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Food Security at Risk as Supply System Collapses

By
Sylvain Charlebois
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Chicken farm. Photo: BC SPCA

Canada’s supply management system—once heralded as a pillar of food security and agricultural self-sufficiency—is failing at its most basic function: ensuring reliable domestic supply.

According to the latest figures from the Canadian Association of Regulated Importers (CARI), Canada imported over 66.9 million kilograms of chicken as of June 14—a 54.6% increase from the same period last year. To put that in perspective, this volume could feed 3.4 million Canadians for an entire year, based on per capita poultry consumption. That’s roughly 446 million individual meals—meals that, under a tightly managed quota system, were meant to be produced domestically. Imports now equate to over 12% of Canada’s domestic chicken production so far in 2025—highlighting the country’s growing dependence on foreign supply.

To be fair, the avian influenza outbreak in Canada has disrupted poultry production and partially explains the shortfall. But even with that disruption, the numbers are staggering. Imports under trade quotas established by the WTO, CUSMA, and CPTPP are all running at or near pro-rata levels, signaling not just opportunity—but urgency. Supplementary import permits—designed to be exceptional, last-resort tools—have already surpassed 48 million kilograms, exceeding the total annual import volumes of some previous years. This is not a seasonal hiccup. It is systemic failure.

Canada’s poultry sector is supposed to be insulated from global volatility through supply management. Yet internal shocks—like the domestic avian flu outbreak—have shown just how fragile the system really is. When emergency imports become routine, we must ask: what exactly is being managed?

The original intent of supply management was to align production with domestic demand while stabilizing prices and farm incomes. But that balance is clearly off. The A195 production period, ending May 31, 2025, showed one of the worst underproduction shortfalls in more than 50 years. Producers remain constrained by rigid quota allocations, while consumers face rising poultry prices. More imports. Higher costs. Diminished confidence.

Some defenders will insist this is an isolated event. It’s not. This is the second week in a row Canada has reached pro-rata import levels across all chicken categories. Bone-in and processed poultry products—once minor parts of emergency import programs—are now essential to keeping the market supplied.

The dysfunction extends beyond chicken. Egg imports under the shortage allocation program have already topped 14 million dozen, a 104% increase from last year. Just months ago, Canadians were mocking high U.S. egg prices—yet those prices have since fallen. Ours haven’t.

All this in a country with $30 billion in quota value, intended to protect domestic production and reduce reliance on imports. Instead, we are importing more—and paying more.

Meanwhile, Bill C-202, now before the Senate, seeks to shield supply management from future trade negotiations, effectively making reform even more difficult. So we must ask: is this really what we’re protecting? A system that fails to meet demand, depends on foreign product, and drives up costs at the grocery store?

Our trading partners are taking full advantage. Chile, for instance, has increased its chicken exports to Canada by over 63%, now accounting for nearly 96% of CPTPP-origin imports. While Canada doubles down on protectionism, others are gaining long-term footholds in our market.

It’s time to face the facts. Supply management no longer guarantees supply. And when a system meant to ensure resilience becomes the source of fragility, it is no longer an asset—it’s an economic liability.

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Building safer retail environments: How security monitoring enhances employee well-being (Opinion)

By
Retail Insider
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Photo: Interface Systems
Photo: Interface Systems

By Steve Womer

In today’s fast-paced retail environment, the safety and morale of employees are more critical than ever. While customer satisfaction remains a major priority, many retailers are now recognizing that employee well-being directly impacts store performance, customer service, and overall profitability. One powerful and often underutilized strategy to enhance employee safety and morale is the deployment of comprehensive outdoor and indoor security monitoring, including remote video monitoring (RVM) and virtual guard services.

Steve Womer
Steve Womer

Rather than reacting to incidents after they occur, modern security technology now emphasizes prevention, real-time intervention, and psychological reassurance for retail teams. Let’s explore how intelligent outdoor and indoor security solutions are transforming the retail workplace into a safer, more supportive environment for employees.

Outdoor Monitoring: Crime Prevention Starts at the Perimeter

For retailers, threats don’t just occur inside the store – they often originate outside. Comprehensive outdoor monitoring solutions are crucial in setting the tone for safety before an employee even steps through the door.

Stopping Crime Before It Happens

Modern outdoor security technologies leverage AI-driven cameras that can accurately detect people and vehicles in real-time. These systems monitor store exteriors, parking lots, delivery zones, back alleyways, and customer entry points to immediately spot suspicious behavior before it escalates.

For example, AI-based store perimeter monitoring solutions detect unauthorized activity and issue automated or live personalized voice warnings. If someone lingers near a back door or loiters outside after hours, a live security professional can intervene with a voice message customized to the situation – deterring crime before a break-in or confrontation occurs.

This early intervention not only protects assets but also ensures that store employees feel safe,
especially during vulnerable times like opening and closing shifts.

Managing Loitering and Unsanctioned Gatherings

Outdoor monitoring also helps prevent loitering, trespassing, and encampments – common concerns for many retailers in urban and suburban locations. AI-based detection combined with proactive anti-loitering systems can discourage gatherings near storefronts or side alleys, reducing risks of vandalism, confrontation, and the perception of an unsafe environment for employees and customers alike.

By safeguarding store exteriors, retailers create a visibly secure environment, building employee
confidence even before they clock in.

Photo: Interface Systems
Photo: Interface Systems

Indoor Monitoring: Supporting Employees Where It Matters Most

Once inside the store, comprehensive indoor monitoring provides another critical layer of
protection and psychological reassurance for retail staff.

Virtual Guard Escort Services for High-Risk Situations

Retail employees often face stressful and risky tasks, such as opening and closing the store alone, conducting bank runs, or handling cash deliveries. Virtual guard services can remotely escort employees during these high-risk moments, providing real-time oversight and support.

An employee locking up late at night, for example, can be monitored remotely by a security specialist, who can intervene if suspicious behavior is observed nearby. This virtual presence drastically reduces fear and improves employee confidence when performing tasks alone.

Retail store employees also often find themselves at the front of difficult customer interactions, shoplifting attempts, and even aggressive behavior throughout the day. Having a virtual guard present allows remote security professionals to proactively intervene through live voice communications during incidents. These remote security teams can:
● Deter shoplifting by announcing a visible security presence.
● Intervene during escalating arguments or risky situations before they turn violent.
● Support employees during active burglary attempts with live updates, directions, and
voice warnings that can prompt suspects to flee.

Rather than feeling isolated, employees gain the reassurance that trained security professionals are watching and ready to step in if needed – helping to reduce stress, fear, and trauma from on-the-job incidents.

Scheduled and Randomized Video Tours to Check Employee Well-Being

Virtual guard services also offer scheduled or randomized video tours throughout the day. Retailers can set up random spot checks where remote security personnel visually verify that employees are okay, adding a discreet but comforting layer of oversight, especially in stores with smaller teams or during slow hours.

Security Technology That Minimizes Police Escalation

One of the biggest benefits of remote video monitoring and voice communication interventions
is that most situations never need to escalate to law enforcement. According to Interface Systems’ 2024 State of Remote Video Monitoring Report, after analyzing thousands of real-world incidents across customer locations, less than 3% required police involvement once a virtual guard voice communication system was activated.

This data highlights how remote monitoring not only de-escalates threats early but also minimizes the disruption and risk associated with law enforcement responses. For employees, this translates into a workplace that feels safe but not over-policed, allowing them to focus on delivering great customer experiences.

Photo: Interface Systems
Photo: Interface Systems

A Positive Ripple Effect on Staff Morale

When employees feel physically safe and emotionally supported, the benefits ripple outward:
● Reduced turnover: Employees are more likely to stay when they feel secure at work.
● Higher productivity: Staff can focus on customers, not on personal safety concerns.
● Better customer service: Confident, relaxed employees create a more welcoming
environment.
● Lower shrinkage: Employees are empowered to report and prevent theft with the
knowledge that they have remote backup.

In today’s tight labor market and challenging retail environment, investing in technology that protects and empowers employees is a clear win for operational leaders, asset protection teams, and CFOs alike.

Building a Safer Future with Intelligent Remote Video Monitoring Solutions

Comprehensive security is no longer just about protecting inventory – it’s about supporting
people.

From intelligent outdoor monitoring that prevents crime before it starts to indoor virtual guards
that offer real-time reassurance and de-escalation, forward-thinking retailers are transforming
security from a reactive necessity into a proactive tool for building a positive workplace culture.

By recognizing the link between employee well-being and effective security strategies, retailers
can create environments where both staff and customers thrive.

(Steve Womer is currently SVP of Engineering at Interface Systems. He has a wealth of experience designing and deploying network, physical security, and business intelligence infrastructure for distributed enterprise clients. Since 2008, Steve has served in various engineering, sales engineering, and operational roles for industry-leading managed services providers. Steve is passionate about simplifying the complex and exceeding customer expectations.)

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Zvelle Reinvents as Men’s Luxury Shoe Brand

By
Craig Patterson
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Zvelle Ray Arena campaign image, via Zvelle

In a significant evolution for one of Canada’s most distinctive footwear brands, Toronto-based Zvelle has officially transitioned into a men’s luxury footwear label, led by founder and creative director Elle AyoubZadeh. 

Originally established in 2015 as a women’s shoe brand, Zvelle has now fully embraced a new chapter, releasing limited edition and distressed editions of its signature Ray sneaker. The move marks not only a product shift but a complete creative transformation for the company.

Elle AyoubZadeh

“I just didn’t like what I was seeing in men’s shoes,” AyoubZadeh explained in a recent interview. “There was a lot of clunkiness, a lot of busyness. It’s not my aesthetic. I wanted to undo all of that.”

The Inspiration Behind the Pivot

AyoubZadeh’s transition into men’s footwear was not the result of a formal market study or commercial calculation. Instead, it was born from personal observation and instinct. “In all my travels, I kept looking at men’s shoes and thinking, ‘Why does everything have to look like this?'” she said. “I’m not a man, and I think that actually gives me an advantage. I have a different perspective.”

Her first creation for men, the Ray sneaker, was the product of this impulse. “I got obsessed with this idea of creating a high-top sneaker with the sole of a dress shoe,” she said. “Nobody had done that before. I wasn’t even thinking about whether it had been done or not. I just wanted to create something that I had in mind.”

Zvelle Ray Arena campaign image, via Zvelle

Celebrity Endorsements Without Payment

The Ray sneaker quickly attracted high-profile attention. AyoubZadeh personally curated a small list of celebrities she believed embodied the Zvelle man and sent them early pairs. The response was overwhelmingly positive. “Every single one of them wrote back to say how much they loved it,” she said. Notably, Zvelle does not pay for celebrity endorsements. “In the celebrity world, that’s rare. A lot of them are paid brand ambassadors. We don’t pay anyone. These are real supporters and real fans of the brand.”

Among the celebrities who have embraced the brand are Kieran Culkin, Will Smith, and Colman Domingo. “When I do something, I never do it halfway,” AyoubZadeh said. “I believe in what I’m doing and went all in.”

A Different World of Design

Designing men’s footwear presented entirely new challenges and creative opportunities for AyoubZadeh. “It’s like a whole different universe,” she noted. “There is nothing I do the same as I did with women’s shoes. I’m a lot bolder with my vision. I’m very product-focused.”

Today, Zvelle offers four distinct styles: three sneakers—including the Ray—and one dress boot. “We have a new version of the boot coming soon,” she shared. “And we’re about to launch a loafer later this fall.”

The brand also plans to introduce a new slip-on sneaker within the next month. “I think it will really change the way people look at slip-on sneakers,” AyoubZadeh said. “I’m not a sneakerhead. I’m inspired by art and architecture, not sneaker trends.”

Made in Italy, Shipped from Canada

Despite its Canadian headquarters in Toronto, Zvelle’s footwear is entirely handcrafted in Italy. “We work with the best manufacturers in Italy. I have a team there. I oversee literally everything,” AyoubZadeh emphasized. “We don’t work with agencies or outsource anything.”

All orders are shipped directly from Canada, allowing the brand to avoid import duties for Canadian and U.S. customers. “We ship internationally, and we’re not raising our prices despite all the talk about tariffs,” she added. In Canada, the sneakers are priced from approximately $600 to $900 CAD.

Zvelle Ray Arena campaign image, via Zvelle

An Independent Path

Zvelle remains entirely independent and founder-owned, a rarity in today’s increasingly consolidated luxury fashion industry. “I have the luxury, as an independent designer, to drop new styles anytime I want,” AyoubZadeh said. “It allows me to remain true to the vision.”

That vision is deeply personal, rooted in AyoubZadeh’s global upbringing. Born in Shiraz, Iran, and raised across Dubai, New Zealand, and Australia, AyoubZadeh left a career in finance to pursue her passion for footwear. 

“Zvelle is for pilots, not passengers,” she once told The Kit, emphasizing her brand’s philosophy of freedom, power, and creative control.

Defining the Zvelle Man

Central to the pivot has been AyoubZadeh’s clear image of who the Zvelle man is. “He’s independent. He values freedom. He’s not someone you can put in a box,” she explained. “He has technical mastery of his craft, but he’s confident enough not to shout.”

To capture this ethos, Zvelle’s latest campaign prominently features Theodore Roosevelt’s famous ‘Man in the Arena’ speech. “It’s better to be in the arena, to win, to lose, to feel emotions—but at least your soul is doing what it wants to do,” AyoubZadeh said. “When I think of the Zvelle man, he’s someone who’s in the arena.”

Global Expansion on the Horizon

Though Zvelle remains deeply rooted in Canada, the brand’s ambitions are international. “We are proudly Canadian, but we’ve always been a global brand,” AyoubZadeh said. “Now that we have a strong presence in Europe and the U.S., it’s time to also update Canadians on what we’ve been up to.”

The company has previously operated pop-ups across Toronto, including at Yorkdale, CF Toronto Eaton Centre, CF Sherway Gardens, and a showroom in Bloor-Yorkville. While Zvelle currently sells directly through its website, AyoubZadeh is now open to exploring retail partnerships. “At this stage, we’re having conversations with like-minded retail partners,” she said. “We want to work with retailers that understand our approach and share our standards and values.”

Zvelle Ray Arena campaign image, via Zvelle

Physical Stores Remain a Possibility

While there are no confirmed store openings yet, AyoubZadeh remains enthusiastic about physical retail. “I believe in physical spaces,” she said. “We’ve done pop-ups in the past; I could do a pop-up in my sleep now.”

Expansion into Italy is also under serious consideration. “We’ve been in Italy for years on the production side. Now it’s time to speak directly to the consumer there,” she explained. “I’ll know more in the next few weeks, but I’m really excited.”

Los Angeles may also be on the radar. “We already have a strong presence there with celebrity stylists and press offices,” she said. “A physical location in LA wouldn’t be much of a surprise.”

A Distinct Voice in Luxury

In an increasingly crowded luxury footwear market, AyoubZadeh believes Zvelle offers something unique. 

“People want freshness, authenticity, quality, distinctive design,” she said. “Those are things that Zvelle stands for.”

At the heart of Zvelle’s renewed identity is AyoubZadeh’s singular creative vision. “I didn’t realize how fresh and new it was until I started getting it out there,” she reflected. “I’m thrilled to see how people are reacting. I just want to keep this vision going.”

For Zvelle, the pivot to men’s footwear is not simply a business decision. It represents a creative evolution—one that reflects AyoubZadeh’s deep belief in quality, individuality, and timeless design.

“At the end of the day, we’re not chasing trends,” she concluded. “We are building something that lasts. We are in the arena.”

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LI/NE Turns Upcycled Sailcloth Into Canadian Fashion

By
Craig Patterson
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Photo: LI/NE

In the heart of Toronto’s artisan scene, a new Canadian brand is making waves—quite literally. LI/NE, a woman-owned company founded by Anela Dujsic and her mother Lily, is taking a distinctly nautical route into the fashion and lifestyle market by transforming discarded sailcloth into striking, one-of-a-kind bags.

Blending function with design, and sustainability with storytelling, the brand is quickly carving out a niche among environmentally conscious consumers, sailing enthusiasts, and lovers of handmade Canadian design.

The origin story of LI/NE is as unique as its products. Dujsic, who previously worked in the fashion industry with brands such as Eileen Fisher and Canada Goose, began toying with the idea while taking sailing lessons one summer. It was there that inspiration struck.

Anela Dujsic

“I was doing these lessons and thought sails were such cool material—so durable and visually interesting,” she said in an interview. “At the same time, I learned that about 97% of sails end up in landfills. That just didn’t sit right with me.”

Her solution? She made herself a duffle bag from an old sail. “People loved it. Friends told me I should make more. My mom was especially encouraging. She said, ‘Let’s actually do this. Let’s make this a project together.’”

The brand’s name, LI/NE, cleverly combines both their names—Lily and Anela—and also references the lines used on a sailboat.

A Passion Project Becomes a Business

What started as a side project has grown into a burgeoning brand. Initially treated as a family passion initiative, with Dujsic still working full-time, the business gained momentum over the past year.

“I finally stepped into it more full-time. We redid the line, invested in doing some larger shows—One of a Kind, the International Boat Show, Cottage Life, and the Interior Design Show. The traction we’ve received since has been amazing.”

In April 2025, LI/NE received a grant to open a temporary retail store at Stackt Market in Toronto. The experience provided the brand’s first physical storefront and offered valuable insights into consumer behaviour.

“Having the store was so impactful,” said Dujsic. “It let us tell the full brand story and allowed customers to physically interact with the product, which is important when your material is as unique as sailcloth.”

LI/NE pop-up at Stackt Market. Image: Ani Nersessian

The Art—and Effort—of Upcycling Sails

Though the material is technically free, the process of transforming sailcloth into a consumer-ready product is far from easy.

“People assume we’re getting this material for free and that’s that. But there’s a huge labour cost in preparing the sails,” Dujsic explained. “We have to pick up or coordinate drop-offs, inspect them for damage, and then cut, soak, pressure wash, and run them through a washing machine.

Beyond cleaning, the sails vary in size, fibre type, and condition. The most common material used is Dacron, a polyester fabric known for its durability. Racing sails, on the other hand, may include carbon fibre or Kevlar—each with its own production quirks.

The bags themselves are sewn by a small network of seamstresses in Ontario, including a primary partner based in Burlington who has experience with marine textiles.

“It’s a specialized process,” said Dujsic. “You need industrial walking foot machines to sew this material. Not every seamstress—or sewing machine—can handle it.”

Photo: LI/NE

One-of-a-Kind Products with a Strong Identity

LI/NE’s product range currently includes duffles, pouches, totes, and their standout bestseller: the Ice Bucket Beverage Bag. This unique design can hold six bottles or cans, be filled with ice, and features a drainage hole for water runoff—making it a favourite among cottagers and sailors alike.

Each piece is inherently unique, due to the one-of-a-kind nature of the sails used. “Even when we have colour accents, they come from remnant rolls or seconds from sailcloth manufacturers,” said Dujsic. “That way we can offer some visual consistency—say, a white bag with an orange base—while preserving the uniqueness.”

Prices range from $45 for small pouches to $260 for the more complex duffles and totes, placing the brand within a mid-premium bracket.

LI/NE also creates greeting cards with sail offcuts, turning even scraps into design features. “Some people frame them,” said Dujsic. “They’re little works of art.”

Photo: LI/NE

Collaboration with Sail Canada and Scaling Challenges

A key development in 2025 is LI/NE’s new partnership with Sail Canada, the national governing body for the sport. The collaboration is intended to raise awareness around sail donation and to streamline collection efforts at major sailing events, starting with a pilot initiative in Kingston.

“The limiting factor in our growth is how many sails we can source,” Dujsic admitted. “This partnership will help us reach sailors across the country and give them a clear path to donate.”

To date, individuals who donate sails are offered a free bag made from their sail (when the material allows), though LI/NE is exploring other models such as offering discounts, depending on what the donation yields.

The brand is also beginning to sell through a small group of wholesalers in cottage and sailing communities, including Prince Edward County, Salt Spring Island, and Muskoka. They’ve even completed custom co-branded pieces for the Royal Canadian Yacht Club in Toronto.

Photo: Discover Boating

Retail Experience as Brand Education

One of the most powerful aspects of LI/NE’s business model is its ability to educate consumers on sustainability in a tactile way. At the Stackt Market popup, Dujsic even brought in a portable Barracuda Command sewing machine to demonstrate bag construction live.

“People were fascinated,” she recalled. “They couldn’t believe the bags were made from old sails. It totally reframed their understanding of waste. That’s exactly what we want to do—present something so beautiful and well-made that the fact it’s upcycled surprises people.”

Photo: LI/NE

Looking Ahead

While LI/NE doesn’t yet have plans for a permanent store, the retail experience proved there’s demand—and that the brand has room to grow. “We’re not quite at that stage yet,” said Dujsic, “but we’re getting there. Right now, we’re focused on expanding our wholesale and event presence, scaling our production, and increasing sail donations.”

The team is currently preparing for Chester Race Week in Nova Scotia, one of the largest sailing events in North America, and exploring additional partnerships that can support both material acquisition and brand visibility.

LI/NE pop-up at Stackt Market. Image: Ani Nersessian

A Family Affair with a Global Message

At the heart of LI/NE is not just a mother-daughter partnership, but a clear mission: to reimagine waste, celebrate craftsmanship, and promote sustainability.

“Upcycling isn’t always easy,” said Dujsic. “But it’s necessary. We’re trying to show that waste can be transformed into something beautiful—and that design and responsibility can coexist.”

As LI/NE continues to chart its course across Canada’s retail landscape, it’s doing more than selling bags. It’s telling a story—of family, of innovation, and of a more thoughtful way to engage with the world around us.

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DAVIDsTEA delivers strong start to fiscal 2025 with higher margins and profitability gains in Q1

By
Mario Toneguzzi
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(Image: DAVIDsTEA)

DAVIDsTEA Inc., a leading North American tea merchant, announced Tuesday its financial results for the quarter ended May 3, 2025, as it prepares to launch new retail locations this fall.

Sarah Segal

“Our first-quarter performance demonstrates consistent execution of our omni-channel growth strategy and
significant operational progress. Retail store sales rose 11.5% year-over-year, including 2.8% comparable store sales growth, while gross profit margin exceeded 51% of sales. With adjusted EBITDA reaching $1.6 million, these are meaningful steps forward in our turnaround journey,” said Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA.

“As we enter the summer season, we are preparing to launch new retail locations this fall—an important milestone in our broader growth strategy. These openings are designed to strengthen revenue performance and support our goal of achieving a compound annual growth rate of more than 10% over the next three years. We also expect positive momentum across our e-commerce and wholesale channels. At the core of our strategy is a commitment to sustainable, long-term growth, through optimizing our retail footprint, elevating the brand experience at every touchpoint, and deepening customer engagement.

Frank Zitella
Frank Zitella

““We began fiscal 2025 on a strong note, delivering incremental sales growth, improved gross margins, tighter expense control, and a significantly reduced net loss in the first quarter. While we anticipate some seasonal softness in the second and third quarters, our leaner cost structure, adequate liquidity, and diversified channel mix positions is to achieve our objective of full-year profitability. We remain focused on disciplined execution and long-term value creation for shareholders. Revenues are up, gross profit is up, and costs are down — a direct result of laserfocused execution of our business plan,” said Frank Zitella, President, Chief Financial and Operating Officer, DAVIDsTEA.

“Our focus has been on delivering a value proposition that resonates with consumers supported by a
memorable experience, both in person and online in order to generate sales as we deal with macro-economic headwinds.”

DAVIDsTEA Operating Results for the First Quarter of Fiscal 2025

  • Sales for the first quarter of fiscal 2025 increased by $0.1 million to $13.5 million, or 0.6%, compared to the prior year quarter. Sales in Canada, which accounted for 86.1% of total revenue, decreased by $0.1 million, or 0.8%, compared to the prior year quarter. U.S. sales of $1.9 million increased by $0.2 million or 10.1% compared to the prior year quarter. Brick-and-mortar sales of $5.0 million increased by $0.5 million or 11.5% from $4.5 million in the prior year quarter. Brick-and-mortar sales represented 37.3% of sales compared to 33.7% of sales in the prior year quarter. Online sales of $6.4 million decreased by $0.3 million or 4.8% from $6.7 million in the prior year quarter. Online sales represented 47.5% of sales compared to 50.2% of sales in the prior year quarter. Sales from wholesale channel of $2.1 million decreased by $0.1 million or 5.3% from $2.2 million in the prior year quarter. Wholesale sales represented 15.2% of sales compared to 16.1% of sales in the prior year quarter.
  • Gross profit increased by 18.6% to $6.9 million from the prior year quarter due to an increase in product
    margins, and a decrease in unitized freight, shipping and fulfillment costs. Gross profit as a percentage of sales increased to 51.1% for the quarter compared to 43.3% in the prior year quarter.
  • Selling, general and administrative expenses were $6.9 million for the quarter, representing a decrease of $1.5 million, or 17.9%, compared to the same quarter in the prior year. The most significant driver of this decrease was a $1.1 million reduction in ongoing IT-related expenses, resulting from the successful conversion of the Company’s full technology stack to a lower-cost operating system. This strategic transition has materially and permanently reduced our operating cost base, providing sustainable efficiency gains going forward. Additionally, the prior year quarter included $0.6 million in professional fees related to financing activities and $0.5 million in impairment charges on property and equipment and intangible assets. These items did not recur in the
    current quarter, further contributing to the year-over-year reduction in SG&A. These savings were partially offset by an increase in marketing expenses of $0.4 million and employee separation costs of $0.3 million.
    As a percentage of sales, SG&A expenses declined to 51.3% in the current quarter from 62.9% in the prior year quarter, reflecting improved cost efficiency and operating leverage.
  • EBITDA was $1.1 million in the quarter compared to negative $2.0 million in the prior year quarter. Adjusted EBITDA was $1.6 million compared to negative $0.8 million for the same period in the prior year. Adjusted EBITDA (after rent equivalent expense) was $0.4 million in the quarter compared to negative $1.6 million in the prior year quarter. The increases quarter over quarter reflect the impact of an increase in Gross profit and a decrease in ongoing SG&A expenses.
  • Net loss was negative $0.2 million in the quarter compared to a net loss of $2.6 million in the prior year quarter. Adjusted net income was $0.2 million in the first quarter compared to adjusted net loss of $1.6 million in the prior year quarter. Fully diluted net loss per share and Adjusted fully-diluted net income (loss) per share. Fully diluted net loss per common share amounted to $0.01 in the quarter compared to a fully diluted net loss per common share of $0.10 in the prior year quarter. Adjusted fully diluted net income per common share, which is Adjusted net income on a fully diluted weighted average shares outstanding basis, was $0.01 compared to an Adjusted fully diluted net loss of $0.06 in the prior year quarter.
  • As at May 3, 2025, the Company had $10.4 million of cash held by major Canadian financial institutions.
    Working capital was $12.7 million as at May 3, 2025 compared to $12.8 million as at February 1, 2025. The decrease in working capital is substantially explained by a decrease in cash and prepaid expenses and deposits. These are substantially offset by an increase in inventories and a decrease in trade and other payables.

DAVIDsTEA offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform at www.davidstea.com  and the Amazon Marketplace, its wholesale customers which include over 4,000 grocery stores and pharmacies, over 1,500 convenience stores in Canada and over 900 grocery stores in the United States, as well as 20 company-owned stores across Canada. It offers primarily proprietary tea blends that are exclusive to the Company, as well as traditional single-origin teas and herbs.

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Groupe Dynamite reports 10th consecutive quarter of positive comparable store sales growth 

By
Mario Toneguzzi
-
Photo: Groupe Dynamite website
Photo: Groupe Dynamite website

Groupe Dynamite Inc. reported Tuesday its financial results for the fiscal year 2025’s first quarter ended May 3, 2025, indicating 13.0% comparable store sales growth in Q1 2025, over and above 16.4% in Q1 2024.

Andrew Lutfy - Photo courtesy of Carbonleo
Andrew Lutfy – Photo courtesy of Carbonleo

“We’re marking a milestone quarter in every sense. As we celebrate Garage’s 50th anniversary, we’re also celebrating performance that speaks for itself: 13.0% comparable store sales growth on top of last year’s 16.4%, and strong momentum carrying into Q2, with comps trending even higher. Our luxury-inspired business model continues to deliver, driven by agility, emotional connection, and a culture that shows up every day with purpose. With the launch of our inaugural ESG report and our Shared Success Program, we remain focused on building lasting value for our customers, our people, and our shareholders,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board.

Stacie Beaver
Stacie Beaver

“This quarter, we saw what’s possible when product, marketing, and the field are fully aligned. Our collections were supported by strong storytelling across every channel—and brought to life by a community that believes in the brand, from store teams to influencers to loyal customers. With strong execution and momentum across the business, and the launch of our U.S. distribution center next quarter, we’re set to deliver even faster, sharper, and more connected brand experiences,” added Stacie Beaver, President & Chief Operating Officer. 

Fiscal 2025 First Quarter Highlights

  • Revenue increased by 20.0% to $226.7 million in Q1 2025, compared to $188.9 million in Q1 2024.
  • Comparable store sales growth of 13.0% in Q1 2025, over and above comparable store sales growth of 16.4% in Q1 2024.
  • Retail sales per square foot increased by 16.0% compared to Q1 2024, reaching $756 in Q1 2025.
  • SG&A increased to $74.7 million in Q1 2025, compared to $66.2 million in Q1 2024, and adjusted SG&A as a percentage of sales decreased to 32.4% from 34.6% over the same period in Fiscal 2024.
  • Operating income increased by 16.2% to $44.3 million in Q1 2025, compared to $38.2 million in Q1 2024.
  • Adjusted EBITDA increased by 19.8% to $66.8 million in Q1 2025, representing an adjusted EBITDA margin of 29.5%, unchanged from the same period in Fiscal 2024.
  • Diluted net earnings per share increased to $0.24 in Q1 2025, compared to $0.22 in Q1 2024 and adjusted diluted net earnings per share  increased by 8.7% to $0.25 in Q1 2025, compared to $0.23 in Q1 2024.
  • Real estate activity for Q1 2025 includes:
    • Opening of 1 gross new store in the United States under the Garage banner
    • Closure of 2 stores: 1 in the United States under the Dynamite banner and 1 in Canada also under the Dynamite banner
    • Relocation of 3 stores: 1 in the United States under the Garage banner and 2 in Canada also under the Garage banner.

The table below outlines the Company’s revised financial annual guidance ranges for Fiscal 2025 replacing our previously disclosed guidance:

Revised Fiscal 2025 GuidanceOriginal Fiscal 2025 Guidance
Real estate activity 18 to 20 gross new store openings; 9 to 10 net new store openings18 to 20 gross new store openings; 9 to 10 net new store openings
Comparable store sales growth↑ 7.5% to 9.0%5.0% to 6.5%
Adjusted EBITDA margin30.3% to 32.3%30.3% to 32.3%
CAPEX$95.0 to $105.0 million$95.0 to $105.0 million

Groupe Dynamite operates retail stores and digital experiences under two complementary and spirited banners—GARAGE and DYNAMITE.

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Source: Groupe Dynamite website
Source: Groupe Dynamite website

Canada-U.S. tariff clash reshapes business: Statistics Canada

By
Mario Toneguzzi
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Photo: Splash of Rain
Photo: Splash of Rain

Canada and the United States have long maintained one of the most significant trade relationships in the world. In 2024, bilateral trade in goods surpassed $1 trillion for the third consecutive year, with the United States accounting for 75.9% of Canada’s total goods exports and 62.3% of its total goods imports, according to a recent report from Statistics Canada.

But that deeply integrated trade partnership is now facing a major upheaval. A sweeping series of tariffs introduced by the U.S. administration in early 2025 has set off a retaliatory response from the Canadian government, sending ripple effects across Canada’s business landscape—especially in retail and manufacturing.

On March 4, 2025, the United States imposed a blanket 25% tariff on all Canadian goods not compliant with the Canada–United States–Mexico Agreement (CUSMA), alongside a 10% levy on Canadian energy exports. This was quickly followed by targeted tariffs on steel, aluminum, and automobiles. In turn, Canada implemented $30 billion in counter-tariffs on U.S. imports, with additional phases planned.

“These developments are reshaping cross-border trade, driving uncertainty and cost increases across Canadian industries,” notes Statistics Canada in its latest analysis, based on the Canadian Survey on Business Conditions conducted from April 1 to May 5, 2025.

Exporters Under Pressure

Exporters to the U.S.—which make up 86.6% of all Canadian exporters—are particularly vulnerable. Nearly one-third (32.2%) of these businesses expect the new U.S. tariffs to have a high impact, while another 19.8% anticipate a medium impact.

Over the next three months, 71.9% of exporters expect to face cost-related obstacles, with 30.4% forecasting a decrease in overall exports. Profitability is expected to decline for 35.4% of exporters, and 42.9% foresee rising operating expenses.

In response, nearly three-fifths (56.8%) of exporters have already taken action. Of these, 24.6% sought new customers outside the U.S., and 18.1% delayed major investments or expenditures. Among manufacturing exporters, 82.5% have implemented mitigation strategies—43.8% of them by pursuing alternative customers abroad.

Looking ahead, the business climate remains cautious. “Among exporters to the United States, 6 in 10 (60.5%) expect greater uncertainty over the next 12 months,” according to Statistics Canada. While 34.4% anticipate a decline in U.S. sales, 21.8% expect higher sales within Canada, and 11.0% foresee growth in other international markets.

Input costs are also projected to rise: 52.1% of exporters expect higher material input costs, and nearly half (46.7%) plan to increase their selling prices. Despite these headwinds, 65.7% of exporters remain either very or somewhat optimistic about their business outlook over the next year.

Photo: Martin G
Photo: Martin G

Importers Hit with Rising Costs

Importers are also dealing with fallout from Canada’s counter-tariffs. In 2023, 69.2% of all Canadian importers sourced goods from the United States, with an average of 28.8% of their total purchases coming from U.S. suppliers.

Among these businesses, 32.7% expect a high impact from Canadian tariffs on U.S. goods. Over half (53.8%) anticipate higher operating expenses, and 42.9% expect to increase their selling prices. About one-third (35.4%) foresee a decline in profitability.

To manage these risks, 57.5% of importers have made strategic adjustments. One-third (33.4%) have found alternative suppliers outside the U.S., while 24.6% increased domestic sourcing, and 19.2% stockpiled inventory.

In the manufacturing sector, 75.5% of importers took similar actions. “Over two-fifths (44.5%) sought alternative suppliers outside the United States, and one-third (33.9%) increased domestic sourcing,” said Statistics Canada.

Uncertainty is a consistent theme. Over half (52.6%) of U.S. importers expect more business volatility over the next 12 months, and 53.7% anticipate higher selling prices. Meanwhile, 60.3% foresee higher material input costs.

Despite the challenges, 71.5% of importers reported being optimistic about the year ahead, indicating resilience in the face of shifting trade conditions.

Tariffs Resonate Across All Sectors

The effects of these tariffs extend beyond importers and exporters. Across all industries, including retail and services, 18.1% of businesses expect U.S. tariffs on Canadian goods to have a high impact, and 18.5% report the same for Canada’s retaliatory tariffs on U.S. imports.

Over the last three months, 26.4% of all businesses have taken action to mitigate risk. These include sourcing outside the U.S. (12.2%), increasing domestic sourcing (12.0%), delaying investments (7.5%), and stockpiling inventory (6.7%).

In the manufacturing sector, more than half (54.3%) of all businesses took mitigation steps, including 32.2% that found non-U.S. suppliers and 26.4% that boosted domestic sourcing.

Looking forward, 43.1% of all businesses expect heightened uncertainty over the next year. Additionally, 40.4% expect higher material input costs, and 34.3% anticipate rising selling prices.

Still, business confidence persists. According to Statistics Canada, “Among all businesses, 7 in 10 (70.0%) reported being either very optimistic or somewhat optimistic about their outlook over the next 12 months.”

Retail Sector Adjusts to a New Trade Landscape

Retailers in particular are watching closely, with supply chains, pricing strategies and inventory planning now under constant review. The combination of higher input costs, delayed shipments, and shifting consumer demand is forcing businesses to adapt quickly or risk losing competitiveness.

With U.S.-Canada trade relations evolving rapidly, businesses across the country are bracing for continued uncertainty—yet responding with a spirit of adaptation and strategic resilience.

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International arrivals to Canada continue to decline in May: Statistics Canada

By
Mario Toneguzzi
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Byward Market George Street Plaza - Ottawa Tourism

Canada saw a significant year-over-year decline in international arrivals in May 2025, according to new data released by Statistics Canada. A total of 4.8 million people entered the country by air and automobile, including both returning Canadian residents and non-residents—down 16.7% compared to May 2024. This marks the fourth consecutive month of year-over-year declines in international arrivals.

Non-resident arrivals to Canada by air reached 894,200 in May 2025, a slight decrease of 1.3% from the same period a year earlier, Statistics Canada reported. This total included 439,800 U.S. residents (down 0.3%) and 454,500 overseas visitors (down 2.3%).

Despite the overall dip, the U.S. Memorial Day weekend offered a short-term lift. “According to the daily traffic data, a daily average of 17,800 US-resident arrivals was observed from Friday, May 23, to Monday, May 26, 2025 (Memorial Day in the United States), which was 49.7% higher than the average for the other Friday-to-Monday periods of the month,” Statistics Canada noted.

Canadian residents returning home by air totalled 1.6 million in May 2025, down 3.7% year over year. The decline came despite a 9.8% increase in return trips from overseas destinations, which reached 1.1 million. The drop was driven by a sharp decline in U.S. return travel. “Return trips by air from the United States declined in May 2025 (488,800; -24.2%),” according to Statistics Canada.

Victoria Day, observed on Monday, May 19, marked the busiest day for air arrivals by Canadian residents, with 64,000 returnees. The quietest day was Thursday, May 29, with just 41,100 arrivals.

Yonge Street in Toronto, Photo: Craig Patterson

U.S.-resident trips to Canada by automobile fell to 1,044,700 in May, a year-over-year decrease of 8.4%. According to Statistics Canada, this was the fourth straight month of lower volumes compared to the previous year.

Holiday weekend traffic was again an exception. “The highest numbers of arrivals of US residents were observed on Friday, May 23 (before the Memorial Day long weekend in the United States) (81,900) and Saturday, May 24 (80,800). The average for both days was 90.6% higher than the average of the other Friday-to-Saturday periods of the month,” the agency reported.

Canadian residents returning from the U.S. by automobile totalled 1.3 million in May 2025—a steep 38.1% decline from May 2024. According to Statistics Canada, this marks the fifth consecutive month of year-over-year declines in this category.

Victoria Day again saw the highest volume, with 106,900 return trips. “This number was 169.8% higher than the average for the other Mondays of the month,” the agency said.

With declines seen across nearly every mode of international travel, Statistics Canada’s May data points to a continuing trend of softer cross-border movement. While holiday weekends provide temporary boosts, the broader picture shows sustained reductions in both inbound and outbound travel to and from Canada.

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Canadian Retail News From Around The Web For June 17, 2025

By
Retail Insider
-
Canadian Retail News From Around The Web

News at a Glance

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

What a retail analyst thinks about Walmart Canada lowering prices for hundreds of items (CP24)

‘Buy Canadian’ movement creates opportunity for Roots (Financial Post)

Canada Goose prioritizes year-round relevance with second Haider Ackermann collection (Retail Dive)

Foodland Ontario launches map to help consumers find local food (Grocery Business)

Supply chain woes put squeeze on B.C. cannabis producers (BIV)

New Red Apple store opens in Lillooet, BC (Grocery Business)

How much does a basic grocery trip cost at different Montreal stores? We did the math (MTL Blog)

Primaris Acquires CF Lime Ridge in Hamilton for $416M

By
Craig Patterson
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Lime Ridge Mall (formerly CF Lime Ridge) in Hamilton, Ontario. Photo: Cadillac Fairview

In a move that underscores continued confidence in Canada’s enclosed shopping centre sector, Toronto-based Primaris Real Estate Investment Trust has announced the acquisition of CF Lime Ridge Mall in Hamilton, Ontario, from an entity managed by Cadillac Fairview, the real estate arm of the Ontario Teachers’ Pension Plan. The $416 million deal, comprised of a combination of cash and equity, is expected to close on June 17, and is among the largest retail real estate transactions in the country this year. As a result, the ‘CF’ will be dropped from the mall’s name. 

In a statement, Primaris said the acquisition includes a 100% ownership interest in the 793,000-square-foot regional mall, with $235 million paid in cash, $100 million in 6.00% exchangeable preferred units, and $81 million in series A units issued at $21.40 per unit.

“This acquisition builds on our strategy to own leading enclosed shopping centres in growing Canadian markets,” said Patrick Sullivan, President and Chief Operating Officer of Primaris. “Lime Ridge Mall is a market-leading regional enclosed shopping centre with all of the property characteristics Primaris is targeting with its growth strategy.”

Key Property in a Strategic Location

Lime Ridge Mall, located at 999 Upper Wentworth Street, is the largest shopping centre in Hamilton—a city ranked as Canada’s ninth largest population centre. The mall sits on a 65-acre parcel of land with approximately 30% site coverage, and is strategically located near the Lincoln M. Alexander Parkway and within easy access to the QEW and Highway 403.

The mall is home to major retailers including Sport Chek, H&M, and Urban Planet. A range of premium retailers such as Aritzia, Sephora, Lululemon, Browns, JD Sports, and Shoppers Drug Mart are also tenants. Primaris reported that Lime Ridge generated $841 per square foot in same-store sales productivity and $251 million in total CRU sales volume during the 12-month period ending December 31, 2024—making it the fourth highest-performing property in the REIT’s national portfolio.

Lime Ridge Mall (formerly CF Lime Ridge) in Hamilton, Ontario. Photo: Cadillac Fairview

Opportunity for Growth Despite Hudson’s Bay Exit

According to leasing details provided in investor documents, the mall currently has a long-term in-place occupancy rate of 58.5%, with an in-place occupancy of 61.3% and committed occupancy of 62.3%. The weighted average lease term sits at five years. A large portion of the mall remains underutilized, including a 125,307-square-foot former Hudson’s Bay anchor store, the future of which remains unclear.

The press release from Primaris makes no direct reference to the Hudson’s Bay space. However, sources have indicated that Weihong (Ruby) Liu—who has placed a bid on 28 former Bay locations—has also expressed interest in repurposing the Lime Ridge Hudson’s Bay location as part of her upcoming Ruby Liu department store chain.

Primaris has been actively repurposing former department store spaces across its portfolio. “There is significant opportunity for growth at this centre including leasing up vacant and temporarily tenanted space, and optimizing former department store space,” said Sullivan.

Infrastructure and Redevelopment Add Value

Further adding to the mall’s appeal is the Lime Ridge Mall Transit Terminal, which sits on the property and currently serves five transit routes. The terminal, originally built in 1997, is being redeveloped as part of a City of Hamilton initiative, with construction expected to begin later this year. Improved public transit infrastructure is expected to increase foot traffic and customer accessibility.

Additionally, since 2015, approximately $20 million in capital upgrades have been made to the mall. These improvements include roofing, HVAC, elevators, electrical systems, parking lot paving, and tenant unit refurbishments. The property also holds a BOMA Best Platinum certification for sustainability and operational excellence.

2025 Acquisition Momentum Builds

The acquisition of Lime Ridge Mall brings Primaris’ total enclosed shopping centre acquisitions for 2025 to $1 billion—exceeding its stated three-year growth target. In January, Primaris purchased the Oshawa Centre in Ontario and a 50% stake in Edmonton’s Southgate Centre for a combined $585 million, both from Ivanhoé Cambridge.

“With the acquisition of Lime Ridge Mall, we are improving the overall quality of our enclosed shopping centre portfolio,” said Alex Avery, Chief Executive Officer of Primaris. “This brings our annual same-store sales productivity to $774 per square foot, on a proforma basis, up from $768 per square foot as of March 31, 2025.”

Chief Financial Officer Rags Davloor emphasized the strength of the REIT’s financial structure, noting that the acquisition “while maintaining industry leading credit metrics, is a testament to the strategic advantages provided by Primaris’ differentiated financial model.”

Lime Ridge Mall (formerly CF Lime Ridge) in Hamilton, Ontario. Photo: Cadillac Fairview

Future Leasing and NOI Upside

The acquisition also comes with potential upside in terms of leasing and revenue generation. Primaris estimates that approximately 266,200 square feet of former anchor space, along with 53,000 square feet of vacant or temporarily leased CRU space, can be leased to high-quality national tenants at market rents.

Through its internal management platform, the REIT expects to leverage its cost efficiencies and operational know-how to drive higher net operating income. For fiscal 2025, Cash NOI is projected to range between $331 million and $337 million, up from $280 million in 2024. The acquisition is expected to be modestly accretive to FFO per unit.

On a proforma basis, the trust’s total CRU sales volume will rise to over $3.22 billion, and annual foot traffic is forecast to grow from 138 million to nearly 147 million visitors. The trade area for Lime Ridge includes more than 800,000 residents with an average household income of $121,700—higher than the REIT’s overall portfolio average.

Primaris Builds Market Leadership

Primaris REIT is the only publicly traded real estate investment trust in Canada exclusively focused on enclosed shopping centres. Its portfolio now totals 15.0 million square feet of gross leasable area, valued at approximately $4.9 billion.

With a fully internal, vertically integrated management team and a strong capital base, the trust is positioned to pursue opportunities during a time of significant transformation in the Canadian retail property landscape.

“As the only Canadian REIT exclusively focused on owning and managing enclosed shopping centres, Primaris continues to demonstrate its long-term strategy is delivering results,” said Avery. “Our scale, strong balance sheet, and deep retail relationships position us well to capitalize on a generational shift in retail real estate.”

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