium.
Although known for its iconic architecture and its event hall, Salle des Pas Perdus, Windsor Station remains relatively unknown to the public for its 326,000 square feet of office and retail space, with direct access on Peel Street, Avenue des Canadiens-de-Montréal, and Saint-Antoine Street, it said.
“Our strategy is to acquire high-quality, well‑located properties with strong growth potential. We are seeing increasing demand for AAA spaces, and this category is nearly fully leased. With no new office construction in the pipeline, high‑quality properties will continue to experience rising rents and higher occupancy.”
The new owners said their aim is to restore Windsor Station to its full vitality and turn it into a true Montréal attraction that is accessible, vibrant, and contributing to the dynamism of downtown Montréal.
The consortium intends to build on the history and legacy of Windsor Station, as stated by members of the Cheaib family, founders of Group Society: “Our vision is to ensure that this historic landmark becomes an essential destination, where history meets innovation, energizing downtown Montréal and supporting the return to the office.”
The consortium said it aims to attract innovative companies, technology firms, dynamic start-ups, as well as smaller professional offices. The objective is to offer inspiring and engaging environments connected to urban life, responding to the growing demand for distinctive, high‑quality work experiences.
Despite the challenges surrounding the return to office, Group Society and Laurier Capital noted their confidence in the potential of this asset class.
Founded by the family of Elie Cheaib, Group Society has developed more than 800 rental units and owns several commercial properties in Montréal.
A new organization in Montréal’s real estate landscape, Laurier Capital was founded by Jacob and Laurent Dionne‑Legendre. Laurier Capital leverages its established network for leasing and asset management, demonstrating an ability to act quickly. Windsor Station represents its fifth acquisition since its founding less than three months ago.
TD Spend data points to volatile consumer spending in recent months.
After finishing 2025 strong, outlays weakened in a storm-affected January and rebounded in February. Real consumer spending is tracking a 1.2% (annualized) pace in the first quarter, down from 1.7% in Q4 2025, according to a recent report.
The report, by Economist Maria Solovieva, said goods spending has recently been driven by necessities. Housing-related spending, by contrast, has contracted for two consecutive months.
Services are reliably carrying the load. Travel and recreation remained the most resilient categories, suggesting that higher-income households appear to be the primary engine keeping spending afloat in early 2026, it said.
The report added that the Middle East conflict has brought higher gas prices and renewed market volatility, throwing yet another wildcard at consumers. Canadian households continue to fight one battle after another, with no intermission in sight.
Maria Solovieva
“Canadian consumer spending started 2026 on a slightly softer footing. Our internal TD Spend data show that spending softened early in the year before stabilizing somewhat in February, leaving the three-month average growth rate at 0.8%, or roughly 9.5% annualized,” said the report.
“This pace is broadly consistent with nominal retail sales, which – while excluding services but including auto sales – are up 6.5% annualized on a three-month trend basis. On a year-on-year basis, TD Spend growth held near 5.0% with base effects from last year’s GST/HST tax break creating some noise across the winter months. Accounting for these signals, real consumer spending (PCE) growth in the first quarter is currently tracking around 1.2 % (annualized).”
The composition of spending over this period highlights a divergence in consumer preferences, said TD.
“Goods spending has been the main source of volatility. It finished 2025 on a remarkably strong note, before posting a notable pullback in January and partially recovering in February. Meanwhile, services spending has been steady, rising for three consecutive months. Weather likely played a role in these dynamics. The winter storm that swept across much of the country appears to have both frozen consumer activity in some areas and redirected spending in others.
“Spending on essential categories has dominated goods outlays. Over the past three months, spending at grocery stores, convenience stores and general merchandise retailers (which include wholesale outlets like Costco) collectively accounted for roughly 70% of goods spending growth, up from 40% a year ago, as spending on clothing, electronics and department stores has effectively fallen away. Food inflation picked up in the second half of 2025 and, at more than double the headline rate, continues to keep nominal grocery spending elevated.”
Gustavo Fring photo
The recent spending data point to a consumer sector that remains resilient but increasingly battle-worn, said TD.
“Essential goods categories are holding up, while discretionary goods categories – particularly those tied to housing – are losing momentum. Services spending continues to provide forward momentum, but the support is narrower than the headline suggests. It rests largely on discretionary outlays like travel and recreation, which tend to be concentrated in higher income households.”
Today’s Retail Insider articles cover significant moves in Canadian retail, including Joseph Ribkoff’s global expansion under new leadership and Dollarama’s challenging Australian push affecting its outlook. We also see important discussion on food taxes in Canada with Manitoba’s recent PST removal on groceries highlighting affordability issues. Additionally, Juice Dudez reveals ambitious franchising plans to grow sustainably. These stories spotlight strategic shifts in retail growth, taxation impacts, and consumer-focused innovation.
