The year-over-year slowdown in the all-items CPI was driven by lower prices for travel tours and gasoline in March. Excluding gasoline, the CPI rose 2.5% following a 2.6% increase (excluding gasoline) in February, said the federal agency.
Moderating the slowdown was the end of the temporary break on the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) on February 15, which put upward pressure on prices for eligible products in March compared with February, it added.
On a monthly basis, the CPI rose 0.3% in March. On a seasonally adjusted monthly basis, the CPI was unchanged.
“With the end of the federal tax break on February 15, March was the first full month with GST/HST re-applied to the affected products since November 2024, resulting in upward price pressure,” explained Statistics Canada.
“Prices for food purchased from restaurants moderated the slowdown in headline inflation, rising 3.2% year over year in March after a 1.4% decline in February.
“Year over year, consumers paid 1.6% less at the pump in March following a 5.1% increase in February. The decline was largely a result of lower crude oil prices amid concerns of slowing global oil demand and slowing economic growth related to the threat of tariffs. Additionally, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) confirmed a planned increase to production.”
Despite the rise in online retail during the pandemic, it’s clear that the death of the physical location had been exaggerated, with six in 10 Canadians still mostly shopping at brick-and-mortar stores and finding the online shopping experience frustrating, according to a new KPMG in Canada report released on Tuesday.
The report is based on a survey of 1,522 Canadians about their retail shopping habits and found that the type of product being purchased heavily influences whether consumers decide to buy in-store or online. Most respondents said they prefer to buy electronics and clothing online, while opting to shop in-store for auto supplies, health products, and groceries, said KPMG.
“But not all trends will be permanent across the industry. The recent retail failures underscore the importance of knowing the market and your customers. Our survey found 85 per cent of Canadians identified price as the number one factor that influences their buying decisions. They hunt for the best prices online before deciding to purchase but still want to touch and feel the merchandise. This is why it’s essential for retailers to take an omnichannel approach so they can connect with consumers no matter where and when they want to shop.
“Regardless of what they sell, businesses need to meet customer expectations for always having certain products in stock. For example, if a customer is stopping by a sporting goods store for some hockey tape, they would expect that to always be in stock, as opposed to a specific size and width of hockey skates which may need to be ordered. Consumers’ buying behaviours are influenced by their expectations of the stores they plan on visiting. Retailers who can meet this expectation and communicate accurate inventory levels with their customers will get ahead of the competition.”
The KPMG report said Canadians like a deal, with 57 per cent saying that finding a good discount is far more likely to motivate them than brand loyalty, and across most retail categories – groceries to home improvement and clothing — people are using digital platforms to compare prices.
“Though they use digital platforms to research merchandise, Canadians remain frustrated when purchasing online because of products not matching descriptions, inconvenient return processes and shipping delays, the report points out,” it said.
“Product availability and the ability to compare prices ranked high as features that would make Canadians more likely to shop online, the report says. Eighty-six per cent of consumers say they are more likely to choose retailers that effectively manage inventory and minimize out of stock items and eight in 10 feel it’s extremely or very important for retailers to have a reliable stock of products they frequently purchase.”
“The reason retailers create loyalty programs is to really understand their customer’s buying behaviours and patterns,” said Bolla. “This allows them to plan their promotional and personalized marketing campaigns, product innovation and operational planning. Our recent survey shows most consumers are price conscious, so designing loyalty programs to better build connections and suitable offers is even more important.
“Our survey found that 90 per cent of consumers return to stores where they’ve received service from knowledgeable staff. To stay competitive, it’s critical that retailers improve the interactions between their employees and customers by providing staff with the information they need to succeed. A little technology can go a long way in accomplishing this. Front-line workers who have a tablet integrated with real-time inventory, customer or product data can better assist shoppers with the personalized help they are looking for.”
While nine in 10 consumers say they are a member of a retail loyalty program and 92 per cent agree loyalty programs influence their decision to shop at a particular retailer, nearly 50 per cent are uncomfortable with retailers sharing data about shopping habits to improve inventory management,” said the report.
“This highlights a significant concern among Canadians regarding data privacy with more than 90 per cent saying they are concerned retailers aren’t doing enough to protect their information from cyber criminals and they should be more transparent in how they protect and store customer data,” said KPMG.
“Despite these worries, poll findings show that consumers still want retailers to use data, especially when it comes to empowering their workforce. Many respondents view technology as a solution with 78 per cent agreeing that their shopping experience would improve if staff were equipped with data-driven tools.”
Key survey highlights:
61 per cent of 1,522 Canadians surveyed say they mostly shop at brick-and-mortar stores
57 per cent say they are frustrated with the online shopping experience (e.g., either the product is not what was advertised or returning merchandise is inconvenient or costs too much)
85 per cent rank price as the top factor that influences their purchasing decisions
57 per cent say “hunt for deals (e.g., comparison shopping, do more research)” best describes their shopping behaviour
35 per cent say the primary reason they make a purchase in-store is the ability to try on or test products
26 per cent say the primary reason they make a purchase in-store is the speed of getting the product (i.e., no shipping)
16 per cent say the primary reason they make a purchase in-store is the instant gratification of getting to take the product home immediately
86 per cent say they are more likely to choose retailers that effectively manage inventory and minimize stockouts (employees have access to real-time or up-to-date inventory data)
79 per cent say it’s extremely or very important that retailers have a reliable stock of products they frequently purchase
90 per cent say they are a member of a retail loyalty program
92 per cent say loyalty programs are influential in their decision to shop at a particular retailer
49 per cent say they are uncomfortable with retailers sharing data about their shopping habits to improve inventory management
91 per cent say they are concerned retailers aren’t doing enough to protect their personal and financial information from cyber criminals
78 per cent agree that their shopping experience would improve if staff were equipped with data-driven tools, such as inventory management, customer feedback tools, loyalty program information, and digital chat bots
90 per cent say they would return to a store where they’ve received exceptional service from knowledgeable staff
Driven by a passion for innovation, Lemay presented a clear roadmap that will propel SAIL to new heights in the years to come, said the company in a news release.
Isabelle Lemay
“The outdoors is more than a market – it’s a passion that brings people together around shared values. After six months leading SAIL, I am convinced that our role is to support customers in their outdoor activities, regardless of their level, budget, or location,” said Lemay.
“By focusing on innovation, closeness, and responsibility, we will make SAIL the go-to ally for nature and adventure lovers, and the leading outdoor destination — stronger, more relevant, and more inspiring for years to come.”
Among the key strategic directions, Lemay plans to open eight new stores within five years, to strengthen SAIL’s presence in Quebec and Ontario, and bring its outdoor offering closer to more Canadians.
“In parallel, the company will evolve its store concepts to enhance the customer experience and better reflect the changing needs of consumers. This may include changes in store size, layout, product offering, or services,” said the retailer.
“The strategy also includes increasing the variety of products offered and the number of available brands. Striking a balance between national brands and SAIL’s private labels, SAIL and BOREALIS, the company will ensure a broader range of exclusive, high-quality products designed to meet the unique needs of outdoor activities here at home.
“Special attention will be given to highlighting customer-favoured product attributes. Canadian brands will be identified to meet the growing demand for locally made goods. SAIL is also committed to promoting and offering eco-responsible products as part of its clear goal to encourage more sustainable consumption.”
To expand its product offering, the retailer said it also plans to introduce a reSAIL pilot in-store. Launched in October 2023, reSAIL is a simple, safe, and efficient online resale platform offering a smooth experience for both sellers and buyers. Currently available exclusively online at resail.ca, the platform will soon be accessible in-store, adding a new dimension to the customer experience, it said.
“The digital space is also at the heart of this transformation. SAIL’s e-commerce site will be completely redesigned to offer a smoother, faster, and more inspiring shopping experience, both in terms of content and service,” added the retailer.
SAIL is a Quebec-based company that will celebrate its 50th anniversary in 2026. It employs more than 1,000 people at its Laval head office and in its 12 SAIL-branded stores – eight in Quebec and four in Ontario – as well as through its e-commerce platform (sail.ca), which serves customers across Canada.
Affirm, the payment network that empowers consumers and helps merchants drive growth, and Shopify, a provider of essential internet infrastructure for commerce, has announced the acceleration of their global expansion plans. Shopify merchants in Canada with early access can now offer Shop Pay Installments, exclusively powered by Affirm, to shoppers, marking the product’s first availability outside the U.S.
Shop Pay Installments will become available in general access to Shopify merchants in Canada and the U.K. this summer, with cross-border commerce capabilities between the U.S., Canada, and U.K. to follow. Additionally, the companies plan to expand to Australia and Western Europe next, starting with France, Germany and the Netherlands. Affirm looks forward to engaging with all of its local constituents – shoppers, merchants, capital partners, and regulators – as the company further grows internationally, according to a news release.
Kaz Nejatian
“We’re thrilled to launch Shop Pay Installments in early access to Canada as our first step beyond the U.S.,” said Kaz Nejatian, COO of Shopify. “Our partnership with Affirm expands our global reach, giving shoppers the flexibility to pay over time, and drives higher conversion rates for merchants worldwide.”
Max Levchin
“From day one, Affirm’s partnership with Shopify has been focused on empowering merchants to succeed by offering transparent, flexible payments that unlock purchasing power for consumers,” said Max Levchin, Founder and CEO of Affirm. “Millions of shoppers in the U.S. trust and rely on Shop Pay Installments. Today’s launch in Canada marks an exciting first step as we further extend our global presence – first with Shopify merchants, and soon after with our integrated merchants across the U.K., Europe, and Australia.”
As Shop Pay Installments launches in each new market, local merchants will be able to seamlessly activate the product directly from their Shopify admin dashboard—no additional development or technical integration required. From there, customers will be able to apply to split eligible purchases into biweekly and monthly payments. If approved, shoppers can choose from customized payment plans, with rates as low as 0% APR, and they will never encounter late or hidden fees, said the news release.
“Since its launch in 2021, Shop Pay Installments has seen widespread use, with millions of consumers actively utilizing this payment method across Shopify’s extensive merchant network in the U.S.”
As Canadians take steps to safeguard their finances amid ongoing economic uncertainty, the MNP Consumer Debt Index—conducted quarterly by Ipsos—has rebounded to 88 points this quarter, marking a nine-point increase from the previous quarter and signaling a more optimistic outlook on personal finances.
Reflecting Canadians’ shift toward financial caution, three-quarters (74%) say they have cut back on spending due to uncertainty, with women (77%) and those aged 35-54 (81%) being the most likely to have reduced spending. Around the same proportion (73%) say they are delaying major purchases or investments, said MNP.
Grant Bazian
“The improvement we are seeing in Canadians’ feelings toward their personal finances follows two Bank of Canada interest rate cuts this year. And while uncertainty remains around U.S. tariffs, their on-again, off-again nature may be providing Canadians with some optimism for the future—especially since these tariffs have yet to make a full impact on household budgets,” said Grant Bazian, president of MNP LTD, the country’s largest insolvency firm.
“Lower interest rates, along with the budget adjustments Canadians have already made, seem to be providing some breathing room.
“In comparison to the previous quarter, the results suggest that Canadians are taking proactive steps to reduce spending and lessen their reliance on credit as they brace for potential financial challenges on the horizon.
“Four in 10 Canadians still report being on the brink of insolvency, and more than a quarter have no financial cushion, no flexibility, or wiggle room in their budgets. Individuals without a safety net will likely face economic hardship when faced with rising costs and housing expenses, or a potential loss of income.”
Lower Interest Rates Offer Relief, but Many Remain Concerned
The proportion of Canadians concerned about the impact of rising interest rates remains near the highest level on record (60%, +1pt). However, thanks in part to the interest rate reductions this year, overall concerns about the broader impact of interest rates have declined. Fewer Canadians this quarter are worried about their ability to repay debts, even if rates decrease (43%, -7pts). Nearly a quarter (24%, +4pts) now feel better equipped to absorb a one-percentage-point rate increase, while the percentage (21%, -6pts) who feel less prepared has decreased. More than half (52%, -5pts) continue to worry about falling into financial trouble if rates rise, and nearly two in five (38%, -8pts) fear that rising rates could push them toward bankruptcy, said MNP.
A majority of Canadians (81%) say the current economic uncertainty has made them more cautious about taking on new debt – a sentiment that is consistent across genders, age groups, regions and income levels. A higher proportion this quarter believes they will be able to cover living expenses in the next year without needing more credit (58%, +9pts) and fewer regret the amount of debt they have taken on (43%, -6pts).
Canadians’ net personal debt rating (positive minus negative) has rebounded 14 points from last quarter’s all-time low. Additionally, fewer Canadians (43%, -7pts) report being just $200 or less away from financial insolvency, unable to meet their bills and debt obligations each month. This is due to significantly fewer saying they are already insolvent (26%, -9pts), added MNP.
“Well over half (58%) of Canadians express heightened concern about their ability to pay off debt due to ongoing uncertainty. This concern extends to broader financial stability, with about two in five worried about the possibility of someone in their household losing their job (38%, -3pts),” it said.
Canadians Bracing for Increased Housing Costs
Two in five (44%) Canadians say they are bracing for an increase in housing costs within the next year. Renters have a higher expectation of rising costs than homeowners, with two in three (65%) expecting their housing costs to increase within the next year, and nearly one-third of homeowners (30%) agreeing their housing costs will rise. Lower income earners may be impacted the most, with half (52%) of those earning under $40,000 expecting an increase, compared to one-third (34%) of those earning $100,000 or more. Younger Canadians under the age of 55 are more likely to expect an increase compared to those 55 and older, said the MNP report.
“More than four million mortgages—roughly 60% of all outstanding mortgages in Canada—are set to renew by the end of 2026 at potentially higher rates. This is just one example of the rising expenses, compounded by ongoing economic uncertainty, that those teetering on the edge can’t afford,” noted Bazian.
Goodfood Market Corp. recently achieved B Corp certification, a testament to its unwavering commitment to social and environmental responsibility, and the Canadian economy.
Jonathan Ferrari
“Our B Corp certification demonstrates our commitment to balancing profit with purpose across all aspects of our business,” said Jonathan Ferrari, Co-Founder and CEO of Goodfood. “This certification process evaluates our impact on all stakeholders and the communities in which we operate. It validates our efforts in critical ethical areas, ensuring we deliver sustainable meal-kits that our customers can trust, while also creating value for all those connected to our business.”
Neil Cuggy
“The quality of our meal-kits is our number one priority,” said Neil Cuggy, President and Chief Operations Officer at Goodfood. “Sourcing locally has never been a question, it provides customers with the freshest ingredients and a Canadian connection to the recipes.”
B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. In order to achieve certification, a company must:
Demonstrate high social and environmental performance by achieving a B Impact Assessment score of 80 or above and passing our risk review. Multinational corporations must also meet baseline requirement standards.
Make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status if available in their jurisdiction.
Exhibit transparency by allowing information about their performance measured against B Lab’s standards to be publicly available on their B Corp profile on B Lab’s website.
Goodfood said it has championed local and celebrated its Canadian roots by sourcing 100% of its ingredients from Canadian-based suppliers, with 70% directly from local farms. These local initiatives not only ensure the freshness and quality of Goodfood’s meal-kits, but also support the national economy and employment with 38 local partners across British Columbia, Alberta, Manitoba, Quebec, Ontario, and the Maritimes.
The B Corp certification promises that Goodfood is at the highest level of governance and ethical standards to all of their stakeholders including suppliers, customers, employees, and shareholders, alongside consciously reducing the use of water and electricity resources in their facilities, said the company.
“This milestone aligns with Goodfood’s ongoing mission to deliver high-quality Canadian meals, while supporting sustainable practices and providing consumers with true assurance of their environmental commitment. Delivering fresh, healthy and local ingredients and easy-to-follow recipes to Canadians’ doorsteps, Goodfood supports Canadians in living healthier, sparking joy and impact through their food,” it said.
Since 2017, Goodfood has made a meaningful impact in Canadian communities through partnerships with the Breakfast Club of Canada and Second Harvest Canada. They have also committed to their Sustainable Supply Chain that cuts out the middle man and reduces carbon emissions by 33 per cent, alongside developing a Goodfood Sustainability and Local Sourcing Policy.
Canadians can learn more about Goodfood’s commitment to BCorp certified practices at www.makegoodfood.ca/bcorp and choose to shop Canadian and explore the benefits of their sustainably-sourced meal-kits.
Ferrari said the business began in 2014 based out of Montreal in his apartment in the downtown.
“Primarily Goodfood is a direct to consumer meal business. We offer meal solutions to Canadians across the country. We started in the ready to cook meal space sending out ingredients and recipes perfectly portioned for our customers,” he said. “And we’ve always been proud of our supply chain being almost entirely based in Canada. Today with our tariff discussions it’s more important than ever. We work directly with 50 Canadian farms and local purveyors to source our food.
“Over the past year, we’ve also been building out our ready to eat meals. In addition to offering our customers meals that they can cook at home, we also have heat and serve meals that customers can warm up in the microwave or in the oven and create really easy, healthy, delicious meals.”
The company acquired Genuine Tea at the end of 2024 – a craft tea business based in Toronto.
Image: Goodfood
Goodfood is active across Canada. It has a fulfillment centre in Calgary that covers Western Canada and another one in Montreal that covers Eastern Canada. It also has regional hubs to service local markets. Ferrari said the concept covers about 95% of Canadians and it delivers about 15 million meals per year.
“We’ve been focused on a couple of things. First, as the economic conditions have become more challenging in Canada we released last summer value meals. These are meals that are under $10 per meal that are delicious and that have become quite popular,” he said.
“The second piece is around offering more convenience. That’s really where the quick prep meals come to light. So we launched 10-minute meals for our customers and then we have those heat and serve meals. Making it more affordable and easier for Canadians to get delicious meals on the table. That’s really the key growth vector for the company.
“The second piece is we started acquiring small brands such as Genuine Tea being the first example. The idea is to integrate them within the Goodfood platform. So you can buy Genuine Tea products on the Goodfood marketplace and support the brands that we acquire, letting them use our fulfillment, logistics, warehousing, cross-selling and marketing capabilities. We’re pretty excited about the opportunities that exist on building a portfolio of brands through acquisition as well.”
T. LINE has partnered with Toronto-based creativeSasha Mei on an exclusive set of shirts for the spring season available now. The very
first design collaboration from the womenswear brand, this highly covetable capsule sees T. LINE’s best-selling Ava and Isabel silhouettes reimagined through Mei’s revered lens in a fresh, always-elevated direction.
“Sasha completely embodies the T. LINE ethos—her effortless style has always inspired us,” said T. LINE co-founder Britt Barkwell of Mei’s natural fit for the brand. “It was so incredible to see her translate our shirting into her own unique style.”
Added co-founder Alia Bissett, “Sasha really brings her je ne sais quoi to T. LINE’s shirting silhouettes.”
Image: T.Line
From selecting the menswear-inspired fabrics to imbuing intentional design elements into the final pieces, Mei had a hand in every element of the creative process, weaving her singular sense of modern polish throughout both styles, explained the company.
“The way I wear shirting is always a little bit oversized, a little bit rumpled and a little bit undone,” said Mei. “I love to mix a little menswear-inspired moment into my more classic style—I find it lends a more effortless look.”
Sasha Mei
Grounded by organic striped fabrics sourced from a Japanese mill, the mocha-hued Ava and butter-leaning Isabel, adorned with a contrast cuff and collar, feature a palette inspired by one Mei’s grandfathers both used to wear. As an added touch, a special red thread woven through a cuff button is meant to represent luck and happiness, note the company.
The limited-edition capsule is available beginning April 24 on ShopTLINE.com and at T. LINE Studio in Toronto until supplies last.
Founded in March 2022, T. LINE is a contemporary womenswear brand producing thoughtfully crafted, classic shirting in Canada. Released in seasonal editions, their collections of closet essentials transcend trends and outlast a single season, allowing its clients to embrace a more intentional approach to style. Complimentary monogramming — a distinctive element of T. LINE’s brand identity — brings a personalized touch to its shirting offering.
The studio, which is located in Toronto’s Rosedale neighbourhood situated on the second floor of vert at 1062 Yonge Street, was launched in November 2024.
Canada has released its first major update to pediatric obesity guidelines in nearly two decades, and the recommendations represent a dramatic departure from past approaches. In addition to emphasizing traditional strategies such as healthy eating, physical activity, and behavioral support, the new guidelines now encourage physicians to consider prescribing GLP-1 receptor agonists—such as Ozempic and Wegovy—to children as young as 12. They also support the option of bariatric surgery for teenagers starting at age 13, even before exhausting lifestyle-based interventions.
This shift signals more than just a change in medical protocol—it marks a potential transformation in how Canadians relate to food and how the food industry is expected to respond.
Food Industry Under New Pressure
The food industry has long promoted its role in offering healthier, reformulated products, particularly for children. But the inclusion of GLP-1 medications in pediatric care sends a powerful message: efforts to improve diet and lifestyle may not be enough to address the country’s rising obesity rates. This repositions pharmaceutical intervention not as a last resort, but as a core component of obesity management—raising questions about how this will influence long-term consumer behavior.
Already, there are signs of disruption. Since mid-2022, Nestlé’s share price has fallen by approximately 34%. PepsiCo, with its massive global snack portfolio, is down 26% since May 2023. Mondelez, another leading snack producer, has dropped 13% over the same period. While multiple market factors are at play, many analysts believe that the mainstreaming of GLP-1 drugs—appetite suppressants by design—is playing an increasingly important role.
As of early 2025, nearly one million Canadians are using GLP-1 drugs for either diabetes management or weight loss. Projections by JPMorgan suggest this number could triple by 2030, meaning up to 10% of Canadian adults could be on such medications within five years. Current estimates indicate that at least one-third of GLP-1 users are taking these drugs exclusively for weight loss—numbers that do not yet account for the new pediatric guidelines.
Appetite Suppression and Shifting Food Habits
The implications are significant. If younger consumers begin to alter their relationship with food due to reduced appetite or other drug-induced effects, traditional consumption patterns—particularly around processed and indulgent foods—may be disrupted more quickly and deeply than previously anticipated.
Globally, other countries including the United States, Brazil, and South Korea have already approved GLP-1 drugs for adolescents. Canada’s move aligns with this international trend and reinforces the growing global influence of pharmaceutical companies on public health strategies related to nutrition and weight management.
Obesity remains a complex and deeply rooted condition, shaped by biological, psychological, and socioeconomic factors. But many observers worry that this shift toward medicalized solutions risks overlooking the enduring value of whole, nutritious foods and active lifestyles. While GLP-1 drugs may offer a tool for managing appetite and reducing weight, their use in children raises broader societal questions about how health is defined—and who gets to define it.
Food Companies Must Prepare for Consumer Change
Some argue that the industry must now contend with a new reality—one in which pharmaceutical tools may increasingly shape what, how, and how much Canadians eat. Companies that fail to adapt to these shifting consumption drivers may find themselves at odds with a changing marketplace.
One thing is clear: the food industry is no longer on the sidelines of the weight-loss debate. The GLP-1 era is well underway, and its influence is only growing.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
The Bay Centre in Victoria, BC. Image: Tourism Victoria
A new consumer survey from investment firm Stifel reveals a notable dip in Canadian consumer confidence heading into the second quarter of 2025. According to the report, titled Canadian Spending Intentions Soften in April Impacted by Trade Tensions, only 50% of Canadians say they intend to increase discretionary spending over the next 12 months — a drop of 600 basis points compared to January 2025.
“This is the first contractionary reading we’ve seen in over a year,” the report notes, suggesting that Canadian consumers may be entering a more cautious spending phase. The decline was evident across all age groups and income levels, signalling broad-based economic apprehension.
Ontario was the only region where a majority of respondents (55%) still planned to increase discretionary spending, while Quebec saw the sharpest reversal with a decline of 2,200 basis points.
Pet Industry Emerges as a Standout
One category bucking the broader slowdown is pet care. Spending intentions for pet food and accessories climbed five percentage points to reach 76% — the highest level seen in the past eight quarterly surveys.
The surge was led by strong sentiment in Ontario, where intentions rose 1,400 basis points to 74%. Pet Valu, which over-indexes in Ontario and among higher-income households, stands to benefit from the trend. In fact, 75% of respondents earning over $75,000 indicated they expect to spend more on their pets in the coming year.
“We continue to see pet spending as resilient, likely tied to the emotional connection people have with their animals,” the analysts said, describing this segment as a “defensive category” within discretionary retail.
Stifel also measured aided brand awareness in the pet category and found that while 48% of respondents were familiar with Pet Valu, combining its other banners (Bosley’s and Chico) raised awareness to 72% — placing it ahead of PetSmart at 67%.
Pet Valu on Front Street in Toronto (Image: Dustin Fuhs)
Clothing and Apparel Face Decline, With Exceptions
The apparel sector was not as fortunate. Just 48% of Canadians surveyed plan to spend more on clothing and apparel, marking the lowest figure in five quarters and falling into what the report characterizes as “contractionary territory.”
The trend was evident among young shoppers, high-income consumers, and women — typically core audiences for brands like Aritzia and Groupe Dynamite. While these drops were smaller in magnitude (ranging from 50 to 200 bps), they reflect a cooling trend in discretionary fashion.
However, there were some bright spots. Groupe Dynamite saw a notable jump in brand-specific purchase intent among female shoppers. The Garage brand rose to 27% from 16% in January 2024, while Dynamite climbed to 24% from 10%. In contrast, Aritzia fell from 25% to 21%, and H&M saw the sharpest retreat, dropping from 63% to 53%.
Fast-fashion juggernaut Shein continued to gain share, with 44% of female respondents indicating they plan to shop there — up 400 bps from the previous year.
Dynamite at Royalmount in Montreal. Photo courtesy of Dynamite
Dollar Stores Hold Ground — But Watch Low-Income Shoppers
Overall spending intentions at dollar stores remained high, with 74% of respondents saying they would increase spending in this channel, holding steady from January 2025.
Yet beneath the surface, a divergence is emerging. Among those earning less than $75,000 annually — a key customer segment for dollar stores — spending intention dropped by 650 basis points to 71%, its lowest in four quarters.
Conversely, higher-income consumers are increasing their use of value retailers. Eighty percent of respondents earning above $75,000 said they intend to increase their spending at dollar stores, up sharply by 1,100 basis points.
Regionally, Ontario again led the pack with 79% of respondents indicating increased interest in value shopping, while Quebec lagged at 68%.
“These trends could indicate an evolving demographic for discount retail,” the report suggests, “with higher-income households playing a greater role in dollar channel growth.”
Dollarama (PHOTO: WWW.THECENTREMALL.COM
Furniture and Appliance Spending Remains Steady
The furniture and appliances category held up relatively well, with 56% of respondents indicating they plan to make a purchase in the coming year. This represents a modest 100 basis point increase over the previous quarter, and a more robust 200 basis point increase in the number of people “very likely” to buy.
This improvement was strongest among younger respondents aged 18 to 54 and those earning under $75,000 — demographics that reported sequential gains of approximately 500 basis points.
Leon’s Furniture, which appeals to value-conscious and first-time home furnishing buyers, may see upside from this trend. However, interest among higher-income earners declined to 61%, down 400 basis points, possibly reflecting pullbacks in big-ticket discretionary categories.
Toys Show Resilience Despite Minor Dip
Intentions to spend on toys remained in expansionary territory, with 57% of respondents saying they plan to increase spending — a small dip from 59% in January.
The strongest demand came from parents aged 18 to 54, with 63% planning to spend more. This is good news for toy manufacturer Spin Master, as it suggests consistent consumer engagement with children’s products.
Interestingly, while overall intentions among lower-income consumers increased to 61% (a 300 bps improvement), those earning above $75,000 showed a marked decline, with only 51% expecting to spend more on toys — a 900 bps drop.
Mastermind Toys at Upper Oakville Shopping Centre (Image: Upper Oakville Shopping Centre)
Powersports Interest Increases Among Budget Consumers
An unexpected bright spot came from the powersports sector. Just under 10% of Canadians said they are “very likely” to purchase or upgrade a powersports vehicle in the next year — up 300 basis points from January and reaching the highest level in the past 14 quarterly surveys.
The rise was driven primarily by male and lower-income respondents. In contrast, interest declined among higher-income consumers (down 400 bps), creating an ambiguous picture for manufacturers like BRP.
“Whether lower-income enthusiasm can offset high-income hesitancy remains to be seen,” the report notes.
Air Travel Demand Faces Crosswinds
Canadian consumers appear to be growing more hesitant about air travel. Only 55% said they were likely or very likely to fly for their next vacation, down from 60% in January.
The decline in intent was consistent across income brackets, suggesting a more general sentiment of restraint. There also appears to be rising price sensitivity: more respondents reported that airfare prices influenced their decision not to travel, with those citing airfare as a prohibitive factor increasing by 400 basis points.
This could spell trouble for airlines like Air Canada as they navigate rising costs and evolving consumer behaviour. The trend will be important to watch through the upcoming summer travel season.
Retailers Face Mixed Conditions Ahead
Stifel’s survey paints a mixed picture for Canadian retailers in Q2 2025. While categories like pet care and discount retail remain strong — with solid upside for names such as Pet Valu, Dollarama, Leon’s, and Spin Master — other sectors are seeing stress.
Apparel retailers are facing both cyclical challenges and increased competition from fast fashion and digital players. Brands such as Aritzia and Groupe Dynamite will need to navigate shifting demographics and geographic trends to maintain growth.
Meanwhile, interest in air travel and big-ticket goods from higher-income consumers has softened, indicating broader macroeconomic caution, potentially stemming from ongoing trade tensions, inflation concerns, and broader global uncertainty.
As the report notes, these consumer sentiment shifts tend to precede financial performance, and retailers would do well to monitor these signals as they plan for the months ahead.
