Happy Belly Food Group Inc., a leading consolidator of emerging food brands, has announced the signing of a significant area development agreement covering the Atlantic provinces. The deal will bring 15 new locations of Rosie’s Burgers, a popular boutique QSR (Quick Service Restaurant) brand, to Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland, and Labrador.
Rosie’s Burgers is known for its original recipe smash burgers, poutine, onion rings, milkshakes, and more. This expansion marks another major step in Happy Belly’s ongoing strategy to scale the brand nationwide.
Sean Black
“Building upon the momentum of our franchising interest and existing area development agreements already in place for Ontario, Alberta, and British Columbia, we are excited to continue building our roadmap for Rosie’s on a national scale,” said Sean Black, Chief Executive Officer of Happy Belly.
“With the further addition of four provinces and 15 units under area development, it brings our rollout trajectory to 85 contractually committed units across seven provinces of Canada. We would very much like to see Rosie’s in all provinces in Canada.”
Happy Belly also welcomed its third area developer, David Wilson, who will oversee the Atlantic Canada territory. He joins Scott Grandin and Stephen Travers, who manage the brand’s expansion in West Coast and Central Canada, respectively. Together, they will work to accelerate the growth of Rosie’s Burgers and other brands within Happy Belly’s portfolio.
“We welcome the addition of our third area developer to the Happy Belly team, David Wilson, overseeing Atlantic Canada and teaming up with our west coast and central Canada area developers Scott Grandin and Stephen Travers,” added Black. “We have put a solid team in place to foster the accelerated growth of all our brands throughout the Canadian market. It is important we remain focused on Canadian development as we organically grow in our own backyard and strengthen our brands’ footprint as we scale and drive the business forward.”
Source- Rosie’s Burgers
Happy Belly’s area developer model is a key component of its growth strategy. Black further emphasized that this model and the team’s deep knowledge of the burger category position Rosie’s Burgers to become the category leader in Canada. “We have firmly set the course of our Smash Burger brand Rosie’s Burgers to be the category leader and have first-mover advantage as the first true national smash burger chain in Canada.”
Happy Belly’s commitment to growth is evident in its broader development strategy. The company currently has 491 contractually committed retail franchise locations across its various emerging brands. These locations are a mix of those in development, under construction, and already open. Looking ahead, Happy Belly aims to expand its pipeline significantly in 2025 and 2026 with a disciplined approach to selecting the right franchise partners and locations.
“This is another step forward in our mission to become a predictable and disciplined growth company,” said Black. “We are working to actively expand this pipeline significantly in 2025 & 2026 with our disciplined approach to growth. It is key for us to continue selecting the right franchise partners along with the right real estate to achieve our development goals for the brands.”
By Mark Elfenbein, Head of North America at Nfinite
It’s no secret that compelling product visuals drive sales. Nearly 75% of online shoppers say product images are more influential in their purchasing decisions than text descriptions or reviews. Buying decisions are made on what things look like, not what they sound like. Yet, despite retailers pouring millions into photography and creative teams, a fundamental challenge remains: how to give customers a true-to-life sense of a product in a digital-only environment.
In the grand theater of retail innovation, we’re witnessing a distinct paradox: as e-commerce grows more sophisticated, the fundamental challenge of helping customers truly ‘experience’ products before purchase remains stubbornly persistent. The current visual commerce landscape resembles a high-stakes game of charades, where retailers desperately try to convey the appeal and utility of a product while being forced to rely on increasingly outdated tools.
Enter digital twin technology – not just another buzzword in the endless parade of retail tech solutions, but a genuine paradigm shift in how retailers can bridge the virtual-physical divide. The transformation isn’t just about prettier pictures; it’s about fundamentally rewiring the relationship between seeing and believing in digital commerce.
The economics tell a compelling story. Traditional product photography, with its studio setups, lighting rigs, and endless reshoots, increasingly resembles a luxury car with a steam engine – expensive, inefficient, and just not built for purpose. Digital twins flip this equation on its head, offering scalable, adaptable visual content that grows more cost-effective with each implementation. The ROI narrative unlocks both savings and new possibilities that traditional methods aren’t able to deliver.
One intriguing aspect of this transformation lies in its seasonal agility. Being able to create immersive holiday experiences, test multiple visual merchandising strategies, and pivot seasonal displays without touching a single physical product. It’s not just efficiency; it’s more, retail alchemy – turning digital flexibility into tangible market advantage.
The customer experience implications are where theory meets reality. The ability to offer 360° visualization and customize scene creation not only can reduce purchase anxiety – it’s effectively creating a new language of digital product interaction. When customers can truly visualize products in context, the “add to cart” button becomes far less a leap of faith.
From a technology investment perspective, implementing an AI-powered visual supply chain isn’t just another line item in the digital transformation budget. It’s a fundamental rethinking of how visual commerce operates at scale.
The environmental angle adds another fascinating layer to the story. By reducing the need for physical photoshoots, retailers aren’t just cutting costs – they’re shrinking carbon footprints. It’s a rare instance where business efficiency and environmental responsibility align perfectly.
For retailers, the visual experience gap isn’t just a technological hurdle—it’s a competitive inflection point. Looking ahead, the implications are significant. As AI and personalization technologies mature, digital twins will inevitably and increasingly power customized visual experiences at scale and ultimately redefine how customers engage with products in the digital age. The future of retail belongs to those who create immersive, adaptable, and data-driven visual experiences. The real question isn’t whether to adopt digital twins, but how fast you can implement them before your competitors do.
Mark Elfenbein is a visionary leader in AI-driven e-commerce innovation, currently serving as the Head of Nfinite North America (www.nfinite.app). Nfinite, backed by $130M in funding, is revolutionizing product imagery for retail giants like Lowe’s, Amazon, Wayfair, and Staples, leveraging AI and CGI to transform online merchandising.
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 3 days.
As technology evolves, AI (Artificial Intelligence) and machine learning are reshaping the digital marketing landscape, especially in the world of SEO (Search Engine Optimization). Search engines like Google are becoming smarter, providing more relevant results through advanced algorithms powered by AI. For businesses and marketers, understanding how AI impacts SEO is essential to stay competitive. Here’s how modern concepts are changing SEO and how you can adapt to these advancements.
How AI and Machine Learning Are Transforming SEO
Predictive Search and User Intent Analysis
AI has revolutionized search engines’ ability to predict what users are looking for before they even finish typing, which is why it’s now vital to be integrating AI into SEO strategies. Algorithms like Google’s RankBrain use machine learning to understand the context behind search queries, focusing on user intent rather than just keywords.
Shift from Keywords to Intent: Instead of targeting specific keywords, strategies must now focus on addressing user needs and answering questions effectively.
AI-Powered Suggestions: Tools like Google Autocomplete and People Also Ask (PAA) panels are powered by predictive search, helping users refine their queries.
How to Adapt
Use long-tail keywords and conversational phrases to align with natural search patterns.
Optimize for voice search, as AI assistants like Google Assistant and Alexa prioritize intent-driven results.
Automated Content Creation and Optimization
AI is making content creation faster and more efficient. Platforms like ChatGPT, Jasper, and Surfer SEO are helping marketers generate articles, blog posts, and product descriptions with minimal effort.
AI-Generated Content: Machine learning models can produce high-quality drafts based on keywords and guidelines.
Content Optimization: Tools powered by AI, such as Clearscope and MarketMuse, analyze existing content and suggest improvements for better ranking.
How to Adapt
Use AI tools to streamline content production but always humanize content to maintain authenticity.
Focus on EEAT principles (Experience, Expertise, Authoritativeness, and Trustworthiness) to ensure your content is credible and valuable.
Advanced Algorithm Updates and Search Ranking Factors
Search engines are continually updating their algorithms with the help of machine learning to provide more accurate search results. Updates like:
BERT (Bidirectional Encoder Representations from Transformers): Focuses on understanding the context of words in a search query.
MUM (Multitask Unified Model): Processes information across different formats (text, images, video) and languages to improve search relevance.
These AI-driven updates are making SEO less about technical tactics and more about content quality and user experience.
How to Adapt
Focus on user-centric content that answers queries comprehensively.
Use structured data (schema markup) to help search engines understand your content.
Keep up with algorithm changes through platforms like Google Search Central and industry blogs.
Practical Strategies for SEO in the AI Era
Optimize for Voice Search and Conversational Queries
AI-powered voice assistants are changing how people search. Queries are becoming longer and more conversational.
Use FAQs to address common questions directly.
Incorporate natural language processing (NLP) techniques, such as long-tail keywords and local search terms.
Focus on User Experience (UX) and Core Web Vitals
AI considers user experience a critical ranking factor. Google’s Core Web Vitals measure the following:
Largest Contentful Paint (LCP): Page loading performance.
First Input Delay (FID): Interactivity speed.
Cumulative Layout Shift (CLS): Visual stability.
How to Adapt
Improve page speed with CDNs (Content Delivery Networks) and image optimization.
Ensure your site is mobile-friendly and easy to navigate.
Leverage AI-Powered SEO Tools
Use AI-driven tools to enhance your strategy:
Surfer SEO: For content optimization based on competitor analysis.
Ahrefs and SEMrush: For AI-powered backlink analysis and keyword research.
Frase: For creating SEO-optimized content briefs.
Embrace Video and Visual Search Optimization
With AI advancements in image recognition, visual search is becoming more prominent. Platforms like Google Lens and Pinterest Lens use machine learning to identify objects in images.
How to Adapt
Optimize images with descriptive alt tags and proper file names.
Use video techniques, such as transcripts and keyword-rich descriptions.
Add schema markup for images and videos to help search engines index them properly.
The Role of AI in Future SEO Trends
As AI continues to evolve, SEO will become more predictive, personalized, and automated. Future trends may include:
AI-Driven Content Personalization: Delivering tailored content based on user behavior.
Chatbot-Optimized SEO: Optimizing for conversational AI tools embedded in search engines.
Augmented Reality (AR) Search: Integrating AR into search experiences for interactive product previews.
Integrate AI Into Your SEO Strategies
The future of SEO is being shaped by AI and machine learning, demanding a shift from keyword-focused tactics to user-centric strategies. To stay ahead:
Focus on high-quality, valuable content tailored to user intent.
Utilize AI tools to enhance content creation and optimization.
Prioritize user experience with fast, mobile-friendly websites.
By embracing AI-driven strategies and staying adaptable, businesses can future-proof their efforts and maintain a competitive edge in the modern age of running companies and successfully getting their product or service seen, heard, and purchased.
Ukrainian President Volodymyr Zelensky and US President Donald Trump in a heated discussion at the Oval Office, February 28, 2025. Photo: White House
The scene in the Oval Office last week between President Volodymyr Zelensky and President Donald Trump was deeply unsettling. The geopolitical ramifications remain uncertain, but one thing is clear: peace in Eastern Europe may have drifted even further out of reach. For global food security, stability in that region is critical, and the current trajectory suggests an increasingly bleak outlook for Ukraine and its ability to regain economic and agricultural footing.
What has transpired in negotiations between Ukraine and the United States under the new administration should serve as a stark warning to Canada. While the rhetoric surrounding Canada as the so-called “51st state” may be irritating and dismissive, what could unfold in the coming months is far more concerning.
The United States has leveraged Ukraine’s desperate need for support to secure access to its valuable mineral resources, all while using peace as a diplomatic cover. The global community has now witnessed a new form of economic coercion—offering military and financial assistance with explicit expectations of resource control in return. This is not diplomacy; this is a transactional power play. And Canada must take note.
Canada’s Position in the Face of Global Silence
While international leaders have stepped up to defend the sovereignty of nations like Panama and Greenland, Canada has not received the same level of support. Not one global leader has spoken out against President Trump’s recent inflammatory statements about Canada’s status. Even British Prime Minister Keir Starmer, while in Washington this week, avoided commenting on Canada’s sovereignty when directly asked. That silence is telling.
Canada’s political class has thus far responded to the “51st state” rhetoric with nothing more than performative indignation. The idea that the United States would formally annex Canada is absurd. The U.S. has no need to assume the burden of governing Canada when it can simply extract value from our vast wealth of resources through economic and trade policy.
As Lloyd Axworthy, Canada’s former foreign minister, recently pointed out, a country can exert control over another without outright annexation. This can be achieved through strategic access to three fundamental assets: natural resources, energy, and data. From a food security perspective, these are the pillars of a resilient agri-food sector. Canada is uniquely positioned as a world leader in all three, making it a prime target for foreign influence.
Water, potash, and oil are among Canada’s most valuable resources—resources the United States desperately needs to sustain its economic dominance. However, an often-overlooked asset in this equation is data. Canada’s agri-food sector is undergoing a transformation, with advanced data analytics driving efficiency, sustainability, and resilience. The United States understands that enhanced access to Canada’s agricultural data and biotechnological expertise could propel its own agricultural sector far beyond its current capabilities.
The Real Threat: Economic and Geopolitical Maneuvering
Canadians can worry about symbolic threats of annexation, but the real concern should be the looming economic and geopolitical maneuvering that could compromise our strategic resources. The coming months may bring further challenges, and Canada’s political landscape is poised for change. However, whoever takes the helm must move beyond mere anti-annexation rhetoric and reactionary trade measures. The priority should be safeguarding Canada’s competitive advantages—its resources, energy independence, and agri-food data.
Rejecting American products and boycotting American tourism may offer short-term emotional satisfaction, but such gestures will not shield Canada from a White House that plays geopolitical chess while Ottawa remains stuck playing checkers. The real defense against economic subjugation is a proactive strategy to fortify the industries that make Canada a global leader in food security and sustainability.
Bel Canada, a key player in the food industry specializing in dairy, fruit, and vegetable products, has partnered with Congebec, Canada’s leading logistics provider for chilled and frozen foods, and Food Banks of Quebec (FBQ) to launch a groundbreaking initiative focused on reducing food waste and supporting food-insecure communities. The strategic alliance aligns with Bel Canada and Congebec’s shared commitment to optimizing the food supply chain while addressing growing food insecurity across the province.
“At Bel Group, our mission is to provide healthy and responsible food for everyone. We are proud of the tangible measures we have implemented to achieve our goal of zero product destruction in our Canadian operations, particularly at our Babybel® manufacturing plant in Sorel-Tracy,” said Marie-Eve Robert, VP of Marketing and CSR at Bel Canada. “More than 46% of food is wasted every year in Canada.”
“The program, in collaboration with Congebec and Food Banks of Quebec, will play a key role in the fight against food waste and insecurity while optimizing the performance of our supply chain. As a sector leader, we hope our commitment will encourage other companies to join this great collaboration.”
Congebec’s Unique Role in Food Recovery and Redistribution
Congebec has spearheaded this initiative by leveraging its extensive logistics expertise to recover unsellable but edible food from the supply chain. The program operates in three strategic phases: offering free storage space to the Food Banks of Quebec, encouraging its customers to participate in food recovery, and providing logistics support to ensure optimal redistribution of surplus products.
“Our expertise in logistics and freezing is unique in the food supply chain, and that is why we are committed to supporting the food aid network to preserve food and enable its optimal distribution,” stated Nicholas-P. Pedneault, CEO of Congebec. “Since the official announcement of our partnership with Food Banks of Quebec in 2023, the impact on our communities in terms of food aid and through our crucial role in preventing food waste has been strongly felt. The freezing services we offer give food banks access to high-value products like Bel Canada’s. Through this new partnership, we want to demonstrate that, as a corporate citizen, we have an important role to play in the fight against food waste and food insecurity.”
Bénévoles en action. Photo: Bel Canada
Surging Food Insecurity in Quebec
The need for food assistance in Quebec has surged in recent years. According to FBQ, food aid requests have increased by 13% since 2023, with over one million additional requests since 2021. Alarmingly, 35% of food bank beneficiaries are children, while 36% are adults living alone, and 20% are individuals with employment as their primary income source.
“Since 2019, requests have been increasing at an unprecedented rate. Our members are doing everything they can to meet the demand. Unfortunately, we do not see any signs of a slowdown that would suggest a brighter future, and the Aviseo study confirms this,” said Martin Munger, Executive Director of Food Banks of Quebec. “We strongly believe that collaboration is the key to fighting food insecurity, which is why this innovative partnership with Bel Canada and Congebec is so valuable. We hope this initiative will encourage other companies and industry leaders to join us.”
About Bel Canada
Bel Canada is a subsidiary of the Bel Group, a global leader in branded cheese and healthy snacks, distributing its products in nearly 120 countries. Established in 2005 to expand the Group’s presence in Canada, the company now employs 250 people, including 95 at its Montreal headquarters. Its brands, including Boursin®, The Laughing Cow®, and Babybel®, are either produced locally or through strategic partnerships. Additionally, Bel Canada owns MOM Group, the company behind GoGo squeeZ® fruit pouches.
About Congebec
Congebec is a multi-temperature logistics provider specializing in value-added distribution services for the food, retail, and packaged goods industries. The company ranks seventh in North America and 13th globally in its field, with 11 modern facilities spanning Quebec, Ontario, Manitoba, Saskatchewan, and Alberta, totaling over 65 million cubic feet of storage. Committed to food safety and sustainability, Congebec plays a pivotal role in Canada’s food supply chain.
About Food Banks of Quebec
The Food Banks of Quebec (FBQ) network supports 34 regional food distribution centres, many of which operate under the Moisson name, assisting 1,300 community organizations across the province. These organizations provide food aid to over 556,000 people each month. Since its establishment in 1988, FBQ has facilitated the sharing of resources, expertise, and information to combat hunger and food insecurity.
Mejuri at CF Carrefour Laval in Montreal. Photo supplied
Toronto-based fine jewelry brand Mejuri has expanded its Canadian retail footprint with the opening of a new store at CF Carrefour Laval in Laval, Quebec. This marks the brand’s 41st store globally and its latest move to enhance accessibility for customers in the Greater Montreal area.
Mejuri’s opening at CF Carrefour Laval aligns with its strategy to establish a presence in high-traffic shopping destinations. As one of Quebec’s premier retail centres, CF Carrefour Laval offers a strong customer base of both local shoppers and visitors from surrounding areas.
The Laval location is the latest in Mejuri’s growing network of physical stores, reflecting the brand’s continued investment in brick-and-mortar retail to complement its strong e-commerce platform. The store offers an inviting space where customers can engage with expert stylists and explore collections tailored for everyday luxury.
A Unique Retail Experience with Thoughtful Design
The new Mejuri store is designed to provide a high-end yet welcoming atmosphere, prioritizing hospitality and customer engagement. A key feature of the Laval location is the Mejuri Ring Bar, an interactive space where customers can explore, style, and personalize their jewelry selections. The space is accentuated by elegant tile finishes and an artistic lighting installation that enhances the brand’s distinctive aesthetic.
Further elevating the customer experience, the store incorporates a textured plaster wall inspired by Mejuri’s iconic Charlotte pattern. This handcrafted element embraces an intentionally imperfect style, adding depth and tactile richness to the space. The store also features a full-service piercing studio, allowing customers to curate their ear stacks with Mejuri’s signature fine jewelry in a seamless, elevated experience.
Large-scale imagery and illuminated graphics throughout the store reinforce the brand’s storytelling, creating an immersive retail environment that embodies Mejuri’s dedication to craftsmanship and individuality.
Mejuri at CF Carrefour Laval in Montreal. Photo supplied
A Look at Mejuri’s Brand Philosophy and Growth
Founded in 2015 by Noura Sakkijha and Majed Masad, Mejuri has redefined the fine jewelry market by positioning itself as a brand for everyday luxury. Moving away from the traditional model of gifting fine jewelry, Mejuri encourages self-purchasing, empowering customers to invest in high-quality, accessible pieces for daily wear.
The company’s product offerings include a wide range of rings, earrings, necklaces, and bracelets, crafted from 14K solid gold, sterling silver, and gold vermeil. Sustainability is a key focus for the brand, with 94% of its gold sourced from recycled materials and all diamonds being responsibly sourced and conflict-free.
Leveraging Omnichannel Growth and Community Engagement
Mejuri has successfully built a strong online and offline presence, leveraging social media and influencer marketing to cultivate an engaged community. While it initially gained traction as a digital-first brand, its strategic expansion into physical retail has strengthened its ability to offer customers a tactile shopping experience.
The opening of new stores, including the Laval location, reinforces Mejuri’s omnichannel strategy, allowing customers to seamlessly transition between online browsing and in-store purchasing. The brand’s retail expansion also underscores its commitment to fostering a sense of community, with in-store experiences designed to encourage engagement and personalization.
Mejuri’s Expanding Retail Footprint
In addition to the newly opened Laval store, Mejuri has been actively expanding its physical presence both in Canada and internationally. In November 2024, the brand unveiled its ninth Canadian store at Square One Shopping Centre in Mississauga, Ontario. This location features Mejuri’s signature Ring Bar and an on-site piercing studio, providing customers with an interactive and personalized shopping experience.
Mejuri’s Canadian retail locations include:
Toronto: Ossington Avenue, Yorkdale Shopping Centre, Holt Renfrew 50 Bloor St. W., Square One Mississauga
Calgary: CF Chinook Centre.
Montreal: Peel Street
Vancouver: Kitsilano, Holt Renfrew CF Pacific Centre, and Park Royal in West Vancouver
Internationally, Mejuri has established stores in major cities such as New York, Los Angeles, London, and Sydney, reflecting its commitment to providing accessible luxury worldwide.
Each Mejuri store is thoughtfully designed to offer a welcoming atmosphere, featuring interactive elements like the Ring Bar and full-service piercing studios, allowing customers to personalize their jewelry selections and curate their unique styles.
Bloor Street luxury run in Toronto. Bloor Street has seen an unprecedented number of luxury brands open flagship stores over the past couple of years. Photo: Craig Patterson
Luxury retail in Canada is experiencing an architectural boom, with flagship stores and expansions dominating the landscape. Yet, as Randy Harris, founder of Trendex North America, emphasizes, this growth may not reflect a proportional increase in consumer demand. In an engaging conversation, Harris shared his insights on the dynamics shaping Canada’s luxury market and the challenges ahead.
Expanding Square Footage, Questionable Demand
The recent surge in luxury retail construction has been striking. Yet Harris suggests this may not align with the actual growth of the market. “The title of my next article could very well be ‘Luxury Retail Is Booming, But Demand Isn’t,’” he said.
Randy Harris
Luxury brands such as Saint Laurent are expanding aggressively. For example, by mid-2025, Toronto alone will house an estimated 28,000 square feet of Saint Laurent retail space. But Harris cautions against equating this growth with increased consumer spending. “It’s logical to question whether all these new stores truly expand the market or merely make it easier for existing customers to shop,” he said.
Loyal Consumers, Limited Growth
Harris highlights that true luxury consumers—those who purchase brands like Chanel or Hermès—tend to be extremely brand-loyal. “These affluent customers aren’t necessarily increasing their purchases because there are more stores,” he said.
This loyalty contrasts with aspirational buyers, often younger consumers, who save up for occasional luxury purchases. While aspirational buyers contribute to the market, they do not drive the sustained growth needed to justify doubling retail square footage.
“The affluent, brand-loyal consumer is not necessarily swayed by convenience,” Harris explained. “They know their preferred brand, and their shopping habits are unlikely to shift dramatically simply because a flagship store opens nearby.”
New luxury wing in the Yorkdale Shopping Centre in Toronto. The mall is adding 65,000 square feet of luxury retail to an already very robust offering. Photo: Craig Patterson
Timing Challenges and Deep Pockets
The decision to expand luxury retail in Canada was likely made years ago, Harris explained, with brands forecasting a brighter economic environment. “You don’t just flip a switch and open a new store,” he noted. “These plans were set in motion two or three years ago.”
Many luxury brands are backed by global conglomerates with significant financial resources. This means they can afford to endure periods of slow growth in Canada. “Canada is such a small part of their portfolio,” Harris said. “They can ride out a couple of lean years.”
The Role of Tourism
Tourism has historically been a significant driver of luxury retail sales. In Canada, affluent visitors—particularly from China—have played a pivotal role in years past. However, Harris pointed out that the recovery of tourism remains uncertain. “We haven’t seen the same number of Chinese visitors compared to previous years,” he said.
The weak Canadian dollar should, in theory, make Canada an attractive shopping destination for international tourists. “A favourable exchange rate is important,” Harris added, “but it’s not the sole factor. The global flow of tourists, particularly from Asia, has yet to return to pre-pandemic levels.”
This has significant implications for luxury retailers, many of whom rely on tourist spending to meet their revenue targets. “Tourism is a critical input for my analysis of the luxury apparel market,” Harris noted. “When visitor numbers are down, it’s a major headwind for the industry.”
Royalmount in Montreal, prior to its opening in September 2024. Numerous luxury brands have opened their first stores in Quebec, with more to come this year. Image: Carbonleo
A Misalignment of Supply and Demand
Harris’s analysis underlines the disconnect between the rapid expansion of luxury retail space and the stagnant growth in demand.
“The market hasn’t doubled, but the square footage has,” he said. He predicts that brands may face challenges in justifying these expansions, particularly as they continue to rely on affluent but finite consumer bases.
For instance, the affluent neighborhoods surrounding Toronto’s Yorkdale Shopping Centre offer a prime market for luxury goods. However, as Harris observed, “Opening a flagship store doesn’t necessarily create new customers; it just makes it easier for existing ones to shop.”
Harris also questioned whether this building boom simplifies shopping or simply overextends retailers. “Does opening a flagship store really expand your business, or does it just make it easier for customers to access your brand?” he asked.
Generational and Demographic Trends
The dichotomy between aspirational and true luxury consumers is a key theme in Harris’s analysis. “You have younger, aspirational buyers trading up,” he explained. “But the core luxury consumer is not growing at the same pace as the square footage.”
Younger buyers are often drawn to accessible luxury items, such as small leather goods or entry-level accessories. “These purchases are significant,” Harris said, “but they’re not driving the kind of sustained growth needed for these massive expansions.”
Alberni Street at Burrard Street in Downtown Vancouver. Over the past decade, the area has transformed into a significant luxury node. Photo: Lee Rivett.
Long-Term Outlook for Luxury Brands
Despite current challenges, Harris is optimistic about the long-term outlook for some luxury brands. “Companies like Hermès and Saint Laurent are playing the long game,” he said. “They aren’t in any hurry and seem to be doing everything right.”
Harris noted that brands with measured, thoughtful approaches to growth are more likely to succeed. “The ones that avoid rushing expansions or overestimating the market will emerge stronger,” he said.
Brands like Hermès have demonstrated a commitment to quality and exclusivity, which helps maintain their appeal even during market slowdowns. “Hermès, in particular, has mastered the art of scarcity,” Harris said. “Their strategy ensures long-term desirability and brand equity.”
The Post-Pandemic Landscape
The effects of the COVID-19 pandemic continue to shape the luxury retail landscape. Harris noted that some expansions planned during the pandemic were based on overly optimistic forecasts. “Brands assumed the retail environment would bounce back faster than it has,” he said.
Additionally, the shift to e-commerce during the pandemic has left a lasting impact. While luxury consumers still value in-person shopping experiences, the convenience of online shopping cannot be ignored. “Retailers need to balance their brick-and-mortar investments with robust online offerings,” Harris advised.
Oakridge Park in Vancouver, opening summer 2025. Image: QuadReal
Global Context for Luxury Retail
Harris also highlighted how Canada’s luxury retail trends align with global patterns. “The expansion of flagship stores is not unique to Canada,” he said. “It’s part of a broader strategy by luxury brands to solidify their presence in key markets.”
However, he cautioned that Canada’s smaller population and limited tourist appeal make it distinct from other luxury hubs like Paris or New York. “The scale here is different,” Harris explained. “Brands need to adjust their strategies accordingly.”
The future of luxury retail in Canada will depend on a delicate balance of market forces, including consumer behaviour, tourism, and global economic trends. Harris underscored the importance of aligning growth strategies with actual market demand. “It’s about more than just buildings; it’s about understanding where the market is headed,” he said.
Food inflation continues to moderate, and in January was deflationary due to food purchased at restaurants and the impact of the removal of GST, says the latest Food Inflation report by Loblaw Companies Limited.
“Customers at the register continue to find ways to lower prices, including buying more items on sale, and substituting for less expensive brands or products. However, there remains concern around the potential inflationary pressures that will need to be closely monitored, and managed. All eyes right now are on the tariff-counter tariff dynamic between the United Sates and Canada; however, the weak Canadian dollar (CAD) is a present and growing concern,” said the Loblaw report.
“The weak foreign exchange (FX) rate will continue to place pressure on consumer prices for imported goods in the months ahead. The Canadian dollar is at its lowest level in 20 years, placing pressure on new food purchases, which will flow through in higher food prices—especially during the winter when we rely more on imports such as fresh produce. Since most of our fresh produce is priced in U.S. dollars, a weaker loonie means higher costs for essentials like lettuce, tomatoes, and avocados. Even goods from non-U.S. suppliers, such as coffee from South America or citrus from Spain, can often be priced in USD, providing little relief from FX pressures for Canadians.”
Photo by Ron Lach
Loblaw said the currency impact extends beyond produce. Many products have an underlying commodity exposure (coffee, wheat, vegetable oil, sugar) that are purchased and sold in USD, and suppliers continue to seek to pass on their higher costs.
“While many of these are justified given the current economic situation, we continue to work closely with our suppliers to manage prices for customers, but expect this to be a headwind for food prices in the coming months,” said Loblaw.
“With a short-term reprieve on tariffs between Canada and the US, it’s worth considering how they could impact food prices if implemented. A 25% tariff doesn’t necessarily mean a 25% increase at the grocery store— some costs are absorbed across the entire supply chain, but some will inevitably end up as a higher priced product.
“If trade tensions escalate, Canadians could potentially see higher prices on all products that come from the U.S., including dairy, meat, and packaged foods, along with potential supply disruptions and market uncertainty.”
The impact of tariffs, according to Loblaw
Higher Costs for Canadian Producers – Tariffs on agricultural products and ingredients used for food-processing could make it more expensive to produce food in Canada, which increases the price of products on shelf. For example, peanut butter that is processed in Canada, but with peanuts from the U.S. would see a 25% tariff or tax on its ingredients. This is also true for some grain-based products (grown here, sent to the U.S. for manufacturing and then sold back in Canada), and processed meats.
More Expensive U.S. Imports – Canada is the 2nd largest market for U.S. agricultural exports, annually importing more than $20 billion. Specifically, the U.S. supplies about two-thirds of Canada’s vegetable imports, one-third of fruit imports, over half of Canada’s beef imports, and our country is the top market for US processed and prepared/ preserved pork. If Canada’s counter tariffs on U.S. products go into effect, this is likely to increase the price of these foods on the shelf.
Supply Chain Disruptions – Trade uncertainty may cause delays, shortages or price spikes in certain food products. From customers choosing to stock up on items in advance, to potential shipping lags as companies look to onboard new suppliers from new markets, customers may see more instability at shelf.
Nearly three-quarters (73.1%) of businesses are either very optimistic or somewhat optimistic about their future outlook over the next 12 months. The proportion of businesses reporting an optimistic future outlook has consistently remained above 70% since the second quarter of 2024, according to a report released Friday by Statistics Canada.
“Meanwhile, 16.7% of businesses expect their sales of goods and services to increase over the next three months, consistent with 16.6% in the fourth quarter of 2024. This was led by businesses in retail trade (24.4%); manufacturing (23.4%); and arts, entertainment and recreation (19.8%). At the same time, 24.8% of businesses expect to raise the prices of their offered goods and services over the next three months,” explained the federal agency.
“Businesses continue to anticipate a variety of obstacles over the next three months, mainly those related to costs and labour. While pressures of both cost- and labour-related obstacles continue to ease in the first quarter, the proportion of businesses with a positive outlook remains over 70%.”
Cost-related obstacles remain a concern for the majority of businesses
While cost-related obstacles are expected by over three-fifths (62.5%) of businesses across Canada over the next three months, there has been a slight easing of pressures, with the proportion of businesses falling from nearly two-thirds (65.7%) in the fourth quarter of 2024, said the report.
Cost-related obstacles consist of inflation; the cost of inputs; interest rates and debt costs; the cost of insurance; costs of real estate, leasing or property taxes; and transportation costs.
“In this context, inflation (46.4%) is the most commonly expected obstacle by businesses over the next three months. Businesses in accommodation and food services (68.3%); arts, entertainment and recreation (56.9%); and retail trade (56.5%) were most likely to expect inflation to be an obstacle, said StatsCan.
Labour cost is the most commonly anticipated input businesses expect to be an obstacle
Statistics Canada said over one-quarter (26.7%) of businesses anticipate cost of inputs to be an obstacle over the next three months. Of these businesses, over three-fifths (61.6%) specified labour cost as an input they expect to be an obstacle, led by businesses in health care and social assistance (89.8%); arts, entertainment and recreation (84.3%); and information and cultural industries (76.1%).
“Meanwhile, 43.8% of businesses across Canada expect to increase wages over the next 12 months, with an average wage increase of 7.0%. This is comparable to the expected average wage increase of 7.4% from the first quarter of 2024. Businesses in retail trade (52.9%); manufacturing (52.3%); and accommodation and food services (51.5%) were most likely to expect to increase wages. On the other hand, over two-fifths (44.6%) of businesses expect wages to stay the same, and a further 3.1% expect a decrease in wages,” it said.
