The Canadian apparel industry is facing potential upheaval as U.S. President Donald Trump signals his intent to impose new tariffs on imported goods on March 1. While details are still emerging, trade experts warn that Canadian retailers—many of whom rely on U.S. supply chains—could see rising costs and increased challenges in managing inventory.
With economic uncertainty already impacting consumer spending, higher import costs could further strain apparel brands, forcing them to rethink pricing strategies, sourcing options, and inventory management. One of the biggest concerns? A growing surplus of unsold stock.
How Tariffs Could Impact Canadian Apparel Retailers
Many Canadian apparel brands depend on U.S. suppliers or distribute goods through American networks. If tariffs are implemented, the cost of sourcing materials and finished products could increase significantly, squeezing already tight margins. Some brands may attempt to pass these costs onto consumers, but with inflation already affecting purchasing behaviour, raising prices could make it harder to compete in a price-sensitive market.
Retailers often place large orders months in advance, basing their decisions on anticipated demand. If price increases lead to consumer hesitation, brands could be left with excess inventory. Traditionally, retailers rely on seasonal discounting to clear out surplus stock, but excessive markdowns can weaken brand positioning and profitability over time.
The apparel industry has also faced ongoing supply chain volatility in recent years. If tariffs are introduced, Canadian retailers may need to adjust sourcing strategies, whether that means seeking new suppliers, shifting production, or rethinking distribution channels. These transitions take time and often come with additional costs and logistical hurdles. The uncertainty surrounding trade policy makes long-term planning even more difficult.
Store on sale. Image: StyleDemocracy
Strategies to Manage Excess Inventory
As brands navigate these challenges, having a plan to manage surplus inventory will be critical. Rather than relying solely on deep discounting, alternative strategies such as limited-time warehouse sales, off-price retail partnerships, and strategic liquidation events can help brands clear stock while maintaining brand equity.
For brands looking to move inventory quickly while reaching engaged shoppers, event-based sales have proven to be an effective tool. Companies specializing in large-scale retail events can help brands offload surplus goods efficiently without compromising their market positioning. These types of sales not only free up valuable warehouse space but also generate cash flow that can be reinvested into future collections.
Looking Ahead: Adapting to a Shifting Trade Landscape
With uncertainty surrounding U.S. trade policies, Canadian retailers need to remain flexible and proactive. Diversifying supply chains, optimizing inventory management, and exploring alternative sales channels will be key to staying competitive.
By adopting a strategic approach to inventory management—whether through smart forecasting, partnerships, or event-driven sales—Canadian apparel brands can navigate potential tariff challenges while maintaining financial stability and consumer appeal.
Alex Mazelow, is Head of Digital at StyleDemocracy. StyleDemocracy is North America’s leading warehouse sale and retail event management company, specializing in turnkey solutions for brands looking to move excess inventory while maximizing revenue and protecting brand integrity. With a 25-year history, StyleDemocracy has built a reputation for creating seamless, high-impact shopping experiences that drive results. For more information, visit styledemocracy.com.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
RONA Inc., one of Canada’s leading home improvement retailers, has announced the renewal of its partnership with retailer Matériaux Pont-Masson. The strategic move marks Matériaux Pont-Masson’s return to RONA’s network of affiliated dealers after more than 30 years of collaboration, reinforcing RONA’s commitment to expanding its national presence.
With nine stores across Québec and Ontario, Matériaux Pont-Masson brings value to RONA’s robust network of approximately 425 corporate and affiliated dealer locations. The renewed partnership aligns with RONA’s growth strategy, aiming to strengthen its footprint in key markets.
“We have decided to renew our partnership with RONA to pursue our development plans and ensure our group’s continuous growth,” said Éric Bailey, President of Matériaux Pont-Masson. “We were impressed with the recent changes within RONA, particularly its strong commitment to supporting and developing its network of affiliated dealers.”
Enhancing Operational Efficiency
Through this partnership, RONA will manage the supply and distribution of products to all nine Matériaux Pont-Masson locations. The agreement ensures streamlined operations and improved access to a broader range of products for customers.
“Having access to a wider variety of products, being included in decisions that impact us, and partnering with such a strong banner are key priorities for us,” said Julie Boucher, General Manager at Matériaux Pont-Masson. “This collaboration will ensure we offer exceptional service to our growing clientele.”
New RONA+ store at Emerald Hills in Sherwood Park, Alberta. Photo: Christa Patterson
RONA’s Vision for the Future
J.P. Towner, President and CEO of RONA Inc., expressed pride in the renewed partnership, emphasizing its alignment with RONA’s long-term vision. “This partnership reflects our clear strategy to help affiliated dealers stand out in their markets. Our network of affiliated dealers plays a key role in RONA’s growth, and we intend to continue expanding this network in the years to come,” he stated.
Founded in 1939, RONA Inc. operates under the RONA+, RONA, and Dick’s Lumber banners, employing over 21,000 people nationwide. The company is recognized for its commitment to sustainability, earning accolades as one of Canada’s Greenest Employers.
From left to right, Julie Boucher, General Manager, Matériaux Pont-Masson. Éric Bailey, President, Matériaux Pont-Masson. J.P. Towner, President and Chief Executive Officer, RONA inc., and Alain Ménard, Senior Vice-President, RONA Affiliated Dealers, RONA inc.
Supporting Canadian Entrepreneurs
Alain Ménard, Senior Vice-President of RONA Affiliated Dealers, highlighted RONA’s dedication to supporting Canadian entrepreneurs. “About a year ago, we announced a repositioning strategy and innovative programs to boost our affiliated dealers’ profitability. Our goal is to operate the strongest network of affiliated dealer stores in the country. Welcoming Matériaux Pont-Masson back to the RONA family is a significant step toward that ambition,” he said.
Matériaux Pont-Masson, established in 1979, specializes in building materials and serves a diverse clientele, including contractors, self-builders, and businesses. With over 500 employees, the company’s return to RONA’s network marks a new chapter in its growth journey.
Shoppers Foundation for Women’s Health™ has released its second annual Impact Report, which highlights achievements made in 2024 towards its goal of investing $50 million by 2026 to improve access to care as well as awareness of and research for women’s health needs.
The Foundation reported on Monday that $12.8 million was donated in 2024 alone, benefiting more than 380 partner organizations and impacting over 1 million women across Canada.
Bringing the total amount contributed by the Foundation to more than $34 million since its launch, these fundraising efforts are driven by several signature events and partnerships, said the Foundation, including:
Shoppers Drug Mart® Run for Women: The largest event series in Canada dedicated to women’s mental health, the event includes springtime 5k and 10k run/walk events in 18 different communities across Canada. Since its inception in 2013, the run has raised more than $23M for local mental health charities that are improving access to mental health care and support for Canadian women. In 2024, the run raised over $3 million in donations with over 27,000 runners and walkers taking part.
Menstrual Equity: Period inequity silences and sidelines – and the Foundation is taking action to fix that. Through partnerships with organizations like Moon Time Connections, The Period Purse, Alberta Council of Women’s Shelters, BC Society of Transition Houses and more, we’re helping to increase access to menstrual products and provide stigma-shattering education to create a more equitable future for people who menstruate across Canada.
Community Grants: The Shoppers Foundation for Women’s Health™ Community Grants Program supports organizations addressing women’s health equity through awareness initiatives and improved access to care. In 2024, the program committed $2.84 million to back 41 community-led initiatives.
Beauty Mingles: Local fundraising events hosted at most Shoppers Drug Mart® and Pharmaprix® locations in spring, fall and in the lead-up to the winter holiday season. Offering makeovers and skin care consultations from Beauty Specialists, these in-store beauty events are a testament to the power of community in helping to raise vital funds for local women’s health programs. Over $4.9M in donations raised in 2024.
Giving Shelter: Every fall, Shoppers Drug Mart® and Pharmaprix® stores raise funds and awareness for women’s shelters across Canada. One hundred per cent of in-store donations stay in the local community, helping shelter partners provide thousands of women and their families access to the care and support they need. Thanks to the generosity of customers and donors, fundraising in 2024 supported over 300 local women’s shelters and partner organizations.
“In 2024, Shoppers Foundation for Women’s Health™ made significant progress towards our goal – a future where healthcare is equal and accessible to all women across Canada, helping them to lead healthier lives. Together with our partners and the unwavering generosity of our supporters, we plan to build on this momentum and continue creating lasting change in communities nationwide. paving the way for a brighter future for the health of all Canadian women,” said Paulette Minard, Director, Community Investment, Shoppers Foundation for Women’s Health™
Sharlene Rutherford
“Women continue to be misdiagnosed, misrepresented, and misunderstood because of inequities in healthcare that have existed for far too long. At the Women’s Health Collective Canada, it’s our mission to create real change in women’s health by investing in women’s health research and care. With support from Shoppers Foundation for Women’s Health™, we’re building a more inclusive and equitable future for all women,” said Sharlene Rutherford, President and CEO, Alberta Women’s Health Foundation, on behalf of WHC
Kearie Daniel
“Having a space where Black mothers, at every stage of their journey, can connect, mentor each other, and truly create a village of support is a powerful, life-saving resource. Motherhood can feel isolating, and this experience can be intensified by factors such as race, location, and lack of culturally relevant resources. We are immensely grateful to Shoppers Foundation for Women’s Health™ for their visionary support of our Mothering Minds initiative, helping us to foster connection and sisterhood among Black mothers across Canada, building healthier families and stronger communities,” added Kearie Daniel, Executive Director, The Black Women’s Institute for Health
The Foundation will invest $50M by 2026 to address some of the most pressing health inequities facing women, including lack of representation in health research, barriers to accessing mental healthcare, and the urgent consequences women disproportionately face due to poverty and domestic violence.
Shoppers Drug Mart Inc. is one of the most recognized and trusted names in Canadian retailing. The company is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Québec). There are more than 1,350 Shoppers Drug Mart and Pharmaprix stores operating in prime locations in each province and two territories.
On Saturday, February 1, 2025, U.S. President Donald Trump announced sweeping new tariffs on Canadian goods, which will be implemented March 1. The measures include a 25% tariff on most Canadian imports and a 10% tariff on energy products. In swift retaliation, the Canadian government imposed staggered equivalent 25% tariffs on U.S. imports, igniting fears of an escalating trade war reminiscent of earlier U.S.-China tensions.
Retailers across Canada are bracing for immediate price hikes after tariffs come into force. Gary Newbury, a retail supply chain and last-mile expert, shared his insights on how these tariffs will ripple through the industry.
Gary Newbury
“I suspect there’s an opportunity for retailers to raise prices even before they’re directly impacted,” Newbury noted. “They’ll argue that they need to build in a buffer now to manage future costs from these tariffs. This approach isn’t new—we’ve seen it before with gasoline companies, where prices rise in anticipation of cost increases and fall more slowly when wholesale prices drop.”
Newbury further explained that retailers may use the tariffs as a pretext to increase prices even if current inventory was sourced before the new duties took effect. “Retailers struggling with tight margins might seize this as an opportunity to improve profitability under the guise of external cost pressures,” he added.
For consumers, this means tighter household budgets. “It’s going to be a tough time,” Newbury added. “Retailers will pass these costs along to consumers, and the uncertainty makes it even harder.”
Small Retailers Face Greater Vulnerability
While large retailers like Walmart and Canadian Tire may have the resources to mitigate some impacts, small and medium-sized businesses are more vulnerable. “Smaller retailers often rely on local wholesalers, who in turn depend on imports,” Newbury said. “They don’t have the same bargaining power or supply chain flexibility, making them more susceptible to sudden cost increases.”
Newbury elaborated, “This dependency on local wholesalers creates a critical vulnerability. When wholesalers face increased import costs due to tariffs, they pass those costs directly to smaller retailers. Unlike larger chains that might have direct supplier agreements or diversified sourcing strategies, small businesses often have limited options, leaving them with little room to negotiate better terms.”
This vulnerability could lead to more rapid price hikes for consumers shopping at independent stores, particularly for US imported goods. “The wholesalers will pass on the tariffs, and small retailers have little choice but to absorb the cost or raise prices,” Newbury explained.
He added, “Smaller businesses may also struggle with cash flow issues if they need to pay higher upfront costs without the volume-based discounts larger retailers negotiate. This can create a cascading effect where increased costs strain financial stability, potentially leading to reduced inventory, layoffs, or even closures in extreme cases.”
Impact on Cross-Border E-Commerce
For Canadian businesses that rely heavily on exports to the U.S., the outlook is equally grim. Companies that ship products like apparel or specialty goods directly to American consumers will face new barriers.
“If a business does 90% of its exports to the U.S., these tariffs could be devastating,” Newbury said. “They’ll have to decide whether to absorb the costs, pass them on to customers, or find new markets.”
Newbury raised an interesting point about de minimis thresholds, which exempt small shipments from certain duties. “Businesses might pivot to smaller shipments to avoid tariffs, but that adds logistical complexity and costs,” he explained.
Supply Chain Disruptions: A Complex Web
The auto industry, heavily reliant on cross-border supply chains, is poised to be among the hardest hit. “Imagine a plant in Detroit and another in Oakville. Components ping-pong back and forth across the border multiple times before a finished vehicle rolls off the assembly line,” Newbury explained. “Each crossing will now attract a 25% tariff. The cumulative effect will be staggering.”
This isn’t just hypothetical. Parts can cross the border up to six or seven times during production. “We’re talking about costs compounding with every border crossing,” Newbury said. “A component worth $100 could effectively double in cost after multiple crossings.”
Newbury highlighted how deeply integrated North American supply chains are, with certain parts requiring multiple rounds of sub-assembly across borders. “The complexity is not just in the movement of goods but also in the network of suppliers dependent on each stage. Disruptions here have a domino effect,” he noted.
The Currency Factor
Exchange rates could further exacerbate the situation. “If the Canadian dollar weakens against the U.S. dollar, our imports become even more expensive,” Newbury noted. “We’re already seeing signs of this, with the loonie slipping below 70 cents USD.”
This double hit—from both tariffs and a weaker currency—could lead to inflationary pressures across the board. “We’re looking at a scenario where everything from groceries to consumer electronics could see price increases,” Newbury warned.
He also pointed out, “Currency fluctuations can trigger price volatility, making it hard for businesses to forecast and manage costs effectively.” Additionally, a weaker Canadian dollar doesn’t just affect imports; it also has complex implications for exports. “While a lower loonie can make Canadian goods more competitive in the U.S. market, the benefit is often offset by increased costs for raw materials and components that Canadian manufacturers import to manufacture goods for exporting,” Newbury explained.
“The interconnectedness of North American supply chains means that even export-oriented businesses face higher input costs, eroding any competitive edge from favourable exchange rates,” he added. “Ultimately, the combined impact of tariffs and currency devaluation creates a challenging environment for both importers and exporters.”
The Threat of Escalation
Trump’s executive order not only imposes tariffs but also grants him the authority to increase them at his discretion. “There’s a real threat of retaliation from both sides,” Newbury warned. “If Trump raises tariffs to 50%, what will Canada do? Matching that could devastate both economies, but failing to respond could be seen as a sign of weakness.”
Newbury expressed concern over Trump’s unpredictability. “The language in the executive order leaves room for sudden escalations. We could see tariffs doubled overnight based on political maneuvering rather than economic rationale,” he cautioned.
He elaborated on the limited strategic responses available to Canada. “Our options are constrained. Escalating tariffs in response might lead to a tit-for-tat scenario that spirals out of control. Alternatively, diplomatic negotiations could help de-escalate tensions, but with an unpredictable counterpart, that path is fraught with challenges.”
Newbury also highlighted the potential for abrupt policy shifts. “Trump has hinted at using tariffs as a bargaining chip, meaning rates could fluctuate wildly depending on political developments. This volatility makes it difficult for Canadian businesses to plan for the short to medium term,” he said.
A Trade War’s Broader Implications
Beyond the immediate economic impact, these tariffs could reshape trade dynamics for years to come. “We’re not just talking about temporary disruptions,” Newbury emphasized. “Businesses will reconsider their supply chains, sourcing strategies, and even where they manufacture products.”
He elaborated, “Companies might seek alternative suppliers in non-tariffed countries or invest in local production to reduce exposure. This could lead to long-term shifts in trade relationships.”
Newbury also highlighted the potential for businesses to reroute supply chains as a strategy to mitigate the impact of tariffs. “Some companies may explore using third countries as intermediaries to avoid direct tariff costs. This could involve shifting manufacturing to countries not affected by the tariffs or reconfiguring logistics routes to minimize exposure,” he explained.
“However, while rerouting supply chains might offer short-term relief, it introduces new challenges,” Newbury added. “Businesses have to consider the added costs, potential delays, and the complexity of managing relationships with new suppliers or logistics partners.”
Navigating Uncertainty
As Canada and the U.S. brace for the fallout from these new tariffs, retailers and consumers alike face an uncertain future. The ripple effects will be felt across industries, from automotive to apparel, with small businesses particularly vulnerable.
“The best-case scenario is a stalemate,” Newbury concluded. “The worst-case scenario? A full-blown trade war that harms both economies, with Canada likely bearing the brunt of the impact.”
Canadian agri-food. Image: Immigration News Canada
The Trump administration’s recent decision to impose a 25% tariff on Canadian and Mexican food products on March 1 is a wake-up call for Canada’s agri-food sector. As a nation that prides itself on food security and a robust agricultural trade surplus, Canada now faces a critical test of its ability to remain competitive in an increasingly protectionist global economy.
According to the new Global Agri-Food Most Influential Nations Ranking, compiled by the Agri-Food Analytics Lab at Dalhousie University and commissioned by MNP, Canada ranks thirteenth among G20 nations in terms of global agri-food influence. The United States, our neighbours, are number one. While the country has high performance in food security and political stability, its weaknesses lie in innovation, trade diversification, regulatory efficiency, and interprovincial trade barriers. These vulnerabilities are now being exploited by the latest U.S. trade policy shift.
The Economic Weight of Canada’s Agri-Food Trade Surplus
Canada’s agri-food trade surplus stands at $13.3 billion, ranking fifth among G20 nations. This surplus underscores Canada’s role as a net food exporter, supplying high-quality agricultural products to global markets, with the U.S. being the most significant trading partner. A 25% tariff on Canadian food exports will inevitably disrupt this balance, making Canadian goods less competitive in the U.S. market, leading to lower profit margins for producers, and ultimately affecting Canadian consumers.
The tariffs will also exacerbate existing challenges within the industry. The Dalhousie report highlights Canada’s struggle with high logistical costs due to its vast geography, regulatory obstacles for small businesses, and the lack of strategic investments in value-added processing. Compounding these issues are interprovincial trade barriers, which prevent efficient movement of food products within Canada itself. These barriers, ranging from differing provincial regulations to taxation inconsistencies, increase costs for producers and limit economic growth. With American tariffs cutting deep into exports, the need for Canada to build stronger trade alliances beyond the U.S. has never been more urgent.
Canada is currently classified as a Tier 2 country in global agri-food competitiveness, trailing behind Tier 1 leaders like the U.S., Japan, China, and Germany. These nations have successfully implemented policies that encourage innovation, facilitate exports, and support domestic industries through targeted investments. Canada’s fragmented regulatory framework, interprovincial trade restrictions, and inconsistent support for agri-food innovation leave it vulnerable in times of economic turbulence.
US President Donald Trump mocks a disabled reporter. Photo: NBC
The Need for Domestic Processing Investments
The report emphasizes the importance of domestic processing investments, which would allow Canada to capture more value from its agricultural output rather than simply exporting raw materials. This is a key area where Canada lags behind top-performing nations. With the U.S. tariffs threatening Canada’s access to its largest market, the government must act decisively to enhance domestic food processing capabilities and expand export markets in Asia, Europe, and the Middle East.
The tariffs imposed by the Trump administration serve as a stark reminder that Canada cannot afford to rely too heavily on any single trade partner. Diversifying trade relationships and strengthening domestic food production and processing are now imperatives, not just aspirations.
Policy Recommendations for Strengthening Canada’s Agri-Food Sector
Policy actions must include:
Increased R&D Investment – Canada must prioritize research in agri-food innovation, including advanced food processing, precision agriculture, and sustainable farming practices.
Regulatory Reform – A streamlined, transparent regulatory environment would enable agri-food startups and small businesses to scale up and compete internationally.
Trade Diversification – Expanding trade agreements beyond North America to markets like the European Union, Japan, and Southeast Asia would mitigate the risks of protectionist policies from the U.S.
Domestic Processing Growth – More investment in food processing facilities would help retain economic value within Canada, reducing reliance on raw commodity exports.
Strategic Infrastructure Development – Addressing high transportation costs and supply chain inefficiencies would enhance Canada’s competitiveness in global food markets.
Interprovincial Trade Reform – Removing barriers that limit the free movement of food products between provinces would improve domestic market efficiency and competitiveness.
A Crossroads for Canada’s Agri-Food Future
Canada’s agri-food sector is at a crossroads. The Trump administration’s tariffs have exposed underlying weaknesses in Canada’s trade strategy and industry resilience. While Canada enjoys food security and a stable political environment, its ability to innovate and expand its global influence remains constrained by structural inefficiencies. By implementing forward-looking policies, Canada can turn this challenge into an opportunity—one that strengthens its agri-food industry and secures its place as a global leader in food production and export.
If Canada fails to act swiftly, the consequences will extend far beyond the farm gate. The time to secure Canada’s agri-food future is now.
US President Donald Trump raising his arm in a salute. Image: NBC News
On February 1, the global economic landscape shifted dramatically as U.S. President Donald Trump announced sweeping tariffs on Canadian goods. Tariffs are set to begin on March 1. The move includes a 25% tariff on most imports and a 10% tariff on energy products. In response, the Canadian government imposed retaliatory tariffs of 25% on U.S. imports. This abrupt escalation has sent shockwaves through both nations, creating widespread uncertainty and concern within the Canadian retail sector.
“I think a lot of people are freaked out about it because we don’t know what’s going to happen,” said George Minakakis, Founder and CEO of Inception Retail Group, during an in-depth interview with Retail Insider. “The uncertainty is the biggest issue. Trump is an emotional leader, and that unpredictability makes it hard to plan for the future.”
The Economic Fallout
The Wall Street Journal did not mince words, calling the Trump tariffs “The Dumbest Trade War in History.” This sentiment is echoed across economic sectors, with experts warning of dire consequences if the trade conflict continues unchecked.
George Minakakis. Photo: LinkedIn.
“The intent behind these tariffs is to rebase American companies and jobs,” Minakakis explained. “But the collateral damage will be significant, especially for Canadian small businesses and consumers who are already feeling the pinch of inflation and economic instability.”
Canada’s heavy reliance on the U.S. as a trading partner makes it particularly vulnerable. According to Minakakis, “For over 30 years, we’ve depended on the U.S., and that’s stymied our ability to attract foreign investment. This dependency has made us less competitive both domestically and internationally.”
The Bank of Canada has already issued warnings about the potential for a recession by mid-year if the trade war persists. “In my view, retailers have the next six months to act quickly,” Minakakis advised. “If this continues, we could see a significant economic downturn by summer. Businesses need to pivot now to minimize the damage.”
Impact on Canadian Retailers
The Canadian retail landscape is bracing for a ripple effect. Minakakis emphasized that the first to suffer will be the 60% of Canadians living paycheck to paycheck, followed closely by small businesses—the backbone of the Canadian economy.
“Small businesses will be hit hard,” he warned. “They don’t have the financial cushion to absorb sudden cost increases. We’re talking about potential layoffs, store closures, and reduced consumer spending.”
Retailers are already strategizing on how to mitigate the impact.
“Canadian retailers have the next six months to pivot,” said Minakakis. “They need to diversify their supply chains, focus on Canadian-made products, and emphasize their local roots to attract consumers who want to support domestic businesses.”
The Role of Canadian Consumers and Nationalism
Consumer behaviour will play a pivotal role in navigating this economic storm. “If Canadians shift their spending towards locally made products, we could make a serious impact on the U.S. business economy,” Minakakis noted.
Data suggests that the average Canadian spends approximately $8,800 annually on American products, while Americans spend only $1,200 on Canadian goods. “If even a fraction of that spending is redirected to Canadian businesses, the economic impact would be substantial,” he added.
Social media has already become a battleground, with lists circulating that identify American products and their Canadian alternatives. “The ‘Shop Canadian’ movement is gaining traction,” said Minakakis. “It’s not just about economics; it’s about national pride and economic sovereignty. This sense of nationalism can influence purchasing decisions, creating a ripple effect throughout the economy.”
Impact on U.S. Companies Operating in Canada
American retailers like Walmart, Costco, and Home Depot face unique challenges as Canadian consumers become more selective. “These companies have a PR crisis on their hands,” Minakakis said. “They need to address Canadian concerns directly. Are they going to support Canadian consumers or remain silent? Their response could determine their long-term success in Canada.”
The potential for boycotts against American brands is growing. “We could see consumers turning away from U.S. luxury brands like Ralph Lauren,” Minakakis suggested. “If national sentiment shifts, it won’t just be temporary. Long-term changes in consumer preferences could reshape the retail landscape for years.”
Geopolitical Risks and Lack of International Support
Canada finds itself in a precarious position, with little international support. “We’re on our own,” Minakakis stated. “Other countries are watching how we handle this, but they’re focused on their own economic interests. This isolation adds another layer of complexity to the crisis.”
Discussions about expanding oil pipelines to the east and west are resurfacing as potential economic lifelines for Canada. “While these projects could benefit the economy, they’re long-term solutions,” Minakakis explained. “We need immediate strategies to manage the current crisis, but investing in energy infrastructure will help in the future.”
Critique of the U.S. Response and the Road Ahead
Many U.S. companies and political leaders are hesitant to challenge the Trump administration. “It’s like everyone is afraid to tell the President the unvarnished truth about the economic risks to Americans,” Minakakis quipped. “This lack of open criticism is alarming, especially when the policies have such far-reaching consequences.”
American consumers could quickly feel the impact of the tariffs. “Gasoline could go up by 30 to 40 cents a gallon, and cars might cost an additional $3,000 on average,” Minakakis warned. “When people see these price hikes at the pump and grocery store, the backlash will be swift. They didn’t vote for Trump to make their lives more expensive.”
Despite the grim outlook, Minakakis remains hopeful. “We’re not dead yet. We just have to rethink how we do business on an international level. We’ve had it easy for too long, relying on the U.S. Now it’s time to grow up and stand on our own.”
Image: Grand Opening of Burger King at 98 Danforth Ave, Toronto
As one of Canada’s fastest-growing restaurant companies, Redberry Restaurants, a multi-brand Restaurant Franchisee, finished 2024 with a number of impressive wins that catapulted the company’s growth, including hiring nearly 3,000 people, opening 27 new locations and winning the Foodservice and Hospitality Magazine’s Pinnacle Award for Company of the Year.
Ken Otto
“This was a banner year for Redberry,” said Ken Otto, CEO of Redberry. “2024 was marked by significant growth of the business across all brands, on boarding Jersey Mike’s, deeper investment in our people, supporting the communities we operate in, and recognition of our best-in-class operations. Last year’s success has positioned our company for incredible growth in 2025.
“This year wasn’t just about adding to the headcount. We invested in our team and demonstrated that Redberry is a place where people can build their careers.
“We believe we have amazing brand partners, and they are the thoroughbreds of the Canadian QSR industry. Burger King is a great, dominant player with room to grow in Canada. Taco Bell has enjoyed phenomenal success in North America, and there’s white space in Canada to keep going. And Jersey Mike’s, being a new entrant into the sandwich category in Canada, we have coast-to-coast opportunities and are capitalizing on very strong openings in 2024.”
Image: Taco Bell Canada
Setting the Stage for Growth: Record Expansion Across Canada
Last year marked exciting momentum for Burger King, Taco Bell and Jersey Mike’s locations across Canada. Redberry opened 14 new Burger King locations and re-modeled 20 others, four of which featured the brand-new Sizzle design. This expansion solidified Redberry as Burger King’s largest and fastest growing franchisee in Canada, explained the company.
Redberry also opened a record number of new Taco Bell locations. There were 11 opened in 2024, with two more currently under construction and opening in early 2025.
2024 saw Redberry onboarding its new brand partner with Jersey Mike’s, by way of acquiring two stores and building three new ones. These three new stores have quickly become some of the busiest Jersey Mike’s in all of North America.
Otto said the company ended 2024 with 204 locations – seven Jersey Mike’s, 32 Taco Bells and 165 Burger Kings.
Investing in People for Long-Term Success
Redberry grew the size of its team at a historic rate, making 2,900 new field hires and 23 RSC hires.
“These include bolstering our leadership team, with the hiring of Jorge Picanco as Vice President of Construction and Design, and Chelsea Kellock as Vice President of Marketing. With ambitious plans to open over 100’s of new Burger King, Taco Bell and Jersey Mike’s locations across Canada in the next decade, they will be instrumental in helping achieve these goals,” it said.
“The company also brought in Paul Pascal, Director of Jersey Mike’s, Stephen Scarrow, Senior Marketing Manager, and Paul Day, Regional Manager for Western Canada, to help drive the expansion of Jersey Mike’s throughout Canada.
“Redberry made over 250 different promotions, including the promotion of Robert Masson as Chief Financial and Development Officer, and Rick Di Donato as Vice President of Real Estate. The company spent over 29,000 hours training team members in 2024, and the results speak for themselves–the company saw annual turnover rates drop to 54%, significantly below the industry average of 130-140%.”
Supporting the community
Redberry said its mission has always been to leave a positive impact on the communities it operates in, and 2024 was no exception. Redberry served almost 25 million guests across Canada with big smiles, fast service, super clean stores, and of course the best burgers, tacos and subs!
“Redberry demonstrated a proud commitment to the Burger King Foundation–helping raise over $144,000 for scholarships to team members and the public–by hosting in-store initiatives and contributing corporate donations,” it said.
“In its second full year in Canada, the Taco Bell Foundation more than doubled its donations, raising $89,500. The scholarships from the Foundation supports Canadian youth in achieving their full potential through program support such as Junior Achievement Canada, Community Grants, and more.
“Jersey Mike’s raised $18,729 for Make a Wish Canada to help grant life-changing wishes for children with critical illnesses. Jersey Mike’s Brantford location went above and beyond, raising $2,400 for Child Hunger Brantford in just the month of December.”
The company said it also expanded its community presence through strategic partnerships, including a collaboration between Burger King and the Western Mustangs athletic program.
National Recognition
The success Redberry has achieved in the last year is exemplified by winning the Pinnacle Award for Company of Year, given by Foodservice and Hospitality Magazine. The award is a testament to the hard work of the entire team to deliver on our goals of growth and community impact.
Over the course of the year, Redberry was featured in nearly 600[1] media articles in outlets across Canada, covering the brand’s stories and announcements. Some of the most popular stories included new location openings and new Burger King Sizzle design, thought leadership from Redberry’s executive leadership team, new hires, and job opportunities at the company.
And Redberry knows how to make the best Whoppers. One of Redberry’s team members from a Burger King London location, Devki Gaha, was the winner from over 7,000 North American restaurants of the “Whopper Challenge” – a competition to build the perfect Whopper. Devki made it to the finals held in Las Vegas and won 1st place, winning $10,000 USD.
Image: Jersey Mike’s Subs
Looking ahead to 2025
2025 will be another big year for Redberry, with continued plans for growth throughout Canada. This includes opening 35 new stores across the Burger King, Taco Bell, and Jersey Mike’s brands, and hiring 1,700 new people.
“For Burger King, we’d like to open between six and 10. The same range for Taco Bell. And Jersey Mike’s will be between 15 and 20,” said Otto.
It also represents Redberry’s 20th year in operations.
“Our momentum heading into 2025 is stronger than ever,” said Otto. “With our ambitious expansion plans and continued investment in our people and communities, we’re well-positioned to remain one of Canada’s fastest-growing restaurant companies.
“Consumers are cautious. What’s great about Burger King and Taco Bell is each brand has a really defendable value pillar to its marketing mix. It doesn’t mean everything is value. We sell lots of premium products at both Burger King and Taco Bell but each has a really productive value section. Canadians, especially now, with interest rates still relatively high and perhaps economic growth is a little slow, we have great value offerings to them.
“For Jersey Mike’s, there’s a real love affair with what they’re bringing to Canada with their quality and just a different way of freshly slicing their meats and cheeses, and cooking their hot subs right in front of you. It’s a real compelling brand proposition that Canadians seem to love.
“Our commitment at Jersey Mike’s is to build a total of 300 in the next 10 years, coast to coast. We think that’s a very achievable target. At Taco Bell and Burger King, we see continuous growth year over year. The most challenging part of that sector is drive-thru space. You need to be patient to wait for great sites. We work in collaboration with Burger King and Taco Bell to be patient to find those good drive-thru sites and get them open well as well.”
Canadian shoppers are redefining value amidst persistent economic pressures. Circana’s latest Consumer Outlook Report reveals that while inflation has stabilized, most Canadians still feel its weight in their everyday purchases, with 73% noting no significant drop in prices.
Some key points from the report:
54% of Canadians will look for a lower-priced brand to reduce spending;
58% plan on decreasing their spend on non-essentials (up 20 points vs. June 2020);
56% prioritize the price of the product when looking for value.
“If you’re passionate about cooking, imagine a pressure cooker. Consumers are in this pressure cooker today with an extra burden that weighs heavily on them. Consumer confidence in spending is at an all-time low. From Circana’s consumer panel, we’ve got a staggering 73% of Canadians who are not noticing any decline in price increases. We continue to see double-digit dollar sales growth versus single-digit unit sales growth. That is very evident and consistent across industries like general merchandise and groceries.
“Consumers are adapting and they are figuring out how they can continue to be smarter with their spending, which is deteriorating. How can they spread that dollar. One of the things we are seeing as a heightened trend with consumers is the concept of value at the top of the pyramid for their decision-making. That is definitely an important concept that retailers and brands need to prioritize in terms of their 2025 strategic outlook. What does value mean to consumers? Understand that . . . Our consumer panel shows that a staggering 58% when they think about value they’re prioritizing product quality.”
She said consumers are increasing looking at promotions especially those tied to loyalty rewards.
“I think the pressure cooker concept is just going to get worse to be honest.”
Source: Circana
But it’s not all doom and gloom. There is always a light. Understanding the concept of value and applying it to strategic outlook is an area retailers need to focus on. However, Ong Seng said consumers are spending on some luxury items.
Given this environment, retailers should focus on capturing cash-strapped consumers with concise communication and finding opportunities for everyday, inexpensive luxuries.
“For example, I love eating cheese, but it’s kind of got to the point where I can’t be buying high-end (varieties) every single day. What used to be a commodity is now deemed as a luxury. There are opportunities for retailers and brands to create memorable experiences with the consumer. I think this is where the live entertainment business and the travel is in their favour. It’s a memory that consumers are creating . . . That same concept of creating that special experience and memory with commodity-type items, inexpensive items, I think is still very important for these retailers and brands to focus on,” she said.
And in this landscape, technology, especially AI, play an important role.
“AI is a fundamental aspect of any business out there to be able to succeed,” said Ong Seng, adding that the surface has only been scratched. AI at the end of the day will streamline decision-making processes, reducing time spent on analysis and speeding up responses with automated recommendations. It touches all aspects of business, from marketing and content creation to supply chain and sales forecasting.
“There is a difference in understanding all the buyer demographics, especially with the Gen Z and the millennials. These group of consumers are more than willing to take a snap shot of themselves and put it on social media. Instagram. TikTok. That is definitely something that retailers and brands have an opportunity to leverage. Invest in those areas. Have your marketing team be scraping the web for new trends, get there quickly, be able to act and be agile to be able to stock, hit the market and activate. These are also important aspects for any retailer or brand to be able to succeed in this new kind of pressure cooker world. Take advantage of all of the consumer trends out there because at the end of the day it’s being more attuned with the consumer needs is more critical nowadays than ever than we’ve seen historically.
“And this is where AI plays into it. Getting there faster, scraping faster and removing a lot of that time spent, manual labour spent on it.”
“It’s crucial in this pressure cooker environment. AI supports this by speeding up processes and reducing manual labour.”
The Circana report said lower consumer confidence is driving its expectation for slowing sales growth.
“Inflation has come down substantially since its June 2022 peak. When looking through a longer-term lens, we see a convergence in inflation rates and consumer confidence. Inflation in August 2024 reached the Bank of Canada’s 2.0% target, yet consumer confidence in Canada remains low, 10 points below the 2020 index and 33 points below the U.S. General merchandise prices remain 10% above 2019 despite recent regulation. Lack of confidence and squeezed discretionary spend are also driving our expectation for challenged sales growth in Q4 2024 and the start of 2025,” it explained.
“The battle for value supremacy is the preeminent issue for the retail industry in 2025. Winners will communicate value simply and saliently. But what does good value mean to Canadian shoppers? In fact, there are different ways that we perceive good value, and understanding these nuances is critical. For example, 39% of Canadians prioritize product quality when looking for value. Our panelists rated the importance of quality relative to other factors when prioritizing value. And while cost is important, the monetary factors are more important for younger ages. However, the gap in promotion sentiment and loyalty rewards was most acute with younger Canadians much more reliant on both.
When adopting a value mindset, our research reveals that Canadians prioritize the quality of products that are consistently good. It’s a reminder that focusing only on price is a risk, particularly with shoppers trading down. This also signals a warning about moving too much to everyday low pricing strategies. For Canadians right now, access to promotions and special offers is regarded as more important than price consistency.
“Prioritizing quality is apparent across ages, yet fixation on the lowest prices is less important as we age. However, there is some consistency in demographics emerging, with younger buyers significantly over-indexing for promotions and loyalty rewards. For retailers and brands, it is imperative in 2025 to take a more granular view to unlock category and brand specific drivers of what represents good value.”
Best Buy Canada’s Teen Tech for Tomorrow program awards more than $110,000 to secondary schools and robotics teams across Canada (CNW Group/Best Buy Canada Ltd.)
What if a world of possibilities could be unlocked for students at your local secondary school? Best Buy Canada has announced the first-ever winners for its Teen Tech Grants and Teen Tech Teams initiatives, elements of the newly-launched Teen Tech For Tomorrow program.
15 winning secondary schools and robotics teams will be provided grants aimed to improve access to important tech for Canadian teens, said Best Buy.
For more than 15 years, Best Buy Canada said it has been committed to empowering students to dream big through technology, donating $4 million to over 300 schools across the country. The Best Buy Teen Tech Grants and Teen Tech Teams initiatives exist to help Canadian secondary schools and robotics teams bring new technology into their classrooms. Access to the latest technology increases student motivation for learning and sets them up for success.
Schools receiving a Teen Tech Grant will receive cash grants of up to $10,000 to purchase the latest technology to support basic needs, libraries or STEM courses. Teen Tech Teams winners, robotics teams, will receive an Alienware m16 R2 16″ Gaming Laptop and $5,000 to use towards the purchase of equipment or materials for their team, said the company.
Karen Arsenault
“Access to technology is critical for today’s youth, yet many classrooms across Canada still face significant gaps in resources,” said Karen Arsenault, Best Buy Canada’s Head of Social Impact. “The grant applications were incredibly inspiring to read as they were filled with the passion and dedication of educators working to make a difference in the area of STEM. For some students, this funding will create opportunities that level the playing field, and for others, it will open doors to dynamic and innovative learning experiences that can shape their futures.”
Both national initiatives, the winning locations can be found throughout Canada:
Teen Tech Grants winners:
Windermere Secondary School – Vancouver, British Columbia
McNally High School – Edmonton, Alberta
Portage Collegiate Institute – Portage la Prairie, Manitoba
