Four emerging trends have emerged in the natural, organic and wellness industry that consumers will notice on store shelves in 2027, says the Canadian Health Food Association.
The Association says the trends will be on display throughout CHFANOWToronto, Canada’s largest trade show dedicated to the natural, organic, and wellness space, taking place from Friday, September 25 to Sunday, September 27 at Exhibition Place.
The CHFA outlined the four trends:
Texture Takeover: Feeling is the Leading Factor – ASMR and social media are fuelling a growing appetite for texture. Millennials and Gen Z are seeking sensory-rich products – from crunchy and soft to gummy – that engage the senses, build anticipation, and create an experience that lasts beyond the first bite or sip.
Micro-Rituals: Small Moments of Wellness: As consumers push back against wellness overload, small, intentional rituals are making healthy habits feel more accessible, achievable, and easier to incorporate into everyday life. Every product has a purpose, and every moment is celebrated through mini rituals that make Canadians feel good, all day long.
Raised on Wellness: Healthy Habits Start Young: As wellness becomes more mainstream, kids aren’t being left out. Among parents buying snacks for kids, 35% prioritize natural ingredients (WGSN, 2026). Proving the shift that parents increasingly want clean, nutrient-dense products without sacrificing convenience or enjoyment for little ones.
Passed Down: Tradition Makes a Comeback: Consumers are seeking alternatives to long ingredient lists and fast-moving wellness trends, turning instead to familiar, time-tested traditions: simmered, fermented, baked, pickled, and preserved using recipes and techniques passed down through generations. This renewed interest in traditional practices reflects a broader desire for simplicity, authenticity and a deeper connection to where products come from.
Aaron skeltonPhoto: CHFA
“CHFA NOW Toronto offers an up-close look at how natural, organic, and wellness is evolving,” said Canadian Health Food Association President and CEO, Aaron Skelton. “With $26 billion (MNP, 2026) in sales in Canada last year, it’s clear that wellness plays an important role in Canada’s economy. From the research we do, we’re seeing that Canadians are becoming more intentional about what they buy, seeking products that meet specific needs and fit seamlessly into their routines. The four trends we’ve identified reflect those changing priorities and offer a glimpse of where the market is headed.”
The CHFA said many of these trends take root in The Greenhouse, a new CHFA NOW program spotlighting emerging Canadian natural, organic and wellness brands. The dedicated show-floor space gives retailers an early look at innovative products that shoppers may not have discovered yet. Beyond visibility at the show, The Greenhouse connects founders with education, industry relationships and opportunities to help grow their businesses and bring their products to more Canadians.
Yorkdale Shopping Centre in Toronto is undergoing another substantial reshuffling of its retail mix, with Indigo preparing to move into a smaller store while Zara plans a major expansion across the corridor in space formerly occupied by Old Navy.
Luxury retailers are also relocating and opening new stores, a large new Rolex boutique is planned according to sources, Gucci is preparing to open in Yorkdale’s newest luxury corridor, and Holt Renfrew has been shifting departments and brands following the opening of a large two-level Chanel boutique.
The biggest piece of the puzzle remains the former Hudson’s Bay. The approximately 300,000-square-foot department store is ultimately expected to be repurposed for other retail uses, although plans for the space have not been announced.
Together, the moves represent one of the more extensive periods of tenant change at Yorkdale in recent years, ranging from the downsizing of a major bookstore to the expansion of Zara and further growth in luxury retail.
Indigo to Relocate at Yorkdale
One of the most notable changes involves Indigo Books & Music, which is preparing to leave its longtime two-level store for another location within the shopping centre.
Oxford Properties’ lease plan lists Indigo’s existing Unit 27 at 26,155 square feet, comprising 9,053 square feet on the ground floor and 17,102 square feet on the second level.
Indigo will relocate to Unit 243 and an upper-level space identified as Unit 248-2. Unit 243 spans 6,144 square feet, while the second-level space is approximately 11,985 square feet. That would give the new two-level Indigo approximately 18,129 square feet, about 8,000 square feet less than its existing store. The move represents a reduction in footprint of approximately 31 per cent.
Indigo’s relocation will also put its existing 26,155-square-foot store back into play. A replacement tenant has not been confirmed, amid rumours of Eataly taking the space, or even a TJX label.
Indigo opened at the shopping centre in 1999 as part of an earlier expansion and subsequently overhauled the location, including the addition of an American Girl shop-in-store in 2015.
Future Zara expansion into a former Old Navy space at Yorkdale. Photo: Nishant Anand
Zara Taking Over Former Old Navy Space
Across the corridor, Zara is moving in the opposite direction. The Zara is expanding with a targeted opening for fall 2027. The additional premises comprise 8,680 square feet on the ground floor, 8,050 square feet on the second level and 6,760 square feet on the third level, totalling 23,490 square feet.
The space was formerly occupied by Old Navy. Zara’s existing Yorkdale store is listed at 27,339 square feet across several levels. While the lease plan identifies the former Old Navy premises specifically as an expansion, the final configuration and total selling area of the completed Zara store have not been confirmed.
The contrasting moves by Indigo and Zara are notable. One established Yorkdale tenant is reducing its footprint by nearly a third while another is taking on a substantial amount of additional space almost directly across from it.
They are also unfolding in a part of Yorkdale that has already been dramatically transformed.
Zara Yorkdale. Image: Yorkdale
Former Eaton’s Space Reinvented Again
The area containing Zara, Old Navy and several other large retailers was once occupied by an Eaton’s department store, one of Yorkdale’s original anchors when the shopping centre opened in 1964.
Following Eaton’s closure, the former department store was divided into multiple retail spaces as part of a major redevelopment. A glass-covered shopping street was created through the area, changing what had previously been a traditional department-store box.
The structural glass roof stretches approximately 328 feet and rises roughly 60 feet above the mall floor, incorporating more than 18,000 square feet of glass. Much of its structural support was positioned above the glazing, creating a comparatively unobstructed interior. The contractor involved in the project described it as the first skylight of its kind in Canada.
Zara and Old Navy were among the major retailers that occupied the redeveloped area. Roughly two decades later, that tenant mix is changing again: Old Navy has left and Zara, one of the retailers that helped establish the redeveloped wing, is preparing to expand into its former space.
Vacant retail space between Cartier and David Yurman — Rolex could take part lf the space according to sources. Photo: Nishant Anand
Another Round of Luxury Changes
Elsewhere at Yorkdale, movement is accelerating among luxury fashion, jewellery and watch retailers.
Van Cleef & Arpels is preparing to relocate from its existing boutique to Unit 247, which the Oxford plan lists at 1,905 square feet. Its current Unit 72 is shown at 1,621 square feet, meaning the new location would be approximately 18 per cent larger based on the lease-plan areas. The French jewellery house opened its first standalone Toronto boutique at Yorkdale in 2017 and has since become part of a growing concentration of international jewellery and watch brands at the mall.
Yorkdale is also adding a permanent store from Canadian womenswear brand Smythe. The new 1,180-square-foot boutique will be located between Ami Paris and Gentle Monster, adding another Canadian fashion name to a section of the mall that has recently gained several international brands.
New Smythe storefront at Yorkdale. Photo: Nishant Anand
Other recent additions have included Ami Paris and Gentle Monster, while House of Creed opened its first standalone Canadian boutique at Yorkdale. The activity provides additional context for the next round of changes now taking shape across Yorkdale’s luxury and premium retail areas.
Hublot is also relocating within Yorkdale, taking a space formerly occupied by Oliver Peoples. The Swiss watch brand already operates at the shopping centre, making the move another example of an established luxury tenant changing locations as Yorkdale reworks portions of its luxury mix. The new Hublot store will open next week.
A larger change is taking shape nearby. Retailers occupying the stretch between Kate Spade and David Yurman have vacated, clearing a sizeable block of space for a new group of tenants. Sources tell Retail Insider that a large Rolex store is expected to be among the incoming boutiques. Its exact size and configuration have not been confirmed.
Future Van Cleef & Arpels at Yorkdale. Image: Craig Patterson
Rolex already has a dedicated Yorkdale presence through authorized retailer Raffi Jewellers, which is said to be behind the new flagship.
Gucci to Complete New Luxury Corridor
Gucci is also preparing a standalone Yorkdale boutique. Oxford Properties said earlier this year that the forthcoming Gucci store will complete Yorkdale’s new luxury corridor, with the boutique expected to open November 2026. The new store will give Gucci a more prominent standalone presence at the shopping centre, where the brand has also operated a concession inside Holt Renfrew.
Gucci will join a luxury lineup in the new corridor that includes Brunello Cucinelli, Dior, Loewe, Loro Piana, Jimmy Choo, Maison Margiela, Moncler, RIMOWA, Saint Laurent, Tom Ford and Versace.
The expansion of luxury retail comes as Yorkdale remains Canada’s highest-performing shopping centre by sales per square foot. Oxford Properties said the mall generated $2,368 per square foot in 2025, up 34 per cent from 2021 and more than $700 per square foot above any other Canadian shopping centre in the ICSC data cited by the landlord.
Ferragamo, ba&sh and MCM Among Other Moves
Several other relocations have already altered Yorkdale’s tenant mix.
Ferragamo relocated several months ago to Unit 319, taking a 4,322-square-foot space formerly occupied by Ted Baker. A source told Retail Insider that the store is temporary, and a new location in the mall will be built. The former Ted Baker premises had been vacant following the British fashion brand’s departure from the Canadian market.
French fashion brand ba&sh is also relocating, taking over the Yorkdale space recently vacated by German luxury brand MCM. MCM’s departure from Yorkdale may coincide with a return to Toronto’s Bloor Street luxury corridor.
The brand previously operated a flagship at 93 Bloor Street West before closing the location and directing customers to its Yorkdale boutique. More recently, Retail Insider was able to look through an opening in the paper covering the former Bloor store’s windows and observed MCM merchandise inside.
The presence of merchandise indicates activity inside the space, although MCM has not announced that the Bloor Street store will reopen.
Future Leah Alexander store at Yorkdale. Image: Craig Patterson
Leah Alexandra Coming to Yorkdale
Another addition is Vancouver-based jewellery brand Leah Alexandra, which is preparing to open in Unit 513, formerly occupied by Wolford.
The company’s website now lists “Yorkdale Centre — Coming Soon” among its locations. The Yorkdale store will join existing Leah Alexandra locations in Vancouver, at Oakridge Park, and in Toronto at the Shangri-La Hotel.
Founded in 2006 by Leah Belford, the brand designs and assembles its jewellery in Vancouver. Belford grew up in Toronto before moving west and establishing the company, giving the Yorkdale opening a connection to her home city.
Former location for Hublot, which next week opens a new store across the hall. Photo: Nishant Anand
Existing Retailers Also Updating Stores
Changes have also been taking place elsewhere at Yorkdale. Recent activity has included a new Rains store, a newly built Abercrombie & Fitch location and the relocation of Massimo Dutti, alongside renovations and concept changes involving existing tenants. Diesel recently renovated its Yorkdale boutique, refreshing an existing store rather than moving elsewhere in the property
FOX has also changed concepts at the mall. A FOX fashion store has replaced FOX HOME following the home furnishings banner’s exit from its Canadian stores several months ago. The fashion concept offers casual apparel for women, men and children.
VinFast, meanwhile, has exited Yorkdale. The Vietnamese electric vehicle company closed its showroom as it reduced its Canadian retail network. Its former Unit 301 is listed at 3,158 square feet on Oxford’s lease plan.
The smaller moves add another layer to the changes underway across the property, with existing spaces being renovated, reused and shifted between retail categories.
Holt Renfrew Yorkdale. Photo: Nishant Anand
Holt Renfrew Shifts Brands Following Chanel Opening
Yorkdale’s Holt Renfrew flagship is undergoing changes of its own, with brands and departments being shifted as portions of the store are updated.
A major recent addition was an expansive Chanel boutique that opened in November 2025. The two-level space spans approximately 10,635 square feet, and is Canada’s second-largest Chanel fashion boutique. It also includes Toronto’s first Chanel Watches & Fine Jewelry boutique.
The scale of the Chanel space resulted in changes to surrounding departments, with further adjustments continuing inside Holt Renfrew.
The department store has long been central to Yorkdale’s luxury positioning. Its presence has expanded and changed considerably as the mall’s luxury offering grew from a relatively small collection of upscale retailers into one of Canada’s largest concentrations of global luxury brands.
Shuttered Hudson’s Bay store at Toronto’s Yorkdale Shopping Centre on the evening of June 1, 2025. Photo: Craig Patterson
Former Hudson’s Bay Remains the Biggest Question
None of the current changes approaches the scale of the opportunity created by the closure of Hudson’s Bay.
The former department store spans approximately 300,000 square feet over three levels and was one of Yorkdale’s largest retail spaces. Hudson’s Bay closed the location in 2025 during the liquidation of its Canadian department-store operations.
The space subsequently became the subject of a high-profile court dispute after a proposed transaction would have seen Fairweather-controlled Les Ailes de la Mode take over the premises. Oxford Properties opposed the proposal, and an Ontario court ultimately declined to approve the arrangement.
The ruling left one of the country’s most prominent vacant department-store boxes without a replacement tenant.
The former Hudson’s Bay premises are eventually expected to be repurposed for other retail uses. Oxford has not announced a redevelopment plan or tenants for the space.
At approximately 300,000 square feet, the former Bay represents a fundamentally different opportunity from the smaller relocations and expansions happening elsewhere at Yorkdale. Even Indigo’s entire existing two-level store would fit inside it more than 11 times.
What ultimately replaces Hudson’s Bay therefore has the potential to reshape a substantial portion of the shopping centre.
New Ferragamo store at Yorkdale. Image: Craig Patterson
Yorkdale’s Tenant Mix Keeps Moving
The volume of change is particularly notable given Yorkdale’s scale and performance. The shopping centre spans approximately two million square feet, contains more than 270 stores and attracts about 18 million visits annually, according to Oxford Properties.
The current wave of changes also shows how differently retailers are using space within the same property. Indigo is reducing its footprint by approximately 31 per cent while Zara is taking over a substantial former Old Navy space. Luxury houses are moving into larger or purpose-built boutiques, Holt Renfrew is reallocating space internally, and established brands are renovating existing stores.
Above all of those projects sits the former Hudson’s Bay. How Oxford ultimately brings those approximately 300,000 square feet back into productive use could determine the next major chapter in Yorkdale’s evolution — much as the redevelopment of the former Eaton’s department store did two decades ago.
Future Indigo and Zara expansion at Yorkdale. Photo: Nishant Anand
Founders Adam and Veronica Sharanewych pictured outside the new store in Midtown Mall
Makers, a retailer which showcases handmade goods, has opened its latest location at Midtown Shopping Centre in Saskatoon with ambitious plans to continue to expand the concept in Canada and in the United States.
In April, the concept opened in Regina’s Cornwall Centre and that success set the stage for the latest store opening.
The retailer’s business model is to charge artisans rent for displaying their products in the store but they keep 100 per cent of their sales. Canadian-made local products, including ceramics, self-care items, candles, soaps, apparel, gourmet sweets, jewelry, home decor, original artwork and more.
“Midtown is the premier shopping destination in central and northern Saskatchewan, drawing over 4.3 million annual visitors and boasting record sales productivity. Opening here allows us to give local entrepreneurs exposure alongside top national brands, ensuring consumer dollars flow directly back into Saskatchewan families and small businesses,” said Adam Sharanewych, co-founder and CEO of Shop Makers. “We’ve already seen fantastic sales and support in Regina since we opened in Cornwall Centre in April of this year, and we look forward to featuring artisans from Saskatoon and across Saskatchewan at Midtown Mall.”
Makers operates 28 stores across Canada, featuring more than 1,600 Canadian makers nationwide. With the new Midtown store, Makers is projecting it will generate over $1 million annually for local makers and entrepreneurs, while showcasing their crafts inside a high-performing retail hub in the heart of downtown Saskatoon.
“One of my biggest dreams has always been to see my products on the shelves of a retail store inside a shopping mall,” said Kongkona Choudhury, Founder of Magnolia Candle Company. “As a small business owner, opening my own retail location wasn’t realistic, so when Makers opened its Regina location, I applied right away. The response from customers exceeded my expectations, and the exposure has helped me grow my business in ways I may never have reached otherwise. I’m excited that I will have the opportunity to continue growing with Makers as it expands into Saskatoon.”
Makers Midtown is actively seeking vendors to feature in the mall. Saskatchewan-based vendors, creators, and makers interested in joining the store are encouraged to reach out via the Makers website: https://www.shopmakers.ca/apply.
Makers photo
Veronica said the Regina store is about 1,100 square feet while the Saskatoon store is about 1,400 square feet.
The couple are from Vancouver where they started their first store in Gastown in November 2020.
“Makers is an artisan retail platform where we essentially. Each location features anywhere from 80 to 95 local artisans. They pay a flat membership fee for their space in the store, and then in exchange, they get to keep 100% of their sales. So it’s kind of like a brick-and-mortar Etsy,” explained Veronica.
“They bring in their products, they control their display, they pay that fee, and then we handle all of the retail operations, so all the staffing, all the supplies, all the operations, point-of-sale system, paying out the vendors. We handle all the back end.
“They can basically just come in, bring their products, they enter them into our system, we pay. We sell the products for them, we pay them out, and the cycle continues.”
Makers photo
The couple want to continue to expand across Canada reaching 35 to 40 locations with the Greater Toronto Area a prime area for expansion. Then there’s the goal of expanding further east into Halifax.
Earlier this year, they opened their first U.S. location in Seattle just outside the famous Pike market. It’s what they call their experimentation store to see how the concept would fare entering a new country and a new market. And so far it’s been very successful.
Spruce Meadows Masters tournament. Photo by Mario Toneguzzi
Now that the horse jumping competition is over for the season, Calgary’s world famous equestrian facility Spruce Meadows is gearing up for another successful International Christmas Market.
“New this year, we’ve added a fourth weekend. It started as one weekend, grew to two, three, and now this is our first year as four,” she said.
This year, the Market runs November 13–15, 20–22, 27–29, and December 4–6 as Spruce Meadows transforms into a winter wonderland filled with warmth, tradition, and Christmas cheer.
“For the Christmas Market, we’re really trying to develop that experience where you can, you know, see, taste, and smell, like a European market,” said Poffenroth.
Krista Poffenroth
Each spring the sprawling multi-sports facility, which is also home to the Cavalry FC professional soccer team in the Calgary Premier League, becomes a venue filled with vendors and artisans, particularly during the key show jumping competitions.
While other events like the recent Masters, host many vendors and thousands of shoppers, they don’t match the magnitude of the Christmas Market, which is in its 26th year.
“Twinkling lights, festive music, and the scent of mulled wine and fresh evergreen set the stage for a truly enchanting holiday experience. Wander through charming European-inspired stalls featuring hundreds of unique artisans and specialty vendors, savour seasonal treats, and discover one-of-a-kind gifts for everyone on your list,” says Spruce Meadows on its website.
Spruce Meadows Masters tournament. Photo by Mario Toneguzzi
Poffenroth said the Masters had over 120 different businesses and artists, but the Christmas Market this year, “we’re looking upwards of 330 booth spaces.”
In the past two years, the Market has been breaking records. Poffenroth said last year it had its largest-ever single-day attendance with over 15,000 people.
“We average just over 10,000 people a day,” she said, adding over the nine days the Market attracted more than 100,000 people through its doors.
A number that is very attractive for vendors.
“I have had different vendors tell me that sometimes what they do at the Christmas Market accounts for 50 per cent of their retail year,” explained Poffenroth.
“So it has quite a big impact.”
Spruce Meadows Masters tournament. Photo by Mario Toneguzzi
Throughout the year at Spruce there are about five major events that have a retail component to it. For the year, there’s about 400 different vendors on the Spruce Meadows’ site.
“A lot of our vendors, we’ve encouraged to apply for multiple events. And we’ve just developed some really great relationships with them, and so that’s why we try to support them throughout the year,” said Poffenroth.
“In the last four years since I’ve been in this role, we’ve really turned towards supporting local and individual creatives. So we’re looking for something that’s produced ideally in Calgary or Canada that isn’t mass-produced and that’s not available in, like, a big-box store as much. We really want to support those small entrepreneurs that are creating their own product.”
DAVIDsTEA is looking at further store expansion in Canada in 2027 as improving sales at existing locations provide fresh support for the specialty retailer’s return to physical retail.
The Montreal-based company is still developing its plans for next year, but Chief Executive Officer and Chief Brand Officer Sarah Segal said an initial assessment points to a pace of expansion similar to 2026. The disclosure comes as DAVIDsTEA works toward a network of 25 stores across Canada by the end of this year.
The timing is notable. Brick-and-mortar sales increased 9.6 per cent to $5.0 million in the second quarter ended August 1, while comparable-store sales rose 4.4 per cent. That follows a 3.1 per cent comparable-store decline in the first quarter, marking a sharp improvement over a relatively short period.
The comparable-store figure is particularly relevant as DAVIDsTEA expands because it indicates that the improvement is not being driven solely by revenue from newly opened locations.
Sarah Segal
More Canadian Stores Under Consideration
DAVIDsTEA has been gradually rebuilding a physical retail network that was dramatically reduced during its restructuring several years ago. The company believes there remains considerable room to grow.
“We see significant white space in Canada,” Segal told investors during the company’s second-quarter earnings call. The pace will depend on market conditions and DAVIDsTEA’s ability to fund additional growth.
The company estimates an investment of approximately $450,000 for each new location, with an expected payback period of 15 to 18 months. Those economics help explain why stores have again become an important part of DAVIDsTEA’s growth strategy after several years in which e-commerce and wholesale played a much larger role.
DAVIDsTEA has not disclosed how many stores it could open in 2027 or identified potential locations. The preliminary assessment nevertheless indicates that the current expansion program could extend beyond this year.
DAVIDsTEA Returns to Major Canadian Malls
The current program has increasingly taken DAVIDsTEA back into major shopping centres where the retailer previously operated.
A store at Laurier Québec in Quebec City opened in December 2025, followed by the company’s return to Oshawa Centre in June. DAVIDsTEA opened at Square One Shopping Centre in Mississauga in August, shortly after the second quarter ended.
Stores at Southgate Centre in Edmonton and Metropolis at Metrotown in Burnaby are expected to open this fall. The additions would bring DAVIDsTEA to 25 stores by year-end, while the company has described early performance at Oshawa and Square One as strong.
The network remains a fraction of its former size. DAVIDsTEA once operated more than 200 stores before dramatically reducing its footprint during restructuring in 2020. It subsequently put greater emphasis on digital and wholesale sales before beginning a measured return to physical growth.
This time, the expansion has been selective, with the company focused on individual store economics and locations where a physical presence could also strengthen the broader business.
Existing Stores Show Stronger Performance
The second-quarter numbers provide some of the clearest evidence so far that DAVIDsTEA’s physical retail business is improving.
Stores accounted for 43.5 per cent of sales during the quarter, up from 41.0 per cent a year earlier. Comparable-store sales increased 4.4 per cent, compared with growth of just 0.6 per cent during the same quarter last year.
The sequential change is more pronounced. Comparable-store sales fell 3.1 per cent in the first quarter before returning to growth in Q2. There are reasons, however, to keep the improvement in perspective: comparable-store sales for the first six months remained slightly negative, while total first-half revenue was $24.5 million compared with $24.9 million a year earlier.
Q2 therefore marks a stronger quarter for the retailer, but the improvement will need to continue before it translates into sustained growth for the year.
Margins Improve Alongside Sales
Overall second-quarter revenue increased 3.3 per cent to $11.5 million from $11.1 million a year earlier. Gross profit rose at a faster pace, increasing 9.0 per cent to $7.1 million.
Gross margin reached a company record of 61.9 per cent, up 320 basis points from 58.7 per cent a year earlier. DAVIDsTEA attributed the improvement primarily to lower freight and inbound shipping costs and benefits from internalized fulfillment.
Operating results also strengthened. EBITDA moved to approximately $200,000 from a loss of approximately $200,000 a year earlier, while adjusted EBITDA improved to approximately $500,000 from a loss of approximately $200,000.
DAVIDsTEA remained in the red on a net-income basis, with its quarterly loss narrowing to $1.2 million from $1.6 million. The combination of stronger store sales and improved margins provides a better operating backdrop for additional investment in stores, although bottom-line profitability remains uneven.
Physical Retail Outpaces Other Channels
The strongest growth during the quarter came from DAVIDsTEA’s stores. Online sales increased 1.1 per cent to $5.2 million, while wholesale revenue declined 8.8 per cent to $1.3 million. DAVIDsTEA attributed the wholesale decline primarily to the timing of replenishment orders among grocery and convenience partners.
The company has argued that a larger store network can generate benefits beyond transactions inside individual locations. Stores increase visibility in a market and can potentially support subsequent online and wholesale purchases.
The latest results do not yet provide enough evidence to quantify that broader effect. Online growth was modest and wholesale declined even as physical-store sales increased 9.6 per cent. For now, the clearer takeaway from Q2 is that the stores themselves are performing better.
Canada Drives Growth as U.S. Sales Decline
Canadian sales increased 5.5 per cent to $10.5 million during the quarter and represented 91.5 per cent of total revenue. U.S. sales declined 15.2 per cent to approximately $1.0 million, with DAVIDsTEA pointing to trade tensions and tariff-related pressure on cross-border e-commerce.
DAVIDsTEA transitioned U.S. order fulfillment to a third-party logistics operation in Chicago in late March. The company expects the U.S.-based operation to reduce cross-border friction and support sales as the year progresses.
For now, the improving performance is being driven predominantly by Canada, where physical stores are becoming a larger part of the business.
Funding Further Store Growth
Another year of openings would require DAVIDsTEA to continue committing capital to physical growth. The company ended the quarter with $10.2 million in cash, down from $16.5 million at fiscal year-end. DAVIDsTEA attributed much of the decline to its normal seasonal working-capital cycle as inventory is built ahead of the important holiday period.
The year-over-year comparison is stronger, with cash $2.6 million higher than at the same point last year and working capital up $5.7 million to $17.1 million. DAVIDsTEA also repaid the outstanding balance on its revenue-linked financing during the quarter.
With a typical new store requiring approximately $450,000 of investment, the pace and scale of a potential 2027 program will partly depend on how much capital DAVIDsTEA is prepared to commit to further expansion.
Holiday Season Provides the Next Test
DAVIDsTEA is heading toward its most important selling period with a larger physical network. Southgate Centre and Metropolis at Metrotown are expected to open this fall, putting the latest additions into operation ahead of the holiday period.
The company has also completed the consolidation of its Montreal footprint, with the full run-rate benefit expected to begin in the third quarter.
The coming quarters should provide a clearer indication of whether the improvement seen in Q2 can be sustained. First-half revenue remains slightly below last year, wholesale declined in the latest quarter and U.S. sales remain under pressure.
Physical retail has moved in the opposite direction, with comparable-store sales returning to growth and brick-and-mortar revenue increasing faster than the company overall. The 2027 plans remain preliminary, but the fact that another year of openings is already under consideration suggests DAVIDsTEA’s return to Canadian shopping centres could become a longer-term rebuilding of its physical retail network.
Calgary’s retail sector continues to show strength, buoyed by population growth and strong demand in suburban communities, according to Mike Hoffman, managing director of CBRE’s Calgary office.
Hoffman said grocery-anchored retail remains particularly strong, with vacancy rates below three per cent in most markets outside the downtown core and super-regional centres.
He said strong migration into Alberta and Calgary over the past five years has helped drive retail spending as newcomers establish households, buy vehicles and furnish their homes. New residential communities including Livingston, Taza, Alpine Park and Redstone are also attracting new neighbourhood retail, with development activity in 2024 and 2025 surpassing levels seen in 2023.
Mike HoffmanStephen Avenue, Calgary. Photo: Mario Toneguzzi
Downtown retail weaker part of the market
Downtown Calgary remains the weaker part of the market, following the departure of Hudson’s Bay last year, Hoffman said.
But he expects the area’s retail prospects to improve as residential conversions bring more people into the core, with more than 1,000 new residents expected from buildings currently under construction. The growth is more likely to support street-front retail than the large enclosed shopping centres that dominate other parts of the city, he said.
CBRE’s first half of 2026 data shows vacancy declined to 5.8%, while the market recorded 267,000 square feet of positive net absorption following the disruption caused by the Bay closures in the second half of 2025.
“Market fundamentals remain strong, particularly for grocery-anchored, community, and daily-needs centres, supported by Calgary’s population growth and suburban expansion,” said the report.
Future Sport Chek Destination store at CF Chinook Centre Calgary. Photo by Mario Toneguzzi
The CBD and South Central submarkets continue to see higher vacancy, mainly due to downtown retail and regional mall vacancies, exacerbated by the HBC fallout, while suburban markets remain significantly tighter.
“Suburban performance remains exceptionally strong, with vacancy rates of just 0.4% in the South, 0.9% in North Central, and 1.7% in the Southeast, highlighting limited availability in key trade areas.
“Landlords remain in a favourable position, especially in high-growth suburban nodes where limited new supply and strong tenant demand allow for more selective tenant mix decisions.”
Hoffman said there are some pockets of new retail construction in the city.
“It’s part of a population growth story. As the city expands too, we’re seeing more and more. I would say right now we’re beyond 2023 levels in ’24 and ’25. So retail new development has increased, but it’s nowhere near the peaks at two and a half million square feet that we had in 2020 in H1.
“I think the other thing to be cognizant of is just part of why we’re not seeing as much development from new retail is just the cost to develop retail now, and the rental rates needing to achieve their pro forma are getting to a level where some retailers are not feeling comfortable moving into a new area or expanding their footprints.”
“Retailers are becoming increasingly selective in urban mixed-use environments. Traditional suburban centres meanwhile continue to outperform due to stronger parking, visibility, and customer accessibility.
“Calgary’s suburban retail market remains one of the strongest in Canada. Vacancy in many growth corridors is effectively full, with the South, Southeast and North Central quadrants continuing to post exceptionally tight availability as retailers pursue rapidly growing residential trade areas.
“Grocery-anchored developments are leasing well in advance of completion. Demand remains strongest from value-oriented grocers, food service, medical, fitness, childcare and service-based retailers seeking access to expanding suburban populations.”
Louai Alrifai, founder and CEO of Alrifai Real Estate, says the Toronto-based commercial real estate investment firm sees significant potential in Saskatchewan after acquiring a shopping centre in Prince Albert through a court-ordered auction.
The company, which focuses exclusively on commercial real estate, now owns more than 23 properties with a portfolio valued at more than $100 million, primarily in Ontario, and is expanding its presence in Western Canada.
Alrifai said the company was initially drawn to the Prince Albert Gateway Mall property because it was undervalued, but its confidence in the investment grew after meeting with local residents and assessing the community’s needs.
Rather than focusing solely on the existing tenant mix, the firm is working to attract new retailers and is exploring opportunities to bring services and brands that residents have identified as lacking in the region.
Louai Allifai
More Saskatchewan acquisitions to come
The Prince Albert acquisition is expected to be the first of several investments in Saskatchewan. Alrifai said the company is actively pursuing additional opportunities in the province, describing it as an underserved market with affordable real estate, strong community support and significant potential for long-term retail redevelopment.
Gateway Mall is 400,000 square feet on 14.8 acres with 1,150 parking stalls. It is the largest enclosed shopping centre in northern Saskatchewan.
The acquisition was the company’s first in Western Canada.
“Everyone is running from enclosed malls. We ran at one,” said Alrifai.
“Retail isn’t dead. Lazy ownership is. This centre is the retail heart of a trade area serving all of northern Saskatchewan, anchored by The Brick, Dollarama, Ardene, Urban Planet, Foot Locker and The Source. It deserves an owner who shows up.
“So we showed up.”
His team went on site to meet every tenant, walk every unit, build the leasing plan to bring this centre back to full strength.
“Retailers and operators looking at the Saskatchewan market: my door is open. Prince Albert, we’re just getting started,” he said.
Taking properties and making them work
Alrifai said the company’s portfolio focuses 100% on real estate investment.
“We take properties, we basically make them work, and then we continue managing those properties,” he said of the Toronto-based company that began about 10 years ago.
“We started from smaller properties, and we’re growing. We have a good amount of investors and cash.
“We’re investing our own cash as well, and we’re trying to get the right opportunities. We see businesses that were mismanaged or falling apart, not performing properly. This is where we see the chance. We just grab them, manage them, and make them work.”
Alrifai said the company initially didn’t know anything about the Prince Albert property before they went to it.
“We found an undervalued property. We just read a little about it, and then we took it from there. We traveled, we loved the community, we loved the people around, and we found a lot of opportunity there,So it was, let’s call it, a little bit of math and a lot of luck,” he said.
“Basically, we met a lot of people from Prince Albert. They’re all lovely and welcoming. We felt at home. Then we started asking them about their needs, and we saw a lot of opportunities.
“For example, there is no Costco within a huge 90-minute drive around Prince Albert. So this is one opportunity we’re exploring, and we’re getting a lot of help from the community because the main thing we did was survey people about their needs.
“This is where we’re targeting now. Our acquisition department and our leasing department are both checking with every corporation. We’re preparing documents right now for lease incentives and to occupy the spaces because demand is there. It is unadvertised and it’s not communicated properly.”
Canada’s food and beverage manufacturing sector will need to recruit 173,000 new workers between 2026 and 2034, with nearly 100,000 hires required to replace people leaving the labour force, according to a new national labour market report.
The findings come as the industry faces both continued growth and declining productivity, creating pressure on employers to attract and retain workers while increasing output. The report says annual employment growth of 2.4 per cent will be required to meet projected demand, while national population growth is expected to remain below one per cent.
“This report makes clear that Canada’s food workforce challenge is structural, not temporary,” said Jennefer Griffith, executive director of Food Processing Skills Canada. “The sector is growing, demand is strong and the opportunities are significant. But realizing that potential will require focused action to attract, train and retain employees while helping businesses improve productivity.”
Operators will account for the largest share of projected hiring requirements, with 60,800 new hires needed by 2034. The sector is also expected to require about 34,300 labourers and 19,800 sales professionals, with operators and labourers together representing more than half of projected hiring.
The provincial outlook varies significantly. Alberta is forecast to require 16,800 new hires by 2034, with expansion identified as the primary driver, while Prince Edward Island is expected to need 2,400 workers and combines the country’s highest youth participation in the sector with growth needs that slightly exceed replacement demand.
Newfoundland and Labrador will need to recruit workers equivalent to 76 per cent of its current workforce, while Nova Scotia’s projected hiring requirement is roughly two-thirds of its workforce. Ontario faces the largest absolute requirement, at nearly 65,000 new hires.
Jennefer GriffithMike Timani
Industry growth accompanied by productivity concerns
The workforce requirements come as the food and beverage manufacturing sector has expanded substantially over the past decade. Sales reached about $173 billion in 2025, an increase of 69 per cent from 2015, while the food manufacturing trade surplus reached $13 billion, nearly four times its 2015 level.
The sector employed about 317,000 people in 2025, with food and beverage manufacturing employment growing at an average annual rate of 2.2 per cent since 2015. At the same time, the report identifies productivity as an increasing concern for the industry.
Food manufacturing productivity declined by an average of 0.17 per cent annually between 2015 and 2024, while unit labour costs increased by 36 per cent, according to the report. It says meeting future demand will therefore require the sector to address both its workforce requirements and its productivity performance.
“If we want to Build Canada Strong, food and beverage manufacturing must be a key part of that strategy,” said Mike Timani, chair of Food Processing Skills Canada. “Canada cannot achieve its food security, domestic production and export ambitions without the people and skills needed to support them. Workforce development must be treated as essential economic infrastructure. Food Processing Skills Canada, working alongside governments, employers, educators and community partners, has a key role to play in advancing the solutions needed to build a skilled, inclusive and productive workforce.”
Food Processing Skills Canada photo
Report calls for national workforce strategy
The report recommends making the food economy and its workforce a national government priority and incorporating a dedicated workforce strategy into Canada’s food security agenda. It also calls for expanded industry-specific training and career-development programs, stronger skilled-trades and pre-apprenticeship pathways, and measures to prepare for retirement-driven replacement demand.
Other recommendations include improving connections with newcomers, people with disabilities and other underrepresented talent pools, developing national career-awareness initiatives alongside regionally tailored workforce solutions, and using detailed labour market intelligence to identify productivity opportunities and guide investment.
The report says technology will not eliminate the industry’s need for workers. Even if the entire sector reached an Industry 4.0 standard, previous research indicates it would still require nearly 140,000 new workers over the next nine years.
“Canada’s food and beverage manufacturing industry offers hundreds of different career paths in production, skilled trades, food safety, science, logistics, technology, sales and management,” Griffith added. “This is both an urgent workforce challenge and an extraordinary opportunity to connect more Canadians with stable, meaningful careers in a sector that feeds the country and the world.”
Welcome to the Daily Synopsis by Retail Insider. We hope you enjoy the 10 articles we published covering key developments in Canadian retail. Here are a couple highlights with a full list of the day’s articles thereafter.
Arc’teryx has opened its largest Montreal store, a 9,599-square-foot Alpha Store on Sainte-Catherine Street featuring an urban collection area and a ReBIRD Service Centre. This builds on the brand’s 20-year presence and commitment to urban Canadian markets. Meanwhile, UNIQLO has reopened its renovated Montreal Eaton Centre flagship carrying new customization, embroidery, and repair services as part of a broader Canadian expansion. Both retailers are deepening their urban Montreal footprint while enhancing customer experience in key locations.
Cosmetic packaging does more than protect a product. It shapes first impressions, supports brand identity, and can influence how shoppers view the quality of what sits inside. For retail cosmetic brands, the right package needs to balance appearance, durability, convenience, and shelf appeal.
This is where custom tin boxes can offer a practical alternative to ordinary cardboard or plastic packaging. Tin packaging gives cosmetic brands a sturdy outer layer with a distinctive visual presence. It can also support detailed printing, unusual shapes, embossed details, and finishes that make products easier to notice.
In this article, we will discuss 5 reasons retail beauty brands can consider them for their next packaging project. Read on.
Create a More Premium Brand Experience
Packaging has a direct connection with perceived product value. A carefully designed container can make a simple cosmetic product feel more considered and memorable.
Metal has a naturally solid feel that cardboard cannot always replicate. When customers pick up custom tin boxes, they notice weight, smooth surface, firm lid, and tactile quality. These small details can create a stronger opening experience and give the product a distinctive personality.
Brands can also use finishes such as matte coatings, gloss effects, metallic details, embossing, debossing, and high-quality printing to build a particular visual style. A minimalist skincare brand might use a clean layout and subtle colours, while a playful makeup company could use bold artwork and decorative patterns.
The important point is consistency. The packaging should reflect the brand rather than simply look attractive on its own. Colours, typography, illustrations, logos, and finishing choices can work together to communicate whether a cosmetic product feels modern, luxurious, natural, youthful, or artistic.
Improve Shelf Appeal With Custom Cosmetic Tin Packaging
Retail shelves can be crowded. Customers may see dozens of similar cosmetic products within a short period, which makes visual differentiation important.
A tin container can help a product stand apart through its shape, surface, printing, and structure. Instead of relying only on a paper label, brands can print artwork directly across a larger portion of the packaging surface. This creates more space for logos, product names, illustrations, patterns, and other visual branding elements.
Shape also plays a role. Round tins, rectangular containers, square designs, and other custom structures can give different products their own visual character. A small round tin may suit solid perfume or balm, while a wider rectangular format could work for cosmetic accessories or compact beauty products.
This does not mean that packaging needs to be complicated. Sometimes a simple design with strong typography and one distinctive graphic element can create greater impact than an overcrowded package. The goal is to make the product easy to recognise while keeping the design connected to the brand.
Protect Beauty Products During Storage and Handling
Cosmetics need packaging that suits the nature of the product. Some products require protection from physical damage, while others need packaging that supports convenient storage after opening.
Tin packaging offers a rigid exterior that can help shield small cosmetic products from everyday knocks and pressure. The structure can be especially useful for solid products, travel cosmetics, samples, accessories, and other compact beauty items.
A properly designed lid can also provide a secure closure. Depending on the product and tin design, the container can make opening and closing simple for customers while keeping the contents enclosed during normal use.
For retail brands, this practical function can add value to the customer experience. Nobody wants to purchase a carefully formulated cosmetic product only to find that its packaging feels flimsy or inconvenient.
Give Customers Packaging They Can Reuse
One major advantage of durable cosmetic containers is their potential second life. After a cosmetic product has been used, customers may keep the tin instead of throwing it away immediately. A small container can become useful for storing jewellery, hair accessories, sewing items, travel essentials, small craft supplies, or other personal belongings.
This gives the packaging a longer practical lifespan. It can also keep the brand visible in the customer’s home after the original product has disappeared.
Reusable packaging can create an interesting relationship between product design and customer behaviour. When a container feels attractive and useful, people have a reason to keep it. A well-designed tin can therefore become more than packaging; it can become a small branded object that remains part of everyday life.
For cosmetic companies, this can support stronger brand recall. A customer who continues using a branded container may encounter that visual identity repeatedly long after the initial purchase.
Support Flexible Branding and Product Design
Cosmetic brands rarely have identical product lines. A company may sell lip balms, solid fragrances, skincare samples, beauty accessories, and seasonal products. Packaging should give the brand enough flexibility to create a consistent family of products without making every item look identical.
Tin packaging can support different dimensions, shapes, colours, artwork styles, and finishing options. This allows a company to create a shared visual language across multiple products while giving each product its own identity.
Custom printing also gives brands room to include important product information. Depending on the available surface and applicable cosmetic labelling rules, packaging may accommodate product names, usage information, ingredients, branding, warnings, and other required details.
Final Thoughts
Packaging can influence how customers discover, handle, remember, and reuse a cosmetic product. For retail beauty brands, metal tins provide a combination of durability, visual impact, tactile appeal, and design flexibility that can support a wide range of cosmetic products.
The strongest results come from treating packaging as part of the product experience. A carefully selected shape can improve usability. High-quality printing can strengthen brand recognition. A durable structure can provide practical protection.
