Comark to Close Cleo and Ricki’s Chains Amid Challenges

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January 7, 2025

Ricki's at CF Market Mall in Calgary. Photo: Jessica Finch

Comark Holdings Inc., the Vancouver-based parent company of Bootlegger Clothing Inc., Cleo Fashions Inc., and Ricki’s Fashions Inc., has filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA). The move signals turbulence in the Canadian retail landscape, as the company announces plans to shutter its Cleo and Ricki’s brands entirely and downsize Bootlegger in an effort to find a buyer.

The company, which operates 221 stores across eight Canadian provinces, employs more than 2,000 people, including retail and head office staff. Comark’s decision to wind down operations for Cleo and Ricki’s comes after years of financial strain, exacerbated by the COVID-19 pandemic, a ransomware attack, and intensifying competition from ultra low-cost fashion retailers.

A Sobering Decision for Survival

“After careful consideration of all reasonably available options, the company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and to close all retail store locations under those banners,” Comark said in a statement.

The company’s struggles have been mounting for years. The pandemic led to prolonged store closures, while a 2021 ransomware attack disrupted operations at a critical holiday sales period, resulting in an $8.2 million revenue loss. Additionally, global supply chain issues caused inventory delays that forced heavy markdowns, further straining profit margins.

Comark’s challenges reflect broader trends, where mid-tier retailers are being squeezed between high-end brands and aggressive low-cost players like Shein and Temu, according to the company in a statement.

While Cleo and Ricki’s will be entirely liquidated, Comark hopes to salvage Bootlegger by downsizing its store footprint and seeking a buyer for the remaining business. The casual clothing retailer, which has been a staple in Canadian malls since the 1970s, has faced a 15% year-over-year decline in sales.

The closure of Cleo and Ricki’s, combined with downsizing at Bootlegger, could lead to as many as 200 vacant retail locations across Canada. This wave of vacancies will ripple through shopping malls, suburban plazas, and power centres where these stores are typically located.

Cleo at CF Polo Park in Winnipeg (Image: Cleo)

A Legacy of Fashion Retail in Canada

Founded in 1976, Comark has played a prominent role in Canadian fashion retail. Its banners, including Cleo and Ricki’s, catered to working women seeking professional and casual attire. Bootlegger, meanwhile, became a go-to destination for casual denim and activewear.

However, the rise of e-commerce, evolving consumer preferences, and a post-pandemic shift to hybrid work have upended demand for traditional officewear—a category that Cleo and Ricki’s heavily relied on.

Financial Pressures Come to a Head

Comark’s financial difficulties are well-documented. In 2024, the company reported a 19% decline in sales and a $21 million operating loss for the first nine months of the year. Total liabilities now exceed $168 million, including $61 million in accounts payable and $44 million owed to merchandise vendors.

The company’s largest creditor, CIBC, has issued demand notices, declaring all outstanding balances under its credit facilities immediately due. Vendors, landlords, and service providers have also initiated legal claims, seeking overdue payments.

A Perfect Storm of Challenges

Several factors contributed to Comark’s downfall:

Pandemic Disruptions: Extended store closures during key shopping periods led to steep losses in revenue.
Cyberattack: The 2021 ransomware attack halted operations for weeks, crippling inventory management and e-commerce.
Supply Chain Woes: Seasonal merchandise arrived late, forcing markdowns and eroding profit margins.
Competition: Ultra low-cost retailers disrupted the market, drawing budget-conscious consumers away from mid-tier brands.

What’s Next for Employees and Stakeholders?

Comark’s restructuring under the CCAA will leave more than 2,000 employees in limbo. While store-level staff will likely see their roles eliminated as stores wind down, head office employees may face a similar fate if a buyer for Bootlegger cannot be secured.

The ripple effects will extend to landlords, vendors, and service providers like Parian Logistics, which is owed $4.2 million for warehousing and distribution services. Without a steady revenue stream, many of these stakeholders will face significant losses.

A Difficult Road Ahead

As Comark begins the arduous process of liquidating two of its legacy brands, the future of Bootlegger remains uncertain. The once-thriving retailer must navigate a reduced footprint, intense competition, and a challenging economic climate to secure its survival.

For Canada’s retail industry, the closures serve as a stark reminder of the challenges ahead. From e-commerce disruption to shifting consumer habits, retailers must adapt swiftly to survive.

In the meantime, thousands of employees, landlords, and suppliers are left grappling with the fallout. And to some, this is the end of an era where it feels like we’re losing yet another piece of Canadian retail history.

More from Retail Insider:

PayMore opens 1st Canadian Stores with Expansion Plans

By

Craig Patterson

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January 7, 2025

image - 2025-01-07T151344.720 — Image: PayMore Canada

PayMore®, a leading U.S.-based tech buy-back retailer, has officially expanded into Canada with the opening of its first two stores in Ontario. The company’s innovative buy, sell, and trade model promises to revolutionize the way Canadians engage with used electronics.

With over 500 locations in development worldwide, PayMore is positioning itself for substantial growth in the Canadian market.

The First Two Stores in Canada: A Landmark Opening

On December 19, 2024, PayMore opened its inaugural locations in Brampton and Mississauga. Located in the Greater Toronto Area (GTA), these two stores—at 380 Bovaird Dr E in Brampton and 1476 Dundas St E, Unit 6, in Mississauga—are set to pave the way for over 120 locations across Canada within the next decade. These stores are the first steps in PayMore’s ambitious Canadian expansion plan.

Adam Corrin, Managing Partner and Co-Founder of Founder Brands, which holds the master franchise for PayMore in Canada, shared his enthusiasm about the company’s Canadian debut. “It’s been an exciting journey to bring PayMore to Canada. The launch of these two stores in Ontario represents the beginning of a much larger expansion,” he said in a recent interview. “We’ve been able to replicate the proven success of PayMore’s U.S. model, and we’re confident that Canadians will appreciate the value, convenience, and eco-friendliness that PayMore offers.”

Why Canadians Are Choosing PayMore

PayMore’s appeal lies in its unique approach to the buy-back industry. At its core, the business model revolves around providing consumers with instant cash for their old or unwanted electronics. From smartphones to laptops, gaming consoles, smartwatches, and tablets, PayMore purchases a wide range of tech devices. What sets PayMore apart from traditional pawn shops or online resale platforms is its focus on transparency, security, and sustainability.

“We offer top cash for your electronics, and you get paid on the spot,” Corrin explained. “Our customers can walk into the store, sell their devices, and leave with cash in hand. It’s that simple.”

In addition to providing instant payouts, PayMore places a strong emphasis on security. Every device sold to PayMore is securely wiped to ensure data privacy. This focus on data protection is a significant selling point for customers who may be hesitant about selling their devices due to concerns about personal information.

Furthermore, PayMore is committed to reducing electronic waste by giving devices a second life through resale. “The goal is not just to buy and sell electronics. It’s about promoting sustainability,” said Corrin. “By trading in old devices instead of throwing them away, our customers are actively contributing to a greener planet.”

Grand opening of the Brampton PayMore store. Image PayMore Canada

The PayMore Experience: A Hybrid Retail Concept

While PayMore’s primary business is buying used electronics, the stores also offer a retail component. Customers not only sell their devices but can also purchase pre-owned gadgets from the store’s inventory. This model is a hybrid between an electronics store and a buy-back center, offering a unique shopping experience that contrasts with traditional pawn shops.

“The in-store experience is key to PayMore’s success. We’ve intentionally designed our locations to feel more like an Apple store or a Rogers store,” Corrin noted. “Our customers can come in to sell their old electronics, but they can also find quality, affordable gadgets on the shelves.”

The store’s layout is carefully crafted to provide a seamless and enjoyable shopping experience. Electronics are displayed neatly, and customers are encouraged to browse the store for tech items they may need, making the buy-and-sell process convenient for all involved.

Expansion Plans: More Stores Across Canada

While the Brampton and Mississauga locations are just the beginning, PayMore has big plans for the Canadian market. “We’re targeting a total of 120 locations across Canada over the next 10 years,” said Corrin. “Our goal is to make PayMore a household name in Canada and to bring our services to communities nationwide.”

PayMore’s Canadian expansion is poised to continue with a strong focus on Ontario, where four additional stores are currently under construction, set to open in early 2025. But the company’s ambitions stretch beyond Ontario, with plans to open stores in major cities across the country, including Vancouver, Calgary, Montreal, and Halifax.

“Ontario is a natural starting point for our expansion given the density of the population, but we have already identified several key cities outside of Ontario for future stores,” Corrin added. “We’re actively seeking franchisees who are passionate about the tech industry and want to be part of a recession-proof, sustainable business model.”

The Role of Franchisees in PayMore’s Growth

The franchise model is central to PayMore’s growth strategy in Canada. Founder Brands is looking to partner with multi-unit franchisees who are interested in taking on larger territories. According to Corrin, the ideal franchisee is someone with a background in technology or business who is looking for a high-return investment.

“We’re looking for franchisees who can manage multiple locations. In the U.S., PayMore has seen great success with multi-unit franchisees, and we want to replicate that model in Canada,” Corrin explained. “Our franchisees will benefit from a proven business model, strong corporate support, and access to PayMore’s proprietary technology.”

The business model offers a range of advantages for franchisees. PayMore’s proprietary point-of-sale system, PayMorePOS, and its PayStation technology streamline store management, enhance the customer experience, and minimize theft. These tools make the operational side of the business simpler and more efficient, which is especially important for new franchisees.

A Recession-Resilient Business Model

One of the factors that sets PayMore apart from other retailers is its recession-resistant model. As Corrin pointed out, the buy-back business thrives in both strong and challenging economic climates.

“In good times, people upgrade their devices, and in tough times, people look to declutter and trade in their old electronics for cash,” Corrin explained. “What’s great about PayMore is that it’s a business model that works regardless of the economic cycle. Consumers always need electronics, and they’re always looking for ways to save money.”

As the economy continues to shift, more and more Canadians are looking for ways to save on tech purchases. PayMore offers a solution by providing affordable, pre-owned electronics that are often priced much lower than new models. The company also ensures that its inventory remains fresh by constantly trading with customers and redistributing stock across its locations.

Looking Ahead: The Future of PayMore in Canada

With its innovative model and clear growth strategy, PayMore is positioned for success in Canada. As the brand continues to expand across the country, its emphasis on sustainability, affordability, and convenience will make it a popular destination for tech enthusiasts looking to buy, sell, and trade their electronics.

“We’re excited for what the future holds for PayMore in Canada,” said Corrin. “We’re just getting started, and we look forward to bringing our innovative approach to even more communities in the years to come.”

More from Retail Insider:

Is the Canadian retail loyalty program dead?

By

Shelby Hautala

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January 7, 2025

image - 2025-01-06T230047.706 — Loyalty Programs. Photo: Shutterstock/licensed

In the competitive landscape of retail, loyalty programs serve as essential tools for brands seeking to develop lasting relationships with consumers. As the retail environment continues to evolve, understanding the current state of loyalty programs in Canada has never been more crucial – but are retailers using them properly? Joanna Walker, Founder and CEO of Loyalty & Co, and Larry Leung, customer experience leader, discuss the current challenges facing programs, answering the question: are loyalty programs dead?

Remove barriers that make loyalty feel chore-like

Consumers are increasingly overwhelmed by complex loyalty programs and are in need of simple and personalized programs: “Consumers want simplification, they want things to be easier,” says Leung.

He argues that personalization is critical. It’s not just about making a program simpler, but also about making it significantly more tailored to individual preferences, helping to create meaningful connections with customers.

“The goal is to present the right offers to the right customer at the right time,” says Leung. “Consumers today are looking for loyalty programs that don’t just bombard them with options, but instead focus on delivering what is actually useful and relevant to their needs. The challenge for retailers is to design programs that are easy to understand and use, while being sophisticated enough to offer personalized experiences. It is about removing barriers that make loyalty programs feel like a chore, making them a seamless part of everyday shopping.”

Leung emphasizes that personalized loyalty programs are not just about using the consumer’s email, but about understanding their shopping behaviours, preferences and spending habits: “This approach not only enhances the customer experience, but also significantly boosts the effectiveness of the loyalty program,” says Leung.

Going beyond the first impression

Walker says some loyalty programs offer sign-up discounts, which are beneficial if retailers plan to continue them, but can be annoying to consumers if ghosted. Walker says it is necessary for loyalty programs to extend value beyond initial discounts.

“Consumers all probably have a personal example of when they were like ‘oh my god, this is great – fantastic’ and then the retailer takes back the rewards and it is not a great customer experience,” suggests Walker.

Looking for relevance

Walker emphasizes that today’s consumers are not just looking for rewards; they are looking for recognition and relevance in the offers they receive from retailers. This includes connecting loyalty rewards with the consumer’s personal shopping habits and lifestyle.

“Consumers today are looking for more than just collecting points; they want offers that resonate with their specific needs and lifestyle choices,” she says. “They want to feel that the brands they are loyal to truly understand them. So, when we talk about personalization, it is about more than just addressing them by name in emails. It is about crafting offers that hit the mark by aligning with their shopping behaviours and personal preferences. For instance, if someone is frequently buying organic products, personalizing their rewards with offers on new organic items or providing them with exclusive early access to a sale on eco-friendly products can make all the difference.”

Reward programs must focus on value and personalization, and be timely and easy to use. One challenge Walker has noticed is retailers devaluing programs.

Finding a balance in loyalty offerings

Leung says the value attached to the program drives the success: “If it is only good for the business, but is of no value to consumers – you don’t have a good program,” he asserts. “Conversely, if it is only good for the consumer, but not the business, then the business doesn’t make any money. This equilibrium is crucial for the sustainability of loyalty programs.”

To maintain balance, Leung suggests that knowing your consumer by receiving proper data is critical.

“It is all about deepening your understanding of who your best customers are, what their behaviours are, making sure that you are serving up the right offers and delivering value to those best customers,” he says.

However, while creating offers, Leung warns against launching overly generous programs that might need scaling back as this can derail trust and engagement with consumers.

Although programs might have been created to attract consumers to sign-up; if those benefits and offers start to decrease, it can lead to consumers feeling underappreciated, causing longterm damage to their relationship with the brand.

“Retailers would never want to go back to market with a weak value proposition, but it is better to start with more of a conservative offer and build on that, than to take offers away,” says Leung. “If you launch with a very rich program and then have to pull it back, it damages trust. Consumers feel the loss deeply, which can sour the relationship.”

Keeping up with AI and consumer expectations

Like everything, Leung says the evolution of loyalty programs will be shaped by AI and data analytics. Leung believes these technologies will enable retailers to develop a deeper and more effective level of personalization.

“Loyalty programs offered by retailers in Canada must innovate to stay relevant,” he suggests. “The future of loyalty is bright, but it hinges on harnessing technologies that can truly understand and predict consumer behaviour. Brands also need to keep investing to ensure they evolve with consumer expectations and technological advancements. It is not just about maintaining a program; it is about continuously enhancing it to deliver genuine value.”

Going forward, Leung predicts a shift towards more integrated loyalty systems, where data from various sources are connected to provide a comprehensive view of the consumer.

“The integration of different data streams will allow for a more holistic approach to loyalty, where offers and rewards are precisely tailored, not just based on past purchases, but on a complete lifestyle understanding,” he says.

Walker’s future insights on loyalty programs

Walker highlights the need for retailers to continuously enhance loyalty programs, especially through the inroduction of new technologies that enhance service and offering:

“Incorporating new technologies enhances our ability to meet consumer needs and elevates the overall shopping experience,” she says.

Walker stresses that for retailers to continue improving their loyalty offering and ensure their long-term relevance, they need to keep up with the latest technologies.

In addition, she underlines the importance of redemption events as a means by which to not only bring consumers in, but to keep them. Redemption events not only benefit the consumer, but also the retailer.

“It is all about driving value,” she says. “The reason retailers do redemption events is because they are trying to burn points off their books as there are so many unused points out there. In addition to that, they will also get the uplift: if they give me $100 for 80,000 points, I am going to go in and I am actually going to spend $200. So, it is a good deal for them.”

If retailers hold more redemption events, Walker says this will also balance out providing points and discounts. As a result, consumers will feel more appreciated by the brand and will hopefully remain loyal.

Overall, Walker says retailers must focus on balancing loyalty reward programs so it benefits both the company and consumers. Not only should retailers be focusing on bringing balance and looking at what the consumer wants, they should also be keeping up with customer service.

“The level of customer service is diminishing, and there is no loyalty program that can help a retailer solve that,” she says. “And so, it is really important, from an operations perspective, that you are treating the customer well. People are in your retail location, and you are engaging with them, so make sure employees are trained well and then allow the program to do what you need it to do: deliver the right offers and make sure they are delivering value. If you have a really bad customer experience, but a great loyalty program – you are still going to have challenges from a retail perspective.”

Loyalty programs aren’t dead; they are evolving

Although Leung says most programs are not dead, he does acknowledge traditional systems are no longer efficient today. And, if a loyalty program is failing, Leung says it is a call for action for innovation rather than a sign of decreasing popularity.

“The entire industry is in critical need of rethinking how retailers and brands define loyalty, requiring an approach that moves well beyond points and discounts to create genuine connections and enriched experiences for consumers,” he says.

Leung’s insights show loyalty programs are not dead – yet. However, their survival depends on how well retailers adapt to new consumer expectations and technological advancements, moving from traditional reward systems to a more dynamic, personalized model.

Leung acknowledges that while some loyalty programs are struggling, the concept of loyalty programs itself is far from extinct.

“Brands must seize the opportunity to transform their loyalty strategies,” he says. “The future of the programs they offer them is not just what we offer, but on how we understand and engage with our consumers. Incorporating technology, like AI, to anticipate customer needs and crafting more personalized experiences is not just beneficial – it is imperative for survival in the competitive retail landscape.”

Both Walker and Leung emphasize the necessity of evolving loyalty programs to meet consumer demands. While Leung discusses the role of emerging technologies, Walker stresses the importance of integrating these technologies to provide exceptional customer service to create loyalty programs that are not only advanced, but also customer-centric.

*This article originally appeared in Retail Insider the magazine. To read the latest issue, click here.

VIDEO: Building the Retail Insider brand: Craig Patterson

By

Mario Toneguzzi

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January 7, 2025

Retail Insider continues to solidify its place as a leading voice in retail journalism, with Founder and Publisher Craig Patterson and Co-Editor-in-Chief Mario Toneguzzi named to RETHINK Retail’s prestigious Top Retail Experts list for 2025. This recognition not only highlights their individual expertise but also underscores the publication’s impact on the global retail landscape.

The honor is particularly significant for Retail Insider, which is the only Canadian news publication represented on the list. Patterson expressed pride in the achievement, noting, “It’s tremendous to have both Mario and myself recognized. It’s a testament to the hard work we’ve put into Retail Insider over the years, making it Canada’s top news publication for the retail industry.”

This isn’t the first time Retail Insider has been acknowledged on the global stage. Toneguzzi was recognized in 2024, alongside former Editor-in-Chief Dustin Fuhs. Patterson pointed out the consistent recognition as a reflection of the publication’s dedication to excellence. “This sustained acknowledgment highlights the depth and quality of our reporting and the importance of retail journalism in Canada,” he said.

Retail Insider began as a personal blog in 2012 when Patterson decided to channel his lifelong passion for retail into a creative outlet. Originally focused broadly on retail, the publication pivoted in 2014 to concentrate on Canadian retail news, filling a critical gap in the market. Today, Retail Insider has grown into a comprehensive platform, attracting more than 800,000 monthly visitors and boasting a strong social media following, with over 52,000 LinkedIn followers.

For Patterson, the growth of Retail Insider reflects his fascination with the art and history of retail. “I’ve always been intrigued by how retail spaces create experiences, whether in physical stores or online. It’s a dynamic industry that combines commerce with creativity,” he explained. This passion has been instrumental in shaping the publication’s unique voice and direction.

As the retail industry evolves, Retail Insider remains at the forefront of covering key trends and developments. Patterson emphasized that while the publication has historically had a strong focus on real estate, there is a growing interest in digital innovation, retail technology, and experiential retail concepts. “We’re expanding our content to include thought leadership in these areas and are even exploring the possibility of launching a dedicated e-commerce publication,” Patterson revealed.

Retail Insider’s coverage has also highlighted the changing face of Canadian retail, including the decline of traditional department stores, the rise of outlet malls, and the ongoing transformation of shopping centres. With recent projects like Montreal’s Royalmount and Vancouver’s Oakridge Park leading the way in retail innovation, the publication continues to report on the future of the industry while preserving its history.

For retailers, Retail Insider offers a platform to share their stories, whether they are celebrating milestones, launching new ventures, or expanding operations. Patterson encouraged businesses to reach out: “This is the time to tell the story of Canadian retail, whether it’s a long-standing retailer or a new entrant to the market.”

With a strong foundation and plans for future growth, Retail Insider is poised to remain an essential resource for the retail industry. Patterson summed it up best: “Retail Insider has changed my life, and I’m grateful to play a part in telling the stories that shape Canadian retail.”

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Mario Toneguzzi and Craig Patterson Named 2025 Top Retail Experts

Mario Toneguzzi and Craig Patterson Named 2025 Top Retail Experts

By

Retail Insider

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January 7, 2025

Retail Insider’s Co-Editor-in-Chief Mario Toneguzzi and Founder/Publisher Craig Patterson have both earned a place among Rethink Retail’s 2025 Top Retail Experts (TRE), a prestigious honour recognizing the global leaders and influencers in the retail and consumer packaged goods (CPG) industries. The recognition highlights their individual contributions to the retail sector as well as a significant milestone for Retail Insider, solidifying its position as the only Canadian publication to have members named in this distinguished category.

The TRE distinction is one of the most esteemed global accolades in the retail and CPG industries. It is awarded annually and includes various categories such as Academia, Analysts, Associations, Consultants, Finance, Media, Real Estate, Specialists, and Technologists. The honour is bestowed upon individuals who have made outstanding contributions to their respective fields, with their impact influencing and shaping the global retail landscape. Being named a part of the TRE community is considered a tremendous achievement, as recipients are recognized as the top thought leaders and market makers in their sectors.

For both Toneguzzi and Patterson, this recognition is a personal achievement and a testament to the work of Retail Insider and its continued growth as a key player in the Canadian retail media landscape.

Mario Toneguzzi: A Distinguished Career

This marks the second consecutive year that Mario Toneguzzi has been named to the TRE list, a remarkable achievement that underscores his expertise and respected voice in the retail industry. With more than 40 years of experience in journalism, Toneguzzi’s career includes over three decades as a writer, columnist, and editor at the Calgary Herald, where he covered a wide range of topics, including sports, crime, politics, health, and business. His work at the Herald laid the foundation for his later success in the retail sector, where he has proven himself a trusted source of news and analysis.

As Co-Editor-in-Chief of Retail Insider, Toneguzzi’s keen insights into the retail sector have played a pivotal role in shaping the publication’s content and vision. His ability to distill complex retail trends and developments into clear, engaging, and informative articles has made him a key figure in Canadian retail journalism. His continued recognition as one of the top retail experts is a testament to his influence in the field and his unwavering commitment to providing high-quality, in-depth reporting.

Craig Patterson: A Visionary Leader in Canadian Retail

For Craig Patterson, this honour further cements his status as one of Canada’s foremost retail experts. Based in Toronto, Patterson is the Founder and Publisher of Retail Insider, a platform he established in 2012 to provide comprehensive news and analysis of the Canadian retail industry. With over 25 years of experience as a retail analyst, consultant, and public speaker, Patterson has developed a deep understanding of the Canadian retail landscape. His expertise spans not only retail strategy and market trends but also the broader economic forces shaping the industry.

Patterson’s background is both diverse and extensive. Holding both a Bachelor of Commerce and a Bachelor of Laws degree, he has worked in various fields, including law and retail consulting. His work as an advisor at the University of Alberta School Centre for Cities and Communities reflects his commitment to contributing to the broader retail ecosystem, using his expertise to inform future generations of leaders and policymakers.

Under Patterson’s leadership, Retail Insider has become the largest and most influential publication focused on the Canadian retail industry. Through his dedication to high-quality journalism and his ability to identify emerging trends in retail, Patterson has shaped Retail Insider into an essential resource for professionals, analysts, and industry leaders across the country.

The Significance of the Award for Retail Insider

The recognition of Toneguzzi and Patterson as Top Retail Experts is a proud moment for Retail Insider, as it underscores the publication’s significant role in the retail media landscape. As the only Canadian publication to have members included in the TRE Community, Retail Insider’s standing as a thought leader in Canadian retail is solidified, offering insights into trends, challenges, and opportunities that shape the future of the industry.

For Toneguzzi and Patterson, being named to the TRE list also highlights the impact of their collective work at Retail Insider. It is a reflection of the publication’s commitment to providing accurate, timely, and valuable insights to the retail industry and its stakeholders. Both individuals have played crucial roles in cultivating a community of informed readers and industry professionals, driving forward the discourse around Canadian retail and contributing to its ongoing development.

A Global Recognition

The Rethink Retail Top Retail Experts list is highly regarded within the industry and is considered one of the most prestigious recognitions for leaders in retail. The TRE awards are based on recommendations from a variety of committees, corporations, and current members, making the process highly selective and rigorous. Toneguzzi and Patterson’s inclusion in this group places them alongside other influential figures in retail, offering them an opportunity to connect with the broader retail and CPG communities on a global scale.

This recognition also shines a light on the Canadian retail industry, which is often underrepresented on the global stage. By having two of its own named to this distinguished list, Canada’s retail sector gains a valuable opportunity to increase its visibility and demonstrate its importance within the global retail ecosystem.

Looking Ahead

As both Toneguzzi and Patterson look to the future, this recognition serves as a springboard for even greater accomplishments within the retail industry. For Toneguzzi, his ongoing work at Retail Insider will continue to influence how retail trends and developments are covered, helping to shape the future of retail journalism. Patterson’s leadership at Retail Insider will ensure that the publication remains at the forefront of Canadian retail news, while his ongoing contributions to the retail sector will continue to inform and inspire both current and future generations of retail professionals.

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Resilience key in ever-changing retail world: CBRE report

By

Mario Toneguzzi

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January 7, 2025

Retailer sentiment going into the new year remains positive, however, factors influencing the market will further entrench current trends and push change in the sector. Being forward looking and resilient will always be rewarded, and this has never been more true than in today’s competitive landscape, according to commercial real estate firm CBRE’s recent report, Canada Real Estate Market Outlook 2025.

CBRE’s Trends to Watch

A supply-constrained retail landscape is expected to persist and reshape the typical store format in Canada. Retailers will ultimately be strategic, expanding into secondary markets or modifying the scale of their typical store.
Sentiment going into 2025 remains positive, however, we are starting to see more normal growth levels following the boom pandemic years. Retailers that tap into savings, provide entertainment, or are innovative/experiential will continue to thrive during this time.
Expanding where and how retailers access consumers may be what it takes to remain relevant in the year ahead. Diversifying sales methods may play a significant role in revenue generation, even if primarily used for branding.

Spillover effect from supply-constrained markets

“As noted over the last few years, dwindling levels of new construction have resulted in a supply-constrained retail landscape in Canada with low vacancy and rising rents, especially among fixtured units. Unlike other property types, the main limiting factor has been elevated construction costs and not demand. With a restricted new supply pipeline expected to persist, anticipate these themes to continue in 2025 with robust demand putting pressure on vacancy and rents, although on a healthier growth trajectory,” said the CBRE report.

“Large-scale developments like the recently opened Royalmount in Montreal are few and far between. In fact, it has been a few decades since an enclosed mall has been built in Canada. Significantly leased on opening, the success of this property further proves levels of demand and that other properties of scale can be supported. Among current active construction, however, the average project or phase is 35,000 sq. ft. which is nearly 50% smaller than three years ago. This smaller-format offering, which is predominantly mixed-use with retail at grade, will reshape what the typical store looks like in the years to come.

“We have seen activity spill down to lower-quality product amidst lower vacancy, and in the year ahead, will see that continue with retailers expanding over wider geographies, either tapping into secondary markets or going south to the U.S. Retailers will ultimately be strategic during this time selecting spaces that still promote growth while working toward their long-term strategy. Domestically, an increasing number of brands will modify the scale of their typical store, for example Loblaws is currently rolling out smaller-format No Frills; Sephora meanwhile also opened their smallest location to date at The Well. Being forward looking and resilient will always be rewarded, and this has never been truer than in today’s competitive landscape.”

Retailers tapping into successes

CBRE said record levels of immigration and population growth have been a boon for the sector, which when paired with inflation and elevated interest rates, has resulted in exceptional growth, especially among necessity-based and discount categories. This confluence of factors is changing however, with recent announcements from the Government of Canada indicating they will curtail immigration targets. This could result in a challenging upcoming year for retailers, especially when layering in a potential recession and an associated pullback in consumer spending. Expect growth to continue, however in a more conservative manner.

“Shoppers will remain cautious and keep household budgets tight against this backdrop in 2025. Correspondingly, value or discount channels, including second-hand or consignment stores, will continue to be popular. Value Village has even expanded on this success with its boutique-branded locations. According to Trendex, cost savings are the biggest motivator for re-sell apparel shopping, the number one item purchased in second-hand stores, followed by books and furniture,” explained the report.

“Entertainment is another category that has been in expansion mode over the last 12 months and is poised for future growth in 2025. These operators are proven to be a destination for consumers and, much like necessity-based retail, can boost centre performance. Beauty is acting similarly and is now being recategorized as an everyday need. New to market entrants and acquisition of brands will push this category towards continued growth.

“As has been the case, churn is anticipated among middle of the pack or stagnant retailers without a differentiated offering. Bankruptcies and closures in the year ahead won’t be viewed as detrimental or as an indicator of poor market health. Instead, we’ve seen openings outpace closings, with well-located spaces quickly leased, in some cases even before being vacated by the exiting tenant.”

Channels for capturing market share

The report said that while business sentiment going into the new year has remained positive, recession fears will influence decision making, both on the retailer and consumer front. Future proofing business models will be top of mind, however changing consumer behaviours will challenge retailers with Forrester noting that 74% of retailers believe their organization will struggle to adapt to consumer expectations in 2025.

“We typically see Canadians stick to known brands and that has never been more true with EY noting that the percentage of customers willing to pay more for a brand they trust has increased significantly since 2023; this may be tested however in favour of finding a deal. Building off of the recent success of discount retailers, AIR MILES’ research found that 82% of survey respondents were more likely to shop at stores with a loyalty program; further, 66% will modify where and when they make a purchase to maximize points. Rolling out or expanding loyalty programs may be what it takes to attract and retain existing customers,” noted CBRE.

“Additionally, according to Deloitte’s 2024 Holiday Retail Outlook, a growing number of consumers are willing to shop directly through social media channels such as Instagram and TikTok, especially those aged 18-34. This was backed by the Retail Council of Canada’s Navigating the Future: A Study of Sales Strategies and Challenges for Canada’s Retail SMBs where it was noted that other sales methods play a significant role in revenue generation, even though some are still primarily used for branding rather than direct sales. Further from this study, the more sales channels businesses employ, the more optimistic they are about their business prospects, highlighting the importance of diversification. Expanding where and how you access consumers may be what it takes to remain competitive in the year ahead.”

Retail Rental Rates Rise Across Canada Amid High Demand and Race for Space: CBRE
Canadian Retail Sector to Face Challenges and Innovations in 2024 Amid Changing Consumer Behaviours and Rising Insolvencies: CBRE Report

Happy Belly appoints John Grieve to executive role

By

Mario Toneguzzi

-

January 7, 2025

Heal is part of the Happy Belly Food Group (Photo credit: Heal website)

Happy Belly Food Group Inc., a leading consolidator of emerging food brands, has announced John Grieve as its Regional Vice President of Operations, Western Canada.

“Over the past 10 consecutive record-breaking quarters, Happy Belly has achieved significant growth through both organic expansion and strategic acquisitions across its portfolio of emerging brands. To support this momentum, we are excited to announce the appointment of John Grieve as our new Regional Vice President of Operations for Western Canada, overseeing our expanding footprint,” said Sean Black, Chief Executive Officer of Happy Belly.

“To support this momentum it was important for us to increase our bench strength. As a first step John will work closely with brand managers, franchisees, and corporate teams to align operational strategies with our growth goals, ensuring scalability, profitability, and the continued excellence that defines Happy Belly.

“I am happy to continue putting the band back together and reuniting with John as part of the team. I first met John when we hired him at CraveIt Restaurant Group where John played a pivotal role in overseeing Via Cibo and driving our growth in Western Canada. As our brands continue to scale, John’s expertise and leadership will be invaluable in guiding them through this exciting phase of expansion. In this key leadership position, John will concentrate on optimizing operational efficiency, elevating the guest experience, and supporting the ongoing growth of our franchised and corporate-owned locations. His extensive experience in the franchised food sector includes various senior leadership roles at Fat Burger, Crave IT Restaurant Group, Five Guys Burgers and Fries and Edo Japan.

“John brings a wealth of expertise that will help elevate our teams and brands including Rosie’s Burgers, Heal and Via Cibo in Western Canada. He is an excellent cultural fit, embodying an entrepreneurial spirit and a hands-on approach, working closely with our brand operators, financial teams, and partners. We are confident in his leadership as we continue driving growth through disciplined organic expansion and accretive M&A initiatives.”

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Chick-fil-A beginning 2025 with 2 new locations in Ontario

By

Mario Toneguzzi

-

January 7, 2025

Two new Chick-fil-A restaurants will open this month in Ontario, continuing the brand’s long-term investment in Canada.

In a news release, the company said the two new locally-owned and operated restaurants will create approximately 170 jobs combined. Both restaurants, at CF Rideau Centre in Ottawa, and Cambridge Centre, will offer dine-in and take-out, with Cambridge Centre also serving people with drive-thru
service.

New Restaurants Opening in Ontario

● Chick-fil-A Rideau Centre will begin serving the Ottawa community Thursday, January 9 and is
located within the CF Rideau Centre Food Court at 50 Rideau Street, and will be open from 10 a.m.
to 9 p.m. Monday through Saturday. Hussein Tohme has been selected as the independent
franchised Owner-Operator. Tohme is from the Ottawa community and has a background managing
food and beverage teams for several national restaurant chains.

● Chick-fil-A Cambridge Centre will begin serving the Cambridge community Thursday, January 16
and is located at 405 Hespeler Road, and will be open from 10:30 a.m. to 10 p.m. Monday through Saturday. Olivia O’Brien (nee Efford) has been selected as the independent franchised Owner-
Operator. O’Brien is also the local Owner-Operator of Chick-fil-A Kitchener and will be the company’s second multi-restaurant Owner-Operator in Canada.

“Chick-fil-A’s franchise model is essential to how the restaurant serves others. Most Chick-fil-A restaurants
are owned and operated by a single individual, which means Chick-fil-A’s local Owner-Operators are small business owners, not passive investors, who work in their restaurants side by side with their Team Members each day,” said the company.

“Day-to-day activities of the business include employing approximately 70-100 full- and part-time Team
Members, serving Guests, cultivating relationships with local organizations and businesses, and tailoring
philanthropic efforts to meet the community’s needs.”

Since 2020, the company said it has donated about C$2 million (US$1.46 million) to Second Harvest to support local hunger-relief organizations. Second Harvest is one of Canada’s largest food rescue organizations and helps reduce the environmental impact of food waste by redistributing surplus food from across the supply chain to non-profits throughout the country.

“These two new restaurants will also be participating in the Chick-fil-A Shared TableTM program, an initiative that redirects surplus food from participating Chick-fil-A restaurants to local soup kitchens, shelters, food banks and non-profits to help feed those in need,” said the company.

“To date, more than 30 million meals have been created using Chick-fil-A Shared Table donations from 2,200 Chick-fil-A restaurants throughout Canada and the U.S.

“Chick-fil-A met its goal of opening 20 stores in Canada by 2025 ahead of schedule and is excited to continue its long-term investment in Canada, with the aim to open seven to ten restaurants per year. We are seeking franchise candidates in Canada with an entrepreneurial spirit and a CEO mindset, who are passionate about serving great food and providing exceptional hospitality in a fast-paced environment.”

Chick-fil-A, Inc. is the third largest quick-service restaurant company in the United States, known for its freshly-prepared food, signature hospitality and unique franchise model. More than 200,000 Team Members are employed by independent Owner-Operators in more than 3,000 restaurants across the United States, Canada, and Puerto Rico. In 2023, the company shared plans to expand by 2030 into Europe and Asia. The family-owned and privately held company was founded in 1967 by S. Truett Cathy.

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VIDEO: What to expect in retail in 2025: Bruce Winder

By

Mario Toneguzzi

-

January 7, 2025

Bruce Winder, a top retail expert in Canada, discusses the recent holiday shopping season and what the retail sector can expect in 2025.

Winder discusses the mood of Canadian consumers these days, what sectors of the retail industry did well during the holiday period, what sectors didn’t do so well and are struggling, and if we can expect more of the same in 2025.

The 2024 holiday season brought a mixed bag of results for Canada’s retail sector, according to insights from Winder, one of the country’s top retail experts. While some segments performed well, others faced unprecedented challenges, reflecting broader economic headwinds and shifting consumer behaviours.

“I’ve never seen a year with so many challenges built into it,” said Winder. “The consumer was incredibly frugal, prioritizing sales and essentials, largely due to rising costs in areas like rent and food.”

Black Friday and Boxing Day Trends

While Black Friday and Cyber Monday remain major events, their impact has softened. Winder attributed this to the extended promotional period that now spans weeks, diluting the intensity of sales on those specific days. Notably, online sales during Black Friday were reportedly softer, with smaller retailers especially hard-hit due to disruptions like the Canada Post strike.

In contrast, Boxing Day saw significant foot traffic, surprising many with its robust activity in malls. However, this momentum may not have translated equally across all segments.

Value Retailers Shine, Mid-Range Struggles

Retailers in the value segment, such as Dollarama, Walmart, and emerging platforms like Temu, fared well. Consumers flocked to these outlets seeking affordability, with Temu becoming Canada’s most downloaded app in 2024.

Meanwhile, mid-to-high-end retailers catering to aspirational customers struggled. “Department stores like Hudson’s Bay likely faced challenges, as frugal consumers prioritized essentials over discretionary spending,” Winder noted.

Key Challenges and Outlook

The retail landscape was further complicated by the HST holiday, which caused logistical headaches but provided modest boosts in specific categories like toys and children’s clothing. Economic uncertainties, including potential geopolitical shifts and trade tensions, loom large over 2025.

Winder predicts further consolidation in the retail industry, with smaller players potentially exiting and larger brands scaling back operations. To succeed, retailers must focus on cost efficiency and leverage AI to better understand and serve their customers.

“It’s all about knowing your consumer better than the competition and offering incredible value,” Winder concluded.

As retailers brace for another challenging year, adaptability and innovation will be critical in navigating an uncertain future.

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Canadian Retail News From Around The Web For January 7, 2025

By

Craig Patterson

-

January 6, 2025

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 few days.

‘It keeps you up at night’: Effects of postal strike linger into 2025, business owners say (CTV)

Toys ‘R’ Us Canada closing five stores, expanding HMV and adding play spaces (Financial Post)

Amazon is ending remote work. Its employees hope the company reconsiders (CBC)

Canadians to buy used over new in 2025, retail analyst says (CityNews)

‘I gave them a call, they didn’t pick up’: Canadian furniture store Wazo appears to have gone out of business (CityNews)

Looming increase in postage rates worrying for Windsor small business owners (CBC)

Canadians looking for more global flavours when it comes to food (CCentral)

Inside the biggest police sting ever at Shoppers Drug Mart (Toronto Star)

This Toronto convenience store was robbed before Christmas. The neighbourhood has stepped up (Global)

Queen West used to be the heart of Toronto. How did it go so wrong? (Toronto Star)

Quebec retail leader Geneviève Gagnon lands new acquisition (Hardlines)

Paris Baguette opens new stores in Vancouver (The Investor)