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Gordon Brothers Provides Toys”R”Us Canada $120M Financing Boost

By
Craig Patterson
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Toys R Us store. Photo Credit: Patrick Morrell / @patmorrell_drone

Toys”R”Us Canada has secured a significant boost to its operations through a C$120 million financing package from global asset experts Gordon Brothers. The deal includes a C$100 million first-lien revolving credit facility and a C$20 million first-in, last-out term loan. This financing will help address the specialty toy and baby retailer’s ongoing borrowing needs while supporting its broader operational strategy.

In addition to the financing, Gordon Brothers is extending its expertise by assisting Toys”R”Us Canada with a store rationalization initiative. This program encompasses both retail inventory and real estate, aligning with the retailer’s long-term growth and efficiency goals.

Kyle C. Shonak, Senior Managing Director and Head of North America Lending at Gordon Brothers

“We have built and maintained a strong, tenured relationship with Toys”R”Us Canada and will continue our support with this latest full financing solution that ties together the entire capital structure and store rationalization component,” said Kyle C. Shonak, Senior Managing Director and Head of North America Lending at Gordon Brothers. “As we grow and expand our presence in Canada and our support of Canadian retailers and borrowers, we will continue to help businesses maximize liquidity with our integrated services and solutions-oriented approach.”

A Strategic Financial Partner for Toys”R”Us Canada

The latest financial injection reflects a strengthened partnership between the two companies. Doug Putman, Founder of Putman Investments and owner of Toys”R”Us Canada, underscored Gordon Brothers’ critical role in supporting the retailer’s ongoing success.

“Gordon Brothers has been an invaluable resource to us, and we engaged them on this latest financing because of their flexibility,” said Putman in a statement. “As a constructive partner who truly understands our business, we can continue to ensure the longevity of the brand with their integrated support and partnership.”

Putman Investments, led by Doug Putman, acquired Toys”R”Us Canada in 2021, bringing the brand under Canadian ownership and reaffirming its place as a key player in the domestic toy and baby product market. Since then, the company has continued to innovate and evolve its operations to meet shifting consumer demands.

Doug Putman

Supporting Toys”R”Us Canada’s Long-Term Growth

Gordon Brothers, renowned for its ability to provide both short- and long-term capital, structured the deal to address immediate operational liquidity while enabling future transformations. The firm’s asset-focused lending model allows it to lend against brands, real estate, inventory, receivables, machinery, and equipment.

The integrated support from Gordon Brothers also includes strategies to maximize asset values. This expertise is particularly critical in a retail environment where optimizing physical footprints and operational efficiency has become paramount for growth.

Store Rationalization as Part of the Strategy

A major component of Gordon Brothers’ partnership with Toys”R”Us Canada is the store rationalization program. This initiative focuses on enhancing the performance of the retailer’s physical network of over 80 stores across the country while supporting its robust e-commerce presence through Toysrus.ca and Babiesrus.ca.

Store rationalization strategies typically involve evaluating underperforming locations, optimizing inventory allocation, and identifying opportunities for real estate improvements. Such initiatives are often essential for specialty retailers to maintain profitability and customer satisfaction in an evolving retail market.

Gordon Brothers’ deep expertise in both retail and real estate allows it to tailor solutions that align with clients’ long-term visions. By integrating asset-based lending with operational consulting, the firm provides businesses with a holistic approach to restructuring and growth.

Photo: Toys R Us Canada

The Value of Flexible Financing in Retail Transformation

As the retail industry undergoes continued transformation, access to flexible financing has become increasingly vital for businesses aiming to navigate challenges and capitalize on opportunities. Gordon Brothers’ financial solutions provide a much-needed alternative to traditional debt and equity financing.

The firm partners with management teams, private equity sponsors, strategic buyers, and asset-based lenders globally to deliver tailored capital solutions. These structures complement existing asset-based lending facilities and are designed to optimize liquidity and business outcomes.

“Our goal is to deliver practical and comprehensive financial solutions that empower businesses to move forward with confidence,” added Shonak. “By leveraging our expertise across multiple asset classes, we’re able to create financing packages that meet the unique needs of our clients.”

Toys”R”Us Canada’s Continued Commitment to the Market

Since its inception in 1984, Toys”R”Us Canada has remained a trusted name for toys and baby products across the country. Known for its commitment to delivering quality national brands, exclusive products, and innovative customer programs, the retailer has built strong relationships with Canadian families over the decades.

Toys”R”Us Canada has also made significant strides in giving back to local communities. The company’s charitable initiatives focus on enhancing resources for children, supporting child development through play, and helping families facing challenges.

About Gordon Brothers

Founded in 1903, Boston-based Gordon Brothers is a global leader in maximizing asset values across the business cycle. The firm offers integrated services that include asset-based lending, financing, and trading, along with best-in-class disposition and appraisal services. With over 30 offices worldwide, Gordon Brothers serves clients across retail, industrial, real estate, and brand sectors.

Gordon Brothers’ solutions-oriented approach allows businesses to leverage its extensive expertise and capital resources to overcome challenges, optimize assets, and drive growth. For more information on its financing services, visit Gordon Brothers.

About Toys”R”Us Canada Ltd.

Toys”R”Us Canada has been a cornerstone of the Canadian retail landscape since 1984. With over 80 stores nationwide and a growing e-commerce presence, the company remains a leader in specialty toy and baby products. Committed to innovation and community engagement, Toys”R”Us Canada continues to deliver exceptional value to Canadian families.

The brand was formerly a subsidiary of Fairfax Financial Holdings Limited, a Canadian-based holding company with investments across various industries. Putman Investments acquired Toys”R”Us Canada in 2021.

More from Retail Insider:

Canadian Holiday Tax Break Falls Short, Survey Finds

By
Craig Patterson
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Christmas tree shopping. Photo: Getty Images/licensed

The Canadian government’s temporary GST/HST tax break, aimed at alleviating financial pressures during the holiday season, appears to be falling flat with most Canadians. A recent survey conducted by Leger highlights that 78% of respondents believe the tax break will not impact their holiday spending plans. The findings raise questions about the effectiveness of government initiatives in boosting consumer activity amid ongoing economic challenges.

The tax break, effective from December 14, 2024, to February 15, 2025, exempts certain essential items from GST/HST. Eligible categories include prepared foods, children’s products, physical books, and select holiday items such as Christmas trees. Despite the initiative’s scope, early indications suggest it will have minimal influence on consumer spending patterns.

Limited Impact Across Demographics

Luc Dumont, Senior Vice President at Leger, commented on the survey results: “The fact that only a little more than one in five Canadians say the tax break will influence their spending is pretty striking. I expected it to be more polarizing.”

Luc Dumont, SVP at Leger

Interestingly, younger Canadians aged 18-34 were the most responsive, with 39% indicating the tax break could influence their spending. This is significantly higher than older groups, where only 22% of those aged 35-54 and 11% of those aged 55 and older said they would adjust their holiday expenditures. Dumont noted, “It’s clear that if you’re younger and making less money, this initiative resonates a bit more.”

Lower-income households also showed a higher likelihood of being influenced. Among respondents with annual household incomes below $60,000, 26% said the tax break would impact their spending decisions. For those earning between $60,000 and $100,000, the figure remained consistent at 26%. However, the number dropped to 16% for households earning over $100,000 annually.

“If you’re in a lower-income bracket, every little bit helps,” Dumont explained. “But for higher-income Canadians, the tax break is barely a blip on their radar.”

Regional Variations: Ontario and Manitoba/Saskatchewan Stand Out

While most provinces aligned with the national average, some regional differences emerged. In Alberta, where there is no provincial sales tax, only 13% of respondents said the tax break would influence their spending.

“It’s not surprising to see lower impact in Alberta,” Dumont said. “Without provincial sales tax, the savings are less significant.”

On the other hand, residents of Manitoba/Saskatchewan and Ontario were far more responsive. In Manitoba/Saskatchewan, 29% of respondents said they would adjust their spending, while 26% of Ontarians shared the same view. These regions stood out for their optimism compared to the rest of Canada.

“The regional differences are fascinating,” Dumont noted. “It shows that perceptions of value can vary greatly depending on location and economic circumstances.”

Effectiveness in Reducing Financial Pressures

Despite the government’s intention to provide relief, only 27% of Canadians believe the tax break will effectively reduce financial pressures during the holidays. Alarmingly, only 4% of respondents considered the initiative “very effective.”

Dumont shed light on the lukewarm reception: “Most Canadians are sitting in the ‘somewhat effective’ or ‘not very effective’ bucket. The lack of strong positive sentiment highlights that people don’t see this as a game-changer.”

Once again, younger Canadians and lower-income households were more optimistic. In the 18-34 age group, 34% felt the tax break would be at least somewhat effective. Similarly, those earning less than $60,000 annually were more likely to view the initiative positively.

“For lower-income Canadians, this tax break provides some tangible benefits,” Dumont said. “But overall, the impact is muted, especially among higher earners.”

Holiday Spending Dynamics: A Disconnect Between Perception and Reality?

One critical takeaway from the survey is the potential disconnect between consumer perception and actual behaviour. Dumont explained that survey responses often differ from real-world spending patterns.

“When we ask people how much they’ll spend during the holidays, they tend to underestimate. Once they’re in the store, they start doing the math in their heads and often spend more than planned. The same could happen with the tax break. People may say it won’t influence them, but the reality might be different.”

Retailers are closely watching how the tax break plays out, particularly as they contend with economic headwinds and logistical challenges, such as Canada Post delays. Dumont added, “I’d love to hear from retailers about what actually happened during the first weekend of the tax break. That’s where we’ll get a clearer picture.”

Retailer Response and Broader Challenges

The holiday season has been particularly challenging for Canadian retailers this year, marked by strikes, supply chain disruptions, and economic uncertainty. Dumont noted that while retailers are resilient, these challenges compound an already difficult environment.

“Between port strikes, rail disruptions, and Canada Post delays, it’s been a tough few months. Retailers are doing everything they can—extending Black Friday sales, running promotions—but the tax break just doesn’t seem to be enough to sway consumers in a big way.”

The complexity of the tax break may also be a factor. While categories such as books, prepared foods, and children’s products are included, there are exclusions within each group. For example, alcoholic spirits and digital publications are not eligible, creating some confusion among consumers.

“The lists made available online are confusing,” Dumont observed. “I think the lack of clarity plays a role in how people perceive the initiative. If you’re not sure what’s included, it’s harder to see the benefit.”

Looking Ahead: Measuring the True Impact

As the holiday season unfolds, the true impact of the GST/HST tax break will become clearer. Dumont suggested that a follow-up survey after the holidays could provide valuable insights. 

“We’ll likely poll Canadians again to see how their spending was actually influenced. Did the tax break make a difference once they were in the store? That’s the big question.”

Ultimately, the Leger survey highlights the limitations of tax policy in addressing financial pressures for Canadian consumers. While the initiative offers some relief, particularly for younger and lower-income Canadians, its overall influence on holiday spending remains minimal.

“It’s a well-intentioned initiative,” Dumont concluded. “But for most Canadians, it’s simply not enough to change their plans.”

More from Retail Insider:

Costco Tops Canadian Grocery Rankings in dunnhumby Study

By
Maya Johnson
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Rendering of the Kelowna Costco Wholesale Image Credit: Submitted/City of Kelowna

Costco has been ranked the top grocery retailer in Canada, according to the dunnhumby Retailer Preference Index (RPI), a nationwide study that blends financial results and customer perceptions to evaluate grocers’ long-term success. Following closely behind are discount-focused banners Super C, Maxi, and Walmart, underscoring a nationwide trend favouring value-oriented retailers in a challenging economic climate.

The RPI, a comprehensive analysis by global customer data science company dunnhumby, highlights how Canadian shoppers are increasingly prioritizing price, promotions, and rewards when choosing where to buy groceries. Retailers that align their strategies with these priorities have seen notable growth in market share and revenue over the past five years.

Chris Thomson, Senior Vice President at dunnhumby in Canada and the U.S.

“The impact of customer behavioural shifts due to inflation is clear across the Canadian market,” said Chris Thomson, Senior Vice President at dunnhumby in Canada and the U.S. “For retailers to succeed over the next 12 months, they need to be clear on how their value proposition meets customers’ evolving needs in ways that truly matter to them.”

Value-Oriented Banners Lead Market Growth

The study identifies a strong correlation between price-focused value propositions and revenue growth, particularly among discount, superstore, and club banners. Over the last five years, the top-performing retailers grew their grocery revenues significantly faster than competitors, with some outperforming lower-ranked grocers by up to 1.5 times in long-term growth and three times in recent years.

Costco’s dominance stems from its strong performance across four of the RPI’s five value drivers: price, promotions and rewards, operations, and digital. Notably, the warehouse retailer ranked first nationally for operational efficiency, while its partnerships with third-party delivery platforms such as Uber Eats and Instacart have made it increasingly accessible to Canadian consumers.

The top-ranked grocers reflect changing consumer preferences during a period of economic uncertainty. Super C and Maxi, both discount banners, capitalize on competitive pricing strategies. Walmart, ranking fourth, stands out for its digital capabilities, offering an intuitive e-commerce platform and app that streamline the shopping experience for time-conscious consumers.

Regional Variations in Value Preferences

The study further explores regional nuances in consumer behaviour. In Ontario, where cost-of-living pressures are particularly acute, 48% of a retailer’s long-term success is attributed to its price, promotions, and rewards proposition. By comparison, Atlantic Canada places greater weight on other value levers, with price-focused factors comprising only 35% of long-term success.

For many retailers, leveraging region-specific strategies can offer a competitive advantage. For example, Food Basics ranks third in Ontario due to its leadership in mass promotions and pricing, while Save-On-Foods’ More Rewards program has secured its position as the highest-performing conventional grocer in British Columbia and the Prairies.

“Regional differences highlight the importance of a tailored approach to customer value propositions,” said Thomson. “Successful retailers are those that strike a balance between meeting national price expectations and addressing localized consumer needs.”

Shoppers Drug Mart PC Optimum (Photo: Dustin Fuhs)

The Role of Loyalty Programs

Conventional grocers, which represent nearly 40% of the Canadian grocery market, face mounting pressure to compete with value-driven banners. The study reveals that targeted savings through loyalty programs have become a key differentiator for conventional grocers, helping offset their disadvantage in base pricing.

Loblaw Companies’ PC Optimum program remains a standout example, offering personalized promotions and driving customer retention across banners such as Loblaws, No Frills, and Real Canadian Superstore. Similarly, Save-On-Foods’ loyalty initiatives optimize promotional relevance while maintaining quality standards without overinvesting.

By leveraging loyalty programs, conventional grocers can deliver personalized value to their customers while maintaining a competitive position against discount rivals.

Walmart Dominates Digital; Amazon Gains Ground

Walmart leads in digital capabilities across all regions, with its user-friendly app and website providing an efficient shopping experience. As the role of e-commerce continues to grow, Walmart’s emphasis on saving customers time has solidified its position among the top-ranked grocers.

However, Amazon’s influence in the Canadian grocery market continues to rise. According to dunnhumby’s findings, three out of 10 Canadian consumers now shop for groceries on Amazon, a statistic that signals a growing competitive threat for traditional retailers.

“Amazon’s ability to combine convenience with competitive pricing makes it a retailer all Canadian grocers should be watching closely,” added Thomson.

Walmart Kingsway in Edmonton (Image: Walmart Canada)

The Path Forward for Canadian Grocers

The RPI study offers clear guidance for retailers navigating an evolving grocery landscape. With price, promotions, and rewards accounting for 44% of long-term success nationwide, grocers must continue prioritizing value-driven strategies to maintain customer loyalty.

Retailers focusing on one key value lever can achieve short-term gains, but those excelling across multiple pillars are best positioned for sustained growth. For instance, Costco’s ability to deliver value, quality, and operational excellence simultaneously has cemented its leadership position in Canada.

Thomson concluded, “Change leads to opportunities, and this shift in customer behaviour presents opportunities for all Canadian grocers. Retailers that adapt their strategies to align with these changes will see the greatest success in the months and years to come.”

Methodology and Insights

The dunnhumby Retailer Preference Index evaluates the 28 largest grocery banners in Canada, accounting for 97% of the market share across conventional, discount, superstore, and club formats. The study combines financial performance data with insights from a survey of 6,000 Canadian grocery shoppers.

Retailers are ranked based on five key value drivers:

  1. Price, promotions, and rewards
  2. Quality
  3. Digital
  4. Speed and convenience
  5. Operations

The RPI provides actionable insights for grocers looking to enhance their value propositions and adapt to shifting consumer priorities. Retailers can access their individual profiles by contacting dunnhumby directly or visiting their website.

More from Retail Insider:

Job vacancies falling with sales and service leading the way: Statistics Canada

By
Mario Toneguzzi
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Photo by Ron Lach
Photo by Ron Lach

Job vacancies fell by 31,900 (-5.5%) to 546,100 in the third quarter, marking the ninth consecutive quarterly decline. However, the drop in the third quarter was smaller compared with the decline recorded in the second quarter of 2024 (-63,200; -9.9%), said Statistics Canada in a report released on Monday.

“Job vacancies in sales and service occupations declined for the eighth consecutive quarter, falling by 12,500 (-7.4%) to 155,300 in the third quarter. Despite the decline, sales and service occupations continued to represent the largest share of vacancies among all 10 broad occupational groups, accounting for nearly 3 in 10 (28.4%) vacancies in the third quarter,” said the report.

“Year over year, job vacancies in sales and service occupations declined by 71,400 (-29.8%) in the third quarter. Within this occupational group, food counter attendants, kitchen helpers and related support occupations (-17,300 to 30,100), retail salespersons and visual merchandisers (-10,100 to 20,000), cooks (-6,000 to 13,800), and light duty cleaners (-5,100 to 9,000) saw the largest year-over-year drops in vacancies in the third quarter (not seasonally adjusted).”

In the third quarter, job vacancies nationally declined for both permanent (-27,800; -5.9%) and temporary (-4,100; -4.0%) positions, and among both full-time (-19,300; -4.5%) and part-time (-12,600; -8.5%) positions, said the federal agency.

Meanwhile, total labour demand (the sum of filled and vacant positions) was little changed for the fourth consecutive quarter. On a year-over-year basis, total labour demand was down by 0.1% in the third quarter. This follows year-over-year growth of 0.8% in the third quarter of 2023, and 6.3% in the third quarter of 2022, it said.

“The job vacancy rate—which corresponds to the number of vacant positions as a proportion of total labour demand—decreased 0.1 percentage points to 3.1% in the third quarter of 2024, marking the ninth consecutive quarterly decline from a record high of 5.6% in the second quarter of 2022,” explained StatsCan.

Photo: Monza
Photo: Monza

“The unemployment-to-job vacancy ratio—the number of unemployed persons per job vacancy—continued a steady increase to 2.6 in the third quarter of 2024, up from 2.4 in the second quarter, and from 2.0 in the first quarter. The increase in the unemployment-to-job vacancy ratio from the third quarter of 2022 reflected both a decrease in job vacancies (-410,500; -43.0%) and an increase in the number of unemployed persons (+374,200; +35.5%, according to the Labour Force Survey). The unemployment-to-job vacancy ratio excludes the territories for consistency with the available Labour Force Survey data.”

On a year-over-year basis, the average offered hourly wage grew at a faster pace in the third quarter (+7.6% to $27.55) compared with the second quarter (+6.8% to $26.80) and the first quarter (+7.3% to $27.25). In comparison, year-over-year average hourly wages of all employees (from the Labour Force Survey) grew 5.0% in the third quarter (data used in this section are not seasonally adjusted), added Statistics Canada.

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Starbucks launching new paid parental leave initiative for employees

By
Mario Toneguzzi
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Photo courtesy of Starbucks
Photo courtesy of Starbucks

Starbucks Canada is launching a new benefit for its retail teams.

Beginning Spring 2025, the coffee giant said it will introduce a new paid parental leave top-up benefit for all eligible Canadian store partners who work an average of 20 hours a week or more. 

Benefits-eligible partners with six months of continuous service who have a new child will receive 100% of their average pay for up to 12 weeks, said the company.

“Partners have told us how important it is to have financial support when they become new parents, and we listened. Combined with our leading Fertility and Family Expansion offerings, no other retailer in Canada offers better family benefits than we do,” said Starbucks.

Lori Digulla
Lori Digulla

Lori Digulla, general manager, Starbucks Canada, said: 

“Our success starts and ends with our green apron partners. Beginning Spring 2025, we’re launching a new paid parental leave benefit for all our eligible Canadian store partners who work an average of 20 hours a week or more. Whether it is about career, education or family, we offer competitive pay and a collection of benefits that are best in class. This is why making Starbucks the unrivaled best job in retail is core to our Back to Starbucks plan.” 

According to an Angus Reid poll published in October, 41 per cent of respondents said that they were delaying having children due to concerns about the job market and financial security, said Starbucks.

“Starbucks wants to provide both the flexibility and support that many are seeking as they decide whether to have or grow a family, especially for Canadian retail partners with an average age of 26 and likely beginning to think about future planning,” it said. 

“This new benefit complements Starbucks leading Fertility and Family Expansion offerings, career growth opportunities, Bean Stock grants, and education support, reaffirming its position as a leader in retail industry benefits.”  

Some highlights the company points out: 

  • Last month, it established a goal to fill 90% of retail leadership roles internally, paving the way for its hourly partners to grow with Starbucks.   
  • Starbucks offers robust financial and family planning support services, with up to $40,000 in reimbursements. All benefits-eligible partners also have access to $5,000 in mental health benefits. 
  • This month, nearly 17,000 partners in Canada were awarded a Bean Stock grant, and, since 1991, 1.5 million partners around the world have received $2.4 billion in company stock. It also supports ongoing education with tuition reimbursement of up to $1,000 of the cost of post-secondary or continued learning per year. 

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Anatomy of a Leader: Gonzalo Gebara, Walmart Canada

By
Mario Toneguzzi
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As President and CEO of retail giant Walmart Canada, Gonzalo Gebara likes to spend time outside the ‘corporate offices’ and where the work is done in more than 400 stores across Canada as well as in the company’s distribution centres.

Gebara leads a retailer that has more than 100,000 employees and he’s often seen in the trenches listening to what they have to say about the business as well as experiencing it first hand.

“This job is awesome. It gives me a chance to learn a lot from the teams. We were touring this fulfillment centre today and we keep learning on different ways to serve our customers and the teams here. The thing that I like about coming to a facility like this one is that this is where the magic happens, right?,” said Gebara in a recent exclusive interview with Retail Insider while he was touring one of the retailer’s distribution centres in Balzac, just north of Calgary’s city limits.

Gonzalo Gebara. Photo by Mario Toneguzzi
Gonzalo Gebara. Photo by Mario Toneguzzi

“And so, this is where they implement a new process, this is where they bring a new technology and they put it in place and now we can serve customers better. We can bring a better associate experience by providing them better tools and this is where it all happens. So I get the chance to learn from these experiences all the time.

“I get a chance also to work with a very, very high calibre team, that we’re all converging towards this ambition to bring Walmart Canada, to make Walmart Canada, the number one omni-channel retailer. And we’re working on it. We want to stay relevant for our customers, however they want to show up. It’s great to have the opportunity to wake up every morning and have challenges and be part of a team that wants to take charge and wants to find ways in which we can support customers, associates and communities better.

“We work in an industry that’s highly, highly, dynamic. Everything’s happening in this industry. So it’s new developments every day, the construction of ecosystems. All that is very, very interesting to do. I think I’m being kept busy every day.”

Prior to joining Walmart Canada, Gebara was President and Chief Executive Officer of Walmart Chile.

Gonzalo joined Walmart in 2000, as a member of the Finance, Strategy, and Commercial teams. In 2004, he moved to Bentonville, Arkansas, where he assumed the role of Senior Director of International Integration, leading these company processes in Brazil, Central America, Japan, and China. 

Later, in 2009, he arrived in Chile to lead the D&S-Walmart integration process. His responsibilities included the implementation of a new corporate culture and the development of a series of value-creating initiatives. In 2013, he became Director of Operations for Walmart Chile.

In 2016, he assumed the position of Commercial Vice President of Walmart Chile, in charge of developing the strategy and overall management of all commercial initiatives, for both brick-and-mortar stores and the digital channel and led the Company’s agro-industrial division in the country. During his 10 years in Chile, he also developed and launched the Business Intelligence and Data Analytics division.

In January 2019, he was appointed Chief Administration Officer for Walmart in Chile and Argentina, where he was responsible for implementing the company’s real estate strategy in both countries, fostering the construction of new stores and remodeling of some existing locations.

Gonzalo Gebara. Photo by Mario Toneguzzi
Gonzalo Gebara. Photo by Mario Toneguzzi

Gebara joined Walmart Canada in his current role in February 2023.

Gebara loves the intensity that is part of the retail industry.

“We’re open seven days a week, all day long. We check sales, this time of the year, probably by the hour. It’s intense and the other thing that I love is this is a people business. It’s where people make the difference. We learn by working together, by leaning in, by supporting each other. The human connections that we have in our, in our stores, in our DCs, in our fulfillment centres, and how our teams support each other and bring this whole company to life, it’s something that makes me very proud. We’re a group of committed individuals that we all love our culture, love the purpose that we work for, and we just want to do it a little bit better every day to support customers, associates, and community,” said Gebara, who loves to regularly visit the places where the company operates.

Gonzalo Gebara. Photo by Mario Toneguzzi
Gonzalo Gebara. Photo by Mario Toneguzzi

“Every week I’m out there and in different ways. When I drive back home, I stop in the store, I just walk around, just connect with  associates.

“Sometimes I walk on my own. You have to be on the ground. You have to be there. Mainly to support the teams. Not to check, to support. We have a strong team, strong leadership. You have to have a very well oiled system to manage 400 and some stores across all of Canada, coast to coast to coast, all over the place.

“I don’t take any credit for it because this whole system was created before my time, but I think I like the way in which we manage the business, we have feet on the ground and deploying all of our resources to stores and DCs.”

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Canada’s GST/HST Holiday Creates Chaos for Retailers and Shoppers

By
Sylvain Charlebois
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Prime Minister Justin Trudeau's government lifted the GST/HST from some essential items for a two-month period before and after Christmas. (Chris Young/Canadian Press)

T’was the week before Christmas, and all through the malls, many creatures were stirring—consumers and retailers alike—scrambling to make sense of the GST/HST holiday chaos. With Bill C-78 granting Canadians a temporary tax reprieve receiving royal assent mere days before its implementation on December 14, businesses were left with an almost impossible task: recoding systems during the busiest shopping season of the year. While some major food retailers had anticipated the bill’s passage and were prepared, others were caught off guard or chose to distance themselves entirely from the initiative. What was supposed to bring holiday cheer has instead become a tax policy nightmare.

Voluntary Participation Creates Confusion Among Retailers

The confusion started early. On December 10, PepsiCo announced it would not participate, informing its partners—Loblaw, Sobeys, and Metro—that it would continue charging taxes due to the complexity of its systems. It wasn’t alone; other manufacturers reportedly followed suit. By the eve of December 14, Ottawa confirmed that participation in the GST/HST holiday would be voluntary, with no enforcement mechanism or penalties for non-compliance. What could have been a straightforward consumer benefit has instead created an uneven playing field, leaving both businesses and shoppers frustrated.

For retailers opting out, the stakes are high. In provinces where the GST/HST rate is as high as 15%, not participating means risking a significant competitive disadvantage against those who do. Large chains with the resources to adapt quickly are likely to benefit, while smaller, independent grocers—already struggling with tight margins—may find themselves losing customers. For consumers, the experience is no less confusing. Shoppers must now navigate which stores are participating, often discovering the answer only at the checkout counter. Some may choose to avoid non-participating retailers altogether, whether for economic or even political reasons.

Charitable Tax Donations Further Complicate the Policy

Adding to the confusion are retailers pledging to donate collected taxes to charity, a gesture that complicates the policy even further. While noble in intent, such efforts underscore the holiday’s haphazard implementation, making the GST/HST holiday feel less like a gift and more like an awkward misstep.

Ottawa billed the tax holiday as a festive measure to provide relief to Canadians, but anyone familiar with fiscal policy knows better. This rushed, temporary, and optional initiative has introduced unnecessary complexity into Canada’s food retail system at a time when simplicity and certainty are desperately needed. In the weeks ahead, consumers will likely question receipts, demand refunds, and reach out to government hotlines for answers. Retailers, on the other hand, face rising operational costs, eroding confidence, and the risk of losing already scarce customers. Canada’s reputation as a challenging place to do business grows stronger, discouraging new entrants to the market.

Restaurants have been spared much of this confusion, as their operations remain relatively straightforward under the new policy. But for grocers and food retailers, the holiday adds pressure to an already stressful time of year.

Opportunity Pricing Could Leave Consumers Paying More

The real risk lies in the potential for opportunity pricing. With retail taxes temporarily removed, some businesses may quietly raise prices to account for operational disruptions. Coffee, cocoa, and baked goods could see noticeable price increases—hidden until the holiday ends in February, leaving consumers to face higher costs long after the festive season fades.

What began as a well-intentioned gesture has revealed the pitfalls of poor policymaking. Instead of implementing a temporary and voluntary tax break during the busiest retail period, Ottawa could have focused on meaningful, permanent reforms to stabilize retail prices and protect Canadians from market volatility. Launching such a disruptive initiative in the midst of the holiday season has done little more than highlight the government’s mismanagement.

In the end, this tax holiday is shaping up to be a lump of coal in Canada’s economic stocking. Consumers are confused, retailers are frustrated, and the temporary nature of the policy ensures its benefits will be short-lived at best. As Canadians muddle through the holiday season, one thing is certain: the GST/HST holiday is a case study in how not to deliver fiscal relief.

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Canadian Retail News From Around The Web For December 16, 2024

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.

Court approves The Body Shop Canada sale, over 600 jobs to lose as some stores close (Financial Post)

Loblaw’s Superstore reimagines the shopping journey with store redesign launch (Grocery Business)

The Canadian retailer that may become the next Costco or Walmart [Dollarama] (Livewire)

FreshCo opens first small format store, Empire says plans to expand store network overall (Grocery Business)

Will ‘tax holiday’ spur more Canadians to spend? Why some stores doubt it (Global)

Butter, cheese are hot commodities on black market (Global)

Canadian shopper claims Loblaw store is ripping people off on donation bags (BlogTO)

Canadian Retailer Haven Taps Levi’s for Premium Denim (Sourcing Journal)

Holiday tax break is a ‘pain in the butt’ for some Ontario retailers (CP24)

Farm Boy expands into household cleaning products with new and largest Toronto store (Grocery Business)

Improvements needed to plan for Place Versailles redevelopment, OCPM says (Montreal Gazette)

In an era of big box and online sales, Town of Carlyle shows how small biz can thrive (CBC)

Toronto influencer Allegra Shaw’s ‘it’ brand is making Ossington even cooler (Streets of Toronto)

Critics fear zoning change will bring bars, pot shops into neighbourhoods (Toronto Sun)

Patkau Architects branches into selling high-end furniture (Glacier Media)

Canada Post Strike Ends, Retailers Face Christmas Crisis

By
Craig Patterson
-
Photo: Erman Gunes / Shutterstock.com

The federal government has intervened to end the month-long Canada Post strike, which began on November 15. However, experts say the damage has already been done, particularly for Canadian retailers relying on postal services to fulfill holiday orders. As backlogs pile up, questions arise about whether the postal network can recover in time to salvage the all-important Christmas shopping season.

Federal Labour Minister Steven MacKinnon announced Friday that the government has asked the Canada Industrial Relations Board (CIRB) to order Canada Post employees back to work while appointing an “industrial inquiry commission.” The commission will explore pathways to a new contract agreement by May 22, 2025. In the meantime, Canada Post workers and management will operate under the terms of their previous contract, which expired nearly a year ago.

“Canadians cannot continue to bear the consequences of this impasse,” said MacKinnon. “Our priority is to restore postal services while ensuring a fair balance between the rights of workers, those of the employer, but also those of Canadians.”

While the move temporarily halts the strike, retail experts argue that Christmas has already been “wrecked” for many businesses.

A Mountain of Backlogged Deliveries

Gary Newbury

Gary Newbury, a supply chain and last-mile logistics expert, painted a grim picture of what awaits Canada Post employees as they return to work.

“They’re going back to work, but on what terms? Exactly the same as before?” Newbury questioned. “They’ll have a sheer mountain of work to get through.” He estimates that with up to 200 million letters and parcels caught in the system, the backlog could take weeks to clear.

Newbury also raised concerns about the state of Canada Post facilities. “If those buildings haven’t been looked after during the strike, there’s a risk that rats and other vermin have gotten in,” he said. “For foodstuffs and perishables trapped in the system, the devastation could be significant.”

Retailers, meanwhile, face a harsh reality. “This has ruined Christmas for retailers,” said Newbury bluntly. “Households are going to suffer, and we can look at the government, the leadership, and the union and say, ‘You caused this.’”

Too Late for Retailers?

Bruce Winder, a retail analyst and consultant, echoed Newbury’s concerns, emphasizing that the timing of the strike’s resolution offers little relief for businesses.

Bruce Winder

“It’s over for this Christmas,” Winder said. “For every day the network is down, it takes roughly five days to recover. Even if workers started on Monday, we’re looking at a month before they catch up. That pushes deliveries well into January.”

The fallout will extend beyond the immediate backlog. Winder predicts a lingering “hangover” effect, where consumers remain hesitant to rely on Canada Post for online shopping.

“Trust has been broken,” he said. “Consumers will remember this next year and may opt for alternatives like Amazon or private couriers. Canada Post’s business model is already broken, and this strike has only accelerated its decline.”

Winder also pointed to ripple effects for retailers relying on flyer distribution to promote holiday sales. “Flyers have been held up, which further impacts sales,” he added. “It’s a nightmare scenario.”

The Impact on Small Businesses

Small businesses, which often rely heavily on Canada Post for affordable shipping, have been hit especially hard. Lisa Hutcheson, retail strategist and managing partner at JC Williams Group, highlighted the struggle for independent retailers.

Lisa Hutcheson

“It’s a very tough time of year for small businesses that really rely on Canada Post,” Hutcheson said. “While it’s great news that workers are going back, the backlog is still going to impact deliveries.”

Hutcheson noted that many small business owners have been forced to find alternative solutions, including in-person sales and other courier services, which often come at a higher cost.

“Retailers have had to pivot quickly,” she said. “Some have benefited from increased foot traffic as customers choose to shop in physical stores rather than risk delays with online orders.”

The strike has also spurred creative alternatives for gift-giving. “I had to rethink my own holiday shopping,” Hutcheson said. “For family members out east, I opted for flower deliveries instead of shipping traditional gifts and cards.”

Consumers Turn to Alternatives

The Canada Post strike has underscored the growing dominance of alternative delivery services. Major players like Amazon have seen a surge in orders due to their ability to bypass Canada Post with their private delivery networks.

“This is where companies like Amazon shine,” said Winder. “They can guarantee fast, reliable delivery, and that’s what consumers want. Next year, even more people will ask themselves, ‘Why use the post office when I can click once and have my order the next day?’”

However, the strike’s broader impacts extend beyond Canada Post’s network. Major couriers like FedEx and UPS have also reported capacity issues, with some forced to refuse new shipments due to overwhelming demand.

“It’s not like other carriers have infinite capacity,” Newbury said. “They’re already operating at full tilt, so the disruption has been felt across the entire logistics ecosystem.”

Photo: Canada Post website
Photo: Canada Post website

Long-Term Implications for Canada Post

The strike has sparked renewed scrutiny of Canada Post’s business model and its ability to compete in a changing marketplace. Hutcheson believes the postal service must adapt to remain relevant.

“This strike has shown that Canada Post’s model needs to be revisited,” she said. “With so much of bill delivery and communication moving online, what role does Canada Post play going forward?”

Winder, meanwhile, warned of potential political fallout. “The Conservatives may look to privatize or outsource Canada Post if they win in the spring election,” he said. “If trust in the service erodes further, the public may support those changes.”

Looking Ahead

For Canadian retailers, the end of the strike may feel like too little, too late. While some businesses will see a slight boost in physical store traffic, the long-term consequences could reshape consumer behaviour for years to come.

“This holiday season has been a wake-up call,” said Hutcheson. “Retailers will need to explore other delivery options to avoid being caught in the same situation next year.”

More from Retail Insider:

Taylor Swift Concerts Boost Vancouver Retail: Moneris

By
Craig Patterson
-
Taylor Swift Eras Tour concert in Vancouver, December 2024. Photo: Ritchie Po

Taylor Swift’s record-breaking Eras Tour came to a spectacular conclusion at Vancouver’s BC Place Stadium on December 6, 7, and 8, 2024. The three-day finale of the globally acclaimed tour left an indelible mark not only on fans but also on Vancouver’s retail and hospitality industries. Moneris, Canada’s leading commerce provider, revealed compelling data showing the tour’s massive economic impact, drawing comparisons to the 2010 Vancouver Olympics.

With Swifties traveling from across the globe, Vancouver’s downtown core became a hub of activity, generating record-breaking spending across multiple categories, including retail, restaurants, and accommodations.

Taylor Swift brand activation in downtown Vancouver, December 2024. Photo: Ritchie Po

Check out the latest Yaletown views in downtown Vancouver at the SideSignal Collective.

Record-Breaking Spending Across Retail Sectors

During Swift’s three-day residency at BC Place, downtown Vancouver saw an impressive 154% increase in overall spending compared to the previous week. Moneris’ data highlights substantial gains in specific categories, led by clothing and cosmetic stores as fans embraced the tour’s iconic “Eras” theme.

  • Clothing store sales surged by 923%, as concertgoers sought outfits inspired by Taylor’s signature looks from each era of her career.
  • Cosmetic stores saw a 529% jump, driven by fans perfecting their concert-ready makeup.
  • Variety stores experienced a 178% increase, likely catering to last-minute accessory purchases and essentials for Swift’s loyal fanbase.
Sean McCormick, Vice President of Business Development and Data Services at Moneris

Sean McCormick, Vice President of Business Development and Data Services at Moneris, emphasized the unique spending patterns generated by the concerts.

“Much like the tour’s Toronto run, the Eras Tour stop in Vancouver drew fans from around the world, which was reflected in the numbers,” said McCormick. “Clothing stores saw a 254% increase in foreign spend, with visitors recreating Swift’s ‘eras’-inspired looks. The impact across retail sectors was undeniable.”

With fans clad in sequins, cowboy boots, and Swift’s signature pastel or black-themed outfits, the tour demonstrated how cultural phenomena can directly influence consumer spending.

Taylor Swift brand activation in the Vancouver Art Gallery plaza in downtown Vancouver, December 2024. Photo: Ritchie Po

Restaurants and Fast Food Enjoy Significant Uptick

The food and beverage industry also saw extraordinary benefits from Swift’s Vancouver concerts, as both tourists and locals fueled up before and after the shows.

Moneris reported that:

  • Restaurant spending increased by 135% over the three days.
  • Fast food sales rose by 151%, catering to those seeking quick, convenient dining options.
  • Bakery spending also jumped by 102%, with cafes and small bakeries reaping the benefits of high foot traffic downtown.
Taylor Swift brand activation in Yaletown in downtown Vancouver, December 2024. Photo: Ritchie Po

“The Eras Tour generated an undeniable buzz in downtown Vancouver,” added McCormick. “Restaurant spending increased significantly, while fast food spending reflected the growing demand for quick, affordable options during major events. This trend presents valuable opportunities for businesses to cater to event-driven traffic.”

Swift’s concerts aligned with a broader trend: major events driving notable economic gains for local businesses. The influx of visitors – many spending hours exploring Vancouver’s vibrant dining scene – underscored the importance of event tourism for the city.

Hotels Thrive as Swifties Travel from Abroad

The international appeal of Taylor Swift’s Eras Tour was especially apparent in Vancouver’s hotel industry. Foreign spending contributed significantly to overall gains, with Moneris reporting a 145% increase in hotel spending during the concert weekend. This translated to a 109% increase in total hotel volumes.

Foreign visitors, particularly from the United States, drove much of this growth. According to Moneris data:

  • 83% of foreign spending came from U.S. visitors.
  • Other significant contributors included Ireland (4%), China (2%), and the United Kingdom (1%).
Taylor Swift brand activation at The Wall Centre on Burrard Street in downtown Vancouver, December 2024. Photo: Ritchie Po
Taylor Swift brand activation at BC Place Stadium in downtown Vancouver, December 2024. Photo: Ritchie Po

For hotels, the numbers reflected not just three nights of concert attendance but extended stays as fans explored Vancouver’s attractions.

“Foreign spend downtown surged during the Eras Tour,” noted McCormick. “Hotels were up 145%, and tourists extended their stays to experience more of what Vancouver has to offer. This trend highlights the broader economic ripple effect of cultural events.”

The concert series offered a strong reminder of Vancouver’s appeal as a global destination for both events and leisure travel.

Boosting Businesses Through Payment Innovations

The surge in foreign spending also spotlighted the need for businesses to cater to international customers. Moneris recommends solutions like Dynamic Currency Conversion (DCC), which allow international shoppers to pay in their home currency.

“Being set up to accommodate different currencies can give businesses a real advantage,” said McCormick. “Solutions like Moneris’ Dynamic Currency Conversion help businesses better serve tourists by allowing them to choose between paying in their home or local currency. It’s a convenience factor that can enhance the customer experience.”

With events like the Eras Tour drawing global audiences, businesses that provide seamless payment options are better positioned to capitalize on international traffic.

Taylor Swift brand activation in downtown Vancouver, December 2024. Photo: Ritchie Po
Taylor Swift Eras Tour concert in Vancouver, December 2024. Photo: Ritchie Po

Vancouver’s Economy Mirrors Olympic-Like Impact

Swift’s Vancouver concerts were more than just a milestone for music lovers. The economic impact has drawn comparisons to the 2010 Vancouver Olympics, when the city experienced a similar surge in spending and global attention.

From retailers and restaurants to hotels and transportation services, businesses across Vancouver’s downtown core benefited from a rare combination of massive local enthusiasm and international fanfare.

While Swift’s Eras Tour may have concluded, its legacy for Vancouver’s economy will endure. The data underscores the significant role that major cultural events can play in revitalizing urban centres and driving economic growth.

Final Numbers: Spend Volume by Category

CategoryTotal SpendForeign Spend
Hotels+109%+145%
Clothing Stores+923%+254%
Cosmetic Stores+529%+80%
Variety Stores+178%+92%
Restaurants+135%+106%
Fast Food+151%+99%
Bakeries+102%+69%
All Categories+154%+97%

A Long-Lasting Impact for Vancouver

For local businesses, Taylor Swift’s concerts were more than just a fleeting moment of success. The unprecedented increases in spending across key categories – from retail and cosmetics to hospitality and food services – highlight the economic potential of hosting large-scale cultural events.

“The Eras Tour brought incredible energy to Vancouver,” McCormick concluded. “It drove growth, boosted local businesses, and created meaningful opportunities across industries. Events like these don’t just entertain – they revitalize cities.”

As Vancouver’s businesses reflect on this landmark event, the Eras Tour finale serves as a powerful case study in the economic power of music, tourism, and cultural fandom.

About the Data: Figures are based on week-over-week spending volume in downtown Vancouver, as analyzed by Moneris. The data compares December 6 to 8, 2024, with November 29 to December 1, 2024. Foreign spending is determined based on card origin.

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