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Newcomer entrepreneurs face unique challenges in Canada: CFIB

By
Mario Toneguzzi
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Photo by Andrea Piacquadio
Photo by Andrea Piacquadio

Newcomer entrepreneurs—those who have been in Canada for less than a decade—own more than 7% of enterprises in the country but face distinct challenges that impact their growth and integration, according to a new report released Wednesday by the Canadian Federation of Independent Business (CFIB).

The report, From Challenges to Opportunities: The Newcomer Entrepreneurial Experience in Canada, sponsored by Scotiabank, shares insights from 14 newcomer entrepreneurs across the country and highlights the hurdles they encounter when establishing and growing their businesses.

Marvin Cruz
Marvin Cruz

“It takes a lot of courage and resilience to move to another country and open a business,” said Marvin Cruz, CFIB’s director of research and report co-author. “Newcomer entrepreneurs play a crucial role in enhancing the Canadian business landscape and economy by bringing in diverse perspectives and skills.”

Key Challenges for Newcomer Entrepreneurs

According to the CFIB report, the most significant obstacles for newcomer entrepreneurs include:

  • Securing financing, given their limited credit history in Canada
  • Navigating government regulations and compliance
  • Building trust and networks in the business community
  • Overcoming cultural and communication barriers
  • Accessing information and resources critical to business operations

Despite these challenges, many newcomers choose to start businesses in Canada due to their previous entrepreneurial experience, access to market opportunities, Canada’s strategic location, autonomy and financial success, and the country’s high quality of life and safety, said the national organization.

Francesca Basta
Francesca Basta

“As Canada navigates economic challenges, including Canada-U.S. trade tensions, strengthening entrepreneurship is more important than ever. To enhance Canada’s productivity and global competitiveness, it’s essential that all entrepreneurs, including newcomers, are set up for success. That’s why it’s important for policymakers and financial institutions to provide better and ongoing support to Canada’s newcomers in their entrepreneurial journeys,” said Francesca Basta, CFIB’s research analyst and report co-author.

CFIB’s Recommendations

CFIB urges policymakers to take the following steps to support newcomer entrepreneurs:

  • Increase awareness of existing government grants and support programs
  • Develop an accessible, centralized platform for key business information such as tax rules, labour laws, and licensing requirements
  • Simplify regulatory compliance and enhance customer service
  • Expand immigration options for foreign entrepreneurs
  • Support and promote newcomer organizations and settlement agencies

The CFIB said financial institutions can also play a role by promoting mentorship programs and financial literacy resources, improving access to capital, and streamlining banking setup processes for newcomer business owners.

“There’s immense potential to build a stronger foundation for newcomer entrepreneurs, and when that happens, the benefits will ripple down through the entire business ecosystem,” said one entrepreneur interviewed in the CFIB report.

Livingspace Interiors Expands with Two Vancouver Acquisitions

By
Craig Patterson
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Image: Livingspace Outdoor

Vancouver-based Livingspace Interiors has announced a significant expansion of its business with the acquisition of Brougham Outdoor and Kerrisdale Lumber Home’s Outdoor Kitchen division. These two well-established Vancouver businesses will now operate under Livingspace Outdoor, a dedicated showroom offering a premium selection of outdoor living products.

This strategic move strengthens Livingspace’s presence in the high-end outdoor furniture and appliance market and also ensures continuity for long-standing customers of Brougham Outdoor and Kerrisdale Lumber Home.

A Legacy of Design: Brougham Outdoor Joins Livingspace

Brougham Outdoor, a staple in Vancouver’s design community for over 40 years, is now officially part of Livingspace Outdoor. With the retirement of Brougham Outdoor’s owners, Mark and Rex Panther, Livingspace has assumed control of the business, rebranding its Olympic Village showroom while retaining its expert staff.

Ross Bonetti, founder and owner of Livingspace Interiors

“Their legacy in outdoor furniture and design excellence is undeniable,” said Ross Bonetti, founder and owner of Livingspace Interiors. “We’re thrilled to integrate their expertise and relationships with our growing brand. Customers can expect the same great service, just under the Livingspace umbrella.”

This acquisition ensures a seamless transition for existing customers, while also expanding Livingspace’s reach in the outdoor living sector.

Kerrisdale Lumber Home’s Outdoor Kitchen Division Joins the Fold

In addition to Brougham Outdoor, Livingspace has acquired Kerrisdale Lumber Home’s Outdoor Kitchen business, a leading supplier of premium outdoor kitchen solutions. Mark Perry, the owner of Kerrisdale Lumber Home, and his son Lyle, who has taken over the family business, made the decision to refocus on their core lumber and building supply operations.

“This transition allows us to return to our roots while ensuring that our valued outdoor kitchen customers remain in capable hands,” said Perry. “Livingspace’s expertise in high-end home design makes them the perfect fit to carry on our legacy.”

Kerrisdale Lumber Home, a multi-generational Vancouver business dating back to 1921, has been a trusted name in the industry. The move allows the company to strengthen its primary business, while Livingspace Outdoor expands its range of premium outdoor kitchens and appliances.

The Livingspace team. Image supplied

Expanding the Outdoor Living Experience

With these acquisitions, Livingspace Outdoor now offers a curated selection of high-end outdoor kitchens, BBQs, appliances, furniture, and heating solutions. Customers will find top brands like Wolf, Kalamazoo, Hestan, Danver, Gloster, Dedon, Tuuci, and Bromic.

“Our goal is to redefine outdoor living by combining form and function,” Bonetti said. “Whether it’s an entire outdoor kitchen or stylish furniture, we provide comprehensive solutions that elevate the way people experience their outdoor spaces.”

A Seamless Transition with Retained Expertise

A crucial component of the acquisitions was maintaining the experienced staff from both businesses to ensure consistency in service.

“We’ve retained the knowledgeable teams from both Brougham and Kerrisdale Lumber Home’s outdoor division,” Bonetti said. “These employees have built long-standing relationships with customers, designers, and builders. Their expertise is invaluable, and we wanted to ensure continuity.”

Reza, a long-time expert from Kerrisdale Lumber Home, has joined the Livingspace team and is well-known in the industry as a top authority in outdoor cooking and appliances.

Brougham Outdoor furniture. Image: Brougham Outdoor

Industry Support and Community Enthusiasm

The acquisitions have been met with enthusiasm from the design and architecture community.

“Architects and designers are excited about a dedicated outdoor showroom,” Bonetti shared. “It’s a natural evolution, given the growth of the outdoor living market.”

To showcase the expanded offerings, Livingspace Outdoor hosted an exclusive event featuring live cooking demonstrations with premium outdoor kitchen appliances. “We had a group of landscape architects visit, and they were thrilled to see the new space,” Bonetti noted. “It’s all about creating an immersive experience.”

The Future of Livingspace Outdoor

Livingspace, founded in 1988, has long been Vancouver’s go-to destination for modern luxury home design. The flagship showroom, spanning 30,000 square feet in the city’s Armoury District, features exclusive collections of Italian furniture, kitchens, closets, and lighting.

“We see outdoor living as a growing category,” Bonetti said. “More homeowners are investing in their outdoor spaces, whether for entertaining, cooking, or relaxation. With these acquisitions, we are well-positioned to be the leader in this space.”

Expansion and E-Commerce Growth

While Livingspace remains primarily focused on the Vancouver market, its growing e-commerce platform allows customers across Canada to purchase high-end furniture and outdoor living solutions.

“We ship directly to customers nationwide,” Bonetti explained. “For recognizable brands like Herman Miller, Minotti, and Dedon, online sales continue to grow.”

The online store is also set to include the newly acquired outdoor kitchen and furniture brands, with full integration expected by the end of February.

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Shoppers Foundation for Women’s Health announces $10M Donation to support families of MMIWG2S+ in Manitoba

By
Mario Toneguzzi
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Shoppers Foundation for Women’s Health announces agreement with the Manitoba Government to support families of Missing and Murdered Indigenous Women, Girls, and 2Spirit Peoples (MMIWG2S+) (CNW Group/Shoppers Foundation for Women's Health)

Shoppers Foundation for Women’s Health has pledged a landmark $10 million donation to the Manitoba Government’s newly established MMIWG2S+ Healing and Empowerment Fund. This commitment will provide ongoing, accessible healing programs for families and children affected by Missing and Murdered Indigenous Women, Girls, and Two-Spirit Peoples (MMIWG2S+), according to a news release.

The endowment fund, held by The Winnipeg Foundation, is a key initiative within Mino’Ayaawag Ikwewag (“All Women Doing Well”), Manitoba’s provincial strategy dedicated to the safety, protection, and empowerment of Indigenous women, girls, Two-Spirit, and gender-diverse individuals. Established in May 2024 with an initial $15 million investment from the Manitoba Government, the fund responds to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ 231 Calls to Justice.

Jeff Leger
Jeff Leger

“As the largest single donation from Shoppers Foundation for Women’s Health, this agreement is a demonstration of our ongoing commitment to furthering equity in women’s health and ensuring the wellbeing of women across Canada,” said Jeff Leger, President of Shoppers Drug Mart and Chair of Shoppers Foundation for Women’s Health.

“Thanks to the leadership of the Government of Manitoba and the ongoing work of community partners, we are proud to play a role in advancing a more sustained approach to healing and empowerment for Indigenous women, girls, and 2Spirit peoples across the province.”

The $10 million donation will be distributed over five years, with an initial $6 million investment in 2025. The fund will support culturally responsive and trauma-informed initiatives to assist affected families, ensuring long-term stability and resources for those impacted by the ongoing crisis of MMIWG2S+, said the Foundation.

“Every one of us has a role to play in building a better future for Indigenous women, girls and 2Spirit peoples,” said Nahanni Fontaine, Minister responsible for women and gender equity. “This significant commitment extended by Shoppers Foundation for Women’s Health is an example of how corporations and their charitable efforts can contribute to ending violence, racism and discrimination against Indigenous women, girls, Two-Spirit and gender diverse people and action reconciliation with real, tangible support.”

Shoppers Foundation for Women’s Health is the charitable arm of Shoppers Drug Mart and is dedicated to addressing health inequities affecting Canadian women. The Foundation has committed to investing $50 million by 2026 to enhance access to healthcare, representation in health research, and support for women facing poverty and domestic violence. More information can be found at shoppersfoundation.ca.

Shoppers Drug Mart Inc. is one of Canada’s most recognized retail brands, operating over 1,350 pharmacies nationwide. The company also provides specialty drug distribution, long-term care pharmacy services, and rehabilitation services through its subsidiary networks. Shoppers Drug Mart is an independent operating division of Loblaw Companies Limited.

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Loblaw expects to invest $10 billion into the Canadian economy over the next 5 years, including $2.2 billion in 2025

By
Mario Toneguzzi
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Loblaw Companies Limited Head Office (Image: Loblaw)

Loblaw Companies Limited announced Wednesday it will invest $2.2 billion into the Canadian economy in 2025.

This investment will help the Company improve access to more affordable food and healthcare services for Canadians, while creating an anticipated 8,000 jobs in communities across the country, it said in a news release.

“The investment reinforces Loblaw’s position as a major contributor to the growth of the Canadian economy. The Company anticipates similar levels of investment over the next five years – to invest more than $10 billion by 2030 – adding to the more than $8 billion the Company has invested since 2020 to improve and expand its network of stores and modernize its supply chain, it said.

The Company’s 2025 planned investments include:

  • 80 new stores under the No Frills, Maxi, Shoppers Drug Mart, Pharmaprix and T&T banners, including approximately 50 hard discount stores;
  • the renovation of more than 300 grocery and pharmacy locations, including adding approximately 100 new Shoppers Drug Mart pharmacy care clinics; and
  • the continued development of the Company’s modernized supply chain, including the initial opening of the 1.2 million square foot facility in East Gwillimbury, Ontario.
Per Bank
Per Bank

“At a time when Canadians need value the most, we’re continuing to invest meaningfully in the Canadian economy and in delivering value to our customers,” said Per Bank, President and CEO, Loblaw Companies Limited. “From opening one of the largest fully automated distribution centres in North America, to introducing dozens of small format hard discount stores to communities that need them most, this investment will have a positive impact across the country.

“As a proudly Canadian owned and operated business, we’ll also work to showcase Canadian-made value and quality across our entire network. Whether it’s increasing orders for products made in Canada or further broadening our Small Supplier program, we’re committed to home-grown success.”

Loblaw Companies Limited is Canada’s food and pharmacy leader, as well as its largest retailer and private sector employer with more than 220,000 colleagues across the country. With over 1 billion transactions each year in its unmatched network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many of Canada’s favourite and most-trusted brands: President’s Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The Company’s loyalty program, PC Optimum, has more than 16 million active members and is one of Canada’s largest and best-loved reward programs.

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Canadian Tire selling Helly Hansen for close to $1.3 billion

By
Mario Toneguzzi
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Canadian Tire in Welland (Image: Canadian Tire)

Canadian Tire announced Wednesday that it has signed a definitive agreement to sell its Helly Hansen business to Kontoor Brands, Inc. for total gross proceeds of $1.276 billion, subject to closing adjustments. The transaction reflects CTC’s increasing focus on its Canadian retail portfolio, said the company in a news release.

Helly Hansen is an iconic global brand which designs and develops products used by professionals and outdoor enthusiasts around the world. Its high-performance apparel and gear are sold worldwide, including in Canadian Tire, SportChek and Mark’s stores in Canada, it said.

Greg Hicks
Greg Hicks

“As our strategy becomes more singularly focused on great Canadian retail, it is time to pass this iconic brand into global hands,” said Greg Hicks, President and CEO, Canadian Tire Corporation.

“For six years, we have been proud stewards of Helly Hansen, expanding its popularity and foothold into more parts of the world – increasing sales, brand awareness and elevating value in the process. This divestiture unlocks that value for our company and shareholders.”

Canadian Tire and Kontoor anticipate a smooth transition for employees, customers and partners, said the news release.

“As we shift from brand owner to brand customer, we expect Helly Hansen’s world-class products to remain on our shelves and on the shopping lists of our customers. We are excited to see where Kontoor takes the brand next,” said Hicks. “We thank the Helly Hansen team and leaders for their exceptional work, and for sharing great lessons in sourcing, brand design, and high-performance products with our CTC experts.”

Use of proceeds

Canadian Tire said it intends to adopt a balanced approach to the allocation of the transaction proceeds, consistent with its past practice. Proceeds are expected to be deployed to a combination of debt reduction, share repurchases, as well as investments to drive customer experience and growth in its core Canadian retail business. The proceeds will also provide CTC with additional flexibility for general corporate purposes, including to address market uncertainty. Further details will be communicated in a CTC strategic update, to be published March 6, 2025.

Transaction details

  • CTC has agreed to sell the company that owns and operates the Helly Hansen brands and related businesses. In conjunction with the transaction, CTC also expects to continue to sell Helly Hansen products in its banners under a multi-year supply agreement with Kontoor Brands.
  • It expects the transaction to close in the second quarter of 2025, subject to receiving all regulatory approvals and other customary closing conditions as well as the signing of the supply agreement between the two parties.
  • Total purchase price is $1.276 billion, subject to closing adjustments.
  • Helly Hansen worldwide revenue in 2024 was $894 million, including sales to CTC. 2024 EBITDA was $102 million on a Canadian IFRS basis. 2024 adjusted EBITDA was $76 million under the pre-IFRS 16 accounting standard employed by CTC at the time of the Helly Hansen acquisition.

Goldman Sachs & Co. LLC is serving as Canadian Tire Corporation’s exclusive financial advisor and Norton Rose Fulbright Canada LLP as its legal advisor.

Canadian Tire’s 2018 Acquisition of Helly Hansen: A Strategic Expansion into Global Outdoor Retail

In May 2018, Canadian Tire Corporation announced its agreement to acquire Helly Hansen. The strategic move aimed to enhance Canadian ’Tire’s owned brand portfolio and bolster its presence in the outdoor and workwear sectors. The acquisition was finalized in July 2018. 

The transaction involved Canadian Tire Corporation purchasing the company that owns and operates the Helly Hansen brands and related businesses for $985 million CAD, while assuming approximately $50 million CAD of operating debt, net of cash. The acquisition was expected to be immediately accretive to Canadian Tire Corporation’s earnings per share (EPS), earnings before interest, taxes, depreciation, and amortization (EBITDA), and cash flow, even before realizing potential synergies. 

Following the acquisition, Helly Hansen’s CEO, Paul Stoneham, and the existing management team continued to lead the business from Oslo, reporting to CTC’s Executive Vice President. This continuity aimed to preserve Helly Hansen’s brand identity and operational expertise while benefiting from CTC’s financial strength and retail network. 

About Canadian Tire Corporation and Helly Hansen

Canadian Tire Corporation, Limited is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. The retail business is led by Canadian Tire, which was founded in 1922. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark’s, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands. It has close to 1,700 retail and gasoline outlets and CTC’s Financial Services division.

Helly Hansen is a globally recognized leader in premium outdoor and lifestyle apparel and footwear, with deep expertise in technical performance apparel in ski, sailing, and workwear. Helly Hansen’s family of brands and trademarks are sold in more than 40 countries around the world and include Helly Hansen, Helly Hansen Workwear, and Musto. Founded in Norway in 1877, Helly Hansen continues to develop professional grade apparel that helps people stay and feel alive. Through insights drawn from living and working in the world’s harshest environments, the company has developed a long list of first-to-market innovations, including the first supple waterproof fabrics nearly 150 years ago.

David Yurman names Eiza González as Global Brand Ambassador for Spring 2025 Sculpted Cable Campaign

By
Mario Toneguzzi
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Eiza González for David Yurman Spring 2025 Sculpted Cable Campaign

Luxury jewelry brand David Yurman has announced Mexican actress and singer Eiza González as its newest global ambassador. González stars alongside longtime ambassador Iris Law in the brand’s Spring 2025 Sculpted Cable campaign.

Set against the iconic backdrop of New York’s Solomon R. Guggenheim Museum, the campaign showcases David Yurman’s signature Cable design, reimagined in the Sculpted Cable collection. The campaign, captured by renowned luxury fashion photographer Tyrone Lebon and film director Frank Lebon, portrays González as a modern woman sculpting her own path through life, said the company in a news release.

“The greatest creatives in the world have sculpted their own paths,” said González, who will appear in Guy Ritchie’s upcoming film Fountain of Youth and Ash by director Flying Lotus this year. “When I left my hometown to move to America to expand my career, it was a challenging leap of faith, but it was the best decision I’ve ever made. It is so important to design your future. I really admire that in other people as well, especially David, Sybil, and Evan Yurman who broke boundaries within the design industry and are pioneers in their field.”

David Yurman’s Cable design, instantly recognizable and celebrated for its artistry, has been a defining feature of the brand for 50 years. The Sculpted Cable collection takes inspiration from the original helix shape, evolving it into a wavelike pattern while preserving its signature dimensional look, said the company.

“As we continue to innovate and evolve the hero Cable design that has defined our brand for 50 years, we strive to draw further inspiration from the arts,” said David Yurman President Evan Yurman. “As a brand founded by two artists, we are always rooted in the design and craftsmanship of what makes our styles unique. Getting to shoot this campaign with Eiza in such an iconic New York City landscape was such a special experience and perfectly represents the intention that this collection embodies.”

The Spring 2025 Women’s Sculpted Cable campaign is now live on DavidYurman.com and across all global social channels: @davidyurman and @davidyurmanmen.

David Yurman, founded in New York by sculptor David Yurman and painter Sybil Yurman, is a celebrated American jewelry company recognized for its artistic craftsmanship and signature Cable motif. Now led by their son, Evan Yurman, the brand continues to blend innovation and timeless design. David Yurman collections are available at 49 retail stores across the U.S., Canada, Hong Kong, and France, as well as through over 300 authorized fine jewelry and timepiece retailers worldwide.

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Canada’s GST Holiday Ends Amid Criticism and Minimal Impact

By
Craig Patterson
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Food in a shopping cart in a grocery store. Image: Canadian Centre for Policy Alternatives

The Canadian government’s temporary Goods and Services Tax/Harmonized Sales Tax (GST/HST) holiday was introduced with the aim of easing financial burdens on consumers and encouraging spending in key retail categories. However, as the program ends, its effectiveness is being called into question. Retail expert and founder of eCommerce Canada, David Nagy, sheds light on the tax holiday’s impact, describing it as largely ineffective and politically problematic.

From a government perspective, Nagy describes the initiative as a failure. “It was viewed as just a vote-buying initiative,” he explains. “It had little tangible impact and contributed to the Prime Minister’s resignation.” The GST holiday, instead of spurring economic activity, became a political liability. Its failure to generate meaningful consumer spending highlighted the lack of foresight in its execution.

David Nagy, founder of eCommerce Canada

Retailers Struggled with Operational Challenges 

Retailers faced significant challenges in adjusting their point-of-sale systems to accommodate the tax exemption. “From a retailer’s perspective? Hell no. It was a pain,” Nagy remarked. “I haven’t spoken to a single retailer who felt this boosted their business.”

For businesses with large product assortments, compliance was especially cumbersome. “If you’re selling mattresses, it’s easy—you just remove GST from a few SKUs,” Nagy explains. “But if you’ve got a catalog of 15,000 items, manually adjusting each is a nightmare.”

Smaller retailers and those using outdated systems were hit hardest. “For some, updating their systems was unbelievably unbearable,” Nagy added. Many businesses were forced to dedicate time and resources to implementing short-term changes that would have to be reversed once the program ended.

Minimal Consumer Impact Despite Costly Implementation 

Despite government intentions, consumers hardly noticed the tax break. “I don’t know anyone who actually benefited,” Nagy says. “It’s scoffed at—maybe I saved 15 cents? I haven’t even noticed it.”

In provinces where the GST is not harmonized, consumers might have seen the exemption reflected on receipts. However, even there, the impact was negligible. “It didn’t change my bill at checkout in any noticeable way,” he added.

Data Shows Spending Declined Despite Tax Holiday 

Moneris data from December 14, 2024, to January 15, 2025, revealed that consumer spending actually declined during the tax break. Overall spending across Canada dropped by 4% year-over-year, with transaction counts falling by 1%. Transaction sizes also fell by 3%, indicating the tax holiday did little to encourage more shopping.

Regional breakdowns further reinforced the lack of impact. Ontario, one of the provinces that matched the federal tax holiday, saw a 3% decrease in transaction counts and a 5% drop in transaction sizes. Saskatchewan, which posted a 4% increase in transaction sizes, was an exception, though most regions experienced declines.

Certain retail categories saw modest gains. Children’s and infant apparel stores experienced an 8% increase in transaction counts, while family clothing stores saw a 2% rise in transaction size. However, hobby, toy, and game stores suffered a 5% decline in transaction sizes, and restaurants were among the hardest hit, with a 6% drop in transaction counts and a 5% decline in average spend.

Consumer Psychology May Have Backfired 

Nagy suggests that the tax holiday may have inadvertently heightened consumer anxiety. 

“It shined a spotlight on the fact that the economy is struggling,” he explained. “Maybe I should be more concerned about my spending too?” This heightened awareness could have discouraged discretionary spending, counteracting the government’s goal of boosting retail activity.

Calls for Permanent Tax Exemptions on Essentials 

Some advocacy groups have proposed making the GST holiday permanent for essential goods. However, Nagy is skeptical. “Government still needs revenue,” he pointed out. “The GST contributes over $45 billion annually to the overall budget, it’s not insignificant.”

Instead of temporary tax relief, Nagy suggests a more strategic approach. “Subsidy versus investment—that’s the real debate,” he said. “I’d rather see government invest in enabling businesses to be profitable rather than relying on short-term tax breaks that don’t move the needle.”

Lessons for Future Economic Policies 

Looking ahead, Nagy believes economic stimulus measures should take a more long-term approach. “We need investment in growth, not just subsidies,” he said. “Canadian businesses are waiting for government handouts instead of being empowered to grow. That’s the real issue.”

The GST holiday’s shortcomings highlight the complexities of consumer behaviour and economic policy. Factors such as timing, economic conditions, and execution all play a role in a program’s success. While the tax exemption seemed promising on paper, its real-world impact was negligible at best—and detrimental at worst.

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Canadian Retail News From Around The Web For February 19, 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 24 hours.

‘Made in Quebec’ shop sales exploding after Amazon closures, tariff threats (CTV)

GameStop looking to sell Canadian and French operations (CTV)

Michaels taps former CEO of Staples Canada as new leader (Chain Store Age)

Major retailers say Ontario families could pay hundreds more for groceries as new recycling costs balloon (Toronto Star)

Farmers’ markets: vital but overlooked part of fixing Canada’s struggling food system (Greenhouse Canada)

Montreal can’t quit Amazon just yet (Montreal Gazette)

Workers at Shopper Drug Mart on Douglas Street will soon wear body cameras: Loblaws (Victoria Times Colonist)

‘Business development needs’ closes two Richmond Japanese convenience store locations (VIA)

Putman Investments Buys Ricki’s and Cleo from Comark

By
Maya Johnson
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Ricki's at "The Core" in Calgary
Ricki's at The CORE in Calgary. Photo: Jessica Finch

An Ontario court has granted approval for Comark Holdings Inc. to sell its struggling Ricki’s and Cleo apparel banners to Putman Investments Inc., the retail group behind Toys “R” Us Canada and HMV, among others. The deal, valued at approximately $12.8 million, includes the brands’ inventory, furnishings, intellectual property, trademarks, and select store leases.

The sale offers a lifeline to Ricki’s and Cleo, both of which have been under significant financial strain in recent years. The court approval also paves the way for Comark to explore options for its third brand, Bootlegger, with Winnipeg-based Warehouse One emerging as a potential buyer.

Putman Investments Expands Retail Portfolio

The acquisition aligns with Putman Investments’ strategy of acquiring distressed retail brands and attempting to revitalize them. Led by entrepreneur Doug Putman, the Ancaster, Ontario-based company has steadily expanded its retail holdings, purchasing Sunrise Records in 2014, HMV in 2019, Toys “R” Us Canada in 2021, and most recently, womenswear retailer Northern Reflections earlier this year.

Doug Putman
Doug Putman

In the apparel space, Putman has taken over Northern Reflections and now Ricki’s and Cleo. His past ventures include acquiring and rebranding 45 former DavidsTea locations into T. Kettle, though the chain now operates only two locations. His Rooms + Spaces concept, which sought to capitalize on Bed Bath & Beyond’s closure, has also shut down after struggling to gain traction in the home goods market.

Job Retention and Store Footprint Adjustments

While Comark has been liquidating Ricki’s and Cleo locations under its court-supervised restructuring, the acquisition by Putman means that many retail employees will be offered continued employment. Comark employs 2,056 workers across its three brands, though the exact number of jobs retained under the new ownership remains uncertain.

The future footprint of Ricki’s and Cleo is also unclear, with Comark currently operating 75 Ricki’s stores, 54 Cleo locations, 20 combined locations, and 19 locations shared between these two brands and Bootlegger. The court ruling indicates that the businesses will continue under Putman with a “reduced footprint,” suggesting some store closures or lease renegotiations may follow.

Comark’s Financial Troubles and Creditor Protection

Comark filed for creditor protection last month, citing several major financial setbacks, including:

  • The impact of the COVID-19 pandemic on consumer shopping habits
  • A 2021 ransomware attack that disrupted operations
  • Increased competition from ultra-low-cost retailers such as Shein and Temu
  • Supply chain and vendor challenges

In an affidavit filed in court, Comark CEO Shamsh Kassam stated that despite cost-cutting efforts, the company’s liquidity position had “rapidly deteriorated,” particularly in the slower post-holiday season. These challenges ultimately led the company to seek buyers for its struggling brands.

Cleo store in Lethbridge, AB. Photo: Downtown Lethbridge

Warehouse One Eyes Bootlegger Purchase

Alongside the Ricki’s and Cleo sale, Comark is exploring the sale of Bootlegger through a stalking horse bid process, where an initial bidder sets the floor price for other potential offers. Winnipeg-based Warehouse One, owned by Stern Partners, has emerged as the stalking horse bidder.

Interested parties have until Thursday to submit competing bids. If no alternative offers materialize, Comark will seek court approval to sell Bootlegger to Warehouse One, which plans to maintain at least 25 of Bootlegger’s current 53 stores. However, the financial terms of Warehouse One’s bid have not been disclosed.

Ronald Stern’s Connection to Comark

Stern Partners, which owns Warehouse One, also has direct ties to Comark itself. Government business registry filings indicate that Ronald Stern, founder and president of Stern Partners, is a director and major shareholder of a numbered company that wholly owns Comark. Stern Partners also owns Tip Top Tailors, Urban Barn, Silver Jeans Co., and Mr. Big & Tall.

Stern Partners has not publicly commented on its involvement in Comark’s restructuring or why Putman Investments did not bid on Bootlegger, despite acquiring the other two brands.

Bootlegger at Willowbrook Mall (July 2021). Photo: Lee Rivett.

Putman Investments’ Growing Retail Footprint

Doug Putman has made a name for himself by acquiring struggling but recognizable retail brands. His retail empire started in 2014 with the purchase of Sunrise Records, expanding into HMV and Toys “R” Us Canada.

In the apparel space, Putman has taken over Northern Reflections and now Ricki’s and Cleo. His past ventures include acquiring and rebranding 45 former DavidsTea locations into T. Kettle, though the chain now operates only two locations. His Rooms + Spaces concept, which sought to capitalize on Bed Bath & Beyond’s closure, has also shut down after struggling to gain traction in the home goods market.

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RioCan reports 2024 was an “exceptional year”

By
Mario Toneguzzi
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5th and THIRD East Village (Image: RioCan)

RioCan Real Estate Investment Trust, announced Monday its financial results for the three months and year ended December, 2024, describing it as an “exceptional year.”

The company stated in a news release these were the key highlights:

  • High demand locations generate new leasing spreads of 36.7% for 2024; blended leasing spreads of 18.7%
  • Record-breaking committed occupancy at 98.0%; retail committed occupancy at high water mark of 98.7%
  • 98% completion of the 372 expected Fourth Quarter condominium and townhouse interim closings to date
  • Adjusted Debt to Adjusted EBITDA improved to 8.98x from 9.28x at the end of the prior year
Jonathan Gitlin

“RioCan had another exceptional year, continuing its trend of achieving its operational and financial objectives, reaching record occupancy and leasing spreads”, said Jonathan Gitlin, President and CEO of RioCan. “RioCan is well positioned to capitalize on the favourable retail real estate fundamentals in the under supplied Canadian market.

“Our recent Unit buybacks and the Board of Trustees’ decision to increase our distribution for the fourth consecutive year demonstrate confidence in our core business and our team’s ability to maximize asset value while strategically managing capital.”

RioCan said full year Funds From Operations Adjusted per unit was $1.81, an increase of $0.04 per unit or 2.3% compared to the prior year. This growth resulted from strong operating performance and completed developments, partially offset by reduced Net Operating Income related to the sale of lower growth commercial properties. Higher residential inventory gains and increases in interest income were offset by higher interest expense, it said.

Net income per unit for the year of $1.58, was $1.45 per unit higher than the prior year. In addition to the FFO items described above, net income included a $29.4 million reduction in the fair value of investment properties, compared to a fair value loss of $450.4 million in the prior year, contributing $1.40 per unit to the year-over-year increase, added the REIT.

It also said adjusted Debt to Adjusted EBITDA improved to 8.98x, FFO Payout Ratio1 was 61.9% and Liquidity1 was $1.7 billion.

“In 2024, RioCan achieved a record blended leasing spread of 18.7% with a new leasing spread of 36.7% and a renewal leasing spread of 13.1%. Leasing momentum grew steadily throughout the year, culminating in a strong Fourth Quarter performance and four consecutive quarters of double-digit leasing spread,” noted RioCan.

“Strong demand for space in RioCan’s premium portfolio drove committed occupancy and retail committed occupancy to record highs of 98.0% and 98.7%.

“4.8 million square feet were leased in 2024, including 1.5 million square feet of new leases. Our ongoing initiatives to continuously improve tenant quality and the productivity of our shopping centres, included the following: seven new grocery leases, three of which transformed retail assets into highly valued grocery-anchored centres; a 135,000 square foot lease with Canadian Tire in the GTA; and 40,000 square feet leased to Royal Bank of Canada including office space and a store front unit formally occupied by a fashion tenant at Yonge Eglinton Centre; An additional land lease for a 158,000 square foot Costco was finalized at RioCan Centre Burloak, replacing less resilient fashion-focused tenants with a strong, serviced-base anchor.

Residential rental operations

RioCan said residential rental operations generated $29.2 million of NOI, an increase of $7.7 million or 36.1% over last year. Residential Same Property NOI1 grew by 5.1% over the prior year. The 13 operating buildings have a fair value of $0.9 billion. Upon completion of construction at FourFifty The Well in the second quarter of 2024, capitalization of related costs ceased, leading to a short-term negative FFO impact of $2.1 million in 2024. We expect a positive contribution in 2025 as the NOI from the property ramps up.

For the full year, $225.8 million or 180,000 square feet of properties under development were transferred to income producing properties. In Q2 2024, the Wellington Market opened, significantly increasing foot traffic at The Well, it added.

RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at September 30, 2024, its portfolio is comprised of 186 properties with an aggregate net leasable area of approximately 33 million square feet (at RioCan’s interest).

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