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The Comeback of Mid-Market Brands and Retailers in Canada

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Retail Insider
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CF Sherway Gardens in Toronto. Image: Cadillac Fairview

By: Charles de Brabant, Executive Director of the Bensadoun School of Retail Management at McGill University

Retail experienced a tough year in 2024 and the outlook into 2025 does not look much better. At best, we are going back to more normal growth rates that were present before COVID.

There have been a few key highlights. The impacts of high inflation and high interest rates in the last couple of years have taken a toll on consumers and their pocketbook. It has forced the majority to focus on essentials, what is needed more than what is wanted – discretionary spending. This has forced most consumers to trade down. At the lower income levels, we have seen a strong rise in accessing food banks and the second hand/resale market. At the higher income levels, luxury brands’ continuous rise has stopped and we are now even witnessing drops in their revenues, due in large part to the loss of the aspirational consumer and the strong pushback on the significant, if not outrageous, price increases in the last few years on luxury goods.

Overall, this has been good news for value retailers such as Walmart, Dollar stores, … and the second hand, resale market. We have also witnessed the unstoppable rise of Shein and Temu. In recent years, these Chinese online sales giants have invaded the North American markets with their extremely low-priced products which have been well received by consumers looking for value.

A second reality of the current landscape is that technology is advancing more quickly than ever. Significant technologies for the retail industry include RFID’s new implementations in automated checkouts, virtual and augmented reality, and generative AI. The headline topic of 2024 was Generative AI, with 73% of retail executives surveyed by the Business of Fashion saying that they will explore the implementation of Gen AI in 2024. As it already has proven use-cases around product discovery, shopping assistant and personalization specialist.

CF Polo Park in Winnipeg. Image: Cadillac Fairview

The outlook for 2025 continues to look very uncertain for retail.  The key unknown is the political uncertainty with recent changes in leadership in Canada, but more importantly the turbulent situation with the second Trump presidency. The key concerns for the retail sector will certainly be around tariffs.  There is still a lot of uncertainty on if, when and how the tariffs get imposed and their potential impact.

But to me, the most striking highlight of 2024 is the unforeseen comeback of innovative and well managed mid-market brands. For years, we have seen retail move to the extremes with luxury doing well at the high end and value brands doing well at the lower end. This had left many mid to premium tier brands/retailers struggling, with many even disappearing. However, as The State of Fashion 2025 report by Business of Fashion and McKinsey & Co indicate that mid-market fashion retail has been the main driver of increase in economic profitability among publicly quoted companies in 2024 for the fashion sector, even more than value brands, as shown in the graph below.

After years of having increases in economic profitability driven by the luxury segment, fashion is being driven by consumer downtrading with mid-market brands bringing the biggest increase in economic profitability. This is due to 2 main factors:

  • Strong focus on economic profitability – costs, efficiency, inventory excellence and improved performance
  • For the winners like Aritzia, Groupe Dynamite (especially Garage), Hoka, On, Vuori, Uniqlo, Zara/Inditex, … Very focused on a very differentiated brand value proposition.

One prime example is Zara, as well the rest of the Inditex Group. Much has been written about the rise of ultra-fast fashion with Shein & Temu and its impact on the more traditional fast fashion brands like H&M and Zara. Actually, Zara is doing fine, thank you very much, as shown by its outstanding financial results and a market capitalization of the Inditex Group that has more than doubled in the last two years. This has been led by a complete revamp and upward positioning of the brand from a new store design, higher quality products at higher average prices and an extremely qualitative website. It occupies a unique space in the fashion landscape.

At a category level, it is fascinating to witness the rise of the challenger/newcomer brands in the sportswear industry. In 2024 among publicly quoted companies, challenger sportswear players — such as Deckers (owner of Hoka) and Asics — are expected to create over 50 percent of the segment’s value, surpassing incumbent sportswear brands known as the “Big Four” (Nike, Adidas, Puma and Under Armour) in economic profit for the first time, according to the McKinsey Global Fashion Index. Privately owned challengers are also seeing exceptional growth globally, including New Balance, Vuori and Alo Yoga.

Aritzia and JD Sports at CF Richmond Centre. Image: Cadillac Fairview

Challengers have succeeded by growing revenue faster than incumbents while also increasing their profitability.

As stated in the State of Fashion 2025 report,  “Challenger brands have aggressively taken market share by targeting niches and expanding reach:

  • Delivering visible innovation – Hoka oversized soles, On’s Cloud Tech soles,
  • Targeting specialized categories – Arc’teryx and Salomon focus on outdoor,
  • Tapping into cultural marketing – New Balance and Alo Yoga tapping high-profile KOL such as Jack Harlow and Kendall Jenner. Vuori and Gymshark focused on grassroots marketing, building ties with Southern California yogis and the English gym scene, respectively,
  • Filling wholesale whitespace left by Nike and Adidas in highly visited retailers Dick’s Sporting Goods and JD Sports.”
CF Fairview Mall in Toronto. Image: Cadillac Fairview

Canada is also seeing mid-market brands deliver strong performance. Aritzia is often showcased. Groupe Dynamite’s IPO was extremely well received in part due to the significant improvements in retail operations and inventory management, as well as the resonance of its brands, especially Garage with younger consumers which has been critical as it expands in the US market and elsewhere. Maison Simons stands out as a high performing new approach to department stores with a unique brand positioning, as well as best in class omnichannel management.

In conclusion, this story is about bringing out the best in brands and retail by working on:

  • Improving costs and profitability – inventory management, better integration of new technologies, optimizing the store network by focusing on high value and profitable locations, improving omnichannel operations, …
  • While at the same time, focusing on innovation and differentiation
    • Product quality, innovation
    • Brand story telling
    • Engagement
    • Experience in store and online.
  • And finally, upgrading talent. This means hiring better talent, including with a focus on data analytics. At let’s not forget in-store talent. One of the key themes of State of Fashion Report 2025 is investing on sales staff who are the key bridge between the brand and consumer. 75% of shoppers in 2022 were likely to spend more after receiving high-quality service. Brands like Apple and Nespresso have understood this and thrived.
Charles De Brabant

Charles De Brabant joined McGill University in August 2017 to co-lead the creation of the Bensadoun School of Retail Management (BSRM). He has over 20 years experience in retail in Europe and most recently in China and South East Asia. Born and raised in Montreal, Charles holds a B. Com. from McGill, an M. Litt. in History from Oxford University and an MBA from Stanford Business School. Charles’ focus at BSRM will be on collaboration with local and international industry partners and the administration of the school. 

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Tipping Reform Gains Ground in Canada

By
Sylvain Charlebois
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Tipping in a restaurant. Photo: New to Canada blog

Tipping fatigue is real—and it’s spreading. What was once a gesture of appreciation has become an increasingly opaque and frustrating part of dining out. In our cashless, digital economy, Canadians are now routinely nudged—or guilted—into tipping more, often through emotionally manipulative interfaces. Sad emojis for selecting a 15% tip? Prompts for 20% on a $6 latte? This phenomenon, known as tip creeping, has become a serious irritant for consumers.

But there’s a deeper issue—one that many don’t notice. In most provinces, tips are calculated after sales tax is added to the bill. That means a 20% tip on a $100 meal with a 15% tax becomes $23, not $20. This hidden markup adds confusion and undermines consumer trust, especially when it’s unclear whether the extra money, also known as “Tipflation,” is going to the server, shared with staff, or kept by management. Most diners never check.

Quebec Moves to Ban Tipflation on Taxed Totals

This week, Quebec decided to do something about it. It is now illegal in that province for payment terminals to calculate tips on post-tax amounts. Tips must be applied to the pre-tax total. In addition, restaurant operators must clearly display the total bill, including the tip. No emojis, no games—just transparency.

While some critics argue this is government overreach, the truth is that inaction from the food service industry has made regulation necessary. The tipping model, once rooted in merit and service quality, has evolved into something that more closely resembles a wage subsidy. In many cases, consumers feel pressured into tipping simply to compensate for inadequate base pay—rather than to reward good service.

Exploring Tip-Free Restaurant Models

Some restaurateurs are now experimenting with tip-free models, incorporating service charges directly into menu prices. This eliminates guesswork and creates more predictable income for staff. However, this shift isn’t without consequences: top-performing employees may seek out tip-based restaurants where they can earn more, leading to talent drain.

There is also credible academic research suggesting that tipping perpetuates discriminatory behaviour. Studies have shown that tip amounts can be influenced by arbitrary and biased factors—like a server’s appearance or accent—rather than the quality of service.

North America’s Outdated Gratuity Culture

Unlike Europe, where gratuities are typically included in the bill, North America has clung to an outdated and often chaotic tipping culture. The restaurant industry has failed to establish coherent standards or lead a serious discussion about reform. That vacuum has opened the door for governments to intervene, as Quebec has now done.

If the industry does not self-correct, we can expect more provinces to follow suit. For the sake of both consumers and workers, tipping practices need to be more transparent, equitable, and consistent. Otherwise, public trust—and the sector’s integrity—will continue to erode.

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Value Village Opens New Thrift Store in North York

By
Lee Rivett
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New Value Village store on Weston Road in Toronto. Photo: Value Village

Value Village has officially opened the doors to its newest location in the western part of Toronto’s North York today, May 8, offering Toronto residents a fresh destination for sustainable, secondhand shopping. Located at 2549 Weston Road in the Pelmo Park–Humberlea neighbourhood, the store is now welcoming customers eager to browse thousands of pre-loved items in a large, purpose-driven retail space.

Value Village has been part of the Canadian retail landscape for over four decades, operating 165 stores across all 10 provinces and employing more than 11,000 Canadians. The chain, owned by Bellevue, Washington-based Savers Value Village Inc., is the largest for-profit thrift retailer in North America and has been expanding steadily in urban centres like Toronto.

Nicole McPherson, Vice President of Canada Field Operations at Value Village, emphasized the importance of expanding access to sustainable shopping: “The store will offer shoppers more than just great deals and unique finds—it will provide a space to make mindful choices, shop with purpose, and give pre-loved items a new lease on life.”

A Commitment to Reuse and Sustainability

The new North York store contributes to Value Village’s broader sustainability mission. Between 2020 and 2024, the company helped divert more than 1.5 billion pounds of reusable goods from Canadian landfills. Each week, the new store will introduce approximately 34,000 items to its sales floor, ranging from fashion and accessories to housewares, electronics, and books.

As part of its unique business model, Value Village purchases donated goods from nonprofit organizations, paying them by volume regardless of resale outcomes. This model ensures a consistent revenue stream for partners while driving a reuse economy.

From fiscal 2020 through 2024, Value Village paid over $347 million to its Canadian nonprofit partners for secondhand goods—supporting charitable programming in communities across the country.

Partnership with The Kidney Foundation of Canada

Today’s store opening also marks the beginning of a new partnership between Value Village and The Kidney Foundation of Canada through the Kidney Clothes program. Donations made at the new location will help fund kidney research, patient care, and community outreach programs.

“The new partnership will help fund important programs and resources that strengthen The Kidney Foundation of 

Canada’s mission,” said Sylvia Krampelj, Managing Director of Kidney Clothes. “The funds raised through contributions and donations at this Toronto store will help drive progress with groundbreaking research, enhance patient support programs and bring hope to individuals affected by kidney disease.”

Founded in 1964, The Kidney Foundation remains one of Canada’s leading charitable organizations in kidney-related research and advocacy.

The Rise of Thrifting in Toronto

The opening comes at a time when secondhand shopping is increasingly popular across Canada. According to the 2024 Thrift Report, more than 40% of Gen Z Canadians are engaging in thrifting, and 90% of Canadians have either donated to or shopped at a thrift store in the past year.

This growing interest in secondhand retail is driven by a blend of environmental awareness, rising cost-of-living pressures, and a search for unique, personal style. In a city like Toronto, where fast fashion once dominated, thrift stores like Value Village are becoming essential to both individual wardrobes and sustainable consumer habits.

The North York opening is part of Value Village’s mission to make secondhand shopping second nature. With more than 165 stores in Canada and an expanding footprint in Toronto, the brand is helping reshape consumer behaviour and spark community involvement—one donated item and one conscious purchase at a time.

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Leon’s Furniture reports record Q1 Revenue and strong EPS growth

By
Mario Toneguzzi
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Leon's Furniture Coquitlam (Image: Leon's Furniture Limited)

Leon’s Furniture Limited announced Thursday financial results for the quarter ended March 31, 2025.

Financial Highlights – Q1-2025
These comparisons are with Q1-2024 unless stated otherwise.

  • System-wide sales for the quarter were $696.1 million, an increase of 2.7%.
  • Record Q1 Revenue was recorded at $579.5 million, an increase of 3.1%, driven by strong performance in the furniture category and commercial appliance business.
  • Same store sales increase of 3.0% following a 9.0% increase in the first quarter of the prior year.
  • Gross profit margin was 44.59%, a 72-basis point improvement driven by a favourable retail category sales mix, improved furniture margin rate as well as supply chain related cost savings.
  • Adjusted net income for the quarter totaled $24.1 million, an increase of 47.0%.
  • Adjusted Diluted EPS for the quarter was $0.35, an increase of 45.8%.
  • On March 31, 2025, unrestricted liquidity was $469.7 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.

“In Q1, our team’s efforts to ensure optimal inventory availability enabled us to drive growth including a catch up on delivering sales booked during the fourth quarter of last year, leading to strong top-line results against an already robust comparable quarter. We continued to grow key categories during Q1, with particular strength in higher-margin furniture sales. The diversity of our business model was further demonstrated by another strong period of commercial, warranty and insurance sales growth. Our relentless commitment to cost control and operational efficiencies, combined with lower interest rates and sales growth, delivered exceptional profitability despite a challenging operating environment,” said Mike Walsh, President and CEO of LFL.

“While macroeconomic challenges persist related to tariff uncertainty across the retail sector, we are well-positioned, with an excellent in-stock inventory position, to continue delivering value to Canadian consumers. Our unmatched scale and rock-solid balance sheet, with $469.7 million in unrestricted liquidity, positions us to navigate market headwinds while delivering reliable returns to shareholders through our unwavering commitment to customer satisfaction.”

For the three months ended March 31, 2025, revenue was $579.5 million compared to $562.3 million in the first quarter of 2024 an increase of $17.2 million or 3.1%. The improvement was primarily driven by a 5.2% increase in furniture sales as a stronger inventory position enabled a catch-up of delivery on written sales from the fourth quarter and continued sales momentum in the first quarter. Additionally, the Company saw strong growth in the commercial appliance, warranty and insurance businesses. The strong overall performance was partially offset by softness in the mattress category, explained LFL.

“Given the Company’s strong and continuously improving financial position, our principal objective is to increase our market share and profitability. We remain focused on our commitment to effectively manage our costs but to also continuously invest in the business with growth initiatives that we expect will lead to increased traffic to both our online eCommerce sites and our 298 store locations across Canada,” it said.

“The Company is working towards creating the previously announced real estate investment trust in respect of some of its real estate holdings and will provide further information at the appropriate time.”

Leon’s Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Our retail banners include: Leon’s; The Brick; Brick Outlet; and The Brick Mattress Store. Finally, with The Brick’s Midnorthern Appliance banner alongside with Leon’s Appliance Canada banner, this makes the Company the country’s largest commercial retailer of appliances to builders, developers, hotels and property management companies. The Company has 298 retail stores from coast to coast in Canada under various banners. The Company operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.

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Carmen Fortino Receives Top Canadian Grocery Honour

By
Lee Rivett
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The Retail Council of Canada (RCC) will present one of its most prestigious honours next month to Carmen Fortino, a longtime industry leader whose influence in Canadian grocery retail spans more than three decades. 

Fortino, Executive Vice President, National Supply Chain and Procurement at METRO Inc., will be awarded the Canadian Grand Prix Lifetime Achievement Award at the RCC’s annual awards gala, recognizing his extensive contributions to the sector and his leadership in shaping one of Canada’s most vital industries.

Recognizing a Career of Commitment

The Canadian Grand Prix Lifetime Achievement Award is given to individuals who have demonstrated exceptional service and dedication to the Canadian retail and grocery industries. The recognition highlights individuals who exemplify a deep sense of responsibility to their organizations, communities, and the evolution of the industry at large.

Fortino’s career trajectory reflects this commitment. Since joining METRO Inc. in 2014 as Senior Vice President and Metro Ontario Division Head, he has steadily taken on greater responsibilities within the organization. His leadership expanded significantly in 2019 when he assumed oversight of METRO’s national supply chain operations. By 2022, Fortino’s portfolio encompassed both national supply chain and procurement—roles that directly influence how goods move across the country and how METRO collaborates with vendors and suppliers.

Fortino’s impact has been characterized by an integrative approach to operations, connecting logistics with merchandising and procurement in ways that have streamlined METRO’s national capabilities.

From Family Roots to National Strategy

Fortino’s deep understanding of the grocery sector is rooted in personal experience. His career began in the 1980s in his family’s grocery business in Ontario, where he developed a hands-on appreciation for the nuances of customer service, community engagement, and operational discipline.

Before joining METRO, he held senior leadership positions with another major Canadian grocery retailer, further solidifying his reputation as a leader with both strategic vision and operational depth.

This career path—starting in a local business and rising to national executive leadership—mirrors a trajectory that resonates deeply with the values celebrated by the Canadian Grand Prix Lifetime Achievement Award.

Industry Recognition

Fortino’s recognition by the RCC is the latest in a series of accolades reflecting his influence within the industry. In 2022, he received the Golden Pencil Award, one of the grocery industry’s most respected honours, and was also named one of Canada’s Best Executives by Report on Business. These acknowledgements reinforce his status as a transformative figure in Canadian food retail.

The RCC praised Fortino for his adaptability and ability to lead amid change, describing him as a constant presence in an evolving sector. His leadership has helped METRO navigate shifting consumer preferences, supply chain disruptions, and heightened demand for operational efficiency.

Diane J. Brisebois. Image: Retail Council of Canada

“Carmen Fortino has been a constant in a rapidly changing industry. What sets him apart is his ability to evolve—bringing decades of experience, starting in a family business in 1985, into bold, forward-thinking leadership,” said Diane J. Brisebois, President and CEO of RCC. “This Lifetime Achievement award is a tribute to the vision and the impact he’s had across every level of grocery retail in Canada.”

Honouring Industry Leaders

Fortino joins a distinguished group of past Lifetime Achievement Award recipients whose work has helped shape Canadian retail and grocery. Previous honourees include Anthony Longo and the Longo Family of Longo’s, Cindy and Tina Lee of T&T Supermarkets, Margaret Hudson of Burnbrae Farms, Darrell Jones of Pattison Food Group, John Pigott of Morrison Lamothe Inc. and Club Coffee L.P., Serge Boulanger of METRO Inc., Dino Bianco of Kruger Products, and Michael Medline of Sobeys Inc.

The award ceremony will take place on June 4, 2025, during the Canadian Grand Prix Awards Gala at the Toronto Congress Centre. The gala marks the culmination of RCCSTORE25, Canada’s leading retail conference, held June 3–4. The annual event draws more than 2,000 attendees from across North America and features presentations from more than 75 experts across the retail spectrum.

RCCSTORE25 and the Canadian Grand Prix Awards Gala

RCCSTORE25 serves as a platform for innovation, collaboration, and celebration across Canada’s retail ecosystem. The conference and gala recognize excellence in food, non-food, consumer packaged goods, and private-label product categories. The Lifetime Achievement Award stands as a highlight, spotlighting individuals who have left a permanent mark on the industry.

This year’s gala will also honour additional industry trailblazers, with Canadian entrepreneur Jenn Harper named among the award recipients.

The Retail Council of Canada’s Role

As the not-for-profit voice of retail in Canada, RCC represents more than two-thirds of the country’s core retail sales and 95 per cent of the grocery market. With over 2.3 million Canadians working in retail and more than 54,000 storefronts across the nation, the industry is the country’s largest private-sector employer. RCC supports a diverse membership ranging from independent retailers to national chains, online merchants, department stores, and quick-service restaurants.

In 2024, core retail sales in Canada—excluding motor vehicles and gasoline—exceeded $507 billion. The grocery segment, where Fortino’s work has had an outsized impact, continues to be a cornerstone of both consumer spending and national economic performance.

By recognizing leaders like Fortino, RCC underscores the importance of strong leadership, long-term vision, and community-centred values in maintaining a resilient and evolving retail industry in Canada.

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Restaurant Brands International reports system wide sales growth

By
Mario Toneguzzi
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Tim Hortons in CF Market Mall (Image: Mario Toneguzzi)

Restaurant Brands International Inc. reported Thursday financial results for the first quarter ended March 31, 2025, with system wide sales growth of 2.8% year-over-year.

Josh Kobza
Josh Kobza

“We are making solid progress executing the fundamentals of our business, despite a slower start to the year. We have clear growth plans across each of our brands and strong alignment with our franchisees. We’re seeing encouraging momentum in Q2 and combined with responsible cost management, are on track to deliver stronger results through the balance of the year and achieve at least 8 percent organic adjusted operating income growth in 2025,” said Josh Kobza, Chief Executive Officer of RBI.

Restaurant Brands International Inc. is one of the world’s largest quick service restaurant companies with nearly $45 billion in annual system-wide sales and over 32,000 restaurants in more than 120 countries and territories. RBI owns four of the world’s most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. RBI’s principal executive offices are in Miami, Florida. In North America, RBI’s brands are headquartered in their home markets where they were founded decades ago: Canada for Tim Hortons and the U.S. for Burger King, Popeyes and Firehouse Subs.

The company reported for its first quarter:

  • System wide sales of $10.496 billion US compared to $10.512 billion in Q1 last year;
  • Net restaurant growth of 3.3%;
  • Total revenues of $2.109 billion compared to 1.739 billion last year;
  • Income from operations of $435 million compared to $544 million last year; and
  • Net income from continuing operations of $223 million compared to $328 last year.

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Square Launches Unified Point-of-Sale App for Sellers

By
Mario Toneguzzi
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Source- Square
Source- Square

Square has released the new Square Point of Sale app in Canada.

This is the company’s next-generation software that brings Square’s deep vertical-specific commerce and payments functionality into a single, unified app that sellers can personalize to meet the complex needs of their business today, while supporting their growth and evolution into the future, said the company in a news release.

Steve Aldred
Steve Aldred

“A few years ago, our legacy POS couldn’t even accept debit cards, so our switch to Square in 2021 was already a huge leap forward. But with this new single app, we now have an incredible system that allows us to manage multiple business streams simply and seamlessly,” said Steve Aldred, Manager of Food and Beverage Data Insights & Controls for Calgary Sports and Entertainment Corporation.

“The new Square Point of Sale app makes it easy to manage everything—from concessions to restaurants to merchandise—and to switch between different modes with ease. When you have 19,000 fans at a Calgary Flames game, there’s a lot to manage. Square saves us time and money, and it just works, simplifying our operations on every level.”

Square launched its first mobile card reader and point of sale app 16 years to enable any seller to accept digital payments and never miss out on a sale.

“Through the years, Square partnered with sellers and offered industry-specific software products that allow them to operate from anywhere, while eliminating the many points of friction that come with managing and expanding a business,” said the company.

“Today, Square’s sellers continue to evolve. Hundreds of thousands of Canadian sellers now trust Square to run every aspect of their business, enabling them to grow while keeping their focus on their craft. They’re diversifying their businesses to reach new customers, create new revenue streams, and connect to their communities in entirely new ways. With the new Square Point of Sale, all the functionality is now consolidated into one single app, making it easier for sellers to discover the tools that are right for their business and expand their features as they grow. From our testing, we found that new sellers discovering and using industry-specific features grew nearly 80% from the rate on the previous Square POS experience.”

The company said the power and ease of Square Point of Sale resides in its modes – easy-to-understand feature sets, purpose-built for each industry, to give sellers a personalized POS experience that instantly sets them up with the right tools for their business. Sellers can easily add modes to expand their sales capabilities with no limitations on growth, while Square can now ship new features to more sellers at a faster rate.

There are currently seven modes available on Square’s platform, offering unique technology and feature needs even within verticals:

  • Three Food & Beverage modes let sellers choose highly tailored solutions for their needs:
    • Quick Service mode: Accelerates counter-service operations through intuitive modifier workflows and multi-channel menu management, ensuring swift and accurate order fulfillment at high-volume establishments.
    • Full Service mode: Streamlines complex dining operations with intelligent bill management, sophisticated coursing capabilities, and customizable floor plans.
    • Bar mode: Optimizes bar operations with real-time inventory tracking and conversational modifier inputs, ensuring fast and efficient service during peak hours.
  • Retail mode: Handles complex inventory management, varied pricing structures, and multi-location operations to power modern retail businesses.
  • Appointments mode: Seamlessly integrates scheduling, client management, and payment processing into one intuitive system for beauty and wellness businesses.
  • Services mode: Simplifies invoice management, estimates, and on-the-go payments for businesses that operate beyond traditional storefronts, like catering and home repair.
  • Standard mode: Square’s classic point-of-sale experience offers ultimate flexibility through its personalizable interface and versatile features.
Willem Ave
Willem Ave

“Square Point of Sale is an all-in-one product that recognizes sellers’ needs are not one-size-fits all,” said Willem Ave, Head of Product for Square. “Businesses today have to be resilient, and able to adapt when new challenges – and opportunities – present themselves. With our new app, sellers can do just that – they don’t have to choose between breadth or depth; they can have both with Square.

“We’re also able to build innovative new features for sellers of all types and sizes even faster, with less overhead than required for maintaining many separate tools. We can deliver specialized software experiences for unique use cases and complex industries, while maintaining the ease-of-use sellers, their employees, and their customers expect from Square. Running a business is complex, and we make it streamlined and simple, so sellers can spend more time focused on their craft, customers, and communities.”

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Shopify reports 27% Q1 revenue growth, 15% free cash flow margin

By
Mario Toneguzzi
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Shopify. Photo: smithandandersen.com

Shopify Inc., announced Thursday financial results for the quarter ended March 31, 2025, saying the company achieved 27% revenue growth and 15% free cash flow margin.

Shopify has now delivered double-digit free cash flow margins for seven consecutive quarters, it said in a news release.

Harley  Finkelstein
Harley  Finkelstein

“Our Q1 results confirm two clear facts. First, we are delivering both growth and profitability at scale. Second, businesses perform better on Shopify, regardless of market conditions,” said Harley  Finkelstein, President of Shopify. “We built Shopify for times like these. We handle the complexity so merchants can focus on their customers. We ship products faster than anyone else, giving merchants the edge they need to succeed.” 

Jeff Hoffmeister
Jeff Hoffmeister

Jeff Hoffmeister, Chief Financial Officer of Shopify, added, “Q1 marked another very strong set of financial results for Shopify, with 27% revenue growth and 15% free cash flow margin. We have now achieved eight consecutive quarters of pro forma revenue growth of 25% or more and seven consecutive quarters of GMV growth greater than 20%, all while increasing our free cash flow. These metrics highlight our strong performance and dedication to supporting our merchants’ success.” 

For the second quarter of 2025, Shopify said it expects:

  • Revenue to grow at a mid-twenties percentage rate on a year-over-year basis; 
  • Gross profit dollars to grow at a high-teens percentage rate on a year-over-year basis;
  • Operating expense as a percentage of revenue to be 39% to 40%; 
  • Stock-based compensation to be $120 million; and
  • Free cash flow margin to be in the mid-teens, similar to the first quarter of 2025. 

Shopify is a leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for speed, customization, reliability, and security, while delivering a better shopping experience for consumers online, in store, and everywhere in between. Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as BarkBox, Vuori, BevMo, Carrier, JB Hi-Fi, Meta, ButcherBox, SKIMS, Supreme, and many more. 

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Canadian Tire reports Q1 2025 sales growth and launches $2B ‘True North’ strategy with new loyalty and store Investments

By
Mario Toneguzzi
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Image: Canadian Tire

Canadian Tire Corporation, Limited announced Thursday financial results for its first quarter ended March 29, 2025.

  • Consolidated comparable sales growth was 4.7%; Retail Revenue was up 4.0%.
  • Q1 saw essential and discretionary purchasing up, with increased customer traffic.
  • Q1 Normalized Diluted Earnings Per Share (EPS) was $2.18, up $0.80; Diluted EPS was $0.67, down $0.71 compared to the prior year.

“We had a strong quarter of sales and earnings growth, as we controlled the controllables, elevated customer loyalty, and delivered the great value and seasonal products customers were seeking. It’s clear Canadians are choosing CTC,” said Greg Hicks, President and CEO, Canadian Tire Corporation.

Greg Hicks
Greg Hicks

“Since March, we also announced our new transformative growth strategy – True North – and have hit the ground running with investments in new store concepts, dramatic expansion of Triangle Rewards including new RBC and WestJet loyalty partnerships, and a new company structure that maximizes our world-class customer insights and our ability to go to market in more efficient and modern ways.”

Canadian Tire Corporation, Limited has been a Canadian business since 1922. Its banners include Party City and PartSource; Mark’s; SportChek, Hockey Experts, Sports Experts and Atmosphere; and Pro Hockey Life. CTC’s banners, brand partners and credit card offerings are unified through its Triangle Rewards loyalty program. With nearly 12 million members, Triangle integrates first-party data to deliver valuable rewards and personalized experiences across nearly 1,700 retail and gasoline outlets. CTC also operates a retail petroleum business and a Financial Services business and holds a majority interest in CT REIT, a TSX-listed Canadian real estate investment trust.

“During the first quarter, CTC launched True North, its new four-year transformative growth strategy, designed to drive core retail growth through four strategic cornerstones: disciplined capital investments to build exceptional digital and store experiences; an expanded Triangle Rewards loyalty system; creating more personalized and data-driven customer relationships; and a more agile, tech-driven and efficient operating company. The strategy is designed to increase shareholder value above the Company’s historic levels. True North includes more than $2 billion in capital investment over the four years starting in 2025 across a series of value creating initiatives in each focus area, which will be overseen by a newly established transformation management office,” said the company.

“As part of True North‘s focus on expanding the Triangle Rewards system, the Company announced today a new partnership with WestJet Rewards, in addition to its March 27th announcement of the addition of RBC as a strategic Triangle partner. Both partnerships are expected to launch in 2026 and will be key building blocks for the strategy, creating more value for Triangle members, increasing member acquisition and engagement, and contributing to retail sales growth by expanding the reach and issuance of Canadian Tire Money beyond CTC’s retail banners and Canadian Tire Bank.”

Canadian Tire said True North‘s store enhancement program will invest in modern new store formats, expected to improve sales, margin and customer experience. Planned investments in 2025 include more than 30 Canadian Tire store projects and 18 Mark’s store projects, including seven new Bigger, Better, Bolder stores, capitalizing on Mark’s record of accretive returns and emerging market share opportunities in the casual apparel sector. In addition, SportChek is optimizing its portfolio, and opened with the second of its two new concept “Destination Sport” stores, located in Toronto, Ontario, in April of 2025.

“Since announcing the True North strategy, the Company has begun restructuring into a more agile operating company under a new senior leadership team,” it said.

“CTC is making progress towards the completion of its previously announced divestiture of the Helly Hansen business. The transaction is expected to close before the end of the second quarter, unlocking capital for shareholders and strategic capital investments.”

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Cottonwood Centre in Chilliwack Sold to Finix Holdings

By
Lee Rivett
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Cottonwood Centre in Chilliwack, British Columbia. Image: Cottonwood Centre

The Cottonwood Centre, a longstanding retail hub in Chilliwack, British Columbia, has been sold by its Vancouver-based owners — PCI Developments, Northland Properties, and Nicola Wealth — in a deal that marks a significant shift in Fraser Valley retail real estate. The new owner, Finix Holdings, now takes the reins of the 22-acre property at 45585 Luckakuck Way.

The transaction, finalized in April 2025, underscores ongoing investor interest in stable retail assets, particularly in rapidly growing suburban and exurban communities across Canada.

A Key Fraser Valley Retail Node

Established in 1974, the Cottonwood Centre has been a central gathering point for Chilliwack residents for over 50 years. With approximately 255,000 square feet of enclosed retail space and more than 60 stores, the property remains one of the largest enclosed shopping centres in the Fraser Valley.

Prominent anchor tenants include Save-On-Foods, London Drugs, Dollarama, Old Navy, and TD Canada Trust, with additional services offered by Club 16 Fitness and financial institutions such as Vancity. Adjacent to the west is a Canadian Tire store located at 45495 Luckakuck Way, occupying a separate legal parcel owned by Concord Pacific since its acquisition from Sears Canada in 2015.

The mall is positioned directly north of SmartCentres Chilliwack — a large-format retail centre owned by Ontario-based SmartCentres REIT — and benefits from high visibility and accessibility via the Trans-Canada Highway and Vedder Road.

A New Chapter: Sale to Finix Holdings

Finix Holdings, a private real estate investment firm with growing interests in Western Canadian retail and mixed-use properties, has now added the Cottonwood Centre to its expanding portfolio. The sale follows several years of capital improvements under the stewardship of PCI Developments and Nicola Wealth, who acquired the property from Morguard Corporation in 2019 for $73 million.

Nicola Wealth’s website confirms it held a 45% stake in the property via its Nicola Value Add Real Estate LP. PCI Developments acted as both co-owner and property manager through its Warrington PCI Management division. It remains unclear when Northland Properties joined the ownership structure or what the final stake distributions were at the time of sale.

Cottonwood Centre in Chilliwack, British Columbia. Image: Cottonwood Centre

Upgrades and Redevelopment Efforts

Since its 2019 acquisition, the Cottonwood Centre has undergone numerous upgrades aimed at modernizing the mall and improving the overall consumer experience. These efforts were particularly important in helping the centre adapt to shifting retail expectations in a post-pandemic environment.

Recent renovations have included enhanced wayfinding, updated interior finishes, and improved public amenities. A diversified mix of tenants — including both national retailers and local operators — has further solidified the mall’s position in the regional market. New foodservice additions, such as OPA! of Greece and Boardwalk Burgers, opened in late 2024.

Standalone Pads Drive Added Value

In addition to the enclosed mall footprint, the Cottonwood Centre site includes several standalone pad buildings that contribute meaningful value to the property’s long-term cash flow. These include an Earls Kitchen + Bar, Burger King, and Quesada Burritos & Tacos, each fronting major roadways for maximum visibility and accessibility.

These outparcel tenants, along with Canadian Tire next door, help to ensure steady foot traffic throughout the site and bolster the mall’s appeal to a broad demographic, from everyday errand shoppers to dine-in patrons.

Focus on Sustainability and Efficiency

In keeping with broader environmental goals, the Cottonwood Centre has implemented several sustainability initiatives over the past five years. Among the most notable: the introduction of energy-efficient lighting systems, comprehensive recycling programs, and the installation of 21 electric vehicle charging stations throughout the parking lot.

These efforts were recognized in 2023 when the property earned BOMA BEST Gold certification, a benchmark in Canada for environmental excellence in commercial buildings.

Cottonwood Centre in Chilliwack, British Columbia. Image: Cottonwood Centre

Community-Focused Retail Experience

The Cottonwood Centre has continued to engage with Chilliwack’s growing community through regular seasonal events, promotions, and family-friendly programming. Holiday-themed activations, sidewalk sales, and in-store events have long been a draw for residents across the Fraser Valley, encouraging repeat visits and positioning the mall as more than just a shopping destination.

Its mix of services and entertainment offerings — from fitness and beauty to banking and healthcare — makes the centre a one-stop destination for everyday life.

Regional Growth Fuels Retail Investment

Chilliwack, located approximately 100 kilometres east of Vancouver, has witnessed significant population growth in recent years. With rising real estate prices across the Lower Mainland, many families and retirees have relocated to Chilliwack for its relative affordability, natural surroundings, and expanding local economy.

Retail real estate has followed suit. The Cottonwood Centre’s latest sale is part of a larger trend where investors target assets in high-growth secondary markets. The acquisition by Finix Holdings signals confidence in Chilliwack’s continued evolution and the viability of regional shopping centres.

The Road Ahead

While Finix Holdings has not yet made public any redevelopment or repositioning plans, industry observers suggest that the property’s size and location present future intensification potential. With 22 acres of land, a prominent highway-adjacent location, and rising land values in the region, the site could support mixed-use development or further enhancements to the retail mix.

For now, Cottonwood Centre continues to serve as a key retail anchor in Chilliwack, combining legacy tenants with evolving consumer expectations.

As ownership transitions to Finix Holdings, the community will be watching closely to see what direction the centre takes in the years ahead.

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