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Toronto condo retail market sees 53% drop in sales dollar volume: JLL Report

By
Mario Toneguzzi
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The Condo Retail Sales Report: Trends and Insights 2019-2024 by JLL examined the condo retail real estate market trends in Toronto, analyzing transaction data to provide insights into market performance and dynamics. 

“The condo retail real estate market has experienced notable shifts during this period, influenced by macroeconomic conditions such as interest rate changes and evolving investor sentiments,” it said.

“The data reveals a market that has navigated fluctuations in pricing and capitalization rates with 2023 and 2024 marking a decline in total transaction volume while maintaining relatively stable PPSF levels.”

The analysis concentrates exclusively on ground level retail space at the base of residential developments (those with condominium and stratified freehold ownership titles – both of which, for the purposes of this report, are referred to as ‘condo retail’’) located from Jane Street to the west, St. Clair Avenue West and Lawrence Avenue West to the north, and the Don Valley Parkway to the east (plus Leslieville) and Lake Ontario to the south.

Source: JLL
Source: JLL
Source: JLL
Source: JLL

“The total dollar volume of retail transactions over the six-year period was $484.5 million, peaking in 2019 at $116.6 million, followed by a consistent decline through to 2024, where volume dropped to $54.8 million – a 53% decrease over six years. The decrease is likely attributable to a combination of factors, including higher borrowing costs, cautious investor sentiment, and diminished property valuations resulting from increasing capitalization rates,” said the report.

“The total number of condo retail sales completed from 2019 through to the end of 2024 is 106. Transaction volume remained relatively stable in terms of deal count, with the number of transactions per annum ranging from 16 to 19. The years 2020, 2021, and 2022 saw the highest number of transactions at 19 each, while 2019 and 2023 had the lowest at 16. This stability in transaction count suggests a consistent level of market activity despite fluctuations in total dollar volume.

Source: JLL
Source: JLL
Source: JLL
Source: JLL

The report said the average price per square foot (PPSF) has fluctuated significantly over the six-year period, with no clear upward or downward trend. It reached its peak of $1,201 in 2020, following a rise from its lowest point of $946 in 2019, representing a 27% increase. These fluctuations might reflect changes in the mix of property types being sold, location variations within the study area, and overall market volatility influenced by broader economic factors. Subsequent years have seen various shifts in PPSF, indicating a dynamic and unpredictable market environment. 

“Cap rates have shown notable variation over the study period, ranging from a low of 4.32% in 2021 to a high of 5.50% in 2024. There is an upward trend in recent years, with 2023 hitting a 5-year high of 5.45% before reaching 5.50% in 2024. The lowest average cap rate was recorded in 2021 at 4.32%, indicating peak investor confidence during a period of historically low interest rates. Conversely, the highest average cap rates were observed in 2024 (5.50%) and 2023 (5.45%), reflecting softening market conditions and a shift towards buyer-favourable pricing. This upward trend in cap rates aligns with the broader economic context of rising interest rates and increased market uncertainty,” explained JLL. 

A significant shift towards end-user transactions has been observed from 2019 to 2024. In 2019, only 25% of sales were to end-users, but by 2024, this proportion had risen dramatically to 88.2%. This trend clearly demonstrates a growing preference for owner-occupied properties, particularly among professional services such as dentists, who are increasingly focused on purchasing their own real estate, noted the report. 

Several factors have prompted this shift towards owner-occupier purchases:

1. Lower sales velocity for income-producing assets
2. Rising interest rates, making ownership potentially more attractive than leasing
3. The desire for greater control over property use and potential for long-term appreciation

“This trend has implications for both the market dynamics and the future composition of condo retail space ownership, potentially leading to a more diverse and stable tenant mix in these properties,” it said.

The report said the average size of transactions has fluctuated significantly over the study period. 2019 stands out with the largest average transaction size of 7,780 square feet. Subsequent years saw a shift towards smaller average transaction sizes, ranging from 3,514 to 4,953 square feet. This trend aligns with the increasing proportion of end-user transactions, which historically have resulted in smaller unit sizes. This is exemplified in 2024, where 15 end-user transactions averaged just 2,902 square feet, significantly below the overall average for the period. This shift in transaction size reflects the changing nature of demand in the condo retail market, with smaller, owner-occupied units becoming increasingly prevalent. 

“The retail real estate market from 2019 to 2024 reflects a period of significant transition. While total transaction dollar volume has declined substantially, pricing metrics such as price per square foot (PPSF) have shown resilience. Simultaneously, cap rates suggest a recalibration of investor expectations in response to changing market conditions,” said the report.

Source: JLL
Source: JLL

Looking ahead, investors should closely monitor several key factors, it added:

1. Interest rate movements and their impact on financing costs
2. Consumer spending patterns and their effect on retail performance
3. Evolving retail fundamentals, including the shift towards end-user ownership

“These factors will be crucial in identifying opportunities in a market that is adjusting to new economic realities. The increasing trend of end-user purchases, particularly among professional services, may continue to shape the landscape of condo retail real estate in the coming years,” said JLL.

The condo retail sales market for 2025 is expected to stabilize, with several key trends emerging, added the report: 

  1. End-user interest is projected to remain strong, driven by consistent lending environments and more affordable debt. However, we anticipate user transactions as a percentage of the overall market to decrease from the record high of 88.2% seen in 2024;
  2. Economic uncertainties in the United States are fostering caution among Toronto investors. Nevertheless, the cap rate precedents set in 2024, averaging 5.50%, may provide sellers with confidence in asset values;
  3. We expect more high-profile assets to trade in 2025, potentially leading to an increase in both overall dollar volume and number of transactions from the $54.8 million and 17 transactions recorded in 2024;
  4. Price per square foot figures are expected to remain stable, continuing the trend observed in recent years. Vacant condo retail assets are expected to trade within a consistent value band, similar to the $972 per square foot average seen in 2024. 

“The stabilization of the market may attract a more diverse range of investors, balancing the recent dominance of end-users. This could lead to a more dynamic and competitive market environment.”

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Canadian Retail News From Around The Web For May 14, 2025

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

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

Sheertex maker partly closes on financing, names interim CEO as founder Katherine Homuth departs for new startup (Globe & Mail)

Labour Disruption Concerns at Canada Post (Retail Council of Canada)

Save-On-Foods is B.C.’s favourite brand: Ipsos (Canadian Grocer)

Red Light Holland Expands Happy Caps Mushroom Kits to Costco Canada (TipRanks)

Bitter sweet: One of Station Mall’s original stores, Laura Secord, has closed (Soo Today)

Saskatchewan: Costco considered building distribution centre on GTH land, province says (CTV)

A Massive Thrift Sale Is Coming To Montréal With Free Entry (Time Out)

Newfoundland and Labrador to end controversial tax on sugary drinks (Canadian Grocer)

Loblaw opens 500th discount store (in Pincher Creek AB)

Winnipeg retail employee charged after pocketing over $38K (Winnipeg Sun)

Coordinated Retail Crime Prevention Operations Set for Laval and Terrebonne (Retail Council of Canada)

Hudson’s Bay Buyer Decision Expected by Mid-June

By
Craig Patterson
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Former exterior entrance to the Hudson's Bay store at Toronto's Yorkdale Shopping Centre on Monday, May 12, 2025. Photo: Craig Patterson

The Hudson’s Bay Company is expected to decide on a buyer—or group of buyers—for its assets and leases by early to mid-June, marking a significant milestone in one of the most high-profile retail restructurings in Canadian history. The announcement was made during a court appearance on Tuesday by Ashley Taylor of Stikeman Elliott LLP, legal counsel for the department store chain.

Taylor confirmed that Hudson’s Bay will return to court within two to three weeks to seek approval of one or more transactions related to its intellectual property, retail leases, and other business assets. The timeline sets the stage for a potential transformation or partial resurrection of Canada’s oldest retailer, which filed for protection under the Companies’ Creditors Arrangement Act (CCAA) on March 7, 2025.

According to court documents, Hudson’s Bay has received 17 formal bids for various components of its operations. These include offers for its well-known intellectual property—such as the Hudson’s Bay name, its signature multicoloured stripes, and private label brands like GlucksteinHome and Hudson North—as well as its customer databases and historic artifacts.

In a parallel bidding process, 12 parties have submitted offers for 39 of the company’s 96 store leases, which span the Hudson’s Bay, Saks OFF 5TH, and Saks Fifth Avenue banners in Canada. Many of the lease bids overlap, suggesting competition for prime retail locations. Several bidders also submitted joint offers for both assets and leases, hinting at interest in restarting retail operations using select components of the company.

Ontario Court Approves Extension to July 31 Amid Restructuring Efforts

Ontario Superior Court Justice Peter Osborne has granted Hudson’s Bay an extension of court protection under the CCAA until July 31, 2025. The previous deadline had been set for May 15. The extension will provide additional time to complete liquidation sales, select buyers, and finalize asset transfers.

“We are asking for an extension so we can have some breathing room to see what can be done,” Taylor told the court, emphasizing the need to complete the complex sale process and asset monetization.

The extension comes at a time when Hudson’s Bay is nearing the end of its liquidation process, with most stores expected to be vacated by the end of June. Liquidation sales began in late March at 74 Hudson’s Bay stores, two Saks Fifth Avenue stores, and 13 Saks OFF 5TH locations. By April 25, the company added six final Bay stores and a Saks to the liquidation list after a last-ditch effort to revive a scaled-down version of the chain fell through.

Hudson’s Bay store at Toronto’s Yorkdale Shopping Centre on Monday, May 12, 2025. Photo: Craig Patterson

Liquidation Sales Generate Higher-Than-Expected Cashflow

Court filings show that the company’s liquidation strategy has yielded significantly more cash than anticipated. According to an affidavit sworn by Hudson’s Bay Chief Financial Officer Jennifer Bewley on May 7, sales from April 19 to May 2 totaled $129.5 million—approximately 40% higher than earlier forecasts. As of May 2, the company held $194 million in cash, or $70.3 million more than it had projected.

Hudson’s Bay is now preparing to use this surplus cash to begin paying off portions of its senior debt. Justice Osborne approved a motion that allows the company to repay up to $165 million under two credit facilities.

Initial payments include $25 million to retire a revolving credit facility managed by Bank of America and $40 to $46 million to Restore Capital LLC, a lender involved in recent emergency financing. The motion also permits further repayments as cashflow allows.

Pushback from Landlord Stakeholders Over Debt Repayments

The motion to repay senior debt was not without controversy. Lawyers representing key landlords, including RioCan REIT, opposed the move. Joseph Pasquariello of Goodmans LLP, counsel for RioCan, argued that repaying lenders before determining the future of the leases and assets could be premature.

“There has not been one sale, one transfer of a lease put before this court for an approval,” said Pasquariello, calling the debt repayment process “very hurried.” He also raised concerns about transparency around how much debt remains with the Canadian entity after a separate $2.65 billion U.S. transaction involving the acquisition of Neiman Marcus by Hudson’s Bay’s parent company.

That transaction, completed in December 2024, resulted in the formation of Saks Global, which now holds all U.S. retail operations and real estate assets formerly under HBC. The Canadian operations were separated from those U.S. assets as part of that deal.

Taylor responded in court that the Neiman Marcus acquisition reduced Canadian indebtedness by approximately $1.36 billion and that the current repayments apply only to debt secured after the split. The U.S. entity, he noted, is no longer a guarantor of Canadian debt.

Despite the objections, Justice Osborne ruled in favour of Hudson’s Bay, stating that “distribution is appropriate” given the liquidity generated through asset sales.

Bidding Landscape: Known Buyers and Strategic Intentions

Of the 17 bids received, a few parties have made their intentions public. Notably, Weihong Liu, the entrepreneur behind Central Walk, has submitted a proposal to acquire approximately 25 Hudson’s Bay store locations across British Columbia, Alberta, and Ontario. Liu’s vision includes transforming stores into experience-driven retail hubs.

Liu’s bid is believed to include Hudson’s Bay trademarks, 25 stores, and potentially its customer database. Her real estate firm, Central Walk, already owns several major malls in Canada, including Mayfair Shopping Centre in Victoria, Woodgrove Centre in Nanaimo and Tssawwassen Mills near Vancouver.

Another confirmed bidder is Toronto-based Urbana Corporation, which is seeking to acquire Hudson’s Bay’s intellectual property portfolio. This includes historic brand assets such as Zellers, GlucksteinHome, and the company’s 1670 Royal Charter.

Canadian Tire Corporation has also expressed interest in select brand assets but has publicly ruled out acquiring the entire chain. The company’s bid is expected to focus on individual brands that could complement its existing product and private label strategy.

No bids were received from insiders, including Executive Chairman Richard Baker, according to court documents.

An entrance to the Hudson’s Bay store at Toronto’s Yorkdale Shopping Centre on Monday, May 12, 2025. Photo: Craig Patterson

Background: Canada’s Oldest Retailer Faces a Pivotal Moment

Founded in 1670, Hudson’s Bay Company is the oldest corporation in North America and an enduring symbol of Canadian retail history. However, decades of shifting consumer habits, growing e-commerce competition, and an overbuilt store network gradually eroded its market position.

The situation reached a breaking point earlier this year. On March 7, 2025, Hudson’s Bay filed for creditor protection under the CCAA, citing over $1.1 billion in debt. The company owed money to approximately 400 stakeholders, including landlords, vendors, suppliers, and tax authorities.

Alvarez & Marsal Canada Inc. was appointed as the court monitor, overseeing the restructuring process and coordinating the asset sale. Initially, Hudson’s Bay aimed to restructure around a smaller core of stores, but by late April, the company pivoted to full liquidation after failing to secure necessary financing.

Store Closures, Asset Sales, and the Road Ahead

All Hudson’s Bay, Saks Fifth Avenue, and Saks OFF 5TH stores in Canada are set to close by June 15. After June 1, furniture and fixtures will be cleared out, and the company will vacate all properties by month’s end. The lease disposal process includes a mix of direct transfers and auctions where bids overlap.

The company is also preparing to auction a collection of 4,400 historical artifacts, pending court approval. These include items of national significance tied to the company’s 355-year history.

The Ontario court is expected to reconvene in late May or early June to approve selected bids and provide direction on next steps. The outcome could see parts of the Hudson’s Bay brand continue under new ownership, either as retail operations or as licensed intellectual property.

Impact on Employees and Canadian Retail

The closure of Hudson’s Bay has far-reaching implications. Roughly 9,400 employees will be affected by the store closures, alongside thousands of retirees. Legal and financial advisors are actively working to ensure their interests are considered as the process unfolds.

The disappearance of Hudson’s Bay from Canadian shopping centres also raises questions about the future of department store retail in the country. As landlords weigh their next moves, interest from global and domestic players—like Central Walk and Canadian Tire—suggests the story of Hudson’s Bay may not end entirely.

For now, the fate of this storied brand rests with the Ontario courts, competing bidders, and the court-appointed monitor overseeing the process. A clearer picture of Hudson’s Bay’s future is expected to emerge by mid-June.

More from Retail Insider:

Pita Pit launches 8th annual fundraising campaign in support of Make-A-Wish Canada

By
Mario Toneguzzi
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Emma (left), age 5, wishes to go to the ocean. Alyanah (right), age 10, wishes for a home entertainment centre. Pita Pit’s fundraising campaign supports Make-A-Wish Canada in granting wishes like theirs from May 12 to June 8, 2025.
Emma (left), age 5, wishes to go to the ocean. Alyanah (right), age 10, wishes for a home entertainment centre. Pita Pit’s fundraising campaign supports Make-A-Wish Canada in granting wishes like theirs from May 12 to June 8, 2025.

Pita Pit, a Canadian-owned quick-service restaurant brand known for its fresh, customizable pita sandwiches, has announced the return of its national campaign in support of Make-A-Wish Canada, now in its eighth year.

The company said customers can support the initiative from May 12 to June 8 by donating $2 to get a Make-A-Wish star in-store. Pita Pit will also hold a one-day national promotion on Wednesday, June 4, during which participating stores will donate $1 from every pita, bowl, and salad sold. This special event allows customers to turn their meals into meaningful moments for Canadian children with critical illnesses.

Chris Cann
Chris Cann

“We’re happy to embark on another year of our ongoing partnership with Make-A-Wish Canada,” said Chris Cann, Brand Leader at Pita Pit. “Each year, our franchisees, team members, and loyal customers come together to support this cause, and the impact is truly inspiring. We’re hopeful this year’s campaign will help grant even more wishes for very special children and their families.”

The month-long campaign aims to raise funds to help grant life-changing wishes for children facing critical illnesses, with customer engagement and store-level promotions taking place in more than 100 locations nationwide. Each donation directly contributes to bringing joy, strength, and hope to children in their communities.

Meaghan Stovel McKnight
Meaghan Stovel McKnight

“We’re grateful to Pita Pit for their longstanding commitment to our mission,” said Meaghan Stovel McKnight, Chief Executive Officer of Make-A-Wish Canada. “Their support helps us bring hope and joy to children when they need it most. Wishes have the power to be transformative for a wish child on their medical journey, and partners like Pita Pit help make that possible.”

Since 2017, Pita Pit and its community have raised over $229,000 for Make-A-Wish Canada, helping to grant wishes from coast to coast. Through in-store efforts, customer generosity, and franchisee contributions, the campaign continues to grow in impact each year.

Pita Pit, which was founded in 1995, is owned by Foodtastic, one of Canada’s largest restaurant franchisors, operating more than 1,200 locations across the country. Its diverse portfolio includes Freshii, Quesada, Pita Pit, Second Cup, Milestones, and over 22 other banners. Committed to quality, innovation, and growth, Foodtastic continues to expand its presence across North America.

Make-A-Wish creates life-changing wishes for children with critical illnesses.

“We are on a quest to bring every eligible child’s wish to life because a wish is an integral part of a child’s treatment journey. Research shows children who have wishes granted can build the physical and emotional strength they need to fight a critical illness. As an independently operating affiliate of Make-A-Wish International, Make-A-Wish Canada is part of the network of the world’s leading children’s wish-granting organization. We serve children in every community in Canada, and in 50 countries worldwide. Make-A-Wish Canada has granted more than 40,000 wishes over the past 40 years with 2,011 of them last year alone. Make-A-Wish Canada has been recognized as a Great Place to Work® for the second year in a row, and was also named one of the Best Workplaces™ Led by Women in 2025 and one of the Top 100 Best Workplaces for Giving Back in 2024,” says the organization.

Mezza Lebanese Kitchen expands to Calgary 

By
Mario Toneguzzi
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Peter and Tony Nahas
Peter and Tony Nahas

Mezza Lebanese Kitchen has expanded into Alberta with the opening of its first restaurant in Calgary. 

Mezza is introducing its renowned East Coast donairs, shawarmas, and authentic Middle Eastern flavours to Western Canada. 

As part of Mezza’s national growth strategy, this new location marks a significant milestone in its 35-year journey to bring healthy, delicious Lebanese cuisine all the way from Halifax to Calgary. 

“Over the years, and as we expand across Canada, we’ve prioritized keeping authenticity at the core of our offerings,” said Peter Nahas, Co-Founder and Chief Concept Officer of Mezza Lebanese Kitchen. “From using generations-old family recipes and seasonings to focusing on high-quality ingredients, we remain committed to this principle.

“We believe that consumers can taste the difference in our quality, and we can’t wait to share that with the people of Alberta. Bringing Mezza to this vibrant province is more than just expanding our footprint—it’s about sharing the warmth, tradition, and authentic flavors of our Lebanese heritage with a new community.”

Tony and Peter Nahas
Tony and Peter Nahas

Last year saw another major development for the company with the opening of a 15,000-square-foot production facility in Halifax dedicated to maintaining the quality of Mezza’s dishes, including its creamy hummus, famous pickled turnips, and signature garlic sauce. All items are prepared fresh daily and used across all Mezza locations throughout the country. 

Mezza traces its origins back to 1990 when the Nahas family emigrated from Lebanon to open their first restaurant in Halifax, which quickly became a popular dining destination within the city and its surrounding areas. With history rooted in family traditions and culinary excellence, Mezza has evolved from a beloved local brand into an award-winning franchise, remaining a favourite among locals.

The quick-service restaurant, which is run by co-founders brothers Peter and Tony Nahas, has 23 locations in Canada.

Peter Nahas said 22 of those locations are in all four Atlantic provinces.

“Alberta is very strategic for us. There’s a significant number of East Coast transplants—people with Atlantic Canadian roots—who’ve moved West. There’s a strong community of East Coasters here, and part of our goal is to share that East Coast connection—our food, our Nova Scotia products—with them,” he said.

“What makes us unique is our family’s generations-old recipes. We want to share those with East Coasters as a taste of home, and also introduce them to those who aren’t from the East Coast. As an Atlantic Canadian-led Lebanese restaurant group, we’re excited to bring that to the Calgary and Edmonton markets.

“And honestly, I don’t think the market here is much different than in Atlantic Canada. Canadians coast to coast appreciate healthy, fresh, delicious food. Once they try it, they’re going to love it.”

The first one was opened by their parents when they immigrated to Halifax in 1990. And this month—May—actually marks its 35th anniversary.

“They opened their first location in the Halifax Shopping Centre. It was under a different brand at the time, but the concept was the same. It started with my parents. My brother and I grew up in the business and took over in 2012. That’s when we rebranded and reformulated into Mezza Lebanese Kitchen, which is what you see today. But it’s been a family-run business since day one in 1990,” said Nahas.

Mezza Lebanese Kitchen (Image: Fathom Studio)

“Our menu from 1990 had our core items that are still on the menu today: donair, shawarma, souvlaki and falafel. Those are our staples. We serve them as wraps, bowls, plates, poutines—modern formats, essentially.

“But if you look at old photos from back then, the core items haven’t changed. Donair has been on the menu for 35 years. Souvlaki, too—it’s always been served the same way: with Greek salad, your choice of rice or French fries, and either tzatziki sauce with the souvlaki or sweet donair sauce with the donair.

“Shawarma came a bit later—in the late ’90s, around 1997 or 1998. That’s when we started getting more into traditional Lebanese food.

“As you’d expect with any immigrant family starting out, they had everything on the menu—fish and chips, clubhouses, you name it—whatever they could cook to put food on the table.

“But donair and souvlaki have always been there. The more traditional Lebanese dishes like hummus, tabbouleh, shawarma—they came later in the ’90s. And in 2012, when my brother Tony and I took over, we focused on simplifying the menu. We leaned into our core Lebanese offerings and phased out the clubhouses, fish and chips, and so on. We focused on what makes us special and unique.”

Nahas said he would love to reach over 200 locations across the country eventually.

“I think in our QSR model, if you look at the strategic markets across Canada, 200+ is definitely within reach. You see similar growth with other brands in the ethnic food space,” he explained. “We’re aiming for that kind of scale, rolled out strategically across each province.

“The market has definitely shifted over the last 10 years—from sit-down restaurants to fast casual and quick-serve. But the key focus now is on quality and freshness. That’s what’s going to survive in this space, regardless of format.

“Consumers today prioritize good food. They want fresh ingredients. They want to know where their food comes from and what’s in it. They’re looking for clean food.

“I think if you’ve got a good product, at a good price, with great flavours—that never goes out of style. That’s not something that can get saturated.”

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Canadian online retail sales drop 3% in Q1 2025: Salesforce Report

By
Mario Toneguzzi
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Photo by Andrea Piacquadio
Photo by Andrea Piacquadio

As economic uncertainty and ongoing trade tensions weigh on consumers, Canadian online retail sales saw a 3% YoY decline —compared to 3% growth in Q1 2024, according to Q1 Canadian retail insights from Salesforce’s 2025 Shopping Index, which analyzes activity from over 1.5 billion global shoppers across 67+ countries.

Retailers also witnessed a decline in average order value in Q1 2025 at $99.25, down 4% from $103.82 in Q1 2024, said Salesforce.

Caila Schwartz
Caila Schwartz

“The Q1 2025 retail results paint a picture of a cautious Canadian consumer. High prices, economic uncertainty, and shifting priorities are all contributing to a more deliberate approach to online shopping.  Canadian consumers are increasingly seeking out discounts and prioritizing value, while retailers are responding with targeted promotions and an emphasis on mobile-friendly experiences,” said Caila Schwartz, Director of Consumer Insights and Strategy for Retail and Consumer Goods at Salesforce.

Q1 Shopping Index Salesforce| Canadian Data

  • With economic uncertainties and geopolitical climates impacting retail, Canadians are cautious and tightening their purse strings. 
  • Digital commerce sales declined 3% YoY (compared to 3% growth in Q1 2024), the Shopping Index shows: 
  • a decline in per-visit average spend, sitting at $2.57 (down 3% from $2.64 in Q1 2024)
  • a drop in conversion rate to 1.9% (down from 2.3% last quarter). A slight decrease of 2% from Q1 2024.
  • Canadian traffic was stagnant at 0% in the first quarter, with computers seeing a 15% growth while mobile declined by 4%. 
  • Overall order volumes decreased by 5% in Canada, owing to computers seeing a decrease of 5% and mobile orders growing by 6%.
  • The rate of online traffic using site search was at 7% in the first quarter, accounting for 17% of all orders in Canada.
  • Mobile remains the biggest traffic driver and preferred channel for placing orders in Canada
  • Mobile drove 70% of all online traffic and 66% of all online orders in Q1 2025. The rate of orders coming from mobile devices continues to grow, with Q1 mobile orders growing 5% over the same period in 2024.
  • The average discount rate for Canada in the first quarter was 16%, which is a slight increase from the 15% seen during this time period last year.
  • The average order value (AOV) in Q1 2025 is $99.25, down 4% from $103.82 in Q1 2024.
  • The Canadian cart abandonment rate remained steady YoY
  • Desktop continues to lead when it comes to actually clicking the buy button, with a 80% cart abandonment rate versus 88% on mobile. 
  • Work still remains on mobile to remove friction through the checkout funnel.
  • The share of Canadian traffic referred by social media was 10% in the first quarter, with 12% of mobile traffic being referred from social channels.

Schwartz said “we are still seeing the same type of 2024 consumer: cautious, pulling back on their spend, focusing on essentials.”

“We saw specifically in Canada, if we looked at the data, sales fell by 3% in Q1. But if we looked at the data over a five-quarter basis—well, technically nine quarters—on a year-over-year basis, sales have been kind of up and down between 3% and -3% over that time period. So we’re kind of in this same pattern of consumers really being cautious,” she said of the Salesforce data.

“We saw a decline in order volumes—consumers didn’t place more purchases than last year. It was about 5% down in Q1. But we also saw a decline in the per-visit spend, which is really interesting. It says to me that not only did we see that sales decline and order volume decline, but we also saw a pullback in how much they were spending per visit, which really corroborates that initial assumption: that it’s a rebalancing and a focus on essentials.”

Schwartz said the tariff uncertainty definitely doesn’t help put the consumer’s mind at ease. 

“We’re paying attention very closely right now to see what’s happening. We’re still seeing spend, we’re still seeing activity, so we haven’t seen a dramatic drop-off. I think the consumer is going to be very sensitive to price right now—they have been for a long time. So any dramatic increase in prices over the next three to six months is really going to bring a lot more challenges from the consumer’s perspective. But it’s hard to know exactly what’s going to happen right now, given that things seem to be changing on a day-to-day basis,” she said.

“But I think if this continues, what we can expect to see is that same type of cautious consumer—probably some more pullback, definitely a refocusing again on essentials, and just a consumer that’s in a wait-and-see type of approach.”

Schwartz said we’ve seen a decline in consumer sentiment since 2022, when we really started to see inflation ramp up. 

“We’ve been polling this every year now for the last few years, asking consumers how they feel about the economy or their own personal financial situation. What we’ve seen is that the consumer is feeling stretched. Last year, actually for the first time, we saw consumers say they were putting their money into savings, investing, and paying down debt—versus prioritizing physical goods or buying experiences, which really says to us that the consumer is trying to get their financial house in order—they’re really trying to buckle down,” she added.

Photo by Andrea Piacquadio
Photo by Andrea Piacquadio

Schwartz said what’s also interesting is how consumers are using mobile devices.

“We saw mobile usage by Canadians in terms of traffic—the rate of traffic coming to e-commerce sites from mobile—I would say is probably at its peak. We haven’t seen much movement in that metric over the last several quarters. But what is growing is the rate of orders coming from mobile devices, which is really interesting,” she explained.

“I think it says two things: one, the mobile buying experience is getting better—whether that’s through consolidated checkout experiences, more checkout or payment options, or better mobile carts overall. There’s a greater willingness and comfort on the part of the consumer to transact—especially for larger purchases—using their mobile devices.

That’s a very interesting one to see play out. My sense is we’ll still continue to see it grow, but we’re probably getting to the point where mobile usage and mobile saturation or penetration is coming to its peak—which is very cool from more of a technology perspective.”

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IRIS Marks 35 Years with Bold Employee-Focused Campaign

By
Craig Patterson
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IRIS store. Image: IRIS

IRIS, one of Canada’s largest and most established eyewear retailers, is marking its 35th anniversary in striking fashion—literally. The company has launched a refreshed edition of its “IRIS, it’s me” campaign for spring 2025, positioning its own employees as the face of the brand in a move that merges identity, authenticity, and fashion. Anchoring the national campaign is a reinterpretation of the Canadian hit “Sunglasses at Night” by Dante Hart, daughter of music icon Corey Hart.

This multifaceted campaign not only highlights the crucial role of IRIS’s employees in shaping customer experience but also elevates the company’s position in the style-conscious eyewear segment. The bold, fashion-forward push is part of a broader strategy to modernize the brand while deepening its human connection with customers.

Putting People at the Heart of the Brand

“The ‘IRIS, it’s me’ campaign is about more than marketing,” explained Mélanie Hajjar, Vice President of Marketing and Communications at IRIS. “It’s about telling the real story of our people—those who represent the IRIS experience every single day across Canada.”

Mélanie Hajjar, Vice President of Marketing and Communications at IRIS

Launched initially in 2024, the campaign’s 2025 iteration features real IRIS employees in its visual and video advertising. Hajjar emphasized that by showcasing actual team members instead of models, the company brings authenticity and approachability to the forefront—values that have shaped IRIS from the beginning.

“Customers who see the ads might actually walk into their local store and recognize someone from the campaign. That sense of familiarity and trust—that’s what we’re going for,” said Hajjar.

The choice has resonated internally as well. “Everyone wants to be part of it,” Hajjar noted. “It’s a full-on experience for our team—from makeup and styling to filming. But because they’re surrounded by their IRIS family during the shoot, they’re comfortable, and that joy really comes through.”

A Stylish New Direction

While IRIS is well known for its optometry and health expertise, the campaign represents a conscious effort to showcase the brand’s fashion sensibilities. “For many, eyewear isn’t just a tool to see better—it’s an expression of personality and style,” said Hajjar. “We want people to see that IRIS is also a leader in fashionable frames and forward-looking design.”

The use of “Sunglasses at Night,” reimagined by Dante Hart, adds both flair and cultural resonance. “It’s the perfect bridge between past and present,” said Hajjar. “The song is celebrating its 40th anniversary, we’re celebrating our 35th—and it’s iconic for Canadians.”

The track also appeals across generations. “Our core demographic is 35 to 49, but with Dante’s version and a recent remix by Heidi Klum and Tiga making the rounds on social media, we’re reaching younger audiences too.”

A Canadian Brand with Deep Roots

Founded in 1990 by optometrist Dr. Francis Jean, IRIS began in Baie-Comeau, Quebec. It originally started as a buying group in 1986 but evolved quickly into a full-service optical brand. “Dr. Jean had a big vision,” Hajjar said. “He started knocking on doors and inviting small-town optometry practices to join his franchise network under the IRIS name.”

The company’s expansion picked up pace in 2000 with the acquisition of Western Canada’s London Optical. That move brought IRIS to British Columbia, Alberta, and Ontario. However, Ontario posed unique challenges due to then-existing legislation that prohibited opticians and optometrists from working under the same roof.

“We were essentially illegal for seven years in Ontario,” Hajjar recalled. “But Dr. Jean believed strongly that professionals working together could offer a superior experience. In 2014, we finally won that legislative battle—though sadly, he passed away before seeing the victory.”

Today, IRIS operates approximately 150 locations across Canada, with its largest footprint in Quebec. The brand employs around 1,300 people, including contract optometrists, and provides full-service optical care—ranging from eye exams to ophthalmology clinics.

Image: IRIS Campaign

Now Part of a Larger Vision

Since 2017, IRIS has been part of the New Look Vision Group, which acquired the brand for $120 million. The move positioned New Look as the country’s largest optical retail network, with more than 375 locations.

The partnership has given IRIS the resources to continue growing—both in terms of footprint and product innovation. The brand has developed its own proprietary lens technologies and exclusive frame lines like “LYA,” short for “Love You All,” a nod to Dr. Jean’s warm signature sign-off in his emails.

All IRIS lenses are manufactured in Montreal, a decision that ties back to the campaign’s broader “Made in Canada” spirit. “We wanted this campaign to be entirely Canadian,” Hajjar said. “From the employees in our ads to the lenses we provide, this is a celebration of our Canadian identity.”

Differentiating in a Crowded Market

The Canadian optical market has become increasingly competitive, particularly with international players like Specsavers entering the field. Yet IRIS is confident in its differentiated value proposition.

“We’re not in the $69-glasses business,” said Hajjar. “We’re mid-to-high range because we offer something different—personalized, expert-driven care, and technology that truly enhances vision.”

That includes IRIS’s new “Apogee” lenses, which use VR-based eye tracking to produce highly customized lenses. “It’s as close as you can get to natural vision. One customer even joked about selling their car to afford a lifetime supply,” Hajjar laughed.

In-Store Over Online—for Now

While many optical retailers have moved into online sales, IRIS has not followed suit—at least, not fully.

“We currently don’t sell glasses online due to both legislative hurdles and our own quality standards,” said Hajjar. “In most provinces, online optical sales require a licensed optometrist to endorse each transaction, which complicates things.”

IRIS does offer online sales for contact lenses, provided the prescription is valid and under two years old. But for eyewear, the company prefers its personalized in-store model, which it believes delivers the best outcomes for customers.

“Ultimately, your vision is too important to compromise,” said Hajjar. “What you put on your face isn’t just plastic and metal—it’s a health device that defines how you see the world.”

Image: IRIS

Looking to the Future

With plans to expand further in British Columbia and Ontario, IRIS continues to look ahead. “We’re growing, not just in store count, but in how we serve Canadians,” Hajjar said. “We’re expanding our exclusive collections and investing in new technologies that will change how people experience vision.”

Despite the competitive landscape, Hajjar believes that IRIS’s values will keep the brand thriving. “We’re not just in the business of selling glasses. We’re in the business of helping people see the world—and do so in style, with confidence and care.”

With a campaign that celebrates Canadian heritage, employee pride, and a legacy of innovation, IRIS’s 35th anniversary doesn’t just look back—it sets the tone for the future of vision care in Canada.

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Most impactful McHappy Day to-date: Canada comes together to raise over $11.3 million to support families

By
Mario Toneguzzi
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McDonald's Canada marked its 31st McHappy Day by raising over $11.3M+ for RMHC across Canada and local children's charities nationwide. The Michalski family, who received support from RMHC South Central Ontario, along with Kate Horton, President and CEO of RMHC Canada and Michèle Boudria, President and CEO of McDonald’s Canada, joined the festivities in-restaurant on McHappy Day. (CNW Group/McDonald's Canada)

McDonald’s Canada has announced a record-breaking McHappy Day, where communities showed up to help raise much-needed funds that will have a profound impact on the lives of families with sick and injured children.

Together with Canadians, the collective effort recently raised over $11.3 million for Ronald McDonald House Charities across Canada, and other local children’s charities nationwide.

Throughout McHappy Day, Canadians showed up in remarkable numbers, turning everyday purchases into extraordinary acts of generosity. Each purchase made on Thursday May 8, contributed significantly to the record-breaking fundraising total, showing how small actions can make a big difference to support families when they need it most, said McDonald’s in a press release.

“At its heart, McHappy Day is a community event hosted by McDonald’s Canada and its local, independent franchisees, driven by a commitment to the neighbourhoods and families they serve.”

Michèle Boudria
Michèle Boudria

“Our franchisees are not just business leaders; they are community champions,” said Michèle Boudria, President and CEO of McDonald’s Canada. “McHappy Day is a shining example of their dedication to growing and fostering strong community connections, and the impact we can make for families with sick or injured children when we come together.”

This year marked the 31st McHappy Day in Canada, bringing the total to over $111.3 million raised to-date in support of RMHC across Canada and other local children’s charities. These funds have played a critical role in enabling RMHC across Canada to support nearly 500,000 families with sick and injured children since 1981. The generosity of Canadians ensures that even more families can remain close to their child’s hospital bedside, enabling parents to share precious bedtime stories and enjoy a home-cooked meal that provides comfort and peace, so families can truly focus on what matters most: caring for their child, explained the company.

Kate Horton
Kate Horton

“McHappy Day is my favourite day of the year because it vividly illustrates the power of community and the life-changing impact of Canadian’s generosity,” said Kate Horton, President and CEO of Ronald McDonald House Charities Canada. “Thanks to the incredible support from our founding and forever partner, McDonald’s Canada, franchisees, guests, and our national donor partners, we can continue to provide essential comfort and resources to families with sick and injured children, keeping them close when it matters most.”

The impact of McHappy Day extends beyond a single day. Every day, McDonald’s Canada along with its local, independent franchisees, and guests, support RMHC families through Happy Meal and RMHC Cookie purchases, coin box, and at point of purchase with programs such as Round Up. As of May 13, guests can also support RMHC families by making a $1 donation through the McDonald’s app, said the company.

In Canada, two out of three families live outside a city with a children’s hospital and must travel for treatment if their child is seriously ill or injured. The impact of RMHC across Canada is far reaching as today, 1 in 4 Canadians have either stayed with RMHC or know someone who has. More than a place to stay, RMHC program locations across Canada give families the support and resources they need so they can focus on what matters most – caring for their child. The 16 Ronald McDonald House programs provide out-of-town families with holistic support and services such as meal, mental health and wellness programming, while the 19 Ronald McDonald Family Room programs provide a comfortable place for families to rest, recharge and fuel without having to leave the hospital.

McDonald’s has 1,450 Canadian restaurants.

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louf Makes Toronto Life’s 2025 Best New Restaurants List

By
Lee Rivett
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Toronto’s dynamic food scene has added a new milestone with the inclusion of louf, a Palestinian restaurant, in Toronto Life’s prestigious 2025 Best New Restaurants list. Ranking No. 7 out of 20, louf is the first Palestinian establishment to be recognized in the magazine’s 43-year history of compiling the annual list. The announcement was made during a celebration held on May 12 at the Evergreen Brick Works.

The restaurant’s placement reflects the growing appreciation for refined, globally influenced dining in Toronto, as well as the rising profile of Palestinian cuisine. Located near Casa Loma, louf was opened in November 2024 by Chef Fadi Kattan and co-founder Nicole Mankinen, who have been intentional about integrating tradition, storytelling, and sustainability into every aspect of the restaurant.

Chef Fadi Kattan and co-founder Nicole Mankinen. Photo: louf

A Celebration of Palestinian Identity and Hospitality

“I’m proud of my co-founder and the team at louf for having all made this possible, for having made louf’s recognition from Toronto Life as part and parcel of the food scene in Toronto,” said Kattan. “Where we are the first restaurant to be proud of our Palestinian identity, to be proud of using locally sourced, sustainable Ontario produce, and to have a unique beverage list that caters with crafted nonalcoholic drinks and a beautiful selection of wines and cocktails to everyone. I am proud that louf today in Toronto symbolizes the truth of Palestinian hospitality, which is proud hospitality, welcoming everyone.”

The restaurant’s name, meaning “to turn” or “to revolve” in Arabic, signifies the cyclical nature of seasons, stories, and cultural legacies. louf has embraced that ethos by crafting a menu that reflects centuries-old Palestinian culinary techniques using fresh, locally sourced ingredients.

Photo: louf

Signature Dish Highlights Culinary Innovation

As part of Monday’s celebration, louf joined some of Toronto’s most acclaimed restaurants in showcasing its culinary approach. Chef Kattan prepared khubz bil zaatar w labaneh, a standout dish made with house-made Palestinian zaatar bread, artisanal local labaneh, Ontario-grown blood sorrel, grape molasses reduction, and sumac imported from Palestine. The dish encapsulates louf’s fusion of heritage and innovation.

“This is a watershed moment for Palestinian culinary representation in Toronto,” said Mankinen. “I am grateful to those who recognised the need to put Palestine on the culinary map in Toronto through Chef Fadi’s cuisine, and the craft of hospitality that is intrinsic to Palestinian culture.”

A Warm Welcome with Global Reach

Since its opening, louf has drawn both local and international diners eager to experience its uniquely curated hospitality. Located just steps from the city’s iconic Casa Loma, the restaurant offers more than just food—it serves stories, traditions, and cultural expression on every plate.

The ambiance is equally curated to reflect the values of openness and warmth that are central to Palestinian traditions. Every detail—from the nonalcoholic beverages to the locally sourced produce—has been crafted to ensure an inclusive and memorable guest experience.

Photo: louf

Expanding the Experience with Summer Events

As the summer season begins, louf is expanding its offerings through a series of special events and menu highlights that further showcase its culinary vision. The restaurant has opened its seasonal patio and launched multiple themed dining experiences.

On weekends, guests can enjoy a traditional Palestinian brunch. Weekday visitors are invited to the bar, where they’re served complimentary Palestinian-spiced nuts alongside a curated drink menu. Tuesday evenings are designated for steak night, where a 12-ounce Ontario-sourced striploin is basted in zaatar-infused ghee and topped with spicy shatta. Thursdays feature a $80 per-person date night menu designed to offer guests a full immersive culinary experience.

Beyond flavour, louf is committed to deepening understanding of Palestinian identity through the lens of food. Every dish is accompanied by thoughtful storytelling, whether about the origin of an ingredient or the family recipe that inspired its preparation. This narrative-driven approach helps elevate louf from simply a restaurant to a cultural touchstone within Toronto’s multicultural dining landscape.

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John Bayliss becomes CEO of Mastermind Toys

By
Mario Toneguzzi
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Mastermind Toys at Upper Oakville Shopping Centre (Image: Upper Oakville Shopping Centre)

Global transformation executive John Bayliss has been appointed CEO of Mastermind Toys.

In a LinkedIn post, Bayliss said:

“I’m honoured to step into the role of CEO at Mastermind Toys, a beloved Canadian brand that has inspired generations through the power of play. With 47 stores coast to coast and over 40 years of history, Mastermind Toys has become a trusted destination for families across our country.

“In our home, play has always been more than fun. It’s where imagination took flight — where our kids built their first worlds out of blocks, books, and curiosity. Watching them learn and grow through play has shaped how I see the world and reminded me that creativity, wonder, and connection are foundations for learning — and leadership.

John Bayliss
John Bayliss



“That’s why I’m so excited to lead a company that champions purposeful play. Mastermind Toys is more than a store — it’s a place where families discover joy, and every toy has the potential to spark something big.

“Thank you to Joseph Mimran, Frank Rocchetti, Stephan Tetrault and the Unity team for the opportunity. I can’t wait to work alongside the passionate and talented Mastermind team to write our next chapter.

“Let’s inspire the next generation — one toy, one story, one gift at a time.”

Bayliss has had senior executive roles at Boston Consulting Group and Walmart Canada.

Recently, Mastermind Toys, Canada’s leading specialty toy and children’s lifestyle retailer, said that entrepreneur Stéphane Tétrault has made an equity investment in the company. This private transaction established Tétrault as a partner alongside co-owners Mimran and Rocchetti.

Tétrault, a French-Canadian entrepreneur, is the founder of Imports Dragon and co-owner of McFarlane Toys, bringing deep expertise in licensing, manufacturing, and toy innovation. With over 25 years in the toy industry, he has built Imports Dragon into one of Canada’s fastest-growing toy companies and helped propel McFarlane Toys to new heights as part of its ownership team. His extensive experience developing licensed products and innovative toys will support Mastermind Toys’ growth strategy and curated assortment, said Mastermind.

In December 2023, Mastermind Toys announced that it has entered into an asset purchase agreement with Unity Acquisitions Inc. Under the terms of the transaction, Unity purchased the majority of Mastermind Toys store locations.

On November 30 of that year, Mastermind Toys obtained Court approval to conduct liquidation sales at 18 of its store locations.

Prior to that, Mastermind Toys had been in business for 39 years and had 66 stores coast-to-coast.

Court documents at the time stated: “The Mastermind Entities are currently facing financial difficulties as a result of declining sales, gross margins, increased competition, commoditization of the toy category and other macro-economic trends facing many Canadian retailers. The Mastermind Entities’ financial difficulties were exacerbated by the COVID-19 pandemic, including as a result of store closures and an increase in shoppers making online purchases.

“Despite implementing cost reduction and other initiatives to improve profitability, Mastermind LP’s revenues and profitability have declined over the past several years. The Mastermind Entities do not have sufficient cash flow or liquidity to continue running its business and do not have sufficient funds to pay their liabilities as they become due.

“The Mastermind Entities are insolvent with liabilities well in excess of $5 million and unable to meet their obligations as they come due.”

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