Adidas ‘Home of Sport’ Flagship Thrives in Vancouver

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February 25, 2025

Adidas_Flagship_Edit-7 — adidas 'Home of Sport' flagship in downtown Vancouver. Photo: adidas

Three months after its soft opening on November 25, 2024, the adidas ‘Home of Sport’ flagship store in downtown Vancouver is drawing strong foot traffic and positive consumer feedback. Located at the corner of Robson and Burrard Streets, this 35,000-square-foot retail space is Adidas’ first North American ‘Home of Sport’ concept store.

The store offers an immersive shopping experience with unique experiential activations, customization options, and an extensive product assortment catering to multiple sports and lifestyle categories.

“We’ve had a great response from the Vancouver community,” said Lesley Hawkins, VP of Retail for Adidas Canada, in an interview. “We opened with a soft launch on November 25th—an odd time to open a store—but it gave us an opportunity to acclimate our staff ahead of the holiday season while preparing for the grand opening event in January.”

Grand Opening Event in January 2025

Although the store had been welcoming shoppers since late November, Adidas hosted a formal grand opening event on January 30, 2025. The event attracted media, influencers, athletes, and customers, with activations throughout the weekend.

“The turnout was really strong, despite snow showing up on the Sunday—which, if you know Vancouver, you know what that does to the city,” said Hawkins. “But overall, downtown traffic has been solid, and we’re excited to be part of the resurgence of Robson Street.”

adidas ‘Home of Sport’ flagship in downtown Vancouver. Photo: adidas

Customization at the adidas ‘Home of Sport’ flagship in downtown Vancouver. Photo: adidas

A Comprehensive Product Offering

One of the key draws of the Adidas ‘Home of Sport’ store is its broad product assortment. Hawkins highlighted the availability of performance and lifestyle categories, including soccer, running, basketball, training, and outdoor wear. The store also features an expansive Adidas Originals section, with popular footwear styles such as the Samba, Gazelle, and SL72.

“The response from consumers has been overwhelmingly positive, especially when they see the breadth of what we offer,” said Hawkins. “For soccer fans, we have a full range of jerseys, including federations, MLS clubs, and a strong focus on our hometown Vancouver Whitecaps. Our running section is anchored by premium footwear like the Adios Pro and the newly released Adizero Evo SL.”

Experiential Retail: Run Lab and Made for You Customization

The store’s Run Lab has quickly become a standout feature, attracting runners of all skill levels. The area offers personalized gait analysis conducted by Adidas coaches and running specialists, using real-time biometric data displayed on a screen during a treadmill session.

“We’re building a community here,” said Hawkins. “We’ve launched weekly runs that start and end at the store, including Saturday morning group runs and Women’s Wednesdays, a five-kilometre run designed for all experience levels. Runners sign up through the Adidas app, and we provide expert guidance to help them improve.”

The Made for You customization zone has also proven popular among Vancouver shoppers. Customers can personalize Adidas apparel and footwear with local graphics celebrating Vancouver culture, seasonal designs, and even personalized jersey flocking.

“We recently offered Year of the Snake graphics for Chinese New Year, and we worked with a local artist to create an exclusive design for our grand opening,” said Hawkins. “As we move into events like International Women’s Day, we’ll continue to offer new customization options.”

In a further effort to engage the local community, the store also features special activations. For Chinese New Year, Adidas hosted a traditional lion dance performance and gave away red envelopes containing gold Adidas chocolate coins with purchases.

Run Lab at the adidas ‘Home of Sport’ flagship in downtown Vancouver. Photo: adidas

Omni-Channel Retail Integration

Beyond experiential retail, the Vancouver flagship is also playing a key role in Adidas’ omni-channel fulfillment strategy. Half of the store’s total square footage is dedicated to back-of-house operations, including fulfilling online orders across Western Canada.

“Our geography is one of our biggest challenges in Canada when it comes to supply chain,” said Hawkins. “This store allows us to ship orders faster to Western Canadian consumers, reducing delivery times to as little as one to two days. While it’s too early to measure the full impact on e-commerce sales, we anticipate a stronger consumer experience as we continue optimizing this operation.”

Footwear at the adidas ‘Home of Sport’ flagship in downtown Vancouver. Photo: adidas

Will Adidas Open More Large-Format Stores in Canada?

With the success of the Vancouver ‘Home of Sport’ store, could Adidas be looking at expanding the concept to other Canadian cities?

“At this point, there are no plans to open another store of this scale,” said Hawkins. “CF Toronto Eaton Centre shares some similarities with this store—like our customization lab—but the infrastructure in Toronto isn’t set up for the same level of fulfillment due to logistical constraints and the absence of a dedicated back-of-house space for omni-channel operations. Additionally, the proximity of Adidas’ main warehouse outside the city allows for efficient fulfillment without the need for an in-store distribution hub. So, while we’re always evaluating opportunities, there’s nothing confirmed for now.”

While new stores are not on the immediate horizon for Canada, Adidas continues to upgrade existing locations.

“For 2025, we’re focused on revitalizing our existing fleet,” said Hawkins. “The Niagara-on-the-Lake outlet store is currently undergoing renovation, but otherwise, there are no plans for new store openings this year. You’ll have to wait until 2026 for that.”

Editor’s note: Mario Negris and Martin Moriarty of Marcus & Millichap negotiated the lease deal on behalf of adidas. Morguard is the landlord of the building at 969 Robson Street where adidas will be located.

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Eat Up Canada eyes expansion with focus on guest experience and innovative real estate strategy: George Heos

By

Mario Toneguzzi

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February 25, 2025

George Heos, CEO and co-founder of Eat Up Canada, is navigating the competitive quick-service restaurant (QSR) industry with a strategy focused on growth and guest experience.

Heos, who oversees the brands Pokeworks, Bombay Frankie’s, and Mighty Bird, is leading the company through an expansion phase, with plans to open 10 to 14 new locations in 2025. The company has already opened seven Bombay Frankie’s, five Pokeworks, and three Mighty Bird locations within Ontario in the last 18 months.

As they continue to grow, Heos and his business partner Alexander Gerzon are targeting new markets in British Columbia and Alberta by the fall, with the goal of eventually reaching all Canadian provinces.

What sets Eat Up Canada apart, according to Heos, is their dedication to offering a superior guest experience. Heos emphasizes that while food quality and marketing are crucial, it’s the interaction with customers and the environment in which they dine that creates lasting impressions.

Unlike typical QSRs, Heos’ brands elevate the dining experience by offering table service, using plateware and silverware, and providing a more personalized atmosphere. As the company looks toward the future, Heos remains committed to developing their existing brands while exploring new concepts, all while focusing on speed and flexibility in securing real estate and expanding into larger, more affordable spaces.

“We own and operate one corporate restaurant, which is our training restaurant and centre of excellence. We want to run a successful, well-managed restaurant to show franchisees what it looks like. For example, our corporate restaurant for Mighty Bird is in Burlington, for Bombay Frankie’s, we have two locations: one in Ajax and one in Newmarket. For Pokeworks, it’s in Etobicoke,” said Heos.

“The restaurant industry has always been challenging, and I’ve been in this business for 30 years. It’s one of the most competitive industries out there because the barrier to entry is very low. Everyone eats, so everyone thinks they can run a restaurant. But what’s really interesting about this industry is that new brands are always emerging with new foods.

“For instance, five years ago, Poke would have been very little known. If you went to Hawaii, you’d know Poke, but now it’s becoming much more popular globally. A long time ago sushi was quite unknown. The same thing with burritos. Now they’re everywhere. Shawarma. People’s taste change. The market is more international now, and what used to be “ethnic food” is just food now. There’s always room for new, cool concepts.

“However, I think sometimes restaurants forget it’s about the food and the guest service. Marketing is really important, but guest experience is key.”

Heos said most of this year’s expansion will be with the Pokeworks brand with an expected six to eight openings. Eat Up Canada will also open three or four Mighty Bird locations and one or two Bombay Frankie’s.

“We’re expanding Bombay Frankie’s menu a bit before we fully expand it,” he said.

“There are many people who want to build a brand to a certain level and then sell to large consolidators. We don’t have that plan. My business partner, Alex Gherzon, and I enjoy what we do. We love supporting our franchisees and enhancing the guest experience. We’ll continue developing these brands and exploring new opportunities. We’re always presented with opportunities for new concepts, but we want to stay hands-on and not overwhelm ourselves with too many brands. We focus on quality, not quantity,” he said.

“One thing we’ve had a lot of success with is real estate. Competition for smaller spaces is intense, and rents have skyrocketed. In 30 years, I’ve never seen as much competition for those spaces. So we’ve focused on securing larger spaces, anywhere from 3,000 to 6,000 square feet, and then dividing them into two or three units. This allows us to secure better sites and get them at more economical rates.

“We’ve done four, and our fifth is in the works. We’re dividing a 5,600-square-foot space into three units.

“One advantage we have is speed. We can secure deals much faster than large companies because we’re a smaller operation. We can deal directly with landlords and get things done quickly, which is a huge advantage.”

Canadians concerned about financial fraud, but few prioritize prevention: Mastercard

By

Mario Toneguzzi

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February 25, 2025

As Fraud Prevention Month approaches this March, a new nationwide survey from Mastercard highlights the growing concern among Canadians about the rising threat of financial fraud. Despite 89 per cent of Canadians acknowledging the growing threat to individual and community prosperity, only seven per cent are actively prioritizing fraud prevention, according to the survey.

Fraud threats are becoming increasingly complex, and Canadians need to stay vigilant.

Amisha Parikh, Vice President of Security Solutions at Mastercard, Canada: “Our objective is to stay one step ahead of fraudsters to protect businesses and consumers. Mastercard is revolutionizing the speed and precision of our anti-fraud solutions through the continued implementation of new technologies, including the evolution of Artificial Intelligence.”

The survey findings reveal that over three-quarters (76 per cent) of Canadians are generally concerned about the potential impact of fraud on their financial health and well-being. Furthermore, while 65 per cent of respondents consider themselves knowledgeable about financial fraud, 16 per cent admit to lacking awareness. In terms of identifying fraud, 77 per cent of Canadians are confident they can spot fraud attempts, with only a small minority (three per cent) unable to consistently identify fraudulent activities.

The survey also highlighted a sense of shared responsibility when it comes to preventing fraud. More than half (53 per cent) of Canadians believe they share responsibility with businesses and financial institutions in protecting themselves from fraud.

Mastercard’s Commitment to Cybersecurity Innovation

Despite the rising concern, Mastercard continues to lead the way in cybersecurity and fraud prevention. 90 percent of Canadians trust their credit card transactions to be secure, a sentiment Mastercard delivers on by continuously innovating to protect digital transactions from emerging threats.

By leveraging advanced technologies such as biometric authentication, tokenization, and contactless payments, Mastercard enhances security while ensuring a seamless experience for consumers and businesses. These innovations strike the balance between robust fraud prevention and user convenience.

Mastercard has also made significant investments in Canada’s cybersecurity landscape. The company has committed $510 million to its Global Intelligence and Cyber Centre of Excellence in Vancouver, tapping into Canada’s tech workforce to accelerate the development of fraud prevention solutions. Furthermore, Mastercard has invested over $10 million in partnerships with academic institutions and non-profits across the country, helping grow Canada’s highly skilled tech workforce and ensuring the country remains a leader in global innovation.

Supporting Small Businesses in Canada

Small businesses, which form a substantial part of Canada’s economy, are particularly vulnerable to the damaging effects of financial fraud, including loss of consumer trust. Mastercard’s research shows that 70 percent of Canadians would have more trust in businesses that use advanced security technologies like biometrics and passkeys.

Recognizing this, Mastercard is committed to supporting small businesses with the tools and resources necessary to protect against rising cyber threats. Through the Mastercard Cybersecurity Assessment Tool, which is available for free on the Mastercard Trust Centre, business owners can better understand their cybersecurity needs and take action to safeguard their businesses.

“Mastercard believes small businesses are the backbone of Canada’s economy,” says Parikh. “We continually invest in new solutions and strategic partnerships to better equip small business owners and entrepreneurs with the tools to defend against fraud.”

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Tariffs, Trends, and the Tactics to Help Navigate 2025

By

Craig Patterson

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February 25, 2025

Rudsak Hero — Rudsak at Royalmount in Montreal. Photo: Rudsak

Uncertainty is nothing new for Canadian retail – businesses continue to feel the pinch of stretched consumer budgets and a hyper-promotional environment that’s bringing forth added pressures on margins and cash flows – but now with persistent inflationary stressors and the looming threat of US tariffs, what’s a retailer to do to find success in 2025?

These challenges, and many others, require retailers to become more vigilant about their strategies and how to seize opportunities to maintain profitability. This is certainly true for the leadership teams at La Vie en Rose and Rudsak, two of Canada’s most recognizable brands, and longstanding clients of Richter, a Business | Family Office firm. Rudsak and La Vie en Rose have faced similar challenges — both external, like economic pressures, and internal, like adapting their customer engagement models — and their journeys each highlight the importance of adaptability, discipline, and focus, in an evolving retail environment.

Customer Experience and Loyalty: Delivering Quality and Consistency

François Roberge, President and CEO of La Vie en Rose

In 2025, a key area of concern for retailers is how to enhance the customer experience, ensuring consistency across both physical stores and e-commerce platforms. This is a prominent theme for both La Vie en Rose and Rudsak, whose focus on customer loyalty and personalized service has helped them weather shifting market conditions.

La Vie en Rose has worked attentively to stay true to its core customer base, focusing on delivering consistent experiences that prioritize diligence in pricing and product offering. According to François Roberge, La Vie en Rose President and CEO, it is about “respecting our customers and keeping a focus on what we do best,” rather than trying to broaden product offerings just to diversify. “While it seems like everything is moving faster and faster these days, one thing remains constant to us: appreciating our customers, and treating them with respect,” says Roberge. Their mission emphasizes authenticity and confidence—values that have resonated with their loyal customer base for years.

Evik Asatoorian, President and Founder of Rudsak

Rudsak’s success similarly hinges on knowing its customers and providing a personalized, in-store experience. “It is about understanding how to connect with your unique customer. What works for one may not work for the next,” says Evik Asatoorian, President and Founder of Rudsak. Rudsak recently made a big investment with Shopify and now has an integrated, sophisticated POS system. “Now with customer profiles and order history, we have customer data at our fingertips, enabling us to customize in-store experiences even more,” says Asatoorian. This omnichannel approach has helped Rudsak deliver exceptional customer service and build lasting relationships.

Real Estate: A Strategic Balancing Act

The shift towards e-commerce has prompted many retailers to reassess their positions on real estate. While online sales are essential, brick-and-mortar stores remain a vital part of the customer experience. This is a position La Vie en Rose believes in firmly, “many brands have focused their efforts on being online, which is certainly important, but have neglected the importance of storefronts and in-store experiences. True omnichannel is the future of retail, but there must be a balance of brick-and-mortar and e-commerce to achieve success,” notes Roberge.

Vanessa Velentzas, retail advisory expert and Partner at Richter

Retail advisory expert and Richter partner Vanessa Velentzas emphasizes the ongoing importance of brick-and- mortar stores, noting that the in-person brand experience cannot be matched online. “However, retailers must reevaluate their real estate strategy to ensure their locations and footprint align with changing consumer behaviour,” she explains. “Retailers should consider things like lease renegotiations in low-traffic locations or take advantage of more flexible terms, such as pop-up stores to test new markets. Ultimately, thoughtful strategies involve finding a balance; the online presence needs to be optimized while physical stores in key locations should continue to drive brand awareness and engagement.”

Another important element in finding the right retail-real estate strategy is how to balance the transactional with the emotional. Rudsak’s in-store, personalized service is an essential touchpoint, helping customers connect with the brand, and reinforces its reputation for trust and quality. “We feel that this is incredibly important. Fashion is an emotional transaction,” notes Asatoorian.

Pragmatism, however, comes when decisions need to be made on actual locations. For Roberge, each store location must contribute to the brand’s presence and profitability. Roberge advises, “I would rather be recognized as the best in lingerie and swimwear, more than anything else. The store itself is simply a place to do business. You cannot be emotionally attached [to the locations].”

Inventory Management: Maximizing Cash Flow

In today’s climate, availability of cash flow will determine which retail businesses survive. Roberge notes, “retailers forget to manage money that is sleeping in inventory.” Velentzas agrees, saying “effective inventory management is crucial. Retailers must optimize inventory levels and focus on turning their inventory into dollars. Failing to do this will leave retailers with outdated inventory and limited resources to invest in projects that enhance customer experience, ultimately putting them at risk of losing relevance and falling behind more agile competitors.”

For both retailers, sustaining the right stock is a cornerstone for achieving future growth goals. With an ethos of quality over quantity, Rudsak keeps its inventory levels in check while ensuring that the products it offers hold their value, further reinforcing the brand’s commitment to craftsmanship. For La Vie en Rose, Roberge also emphasizes the importance of keeping inventory at healthy levels and knowing when it’s time to let go, stating, “If it’s not working this year, it won’t next year. It’s better to take action rapidly”. This, for La Vie en Rose, is as crucial to remember in the day-to-day as it is for their future as they begin to execute their plans to expand into the US.

Staying Focused and Adaptable

Regardless of what is in store for 2025, both leaders agree that staying focused on the customer is essential to long-term success. As Asatoorian puts it, “focus on connecting to your unique customer, not the general mass,” highlighting the importance of understanding the customer’s specific needs and preferences. “Stay true to who you are and do it well,” he advises. “We understand and appreciate fashion influence, but we will never compromise our brand to keep up with the volatility of trends. Quality and service above all, are most important. People can see through the gimmicks.”

Roberge underscores the need to focus on financial discipline and customer engagement: “No cashflow, no projects. Pay your debts and focus on your business to avoid giving the banks leverage. Retail is a cashflow business, therefore the health of your balance sheet is critical. Adopt a cash-focused mindset.”

“La Vie en Rose and Rudsak are pillars of Canadian retail, and we’ve been privileged to work alongside them for years as they’ve achieved goals, realized strategic visions, and established a groundwork for ongoing success,” says Velentzas. “Mr. Roberge and Mr. Asatoorian exemplify true leadership, with unwavering commitments to quality, authenticity, and putting the customer first.”

Richter’s Role in Retail Strategy

Richter is a Business | Family Office that provides strategic advice on business matters and on families’ financial and personal objectives across generations. With close to 100 years of experience advising at the intersection of family and business, Richter has developed an integrated approach to help private businesses overcome obstacles and build sustainable success. Whether for business, personal, or both, Richter is uniquely positioned to address the needs of Canada’s most successful entrepreneurs, private clients, business owners and business families, helping them chart a clear path to shape their legacies for the future. Richter’s multidisciplinary team continues to innovate to create value for its people, clients, and community throughout Canada and in the US.

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

Annual sales of food services and drinking places $96.5B in 2024: Statistics Canada

By

Mario Toneguzzi

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February 25, 2025

Total sales in the food services and drinking places subsector increased for the fifth consecutive month in December, rising 0.3% to $8.3 billion, according to a report released Tuesday by Statistics Canada.

Non-seasonally adjusted prices for food purchased from restaurants were down 1.6% in December when compared with December 2023, and unadjusted prices for alcoholic beverages served in licensed establishments decreased 0.8% over the same period due to the federal tax break, which started on December 14, 2024, said the federal agency.

“In December, the largest increase in sales came from limited-service eating places (+0.9%), marking the industry’s ninth consecutive monthly increase. Sales were down at full-service restaurants (-0.1%) and special food services (-0.5%),” said the Statistics Canada report.

In December, five provinces saw increased sales, with Ontario (+1.1%) posting the largest gain in dollar terms. British Columbia (+1.4%) also posted a large increase in sales, which coincided with the three Taylor Swift concerts held at BC Place in Vancouver. Quebec (-1.6%) posted the largest sales decrease.”

Statistics Canada said annual sales of food services and drinking places totalled $96.5 billion in 2024, up 4.0% from 2023. Sales increased at limited-service eating places (+5.5%), full-service restaurants (+2.2%) and special food services (+6.8%) in 2024. Sales at drinking places (-1.9%) were down in the same period. Sales were up in all provinces, led by Ontario (+4.3%), Quebec (+3.6%) and British Columbia (+4.0%).

“Limited-service eating places, also known as fast-food or quick-service restaurants, increased $2.3 billion from 2023 to $44.8 billion in 2024. Every province had growth in the fast-food industry, with the highest increases being in Ontario (+5.5%), Quebec (+6.2%) and British Columbia (+6.0%),” said Statistics Canada.

“Sales in full-service restaurants increased by $895.5 million from one year earlier to $41.6 billion in 2024. Sales were up in nine provinces, led by Ontario (+2.2%) and British Columbia (+3.8%).

“Limited-service eating places (46.4%) and full-service restaurants (43.1%) held the largest shares of sales in the food services and drinking places subsector in 2024.”

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Stable versus struggling: Canada’s financial divide widens: Equifax

By

Mario Toneguzzi

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February 25, 2025

A growing financial divide is emerging across Canada, with some borrowers benefiting from lower interest rates while others struggle under mounting debt. According to Equifax Canada’s Q4 2024 Market Pulse Consumer Credit Trends Report, some Ontario mortgage holders are experiencing severe financial distress, with delinquencies more than 50 per cent higher than pre-pandemic levels.

Total consumer debt in Canada reached $2.56 trillion at the end of 2024, a 4.6 per cent increase over 2023. Non-bank auto loans drove much of this increase, rising 11.7 per cent year-over-year, while the average non-mortgage debt per consumer reached $21,931, exceeding pre-pandemic levels, said the report.

“While some consumers are doing better and seeing financial improvements from lower interest rates, financial pressures have intensified for some Canadians, as well as mortgage holders in certain regions, in particular in Ontario and British Columbia,” said Rebecca Oakes, Vice President of Advanced Analytics at Equifax Canada. “At first glance, the numbers are not concerning, but when we look deeper at a more granular level, many are feeling the strain of high living costs and mortgage renewals with higher payments, while other consumers are doing better and seeing financial improvements from lower interest rates and income growth.”

For some homeowners, rate cuts have provided some relief. Some borrowers with home equity lines of credit have seen delinquency rates stabilize. Many of these consumers have improved their credit card repayment habits, with more people paying off balances in full, added Equifax.

Ontario Mortgage Holders Under Pressure and Missing Payments
The report said more than 11,000 mortgages in Ontario recorded a missed payment in Q4 2024 — nearly three times the number seen in 2022. Mortgage holders who are falling behind in their payments are also carrying substantially higher mortgage balances, reflecting the continued financial strain of higher than pre-pandemic interest rates. The 90+ day mortgage balance delinquency rate in Ontario surged 90.2 per cent year-over-year to 0.22%, far outpacing the change in delinquency rates in other provinces, with BC at 37.7 per cent, Alberta at -3.6 per cent, Quebec at 41.2 per cent, the Prairies (MB and SK) at 0.6 per cent, and the Atlantic provinces (NL, PE, NB, NS) at 15.7 per cent.

Ontarian mortgage holders are struggling with other forms of debt as well. The 90+ day non-mortgage balance delinquency rate jumped 46.1 per cent from Q4 2023, while other provinces saw smaller rate jumps, with BC at 21.6 per cent, Quebec at 23.3 per cent, Alberta at 6.1 per cent, the Prairies (MB and SK) at 4.1 per cent, and the Atlantic provinces (NL, PE, NB, NS) at 1.5 per cent. In addition, Ontario’s overall rise in non-mortgage delinquency rate was 23.9 per cent, above the national average of 18 per cent, it said, adding that in Toronto, 90+ day non mortgage delinquency rates hit 2.06 per cent, higher than most major cities, reflecting the region’s unique financial challenges.

“Mortgage holders will typically do everything they can to keep up with payments,” explained Oakes. “The fact that we’re seeing missed payments rise so sharply suggests deeper financial strain. Depending on the type of credit, missed payments have increased from 10 to 80 per cent, compared to pre-pandemic levels.”

Canadian Housing Market: Rebound Tempered by Renewal Challenges

The overall Canadian mortgage market showed signs of recovery, with new mortgage originations rising 39 per cent year-over-year. First-time homebuyers returned, with a 28.2 per cent increase from the extreme lows of purchases in Q4 2023. Although the average loan amount for first-time buyers remains 6.6 per cent higher than Q4 2023, monthly payments have decreased 7.9 per cent, or $200 lower, to an average loan amount of $2,330, said the report.

“Mortgage renewals and refinancing accounted for over 50 per cent of new mortgage originations in Q4 2024, increasing 10.6 per cent from 2023. The average loan amount and balance on mortgage renewals in 2024 surpassed those in 2023 and 2022, with the average balance increasing by 2.9 per cent in 2024 compared to 2023,” it said.

“Many consumers renewing their mortgage continue to have higher monthly payments due to elevated interest rates compared to pre-pandemic and pandemic levels, when they last locked in their low rates. This reality is expected to affect around a million mortgages due for renewal in 2025, originating from the low-interest-rate environment of 2020. These borrowers may face significantly higher payments despite recent rate reductions. A quarter of mortgage-holders saw their monthly mortgage payment increase by over $150 at renewal in Q4 2024.”

Consumer Spending and Credit Behaviour

Equifax said credit card debt climbed 7.8 per cent in Q4 2024, though at the slowest rate since 2022. Seasonal spending in December hit a two-year high, with average credit card purchases adjusted for inflation reaching $2,228 per cardholder, a 2.2 per cent increase from 2023.

Younger and lower income Canadians are experiencing missed payments on credit cards, auto loans, and lines of credit, signaling financial strain among these groups, it added.

“Despite recent rate cuts and GST tax relief, challenges persist for certain consumers, particularly in consumer debt and housing. The added uncertainty of U.S. tariffs underscores the need for a balanced approach to debt, affordability, and trade. The coming year will be critical for Canada’s economic stability,” said Oakes.

Age Group Analysis – Debt & Delinquency Rates (excluding mortgages)

	Average Debt (Q4 2024)	Average Debt Change Year-over-Year (Q4 2024 vs. Q4 2023)	Delinquency Rate ($) (Q4 2024)	Delinquency Rate ($) Change Year-over-Year (Q4 2024 vs. Q4 2023)
18-25	$8,483	3.84%	1.92%	15.17%
26-35	$17,467	0.87%	2.24%	21.24%
36-45	$27,042	1.96%	1.85%	23.20%
46-55	$34,564	3.71%	1.33%	19.04%
56-65	$28,714	5.53%	1.11%	14.26%
65+	$14,635	3.82%	1.11%	5.55%
Canada	$21,931	2.98%	1.53%	17.98%

Major City Analysis – Debt & Delinquency Rates (excluding mortgages)

City	Average Debt (Q4 2024)	Average Debt Change Year-over-Year (Q4 2024 vs. Q4 2023)	Delinquency Rate ($) (Q4 2024)	Delinquency Rate ($) Change Year-over-Year (Q4 2024 vs. Q4 2023)
Calgary	$24,078	0.81%	1.67%	16.23%
Edmonton	$23,665	-0.22%	2.17%	19.00%
Halifax	$21,278	1.46%	1.53%	21.37%
Montreal	$17,057	3.16%	1.43%	20.48%
Ottawa	$19,634	1.75%	1.47%	24.45%
Toronto	$21,054	3.34%	2.06%	23.75%
Vancouver	$23,251	4.12%	1.24%	15.81%
St. John’s	$23,968	1.02%	1.47%	3.62%
Fort McMurray	$37,861	0.26%	2.41%	11.72%

Province Analysis – Debt & Delinquency Rates (excluding mortgages)

Province	Average Debt (Q4 2024)	Average Debt Change Year-over-Year (Q4 2024 vs. Q4 2023)	Delinquency Rate ($) (Q4 2024)	Delinquency Rate ($) Change Year-over-Year (Q4 2024 vs. Q4 2023)
Ontario	$22,597	3.51%	1.64%	23.91%
Quebec	$19,156	2.83%	1.08%	16.88%
Nova Scotia	$21,349	2.45%	1.66%	9.28%
New Brunswick	$21,548	2.71%	1.68%	5.80%
PEI	$23,664	3.44%	1.23%	14.34%
Newfoundland	$24,843	3.82%	1.49%	0.05%
Eastern Region	$22,272	2.88%	1.59%	6.32%
Alberta	$24,537	0.74%	1.91%	17.11%
Manitoba	$18,150	2.64%	1.69%	3.14%
Saskatchewan	$23,265	2.29%	1.77%	11.09%
British Columbia	$22,583	3.61%	1.36%	14.16%
Western Region	$22,911	2.34%	1.64%	14.09%
Canada	$21,931	2.98%	1.53%	17.98%

* Based on Equifax data for Q4 2024

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The State of Luxury Fashion in Canada: Trends and Challenges

By

Retail Insider

-

February 25, 2025

Luxury brands at the Yorkdale Shopping Centre in Toronto. Photo: Craig Patterson

By Alex Mazelow, Head of Digital at StyleDemocracy

Canada’s luxury fashion sector has experienced significant shifts in recent years, influenced by economic fluctuations, evolving consumer behaviours, and global trends. As we move through 2025, it’s clear that luxury retail is undergoing a transformation. While demand for high-end fashion remains strong, factors like inflation, shifting shopping habits, and the growing resale market are reshaping the industry. Understanding these dynamics is crucial for retailers, brands, and investors seeking to navigate these changes.

The Current State of Luxury Retailers in Canada

Despite economic uncertainty, Canada’s luxury fashion industry has shown resilience. In 2024, luxury apparel sales increased by 4.2%, with projections suggesting an 18.8% growth by 2027. The overall fashion and apparel market in Canada is also on a growth trajectory, expected to reach $40.78 billion in 2024, marking a 2.48% year-over-year increase. However, this growth hasn’t come without its challenges. While some luxury brands continue to thrive, others have struggled to maintain pre-pandemic sales levels.

In reference to key trends, one of the most notable in Canadian luxury retail is the resurgence of brick-and-mortar shopping. Shopping centers like Yorkdale in Toronto have expanded their luxury offerings, attracting brands such as Loewe, Brunello Cucinelli, and Versace. At the same time, the rise of secondhand and resale luxury is transforming the market. Luxury resale platforms, such as The RealReal and Vestiaire Collective, have gained popularity among Canadian consumers. Additionally, experiential retail and hyper-personalization – a trend that emerged in the immediate aftermath of the COVID-19 brick-and-mortar store closures – continue to drive significant engagement.

Conversely, the once booming luxury streetwear sector, particularly the sneaker resale market, has experienced notable shifts. The resale market for high-end sneakers has faced challenges due to market saturation and changing consumer preferences. Major brands like Nike, Supreme, and Adidas increased their production volumes, transforming previously limited-edition releases into widely available products. This overproduction led to a significant decline in resale profits, as items that once commanded premium prices saw dramatic markdowns.

Parallel to the challenges in the resale market, there has been a significant rise in ‘dupe’ culture within the fashion industry. ‘Dupes’ are products that closely mimic the design and appearance of luxury items but are sold at a fraction of the price, have become a major trend and has been amplified by social media platforms like TikTok, where creators share their best dupe finds across fashion, beauty, lifestyle, and homeware. At the time of writing, over 260,000 posts have been made under the #dupes hashtag, highlighting its popularity, according to a recent article in Vogue Business.

Rendering of the ‘luxury run’ at Oakridge Park in Vancouver. Image via QuadReal

Challenges Facing Luxury Retailers in Canada

Luxury fashion retailers in Canada are navigating a complex landscape in 2025, marked by economic uncertainties, evolving consumer behaviors, and intensified global competition. These challenges necessitate strategic adaptations to sustain growth and relevance in the market.

Economic Uncertainty and Inflation

The Canadian luxury market is experiencing a slowdown, with projections indicating a modest annual growth rate of 3.35% from 2025 to 2029, aiming for a market volume of US$6.24 billion by 2029. This deceleration is influenced by global economic headwinds, including inflationary pressures that have heightened consumer price sensitivity. As a result, even affluent consumers are reassessing their discretionary spending, leading to a cautious approach toward luxury purchases.

Shifts in Consumer Preferences

A notable shift in consumer behavior is the growing demand for value-driven purchases. A 2025 report from Yahoo Finance, indicates that 70% of consumers plan to continue shopping at off-price retailers, such as T.J. Maxx and Ross, over the next 12 months, even if their disposable income increases. This trend suggests a reevaluation of traditional luxury propositions, with consumers seeking quality and exclusivity at more accessible price points.

The Colonnade on Bloor Street in Toronto. Image: Morguard

Global Trade Dynamics and Tariff Implications

International trade policies have introduced additional complexities for Canadian luxury retailers. The imposition of tariffs, such as the 25% tariff on goods from Canada and Mexico and a 10% tariff on goods from China, has disrupted supply chains and increased operational costs. These tariffs compel retailers to reconsider their sourcing strategies and pricing models to mitigate adverse financial impacts.

Demographic Shifts and the ‘Silver Generation’

Demographic changes present both challenges and opportunities. The ‘silver generation,’ comprising consumers over 50, is expanding and holds significant purchasing power. However, luxury brands have historically focused on younger demographics, necessitating a strategic pivot to engage this mature segment effectively. Tailoring marketing strategies and product offerings to resonate with the preferences of older consumers is becoming increasingly imperative.

Sustainability and Ethical Considerations

Modern consumers are increasingly conscious of sustainability and ethical practices. Luxury retailers are pressured to demonstrate genuine commitment to environmental responsibility and social ethics. This shift requires substantial investment in sustainable materials, transparent supply chains, and corporate social responsibility initiatives, which can be resource-intensive but essential for brand loyalty and compliance with evolving regulations.

Luxury corridor in West Edmonton Mall in Edmonton, December 2024. Photo: Craig Patterson

The 2025 Outlook: Where is the Market Headed?

Looking ahead, the Canadian luxury fashion market is expected to continue its steady growth. Industry projections from Statista indicate a 3.35% annual growth rate from 2025 to 2029, with the market volume expected to reach $6.24 billion by 2029. One trend gaining momentum is ‘quiet luxury,’ which focuses on understated, timeless pieces rather than overt branding and logos. Additionally, the fusion of luxury fashion with functional, nature-oriented apparel, sometimes referred to as ‘gilded gorpcore,’ is an emerging trend.
The Canadian luxury fashion market is at a pivotal moment, shaped by economic factors, evolving consumer preferences, and industry innovations. While challenges like inflation and global competition persist, opportunities abound for brands that embrace change and stay ahead of market trends. Whether through experiential retail, personalization, or sustainable fashion initiatives, the future of luxury fashion in Canada will be defined by those who can adapt, innovate, and connect with the modern luxury consumer.

Alex Mazelow, is Head of Digital at StyleDemocracy. StyleDemocracy is North America’s leading warehouse sale and retail event management company, specializing in turnkey solutions for brands looking to move excess inventory while maximizing revenue and protecting brand integrity. With a 25-year history, StyleDemocracy has built a reputation for creating seamless, high-impact shopping experiences that drive results. For more information, visit styledemocracy.com.

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

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Retail Insider

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February 24, 2025

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Trump says U.S. ‘on time’ with tariffs against Canada, other countries (BNN)

Why Canadians aren’t giving up on American-owned Costco amid tariff threats — and it’s not just the hot dogs (Toronto Star)

Walmart loses crown as biggest retailer after 12 years on top, with Amazon ranking higher (MSN)

Three men are charged with allegedly stealing way too much butter (CTV)

Reflections from ICSC Whistler 2025: Insights into the future of retail and shopping centers (Arcadis)

Vancouver bike shop is closing with scathing words for government (Daily Hive)

New Associated Grocers Family Village Market opens in Vernon, B.C. (Grocery Business)

Proposed Canadian tariffs may impact North Dakota retail and tourism (Grand Forks Herald)

Silk & Snow launches major store expansion in Canada (Renderings)

By

Mario Toneguzzi

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February 24, 2025

Silk & Snow, the Canadian sleep brand known for its high-quality mattresses, bedding, and furniture, is poised to further expand its footprint across the country. CEO and co-founder Albert Chow revealed plans to open 15 new retail locations by the end of 2025, with a notable new store opening in Calgary on March 21. This move comes after a successful launch of concept stores in Ottawa, Edmonton, and Laval, demonstrating strong customer demand for the brand’s unique mix of product.

Chow shared that the decision to rapidly grow into physical retail spaces was driven by Silk & Snow’s ability to offer a wide range of products beyond just mattresses, catering to a diverse customer base. By partnering with Sleep Country, the company has leveraged synergies between their customer bases, offering everything from furniture to bedding. Chow emphasized that the brand’s tactile shopping experience has resonated strongly with consumers, positioning Silk & Snow as one of the fastest-growing sleep companies in Canada.

Beginning as an e-commerce retailer in 2017, the company has quickly become one of the country’s most popular destinations for sleep essentials. Silk & Snow has seen a growing demand for in-person shopping
experiences, providing customers with more opportunities to interact with the products in real life. After successfully opening three brick-and-mortar spaces in Edmonton, Ottawa, and Laval, Silk & Snow is ready or a national retail expansion, launching elevated storefronts in key markets like Calgary, Vancouver, Quebec City, Winnipeg, and the GTA.

“We started our journey as a brand in 2017 as a digitally native brand and really built our customer base and our business online. We were probably very fortunate with the timing, especially during the pandemic. Over the last four years, we’ve probably been one of the fastest-growing e-commerce companies in Canada. In 2023, we joined Sleep Country with the intent of partnering with them to expand our physical retail in bricks and mortar retail . . . We’re mid to upper market in terms of product assortment. We saw a need to offer our customers both online and physical shopping experiences. We’ve expanded not just in mattresses but in bedding, furniture, and the entire bedroom space,” said Chow.

Within the first few years of working with Sleep Country, the brand was in a testing phase. The first concept store opened in Ottawa, a pairing of Silk & Snow and Sleep Country side by side, about 6,000 square feet. It focused on bedding, furniture, and a selection of mattresses. It found good synergy between the customer bases. Customers appreciated the expanded product assortment, offering more than just a solution for sleep. This led to its second and third stores that opened in late 2023. The second store was in Edmonton, combining Silk & Snow, Endy and Sleep Country in an 8,000-square-foot space. The third store, in Laval, was a smaller activation within a larger Sleep Country, around 450 square feet, focused on bedding and select mattresses.

The expansion this year is 15 confirmed stores. Some of these will be standalone, while others will collaborate with other Sleep Country brands. The plan is to grow the Silk & Snow retail presence. The first few stores have proven to show demand for the brand in a physical environment.

There have been many reports recently indicating that the Canadian consumer is holding back on spending these days due to economic pressures.

“We’ve actually seen the opposite. Our brand is slightly more unique within the sleep space because we offer a much broader product assortment beyond just mattresses—bedding, furniture, and other home goods. We tend to sell the entire space. Customers are coming to us for all these items. As we’ve activated retail locations, we’ve seen increased demand from customers to experience the product that way. This has translated into strong results for us. We’re likely the fastest-growing sleep brand in Canada, and it’s been an exciting journey. People enjoy the tactile experience of seeing and feeling the products in-store, which enhances their buying experience,” said Chow.

The expansion will kick off with Silk & Snow’s first standalone store opening its doors in Calgary on March
21. More details, including the full list of stores, will be announced in the coming months.

“I think we’ve got a pretty full plate with the 15 stores coming up,” said Chow. “I think it will go as far as we feel our customer base will support. At this point, I think 15 is operationally what we could probably handle but we do hope to continue to expand down this path.”

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Walmart Canada’s Spark a Miracle campaign raises $5.7 million for Children’s Hospitals across Canada

By

Mario Toneguzzi

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February 24, 2025

Walmart.ca annual holiday Spark a Miracle fundraising campaign has raised an impressive $5.7 million to support children’s hospitals nationwide. The funds will directly benefit 12 children’s hospital foundations across Canada, advancing groundbreaking research, purchasing specialized medical equipment, and enhancing healing environments for young patients and their families.

From November 14 to December 24, 2024, Walmart Canada invited customers to donate at checkout both in-store and online. A special focus was placed on Giving Tuesday (December 3), where Walmart contributed $1 from every toy sold in stores and on Walmart.ca, up to a maximum donation of $200,000.

“The unwavering support of Walmart Canada, their associates, and customers has been instrumental in helping children’s hospitals provide the specialized care kids need across Canada,” said Adam Starkman, President and CEO of Canada’s Children’s Hospital Foundations. “Thank you, Walmart, for your dedication – your generosity is transforming lives and creating brighter futures for children and families in every community.”

This campaign’s success highlights Walmart Canada’s long-standing commitment to supporting Canadian communities, especially those focused on children’s health and well-being.

“Spark a Miracle is one of the ways we demonstrate our commitment to strengthening the communities we serve,” said Rob Nicol, Vice President of Communications and Corporate Affairs at Walmart Canada. “We are incredibly proud of our dedicated associates and deeply grateful for the generosity of our customers, who consistently help Canadian families through these donations that prioritize the health and well-being of children.”

Inspiring Stories of Hope

The campaign also shared the inspiring stories of two Patient Ambassadors, Cole and Rylie, whose lives have been transformed thanks to the care provided by Canadian children’s hospitals.

Rylie was born prematurely with a hole in her heart and spent three months in the NICU at Stollery Children’s Hospital. After undergoing three open-heart surgeries, Rylie is thriving and loves spreading joy to everyone she meets.

Cole developed a rare blood disorder at age four that caused his blood to clot and his kidneys to fail. He was sent to Children’s Hospital at London Health Sciences Centre, where life-saving amputations and a kidney transplant changed his life. In 2023, Cole competed in wheelchair basketball at the Canada Games, showcasing his strength and resilience.

30 Years of Impact

Since 1994, Walmart Canada has partnered with Children’s Miracle Network, raising over $230 million to date. This long-standing partnership has had a significant impact on pediatric healthcare, helping to provide vital support to families in need across the country.

About Walmart Canada
Walmart Canada is a tech-powered omnichannel retailer with more than 400 stores nationwide, serving over 1.5 million customers daily. Walmart.ca, the company’s flagship online store, also receives millions of visitors every day. Walmart Canada has over 100,000 associates and is one of the country’s largest employers, consistently ranked as one of the top 10 most influential brands in Canada. Walmart Canada has raised over $750 million for Canadian charities since its inception.

About Children’s Miracle Network
Children’s Miracle Network® supports 170 member hospitals across the globe, including 13 in Canada. Its mission is to raise funds and awareness to save and improve the lives of children. Donations directly fund critical treatments, pediatric medical equipment, and research at local children’s hospitals.

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Annual sales of food services and drinking places $96.5B in 2024: Statistics Canada

Stable versus struggling: Canada’s financial divide widens: Equifax

The State of Luxury Fashion in Canada: Trends and Challenges

The Current State of Luxury Retailers in Canada

Challenges Facing Luxury Retailers in Canada

Economic Uncertainty and Inflation

Shifts in Consumer Preferences

Global Trade Dynamics and Tariff Implications

Demographic Shifts and the ‘Silver Generation’

Sustainability and Ethical Considerations

The 2025 Outlook: Where is the Market Headed?

More from Retail Insider:

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

News at a Glance

Silk & Snow launches major store expansion in Canada (Renderings)

Walmart Canada’s Spark a Miracle campaign raises $5.7 million for Children’s Hospitals across Canada

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