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Weihong Liu and the Future of Hudson’s Bay

By
Craig Patterson
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Doors leading from Queen Street into the Hudson's Bay store in downtown Toronto. Photo: Craig Patterson

As the Hudson’s Bay Company moves through creditor protection proceedings and prepares to announce the winning bids for what remains of its once-sprawling store network, a high-profile entrepreneur is drawing attention for her ambitious vision to breathe new life into the brand. Weihong Liu, a Chinese-born Canadian billionaire investor and founder of Central Walk, has emerged as a frontrunner in the race to acquire part of the iconic retailer. If her bid succeeds, it could usher in one of the most dramatic reinventions of the Canadian department store model in decades.

While a final decision on the bid is expected within days, Liu’s growing presence in Canadian retail circles and cryptic social media posts on the Chinese-language platform RedNote have offered insight into what a new iteration of Hudson’s Bay could look like under her leadership. Though she has not publicly confirmed her full concept, the direction she has hinted at—rooted in experiential retail, omnichannel integration, and Asian-influenced merchandising—has sparked industry speculation and cautious optimism.

Weihong Liu. Image: RedNote screenshot

A Regional Retail Strategy Emerges

Liu is understood to have submitted a bid to acquire approximately 25 Hudson’s Bay stores located across British Columbia, Alberta, and Ontario. These are the three provinces that Liu’s business partner Linda Qin has referenced repeatedly on RedNote and in other communications. The bid likely also includes Hudson’s Bay’s intellectual property, which would give Liu the ability to operate stores under the iconic name and utilize its valuable branding, including the company’s multi-stripe trademark.

This geographic focus signals a departure from Hudson’s Bay’s historical national presence. Under Liu’s vision, there would be no stores operating in Quebec, Manitoba, Saskatchewan, or the Atlantic provinces. Notably, Winnipeg had been home to the company’s flagship location from 1926 until 1974, and Saskatchewan once served as a significant market for the brand. Liu’s apparent decision to forego these regions suggests a streamlined, regionally concentrated strategy that prioritizes retail performance and cultural fit over legacy.

One market that appears to be on Liu’s radar is Ottawa. In a post on RedNote, a user asked whether a Hudson’s Bay store would be opening in the city, to which Liu replied in Chinese, “Here I come.” 

Retail expert Carl Boutet noted that while this concentration may appear narrow, it may reflect a pragmatic approach rooted in Liu’s existing property portfolio and her desire to build from familiar ground. “She’s clearly targeting markets where she already has traction, and where she can leverage her real estate holdings and retail relationships,” he said.

Carl Boutet

Central Walk’s Canadian Footprint

Central Walk, Liu’s real estate investment firm, has made major moves in the Canadian market since her arrival in British Columbia following the sale of a major shopping centre in China. The company owns three major shopping centres in the province: Mayfair Shopping Centre in Victoria, Woodgrove Centre in Nanaimo, and Tsawwassen Mills in South Delta. Two of those properties currently have Hudson’s Bay stores, while the third previously housed a Saks OFF 5TH.

Retail Insider confirmed that Woodgrove Centre was recently placed on the market. On March 30, Qin posted on RedNote that the sale was intended to raise funds for renovations anticipated after the acquisition of Hudson’s Bay stores. It’s a move that Boutet called “a clear signal that Liu is all-in” on transforming the chain and willing to liquidate significant assets to fund her retail ambitions.

A Visit to Toronto at a Critical Time

Weihong Lui at Toronto’s Yorkdale Shopping Centre on April 26, 2025. Image: RedNote post screen shot

Liu was in Toronto on April 26, where she visited Hudson’s Bay’s Queen Street flagship as well as Yorkdale Shopping Centre. These visits coincided with the final stages of the bid submission window, which closed on April 30.

According to industry sources, her presence in Toronto may have been tied to finalizing her 10 percent deposit and submission of a formal bid for Hudson’s Bay assets. While no official itinerary was disclosed, her activity in two high-profile properties—both of which house Hudson’s Bay stores—suggests she was assessing key real estate tied to her potential acquisition, and possibly meeting with landlords to discuss the future of the brand in those spaces.

A Vision for “New Retail”

Although Liu has not confirmed her full retail concept, her RedNote posts and past business experience offer clues. She has emphasized themes of “reviving the retail industry,” “making The Bay great again,” and bringing new energy to the Canadian shopping experience. Drawing inspiration from Chinese department stores, Liu may be preparing to launch a format rooted in what Alibaba founder Jack Ma once called “new retail”—a blend of digital and physical commerce with heavy experiential elements.

Boutet believes that Liu’s strategy is not merely about preserving a legacy brand but about reinventing it for a new generation. “If she executes even a portion of what she’s talked about, it could mark a transformative moment for department store retail in Canada,” he said. Liu confirmed on RedNote that targeting younger shoppers was a strategy for the new Hudson’s Bay.

SKP Department store in Beijing, China. The massive store is full of luxury brands and boasts sales exceeding USD $3 billion across two buildings. In comparison, Hudson’s Bay reported sales of just over CAD $1 billion in 2024 for its 80+ locations in Canada.

Chinese department stores are known for integrating supermarkets, food halls, beauty salons, and specialty services into their spaces. They also serve as omnichannel hubs where customers can shop online and pick up or return merchandise in-store, often leveraging platforms like WeChat, JD.com, or Alibaba’s Tmall. Liu could bring similar innovations to Canadian shores.

“We’re talking about everything from livestream shopping and AR try-on stations to gamified loyalty programs and in-store personalization based on behavioural data,” said Boutet. “It’s very sophisticated and very scalable—if executed correctly.”

An image from a video used by Ms. Liu on RedNote to explain the experiential elements of her vision for the new Hudson’s Bay. Image: RedNote screen shot.

Inventory, Liquidation, and Transitional Strategy

Liu’s immediate post-acquisition strategy will begin with a liquidation phase, though there is some question about how much inventory remains to be sold. According to court documents, Hudson’s Bay has already moved approximately 90 percent of its merchandise out of distribution centres. Still, Liu has signalled on RedNote that a liquidation campaign would be her first public move.

Weihong Liu tours a Hudson’s Bay store. Image: RedNote

“She could run a handful of stores over the summer purely as liquidation outlets,” Boutet speculated. “That buys her some time—time to develop a new retail concept, to negotiate with landlords, and to get fixtures and inventory in place.”

On RedNote, Liu explained that brands looking to operate within Hudson’s Bay stores would have two options: pay a base rent per square foot or contribute 20 percent of their sales revenue. This concession-based model, widely used in Asian department stores, reduces upfront risk for emerging brands while allowing the retailer to earn income tied directly to performance. Liu framed it as a flexible way to attract a wide range of vendors, particularly as she seeks to populate stores with a mix of brands that may be new to the Canadian market.

Sourcing Talent and Building Teams

Liu has already begun the process of recruiting employees for the planned stores. In a recent video on RedNote, she introduced several newly hired female employees, all Mandarin-speaking, while business partner Linda Qin stated that investor recruitment was also underway. Liu has specifically requested bilingual staff fluent in Mandarin and English.

Weihong Liu introduces new hires for Hudson’s Bay on RedNote. Image: RedNote screen shot

This staffing approach may also signal a cultural shift in store operations, with Liu possibly reimagining both the customer service and back-of-house environments. “She may choose to bolt on some existing staff to hit the ground running, but if she’s thinking of building something new, she’ll need a team that aligns with that vision,” Boutet said.

Liu has also begun assembling a network of advisors and potential business collaborators. She recently brought in Xie Xiaoqiang, a well-known retail consultant from China, who stated in Mandarin that he believes a Hudson’s Bay chain in Canada could succeed given its prime real estate holdings and Liu’s vision. In another notable meeting, Liu hosted Zhang Huarong, President of Shanghai-based Yueronghui Group, at Tsawwassen Mills. According to Liu’s posts on RedNote, the two were engaged in discussions about the future of Hudson’s Bay and its potential transformation under new ownership.

Flagships and Real Estate Complexity

A critical challenge facing Liu will be access to premium real estate. While her bid may include some flagship locations—such as downtown Vancouver or Calgary—those properties come with major costs and logistical challenges. The Queen Street flagship, for example, has known plumbing and infrastructure issues that could require tens of millions of dollars in investment to resolve.

Moreover, Cadillac Fairview owns the Queen Street building and holds a lease-backed mortgage on the property. Any new deal would likely require long-term lease commitments and substantial guarantees. 

“Landlords are going to want to see a solid business plan and financial backing,” Boutet said. “It’s not just about rent—it’s about credibility and commitment.”

Rendering of a tech-focused area in a Hudson’s Bay store. Image: Ashwin Raman

Drawing from Asia’s Retail Innovations

Liu’s influence extends across real estate and retail strategy. Central Walk has recently introduced experiential elements into its Canadian centres, including robot-operated kiosks and pickleball courts. Her vision for Hudson’s Bay could follow a similar playbook, combining dining, entertainment, and specialty retail under one roof.

A first-in-Canada robotic coffee machine at Mayfair Centre in Victoria. It’s an example of innovations she is bringing to her Canadian real estate. Image via Weihong Lui’s RedNote

In China, department stores are known for their dynamic central courts, which often serve as stages for cultural performances, product launches, and brand activations. Boutet suggested Liu may bring a similar level of energy and programming to her Canadian stores. “These stores can become gathering places again—not just places to buy things,” he said.

The Role of the IP and Brand Legacy

One lingering question is how much Liu values the Hudson’s Bay brand name itself. On RedNote, a user suggested she acquire the intellectual property to protect the company’s heritage. Liu responded simply: “Learned.” Liu has noted the importance of the Hudson’s Bay name, and would likely maintain that under her ownership.

Boutet cautioned, however, that name recognition alone may not be enough to ensure success. “The brand has legacy, yes, but if what people see when they walk in doesn’t match their memories or expectations, it loses meaning,” he said. “Zellers is a good example of that. The name resonated, but the execution fell flat.”

What Comes Next?

The court-appointed monitor overseeing Hudson’s Bay’s creditor protection proceedings is expected to announce the successful bidders imminently. If Liu’s offer is accepted, Canadians will be watching closely to see whether her version of Hudson’s Bay becomes a revitalized cultural hub—or another case of unrealized promise.

“She’s either about to launch the most exciting department store project in North America—or walk into a minefield of legacy issues,” Boutet said. “It’s a high-stakes gamble, but if anyone can pull off something this bold, it might be someone like Weihong Liu.”

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Canadian retail CRE rebounds as food-anchored strips lead investment demand: Altus Group Q1 2025 Report

By
Mario Toneguzzi
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Image: Sobeys

Although retail values are still down 9.3% compared to pre-pandemic levels (1Q 2020), the sector has seen positive momentum over the past year with Q1 values that rose 0.74% compared to Q4 and 4.1% compared to Q1 2024, according to Altus Group’s new quarterly Canadian Commercial Real Estate (CRE) Valuation Analysis.

According to Altus Group’s Investment Trends Survey Q1 2025 results, food-anchored retail strips topped the list of the most sought-after property types, continuing a trend established in 2024. 

“This enduring appeal reflects the ongoing emphasis of Canadian consumers on essential goods and services, making tenants in these centres, such as grocery stores and general merchandise retailers, relatively resilient to economic fluctuations,” said the report.

According to the Product/Market barometer, the top three preferred combinations were:

  1. Food-anchored retail strip in Vancouver
  2. Food-anchored retail strip in Calgary
  3. Food-anchored retail strip in Montreal

The Altus Valuation Analysis report said: “The food-anchored retail strip remains the preferred investment by a wide margin. Investors like the stability in foot traffic and sales. The obstacle to investment is the limited inventory of those assets for sale. Owners are choosing to hold onto those assets because they are performing well. First quarter retail sales across all types of retail assets reached $1.37 billion, which was well ahead of office but trailed sales volume in both industrial at $1.85 billion and multifamily residential at $1.60 billion.”

“The challenge for retail is the health of the consumer going forward. If we go into a recession, what does that mean for the fundamentals in the retail space?” said Robert Santilli, Director, National Accounts, Altus Group.

Robert Santilli
Robert Santilli

Those concerns are another reason driving demand for more resilient food-anchored retail.

Santilli said retail has outperformed the other asset classes. There’s very positive sentiment around retail investment going forward, particularly food-anchored retail.

Alice Dale, Senior Director, Valuation Advisory, and Retail Practice Group Lead, Altus Group, said it really comes down to supply and demand dynamics being more in balance compared to other asset classes. 

“We haven’t had a regional mall built in a number of years. There are other issues we can talk about with regional malls, but construction costs have limited development to mostly food-anchored retail,” she said. “Land availability and cost to build are key factors—so the inventory is right-sized for the demand in that space. That’s why that asset class is performing better than enclosed retail spaces. The food anchor remains the draw. Service-based tenants in those centres benefit from that.

Alice Dale
Alice Dale

“So, if you’re a pharmacy or a tenant adjacent to a grocery anchor, you’ll benefit from that traffic. And that really amplified following the pandemic. People prefer to shop that way for necessities.”

Consumers are challenged these days with the cost of living and rising prices.

Dale said the impact depends on the type of retailer and the composition of the tenant mix within shopping centres. 

“Needs or necessity-based tenants are still going to attract people. You might see a shift away from more discretionary spending—luxury categories—back to necessity-based categories,” she added.

“Not just luxury, but also entertainment and food. Those tenants could be strained going forward because their input costs are expected to rise as well. So, low consumer confidence leads to reduced discretionary spending. Food and hospitality—like restaurants—are sectors to watch. People will return to needs-based shopping.”

Santilli said secondary retail in secondary markets is the most challenged from an investment perspective. It’s most impacted by big-box departures—like the recent news in the retail landscape.

“Urban retail, where there’s foot traffic, is performing strongest,” he said.

‘Looking ahead at economic forecasts, Alberta will likely still outperform, despite the energy sector being impacted by tariffs. Ontario’s economic growth projections are fairly muted, so it’s on the watch list. Slow growth isn’t good for any asset class,” added Dale. “Vancouver continues to be a very sought-after investment market. Supply is fairly right-sized, and there’s a lot of foreign interest in that market. Underlying land values are also very high.”

Santilli said Alberta, particularly Calgary, is showing the strongest economic performance in Canada right now. A lot of that has to do with interprovincial migration. The population there is growing, and incomes are higher—so people can spend more. That’s positive for retail.”

Key overall highlights from the Altus report:

  • Across the four main property types, valuation movement was relatively muted with retail outperforming other sectors, up 4.08% compared to a year ago, followed by residential at 1.13%
  • Industrial values were largely flat on a 12-month basis, moving up 0.40%
  • Office valuations have shown signs of stabilizing over the past year with Q1 values that dipped a slight 0.48% over the prior quarter and -4.02% on a year-over-year basis
  • The outcome of trade policy could set the direction of valuations for certain property sectors and create more bifurcation in the market between stronger and weaker assets
  • Overall, investment sales volume has slowed this year, dropping from $8.5 billion in Q1 2025 compared to $10.2 billion in Q1 2024 and $12.3 billion in Q1 2023

“Will tariffs and the US versus Canada trade war change the trajectory of commercial real estate and multifamily valuations? Although overall fundamentals remain relatively stable, uncertainty is clouding the near-term outlook for valuations across property sectors,” said the report.

“Altus Group’s latest valuation data shows that Canadian commercial and multifamily values stayed the course in the first quarter. Across the four main property types, valuation movement was relatively muted with retail outperforming other sectors, up 4.08% compared to a year ago, followed by residential at 1.13%. Industrial values were largely flat on a 12-month basis, moving up 0.40% and office was the only sector that saw a year-over-year decline of 4.02%.

“The broader trendline shows less volatility and more stability in values over the past five consecutive quarters. Even office, although still choppy, is experiencing more modest valuation moves compared to the bigger declines that occurred in 2022 and 2023.”

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Canada’s Protein Future Is Flexible, Not Plant-Based

By
Sylvain Charlebois
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Photo: Epicurious

A new chart from the Agri-Food Analytics Lab at Dalhousie University, based on the Canadian Food Sentiment Index, offers a nuanced look at the evolution of Canadian dietary habits. While some observers may see a decline in omnivorous eating as a sign that Canada is becoming a plant-based nation, the data suggests a more fragmented and pragmatic shift in consumer behaviour.

Between Fall 2024 and Spring 2025, the share of Canadians identifying as omnivores—those with no dietary restrictions—dropped from 67.6% to 60.8%. At first glance, this appears to signal a major dietary shift. However, the decline is not being absorbed by vegetarians or vegans. In fact, the proportion of self-identified vegetarians fell from 7.7% to 5.9%, and vegans increased only marginally, from 2.6% to 3.0%.

Instead, the growth is coming from flexitarian and “Other” dietary categories. Flexitarians—those who prioritize plant-based foods but still consume meat and fish—rose from 4.6% to 5.5%. The “Other” category, which now represents 11.4% of consumers (up from 9.1%), reflects a growing number of Canadians customizing their diets in ways that defy traditional labels.

Consumer Choices Reflect Flexibility, Not Ideology

This points to a key insight: the future of protein in Canada is not a zero-sum game. It is not about ideological purity or wholesale dietary conversions. It is about diversification, flexibility, and adaptation. Consumers are experimenting, not committing—shifting based on cost, availability, and cultural context.

That nuance was lost on early disruptors like Beyond Meat, which entered the market with a mission to replace meat altogether. Five years ago, its stock was trading near $200 USD. Today, it trades below $3 USD, following multiple rounds of restructuring. The message was simply misaligned with market realities.

Government policy hasn’t helped. Ottawa’s “protein play” has been, at times, disconnected from consumer preferences. A high-profile example is Aspire Food Group’s cricket-processing facility in London, Ontario. Once promoted as the world’s largest insect protein facility, the project is now in receivership, facing a $42 million bankruptcy. While the environmental rationale behind insect protein is valid—especially for animal feed—the consumer market in North America has not kept pace with the vision.

Insects may be traditional protein sources in parts of the world, but not in Canada. Food is deeply cultural, and transitions take time. Imposing unfamiliar protein formats onto a reluctant consumer base often backfires, especially when framed as moral imperatives rather than consumer choices.

Blended Products Show Promise for Broader Appeal

So where does alternative protein innovation go from here? Toward the middle. The winning formula lies in hybrid, blended products that reduce animal protein content without alienating mainstream eaters. The real gatekeepers remain price and taste. Sustainability may generate interest, but repeat purchases depend on value and flavor.

The alternative protein sector still holds potential in Canada—but only for those who align with consumer sentiment, not against it. The Canadian Food Sentiment Index underscores this reality: today’s dietary decisions are not about revolutions. They are quiet negotiations, made one plate at a time.

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Canadian Shoppers Still Driven by Price: Study

By
Craig Patterson
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Upper Canada Mall in Newmarket, ON. Photo: Oxford Properties

A new consumer study conducted by AnotherStory Consulting Inc. in April 2025 reveals that while price and value remain top priorities for Canadian consumers shopping in physical stores, hidden factors such as newness, inspiration, and helpful service may offer a path to differentiation for retailers struggling to stand out in a highly competitive marketplace.

The study, which surveyed more than 1,000 English-speaking Canadians in March 2025, focused exclusively on discretionary categories, including fashion apparel, housewares, home furnishings, toys and books, and pet-related items. Sandra Duff, Principal at AnotherStory, led the project, which was prompted in part by growing commentary suggesting that the brick-and-mortar retail experience had lost relevance in a digital-first world.

Sandra Duff

Shoppers Still Favour In-Store Retail, Despite Ongoing Digital Disruption

“What was really interesting to me was that so many headlines over the last few years were proclaiming the death of the mall or the death of in-store shopping,” said Duff in an interview. “Some reports even claimed that online had ruined the physical store experience. I wanted to understand what consumers were actually looking for when they visit a store. What makes it meaningful? What sticks?”

Duff said the study sought to go beyond speculation and provide empirical data about what motivates Canadians to shop in person. Respondents were asked to self-identify as a certain type of shopper and share what drove their behaviour in-store. The findings confirmed long-standing assumptions while also challenging some widely held beliefs.

Price and Quality Remain Top Priorities for Canadian Retail Consumers

“Canadians are still very price-driven,” said Duff. “Low price came out on top in every category, which wasn’t surprising. Quality came in close behind. What was really telling, though, is that shopping being ‘fun and inspirational’ ranked second to last, and service came in dead last.”

That revelation raised further questions about Canadian consumer expectations, according to Duff. “It made me wonder whether shoppers here just have very low expectations of the retail experience,” she said. “Or maybe they’ve become used to the idea that service and experience are luxuries, not norms.”

Duff added that economic conditions have only intensified the focus on price, citing inflation, housing affordability, slower job growth, and stagnant wages as key factors. “People’s budgets are stretched. This isn’t just about being a bargain hunter—it’s about survival and practicality,” she explained.

Discounters and Big Box Retailers Dominate the Canadian Shopping Landscape

The study also captured where consumers are shopping and which formats are performing best. In the apparel category, 53 percent of respondents had visited discounters and big-box retailers such as Walmart, Old Navy, Winners, and Costco. Specialty and mall-based retailers attracted 31 percent, while only 4 percent of apparel shoppers said they had visited a department store such as Hudson’s Bay. That drop in department store traffic raises questions about the relevance of the traditional retail model, especially in the wake of high-profile closures and restructurings across the country.

Duff, who previously consulted for JCPenney in the U.S., said the decline of department stores like Hudson’s Bay is linked to multiple breakdowns—ranging from poor service and lack of inventory to uninspired product presentation.

Hudson’s Bay wing at Upper Canada Mall in Newmarket, ON. Image: Oxford Properties

Department Stores Lose Relevance Amid Changing Shopper Expectations

“The department store used to be a curated one-stop shop. You could find fashion, home goods, and even appliances all under one roof, with a level of service that made the experience worthwhile,” she said. “But over time, assortment quality diminished, staff became harder to find, and stores began to feel dated and empty.”

By contrast, discounters such as Winners and Homesense are gaining market share and consumer loyalty by offering what Duff calls “the treasure hunt effect.” These stores combine perceived value with rapid product turnover and constantly refreshed displays.

“There’s a sense of excitement walking into a Winners or Homesense,” she said. “They do a great job of curating by colour or theme, and there’s always something new. That freshness drives repeat visits, even without high service expectations.”

Retail Technology Needs to Be Useful, Not Just Trendy

The study also explored consumer attitudes toward technology in-store, a subject of growing interest among retailers seeking to modernize operations and engage younger demographics. Duff noted that over half of shoppers believe technology can improve the in-store experience, particularly when it serves practical purposes such as confirming prices, locating products, or integrating with loyalty programs. However, more advanced or experimental tech—such as virtual try-ons or off-site customer service chat—received less enthusiasm.

“The message here is that innovation has to be useful, not just shiny,” said Duff. “Retailers talk about creating the ‘store of the future,’ but customers are asking for simple solutions that help them find what they need more efficiently. Practicality beats flash.”

Retail technology. Image: Alice POS

Quadrant Analysis Reveals What Really Drives Retail Customer Loyalty

One of the most insightful takeaways from the study lies in its distinction between what shoppers say they want versus what actually drives their satisfaction. The research mapped customer attitudes into quadrants—“table stakes,” “key drivers,” and “hidden drivers.” While price, quality, and availability were expectedly strong as table stakes and key drivers, it was the hidden drivers that may hold the key to retail transformation.

“Hidden drivers are those things consumers might not say they care about—but they still influence whether someone has a good experience and returns,” Duff explained. “In apparel, for example, shoppers might claim price and quality matter most, but it turns out they also feel more satisfied when they encounter new collections, helpful staff, or inspiring displays.”

Freshness, Staff Support, and Store Ambience Make a Difference

In that sense, Duff sees an opportunity for retailers to push beyond the basics. “If you’re only competing on price, you’re not offering a compelling reason for consumers to switch from their current routine,” she said. “Newness and inspiration can be the differentiators.”

The study’s quadrant analysis revealed similar insights across other product categories. In housewares and home furnishings, the best-performing retailers are combining perceived value with enjoyable store layouts. In toys and books, freshness in inventory and availability of the latest products contribute more to satisfaction than expected.

“There’s a clear pattern,” said Duff. “Whether shoppers are buying a new outfit, a throw pillow, or a board game, they’re drawn to something that feels current. It’s about staying relevant and offering a reason to walk through the door.”

Resale retail is also a trend. “It actually showed up in the study in the toys, books, and games category, which I didn’t expect. I had assumed resale was still relatively niche, but its appearance in the data suggests it may be entering the mainstream more than we think.”

Image: Mark’s

Canadian Tire and Mark’s Emerge as Unexpected Retail Competitors

Duff also commented on emerging trends around legacy banners like Canadian Tire and Mark’s. Both appeared more frequently in shopper data than expected, especially in apparel and home.

“Canadian Tire and Mark’s are doing something very interesting,” she said. “They’ve built credibility on value and quality, and they maintain a good balance in price perception. They’re not seen as overly expensive, but they also carry trusted brands. I wonder if they could start playing the role that department stores used to fill.”

That kind of evolution, she added, would depend on their ability to combine broad product offerings with strong in-stock positions, appealing presentation, and dependable value. “What they lack in glamour, they make up for in trust,” said Duff. “For many Canadians, that might be enough.”

Retailers Must Differentiate in a Market Where ‘Good Enough’ Is the Norm

Looking ahead, Duff said retailers need to think deeply about how they’ll differentiate in a market where, paradoxically, most shoppers already feel satisfied.

“If everyone’s giving you an eight out of ten, who’s going to push to a ten?” she asked. “There’s an opportunity for someone to rise above the rest by delivering more than what’s expected. You need to check the price and quality boxes, of course—but then layer in inspiration, service, and something fresh.”

In an era where Amazon has reset price expectations and consumers are trained to hunt for value, Canadian retailers are facing a narrowing window to reassert the value of physical retail. As Duff puts it, “Customers will always tell you they want the lowest price. But if that’s all you’re giving them, you won’t win long term.”

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Canadian Retail News From Around The Web For May 12, 2025

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

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

HBC’s slow demise was no surprise, says B.C. retail expert (BIV)

Shoppers Drug Mart billed Ontario almost $62 million for medication reviews. Former store owner says program is being ‘abused’ (Toronto Star)

Canada’s Beloved Discount Retailer Giant Tiger Embraces Change (Deloitte)

IKEA Montreal union calls another surprise strike (CTV)

‘Perpetrators see little consequence’: Saskatchewan loses $180M to shoplifting annually (CTV)

Small Nova Scotian businesses halt shipping to U.S. amid tariff concerns (CBC)

Regina reluctantly agrees to $6.78M incentive in hopes of keeping second Costco in Westerra (Regina Leader Post)

5 Starbucks shops in Ontario ratify first collective agreements (CBC)

Walmart opens small footprint “community supercentre” in South Mississauga (Grocery Business)

Saskatoon police work to tackle spike in retail crime (CTV)

Vintage clothing shops are popping up across Ottawa. Here’s why (Ottawa Citizen)

I Went to the SSENSE Store, and All I Got Was $20,000 of Designer Menswear (GQ)

Stussy Reopens Chapter Store in Vancouver (Pause Magazine)

PriceSmart Foods expands with first store in Vancouver: PHOTOS (Grocery Business)

Inside Vancouver’s first self-serve 24/7 grocery store — how it works and everything you can buy (Daily Hive)

Pro-Canada Vermonters come to Montreal to say ‘sorry’ for Trump and spend at par (Montreal Gazette)

Boy, 17, becomes sixth suspect charged in Toronto-area autobody shop arsons (Toronto Star)

Canadian Retail Icon Herschel Segal Passes

By
Craig Patterson
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Herschel Segal. Image: DavidsTea

Montreal-based retail pioneer Herschel Segal, known for founding iconic brands Le Château and DAVIDsTEA, has passed away. The specialty tea company announced Segal’s passing in a news release on Saturday, confirming he died on May 6, 2025, in Montreal.

Segal’s influence in Canadian retail spanned more than six decades, helping define both fashion and specialty beverage landscapes. A statement from DAVIDsTEA described him as a visionary who “brought vision, determination, and a strong belief in customer connection to every venture he led.”

Founder of Two Iconic Retail Brands

Segal first made his mark in the late 1950s with the founding of Le Château. Opening his first boutique in 1959 on Montreal’s bustling St. Catherine Street, he introduced Canadian consumers to European fashion trends, at a time when much of the country’s clothing was domestic and conservative. The brand quickly gained traction, becoming synonymous with youth style throughout the 1960s and 1970s.

Le Château achieved cultural relevance during the era, outfitting celebrities including John Lennon and Yoko Ono with custom velour jumpsuits during their 1969 “bed-in” for peace in Montreal. The company went public in 1983 and reached over 160 locations by the early 1990s, occupying a prominent place in major shopping malls across Canada.

But by the 2010s, the retailer struggled amid growing competition from international fast-fashion giants like H&M and Zara. Le Château filed for creditor protection in 2020, closing all of its stores. The brand has since been relaunched online by Suzy’s Inc., but Segal had long since stepped away from day-to-day operations.

Herschel Segal with Andy Warhol, left

Reimagining Tea Retail in Canada

In 2008, Segal turned his focus to another industry altogether, co-founding DAVIDsTEA with the goal of transforming the way North Americans interacted with tea. By offering an extensive selection of loose-leaf blends, vibrant store designs, and a youthful brand identity, the company attracted a new generation of tea drinkers.

His daughter, Sarah Segal, currently serves as Chief Executive Officer and Chief Brand Officer of DAVIDsTEA, while his wife, Jane Silverstone Segal, is Chair of the Board. Herschel Segal himself retired from the board in 2021 but remained the company’s largest shareholder through his private investment firm, Rainy Day Investments Ltd.

“Herschel’s legacy lives on through DAVIDsTEA and I am committed to continuing his vision,” said Jane Silverstone Segal in the company’s statement.

First Le Château store, 1959. Photo courtesy of Le Château

Enduring Influence at DAVIDsTEA

Today, DAVIDsTEA operates 20 company-owned retail locations across Canada and distributes its products through more than 4,000 grocery and pharmacy retailers, over 1,500 convenience stores in Canada, and more than 900 grocery outlets in the United States. Its online and Amazon Marketplace presence also continues to expand.

“Herschel Segal was a pioneering Canadian entrepreneur whose career shaped two iconic retail brands,” the company said. “At DAVIDsTEA, he championed accessibility, innovation, and a sense of community — principles that continue to define the Company today.”

Rainy Day Investments remains the largest shareholder in DAVIDsTEA and has indicated its intention to maintain long-term support for the company.

A Life Rooted in Montreal, With a National Impact

Advertisement, 1970. Photo courtesy of Le Château

Born and raised in Montreal, Segal earned a Bachelor of Arts in Economics and Political Science from McGill University. Inspired by studies at The New School in New York City, Segal developed a deep appreciation for contemporary style and design — ideas he brought back to Canada and used to build two enduring brands.

He was married to Jane Silverstone Segal for 42 years and was a father to several children, including Sarah Segal. Known for his commitment to inclusivity and his support for the LGBTQ+ community, Segal was widely respected as a leader who prioritized community alongside commerce.

A Champion of Innovation and Customer Connection

The news of Segal’s passing has prompted tributes across the Canadian retail industry, recognizing a man whose ideas reshaped how Canadians shop.

“Herschel Segal brought vision, determination, and a strong belief in customer connection to every venture he led,” said the statement issued by DAVIDsTEA. “His entrepreneurial legacy lives on through the businesses he built and the many people he inspired.”

As the Canadian retail landscape continues to evolve, Segal’s pioneering spirit and fearless approach to innovation remain etched into the country’s commercial fabric. From introducing bell-bottom pants and velvet jackets to mall-goers in the 1960s to bringing brightly flavoured teas to a new generation of consumers, Segal left an indelible mark that transcends trends.

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17 Bids Filed for Hudson’s Bay as Store Liquidation Proceeds

By
Craig Patterson
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Former Hudson's Bay store at CF Polo Park in Winnipeg. Photo: Cadillac Fairview

A May 9 court filing reveals that 17 bids have been submitted for the Hudson’s Bay Company and its assets, as the historic Canadian retailer undergoes a sweeping sales process while liquidating all of its stores across the country. The bids were received following a broad outreach campaign by Alvarez & Marsal Canada Inc., the court-appointed monitor overseeing the retailer’s restructuring under the Companies’ Creditors Arrangement Act (CCAA).

The latest report, filed with the Ontario Superior Court of Justice, confirms that the 355-year-old company’s attempt to find new ownership — or owners — is moving into a critical evaluation stage. The court-supervised process, known as a Sale and Investment Solicitation Process (SISP), is designed to maximize value from both the Hudson’s Bay brand and its physical retail footprint.

17 Bids Filed Following Extensive Outreach

Alvarez & Marsal reported that it contacted 407 potentially interested parties about acquiring the company or its assets. Of those, 54 signed non-disclosure agreements to access the retailer’s financial and operational data in a secure data room. Ultimately, 17 entities submitted formal bids before the April 30 deadline.

While the names of most bidders remain confidential, two have gone public: Vancouver-area mall owner Weihong Liu of Central Walk, who has proposed operating up to 25 Hudson’s Bay stores, and Toronto-based Urbana Corp., which is pursuing the retailer’s intellectual property portfolio. Sources have also confirmed that Canadian Tire has submitted a bid focused on select brand assets, though the company has publicly stated it is not seeking to acquire the entire business.

The bids vary in scope and intent. Some suitors are interested in operating stores or retaining parts of the business as a going concern. Others are focused strictly on acquiring Hudson’s Bay’s intellectual property, which includes well-known brands like the iconic Stripes motif, the discount chain Zellers, home goods label Distinctly Home, GlucksteinHome, and Hudson North apparel.

Empty men’s fragrance area on the fifth floor of Hudson’s Bay Queen Street in downtown Toronto, May 7, 2025. Photo: Craig Patterson

Lease Monetization Process Narrows

In a parallel process, the retailer and its advisors are also working to monetize real estate value by marketing 96 leases: 80 held by Hudson’s Bay, 13 Saks OFF 5TH and three Saks Fifth Avenue banners.

As of the May 1 bid deadline, 12 parties had submitted binding bids on a total of 39 leases, down from the 18 interested parties and 65 leases initially noted in the earlier round. Some of the remaining 62 leases attracted no bids, and four Saks OFF 5TH properties have already been disclaimed and returned to landlords.

Overlapping interest in certain properties means that some leases may still proceed to auction if multiple bidders are competing for the same locations. Oberfeld Snowcap Inc. has been retained as the broker leading the lease monetization process.

No Insider Bids Received

The monitor confirmed that no insider bids were received under either the asset sale or lease monetization processes. This effectively rules out former or existing Hudson’s Bay executives or controlling shareholders from reacquiring the business under the current CCAA framework.

Insiders had previously been required to submit declarations and follow a specific Insider Protocol, but the absence of such bids has rendered those guidelines moot.

Full Store Liquidation Underway

As the sale and lease monetization efforts proceed, Hudson’s Bay is liquidating all of its stores. The process began on March 24, 2025, and is expected to continue until June 1, 2025, followed by a short retrieval period for furniture, fixtures, and equipment (FF&E) buyers.

The monitor noted that 90% of the distribution centre inventory has already been delivered to stores, with the remainder (excluding some large furniture items) expected to arrive by May 16.

Originally, six stores were excluded from the liquidation in hopes of attracting a going concern bid, but those stores — including downtown Toronto, Yorkdale, Hillcrest, downtown Montreal, Pointe-Claire and Laval — were later added to the liquidation process due to lack of viable interest.

Empty men’s accessory area on the fifth floor of Hudson’s Bay Queen Street in downtown Toronto, May 7, 2025. Photo: Craig Patterson

Saks OFF 5TH Closures Continue

Thirteen Saks OFF 5TH stores across Canada were also included in the liquidation plan. As of late April, nine had closed. The remaining four are expected to close by June 1, 2025. The leases for locations in Park Royal (BC), Place Ste-Foy (QC), Outlet Collection at Niagara (ON), and Queensway (Toronto) have already been disclaimed.

Saks OFF 5TH opened 18 stores in Canada between 2016 and 2018 and failed to take off, with some stores selling less than $100 per square foot. 

$165 Million in Debt Repayment Sought

As part of its May 14 court appearance, Hudson’s Bay is expected to request an extension of creditor protection through July 31, 2025, and seek court approval to repay up to $165 million to senior lenders.

This includes approximately $24.6 million to Bank of America under its revolving credit facility and $40.9 million to the FILO Agent (Restore Capital), excluding a disputed $28 million “make-whole” provision. The company’s cash position as of May 2 was $194 million, well above the forecasted $123.7 million, allowing for these repayments.

The monitor supports the debt repayments, noting that reducing interest expenses will benefit stakeholders and that security reviews have validated the lenders’ claims.

Empty section of ‘The Room’ on the third floor of Hudson’s Bay Queen Street in downtown Toronto, May 7, 2025. Photo: Craig Patterson

Art and Artifact Auction in Planning Phase

The report also outlines ongoing efforts to prepare for the sale of Hudson’s Bay’s 4,400-piece art and artifact collection, which includes paintings, archival maps, historical documents, and the company’s original Royal Charter from 1670.

The court has already approved separating the art sale from the general asset process, with Heffel Gallery Limited selected to lead the auction. However, no sale procedures will proceed without additional court approval.

The monitor notes that many items of historical significance were donated to the Archives of Manitoba in 1993, and thus are not part of the auction. Nonetheless, consultation is underway with Indigenous groups, museums, and government bodies. Access to the full digital catalogue is available upon signing a non-disclosure agreement.

The auction has attracted particular scrutiny from heritage and Indigenous organizations concerned that culturally significant items may fall into private hands.

Monitor Endorses Next Steps

The Monitor, Alvarez & Marsal, concludes its third report by recommending that the Court approve all proposed steps, including:

  • Extension of the CCAA stay to July 31
  • Distributions to senior secured lenders
  • Continued management of the liquidation, lease sales, and SISP

It also confirms the retailer will continue working closely with newly appointed employee representative counsel (Ursel Phillips Fellows Hopkinson LLP) to address worker-related claims, benefits, and entitlements.

As Hudson’s Bay moves closer to the final stages of its CCAA proceedings, the future of one of Canada’s most iconic retail brands may soon rest in the hands of multiple new owners — with its remaining stores expected to shutter in just a few weeks’ time.

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Tim Hortons Smile Cookie campaign raised record-breaking $22.6 million this year for over 600 local charities and community groups

By
Mario Toneguzzi
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Tim Hortons Hiring Sign (Photo: Dustin Fuhs)

Tim Hortons says a record-breaking $22.6 million was raised through the sales of Smile Cookies this year, supporting over 600 charities and community groups across Canada and in the United States.

Axel Schwan
Axel Schwan

“We’re so grateful for the outpouring of support for this year’s Smile Cookie campaign from Tims guests across Canada. Thanks to your incredible generosity we topped our previous Smile Cookie record,” said Axel Schwan, President.

“A huge thanks to every single Tim Hortons restaurant owner, team member and volunteer who collectively helped to bake and hand-decorate millions and millions of cookies. Your dedication and enthusiasm represents the kind of deep care for our local communities that Canadians can rely on from Tim Hortons.”

Tim Hortons Smile Cookie campaign raised record-breaking $22.6 million this year for over 600 local charities and community groups (CNW Group/Tim Hortons)
Tim Hortons Smile Cookie campaign raised record-breaking $22.6 million this year for over 600 local charities and community groups (CNW Group/Tim Hortons)

Since the first-ever Smile Cookie campaign in 1996, the annual charitable campaign has raised a total of more than $151 million for charities and community groups, which are selected every year by the company’s restaurant owners. Recipients include local hospitals, community care organizations, food banks and schools, said the company.

Restaurant owners will be presenting their charity partners with Smile Cookie cheques over the coming weeks.

For a full list of local charities and community groups benefiting from the annual Smile Cookie campaign, visit www.timhortons.ca/smile-cookie.

In 1964, the company’s first restaurant in Hamilton opened its doors. It is Canada’s largest restaurant chain operating in the quick service industry with nearly 4,000 restaurants across the country.

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Rotisseries Benny Debuts in China via Foodtastic Deal

By
Craig Patterson
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Peter Mammas, President and CEO of Foodtastic, left, traveled to Shanghai in April (2025) with Jacques Houle, right, CEO of NGU-Group, to finalize the signing of a development agreement between the two entrepreneurs to develop Benny Rotisseries, a Foodtastic restaurant chain, across China. NGU-Group will open its first two establishments in Shanghai this fall. PHOTO: Foodtastic

Canadian restaurant franchisor Foodtastic has signed an exclusive franchise development agreement with NGU-Group for the expansion of Quebec-based Rotisseries Benny across Asia, starting with China. The deal marks a milestone in Canadian restaurant history, as Benny becomes the first Quebec restaurant chain to establish a national presence in China.

The first two locations are set to open this fall in Shanghai, one of the largest and most dynamic cities in the country. With long-term ambitions to expand across China, NGU-Group’s goal is to introduce the Benny brand — known for its slow-roasted chicken, bold BBQ sauces, and classic Quebec poutine — to millions of new consumers.

Quebec Roots, Global Ambitions

Rotisseries Benny was founded in 1960 by a family of poultry farmers and has grown to become a Quebec institution. The restaurant chain built its name on a signature offering of juicy rotisserie chicken, savoury sauces, and a fast-service model ideal for families and working professionals. Its popularity among generations of Quebecers laid the foundation for what is now a major international push.

In 2019, Benny was acquired by Foodtastic, a rapidly expanding Canadian franchisor based in Quebec. Foodtastic has since modernized and scaled the brand, while retaining its original recipes and values. The company now oversees a portfolio of 27 brands, including Second Cup, La Belle et La Bœuf, Freshii, Monza, Quesada, and Pita Pit, operating over 1,200 locations across Canada.

A Veteran of the Chinese Market

The strategic partnership in China is led by Jacques Houle, President and CEO of NGU-Group. Based in Boisbriand, Quebec, Houle is a seasoned entrepreneur with over 30 years of business experience in China. He is best known for introducing high-quality imported goods into North America, including Forno, a brand of luxury kitchen appliances distributed widely across the continent.

“For more than half a century, Quebecers have faithfully and regularly returned to Benny for their delicious chicken, savory BBQ sauces, legendary poutine, and extensive menu,” said Jacques Houle. “I myself became a loyal customer years ago. Having worked with China for over 30 years, I have seen that the Chinese have a great love for roasted chicken, and I developed the conviction that they would absolutely love our style of chicken – the way we have adopted rotisserie cooking in Quebec and the types of BBQ sauces we have developed over the decades. And Benny has mastered these recipes throughout its history.”

Houle’s deep understanding of China’s business environment and consumer habits gives NGU-Group a strategic edge. He emphasized that China’s vast geography — comprising 1.4 billion people, 620 cities, 262 airports, and over 5,000 train stations — presents unparalleled opportunity for growth.

Building a National Footprint

NGU-Group plans to develop a robust franchise network across China, leveraging local knowledge, operational expertise, and strong brand identity. The company will start with flagship locations in Shanghai to build awareness and establish credibility before scaling to other cities.

“Driven by a passion for hospitality and food, and committed for the long term, NGU-Group plans to build a strong franchise network across China — offering Chinese consumers the premium roasted chicken experience that Quebecers have delivered and enjoyed for over 60 years,” said Houle.

The company is aiming to differentiate itself by importing not only its core product offering, but also its culture of hospitality and emphasis on quality.

Market Ready for Quebec’s Favourite Chicken

Peter Mammas, President and CEO of Foodtastic, recently travelled to Shanghai to assess market readiness and meet with NGU-Group’s team.

“We’re very excited to have joined forces with Jacques Houle and his team to bring the Benny experience to customers in China,” said Mammas. “I just returned from a visit to Shanghai and saw firsthand how ripe and open the market is to our rotisserie-style menu. We are confident that customers across China will appreciate the traditional recipes that we and the original founders have carefully crafted over the years.”

The collaboration will see Foodtastic supporting NGU-Group with brand direction and product integrity, while NGU-Group handles franchise development, market adaptation, and operations on the ground.

A Bold New Chapter for Benny and Foodtastic

Foodtastic’s international expansion strategy is taking shape as the company looks beyond Canada to new markets hungry for authentic and established restaurant concepts. The Benny announcement is a flagship moment, underscoring Foodtastic’s ambitions to become a global player in the food service industry.

“Rotisseries Benny holds a special place in the hearts of many Quebec families,” said Mammas in a statement. “Bringing that tradition to a global audience is an exciting next chapter for the brand.”

As NGU-Group prepares to launch in Shanghai later this year, the broader Canadian restaurant industry will be watching closely. If successful, the move could open the door for more homegrown restaurant concepts to scale internationally, particularly in high-growth markets like China.

About Foodtastic

Headquartered in Quebec, Foodtastic is one of Canada’s leading restaurant franchisors. With over 1,200 locations and a portfolio of 27 brands, the company has become a significant force in the Canadian restaurant landscape. Its strategy focuses on combining local brand heritage with operational scale, enabling the growth of both regional favourites and national powerhouses.

Through bold leadership, strategic partnerships, and an eye for innovation, Foodtastic continues to grow its influence both at home and abroad.

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Pharmacy Brands Canada expands to 250th location

By
Mario Toneguzzi
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Chatham's Value Drug Mart - Chatham, Ontario (CNW Group/Pharmacy Brands Canada)

Pharmacy Brands Canada has opened its 250th banner location in Canada, marking a major milestone for the organization.

“This significant expansion reflects our commitment to delivering accessible, high-quality healthcare services to communities nationwide. We are proud to partner with all our member locations—providing the tools, resources, and dedicated support they need to achieve their individual goals,” said the company in a news release.

“Our expansion in Ontario continues with the official opening of the first Value Drug Mart in the province—a trusted and historic brand well-established in Western Canada—and the introduction of the Peoples Pharmacy banner. These new additions strengthen our presence in Ontario and reinforce our dedication to serving Canadian patients with excellence.”

“Our banner members are passionate and deeply committed to patient care, and we are honoured to reach this milestone with them as partners in this journey,” said Jon Johnson, CEO of Pharmacy Brands Canada. “We look forward to continuing to grow and serve our communities with the utmost care and professionalism.”

With a robust network of 250 locations now spanning coast to coast, Pharmacy Brands Canada said it proudly showcases its enduring dedication to fostering innovation, upholding excellence in healthcare delivery, and maintaining a deep-rooted commitment to the sustained success of independent pharmacies across the nation.

“We are also proud to be a Canadian company that partners exclusively with Canadian-owned wholesalers. We look forward to continuing to support our pharmacy owners and the patients they serve from coast to coast,” it said.

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