In October, payroll employment in retail trade increased by 4,200 (+0.2%), partially offsetting the decline in September (-8,400; -0.4%). Despite the October increase, overall payroll employment in the sector has generally trended downward since February 2024, with a net decline of 21,200 (-1.1%) over the period, according to recent data from Statistics Canada.
This net decline since February was concentrated in sporting goods, hobby, musical instrument, book, and miscellaneous retailers (-9,000; -4.2%), building material and garden equipment and supplies dealers (-7,900; -5.5%) and clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (-6,700; -3.2%), said the federal agency.
However, gains in payroll employment in several retail trade industries have dampened the overall downward trend since February. The gains over this period were concentrated in food and beverage retailers (+4,400; +0.8%), health and personal care retailers (+3,000; 1.4%) and motor vehicle and parts dealers (+2,300; +1.0%), it added.
Photo by Arina Krasnikova
“Job vacancies in retail trade declined by 5,700 (-12.1%) to 41,400 in October, their lowest level since April 2016 (40,600). The number of vacancies in the sector was down by 22,500 (-35.2%) on a year-over-year basis, and down by 71,300 (-63.3%) compared with the peak in December 2021 (112,700),” explained Statistics Canada.
“In October, the job vacancy rate (2.0%) in retail trade also reached the lowest rate since April 2016 (when it was also 2.0%). Month over month, the job vacancy rate in October 2024 was down 0.3 percentage points from September (2.3%) and 1.1 percentage points from October 2023 (3.1%).”
The job vacancy rate corresponds to the number of vacant positions as a proportion of total labour demand.
In October, payroll employment in accommodation and food services (-3,500; -0.3%) declined for the second consecutive month, following a drop of 8,400 (-0.6%) in September, said the report.
“The cumulative declines in this sector in September and October were attributable to declines in full-service restaurants and limited-service eating places (-14,000; -1.4%). In October, this industry accounted for more than three-quarters (76.9%) of overall payroll employment in the accommodation and food services sector,” it said.
“On a year-over-year basis, payroll employment in accommodation and food services was down 13,700 (-1.0%) in October.”
Nationally, Statistics Canada said the number of employees receiving pay and benefits from their employer—measured as “payroll employment” in the Survey of Employment, Payrolls and Hours—fell by 21,100 (-0.1%) in October, following little change in September and August. On a year-over-year basis, payroll employment was up 125,800 (+0.7%) in October.
Meanwhile, job vacancies decreased by 15,000 (-2.8%) to 513,200 in October, following little change in September and a decrease of 16,700 (-3.1%) in August.
“In October, monthly payroll employment declines were recorded in 7 out of 20 sectors, led by manufacturing (-5,900; -0.4%), professional, scientific and technical services (-3,700; -0.3%) and accommodation and food services (-3,500; -0.3%),” noted the report.
“The declines in October were partially offset by gains in retail trade (+4,200; +0.2%), construction (+3,400; +0.3%), public administration (+3,300; +0.3%) and health care and social assistance (+3,300; +0.1%). The remaining nine sectors were little changed.
“Job vacancies decreased by 15,000 (-2.8%) to 513,200 in October, following little change in September and a decrease of 16,700 (-3.1%) in August. The number of job vacancies in October was down by nearly half (-48.9%) from the peak of over one million reached in May 2022. Compared to October 2023, job vacancies were down by 159,400 (-23.7%) in October 2024.”
The job vacancy rate was 2.9% in October, down by 0.1 percentage points from the previous month (3.0%) and down by 0.9 percentage points from October 2023 (3.8%), added StatsCan.
It said there were 2.8 unemployed persons for every job vacancy in October 2024, up from 2.7 in the previous month. Since October 2023, the unemployment-to-job vacancy ratio rose from 1.8 to 2.8, reflecting the cooling of labour market conditions over this period.
As we bid goodbye to 2024, I have been reflecting on how generative AI has continued to evolve from a nascent technology into a powerful force driving real business value. In conversations with Canadian customers earlier this year, many were taking their first tentative steps, exploring how generative AI could impact their organizations through pilot projects and small-scale deployments.
But the landscape has shifted dramatically. Companies have moved beyond AI experimentation to full-scale deployments, transforming specific parts of their business. Many of these projects, while not always immediately noticeable to consumers, have focused on optimizing back-end processes or enhancing customer-facing platforms, yielding impressive cost savings and productivity improvements. Companies like TELUS and Dollarama are already reaping the rewards, and it’s encouraging to see other Canadian businesses across all industries follow suit, establishing their own generative AI strategies.
This momentum positions 2025 as a pivotal year for generative AI adoption in Canada. As the technology matures and initial deployments demonstrate tangible value, executives will face the imperative to build winning AI strategies that fundamentally transform how their companies operate, compete, and innovate.
AI Trends to Watch in 2025
Our recent Economic Impact Report highlighted AI’s potential to boost Canada’s economy by $230 billion and save the average worker 175 hours per year. The scale of this opportunity demands that every business leader pay close attention to key AI trends in 2025.
Here are a few that I believe will positively impact key industries in Canada and drive real productivity growth across the country:
Companies will release more customer-facing AI products. AI-powered solutions will revolutionize the customer experience, enabling organizations to anticipate needs and forge stronger customer connections. Thomson Reuters, with the launch of Co-Counsel 2024, provided an early example. In 2025, organizations across all sectors will launch AI-powered products designed to increase revenue and efficiency, boost efficiency, and cultivate brand loyalty.
AI agents will streamline workflows and empower employees. As AI agents become more sophisticated, they’ll manage complex workflows, automate business processes, and empower employees. Bell Canada, an early adopter, partnered with us to transform their contact center with AI, including with Conversational Agents and Agent Assist. Bell’s CEO recently described how this transformation improved the customer experience and generated $20 million in savings.
Canadian startups will scale with AI. Canada is already home to successful AI startups like Cohere. Next year, we’ll see Canadian startups launch AI-powered products across a diverse array of sectors. We’re proud to work with many emerging startups in Canada – like Viral Nation– and can’t wait to see what they’ll accomplish in 2025.
Industry-Specific Predictions
Beyond these overarching predictions, I’m particularly excited about how different industries will continue to adopt generative AI and drive innovation for their customers, specifically in the following sectors:
Retail: In 2024, successful retail projects focused on delivering real value for both consumers and employees, particularly in customer service, marketing and digital commerce, where generative AI search and agents enhanced existing human capability. Dollarama, for example, successfully supported customer service agents with AI by analyzing and summarizing thousands of customer service calls, saving employees dozens of minutes per call, which allowed them to support more customers.
2025 prediction: AI will change shopping experiences, both online and offline. One example is the evolution of the drive-thru. We’ll see how natural language processing and voice recognition can improve the quick-service food industry for both customers and employees. Wendy’sbegan piloting this with Google Cloud in 2023, and as customer-facing AI applications proliferate, we expect to see drive-thrus and digital ordering revolutionized by AI.
Conclusion
2024 laid a strong foundation for the future of AI in Canada. 2025 will be a year of increased innovation, broader adoption, and even greater impact. Now is the time for leaders across all sectors to seize the AI opportunity. This means not just experimenting with the technology but actively developing comprehensive AI strategies that integrate this transformative technology into every facet of their operations. I, for one, am incredibly excited to witness the accomplishments that lie ahead.
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 48 hours.
Every year, we compile a list of the most impactful food stories to highlight the trends, challenges, and opportunities shaping Canada’s agri-food sector. From policy changes and economic pressures to technological advancements and consumer-driven shifts, these stories reflect the complexities of our food system and its broader societal implications. 2024 was no exception, offering a mix of triumphs and setbacks that defined the year for farmers, consumers, and businesses alike. As always, this list aims to provide a balanced perspective on the events that mattered most in the agri-food world, helping us understand where we’ve been and where we’re headed. Enjoy!
10. The Loblaw Boycott That Wasn’t
We were uncertain about including this story on the list since it never truly materialized. Despite significant online momentum, particularly on Reddit, the boycott, which initially targeted Canadian grocers like Loblaw, Sobeys, and Metro while excluding American giants such as Walmart and Costco, failed to gain traction. Initially declared as a one-month protest starting May 1, it was later announced as indefinite. However, the boycott’s impact was negligible, as reflected in Loblaw’s shares soaring to $195—a remarkable 27% increase since the campaign’s launch.
While the financial outcome left Loblaw unscathed, the campaign sparked important discussions around “greedflation,” corporate ethics, and the public image of Canada’s major grocers. The controversy exposed a critical gap in consumer confidence and intensified calls for greater transparency in pricing and competition practices. Addressing these issues will be essential for rebuilding trust and fostering a more equitable and competitive grocery landscape in the future.
9. Capital Gains Tax Changes Impacting Farmers
The June 25 increase in the capital gains inclusion rate for profits exceeding $250,000 has alarmed the agricultural sector. Farmers, often asset-rich but cash-poor, face a 30% tax hike on average, according to the Grain Growers of Canada. With Canada already losing 700–1,000 farms annually, these changes exacerbate generational succession challenges and accelerate industry consolidation. Although the lifetime capital gains exemption has increased to $1.25 million, the higher tax rate disproportionately affects family-owned farms, posing a threat to the future of Canadian agriculture.
8. Endorsement of Grocer Code of Conduct by the “Big Five”
The endorsement of the Grocer Code of Conduct by Canada’s largest grocers marked a milestone in addressing power imbalances between retailers and suppliers. By fostering fairer negotiations and reducing price volatility, the code is expected to enhance transparency and stabilize the food supply chain. However, questions remain about enforcement, and grocers must demonstrate their commitment to rebuilding consumer trust through fair practices.
7. The Rise of GLP-1 Drugs Like Ozempic
The rise of GLP-1 drugs, such as Ozempic, marks a transformative moment in the pharmaceutical and health sectors, with the potential to impact millions worldwide. Initially developed for managing Type 2 diabetes, these drugs have gained widespread recognition for their effectiveness in promoting weight loss by suppressing appetite and slowing digestion. With global obesity rates continuing to rise, medications like Ozempic are being touted as game-changers, with experts predicting widespread adoption in the coming years.
A pivotal moment in this shift occurred in February when Oprah Winfrey stepped down from the board of Weight Watchers, signaling a potential decline in traditional weight-loss programs as pharmaceutical solutions gain traction. While these drugs offer significant benefits, including improved metabolic health and reduced risks of obesity-related diseases, they also raise critical concerns. Affordability, long-term safety, and equitable access remain pressing issues. Additionally, the growing demand prompts questions about their impact on healthcare systems and evolving societal attitudes toward weight loss and wellness.
No HST on products in a grocery store in Toronto. Photo: Dustin Fuhs
6. The GST Holiday and Taxes on Food Debate
Ottawa’s temporary GST/HST holiday on food and restaurant items sparked significant debate. While consumers will see minimal savings—roughly $5 at grocery stores—restaurants benefited more, with families saving $60–$90. However, the logistical burden on retailers and regional disparities in tax rates and the possibility of opportunity pricing drew criticism. A permanent removal of GST on food would have been a more effective solution, fostering affordability without the instability of short-term policies.
5. Record Food Recalls and Safety Alerts
Food recalls reached their fourth-highest level in 2024, driven by high-profile incidents involving cucumbers, bakery products, and plant-based beverages like Silk and Great Value brands. Tragically, these recalls were linked to three fatalities, emphasizing the importance of robust safety measures. This story sheds light on the ongoing challenges of managing food safety in complex supply chains, calling for stronger oversight and transparency in the agri-food industry.
4. Railway, Grain, and Port Disruptions
Labour disputes in Canada’s logistics sector disrupted the nation’s food supply chain in 2024, damaging its international reputation. With railways, ports, and other infrastructure under constant strain, these disruptions highlighted the critical importance of safeguarding the backbone of the Canadian economy. While protecting workers’ rights is vital, striking a balance to ensure uninterrupted supply chains is equally necessary. The year underscored the need for proactive labour policies to avoid holding the economy—and the food system—hostage.
3. Potential Tariffs with the Return of Donald Trump
The return of Donald Trump to the U.S. presidency reignited fears of economic disruption, particularly in Canada’s agri-food sector, which sends 60% of its agri-food exports and $40 billion worth south of the border. Proposed tariffs of up to 25% would have devastated Canadian producers, already grappling with slim margins and the carbon tax. Ottawa faced mounting pressure to develop a long-term strategy to mitigate these risks and strengthen the agri-food sector’s competitiveness in an increasingly protectionist global landscape.
2. Carbon Tax Debate on Food Prices
Carbon pricing remains a divisive issue in 2024, with peer-reviewed studies confirming that the policy increases production and transport costs, ultimately eroding the competitiveness of Canadian food systems. While grocers often mitigate impacts by importing cheaper goods, this approach masks the structural weaknesses created by rising operational costs. As such, studies looking at the impact of carbon pricing on food prices are generally flawed. Critics argue that many studies dismissing the tax’s effect on food prices are influenced by funding from Environment and Climate Change Canada, raising questions of bias. Policymakers must look beyond retail price fluctuations to understand the long-term implications of carbon pricing on Canada’s agri-food sector and food security.
1. Record Number of Visits to Food Banks
In 2024, the HungerCount report revealed a record-breaking number of visits to food banks, alongside Canada’s food insecurity rate reaching an unprecedented 22.9%. These figures highlight a growing affordability crisis, driven by soaring food prices, stagnant wages, and broader inflationary pressures. While some have pointed fingers at immigration, such narratives overlook the complex economic dynamics at play and the humanity at the heart of this issue. Food banks, stretched beyond capacity, are emblematic of a broader social crisis. This story underscores the urgent need for robust social safety nets and policies that prioritize affordability and inclusivity.
Honorable mentions
Upcoming Approval of Cloned Meat in Canada
Health Canada’s consideration of cloned meat approval has sparked heated debate. While advocates point to potential benefits like enhanced livestock genetics and improved food security, critics highlight concerns about transparency, ethical implications, and biodiversity. Without mandatory labeling, consumers are left in the dark about what’s on their plates, intensifying the call for stricter regulations and open communication.
Approval of Methane-Reducing Feed for Cattle and Dairy
Bovaer, a feed additive approved in February, has the potential to significantly reduce methane emissions from cattle, offering an innovative solution for sustainable farming. However, its adoption remains limited, with no clear government communication or labeling guidelines. The lack of transparency echoes past controversies like Buttergate, leaving consumers uninformed about its broader implications.
Bill C-282 to Protect Supply Management During Trade Deals
The advancement of Bill C-282, aimed at protecting supply management in future trade agreements, stands as one of the year’s most significant food policy developments. The bill seeks to safeguard Canada’s dairy, poultry, and egg sectors from trade concessions, ensuring industry stability and maintaining predictable prices for consumers. However, its progress has stalled in the Senate, casting doubt on whether it will pass before a new U.S. administration, potentially less favorable to Canada’s supply management system, takes office in January. The Bloc Québécois has amplified the political stakes by making its support for the Trudeau government contingent on protecting supply management, highlighting the bill’s vital importance to Quebec’s agricultural sector. Critics argue that the legislation could restrict Canada’s flexibility in broader trade negotiations. Nevertheless, supporters view it as essential for preserving food sovereignty and protecting Canadian farmers from an increasingly unpredictable global market.
Bill C-293: Canada’s “Vegan Act”
Originally focused on pandemic preparedness, Bill C-293 has sparked controversy for promoting alternative proteins and de-risking animal protein production. Proponents argue the bill aligns with sustainability goals and food innovation, while critics fear it marginalizes traditional farming. The ongoing debate highlights the tension between progressive food policies and the preservation of Canada’s agricultural heritage.
Ottawa’s Tightening of the Temporary Foreign Worker Program
Changes to the Temporary Foreign Worker Program aimed to prioritize domestic hiring but have exacerbated labour shortages in agriculture and food processing. While the policy seeks to address labour exploitation, it risks destabilizing sectors heavily reliant on foreign workers, calling for a more balanced approach to ensure workforce stability.
New Rock 'N Karma store at 132 Cumberland Street in Toronto. Photo: Craig Patterson
Toronto-based fashion label Rock ‘N Karma has officially returned to its roots, relocating its flagship store from Queen Street West to Yorkville’s Cumberland Street. Co-founders and sisters Naomi and Devorah Shapiro say they are thrilled to bring their edgy-yet-feminine designs back to the upscale neighbourhood, which has played an integral role in the brand’s story.
The new boutique, located at 132 Cumberland Street, marks a significant move for the brand, whose former Queen Street West location at 789 Queen Street West had been home for eight years. “I love Yorkville. I’ve always loved Yorkville. We made a decision to come back home where we belong,” said Naomi Shapiro in a recent interview.
The relocation signifies both a return and a fresh start for Rock ‘N Karma, which has served stylish Torontonians over its decades-long history.
Inside the new Rock ‘N Karma store at 132 Cumberland Street in Toronto. Photo: Rock ‘N Karma
From Toronto Eaton Centre to Queen Street West and Back to Yorkville
The journey of Rock ‘N Karma began more than 34 years ago when Naomi Shapiro launched the business at Queens Quay Terminal as a young fashion designer. Over the years, the brand has established a unique presence in Toronto’s fashion scene, operating stores at major locations, including the CF Toronto Eaton Centre for 10 years. “That’s where we started with the concept of our hand-painted clothing,” Naomi noted.
Naomi Shapiro, co-founder of Rock ‘N Karma. Photo supplied
Following their time at the Toronto Eaton Centre, Naomi and Devorah moved to Yorkville, where they remained for 12 years before heading to Queen Street West. Now, the sisters are excited to return to what they call “the heart of Yorkville.”
“We’ve always been here in spirit. Yorkville has always been the right place for our brand. It feels like home,” Naomi emphasized.
A Rock ‘N Karma Aesthetic: Edgy Yet Effortless
Rock ‘N Karma’s distinct aesthetic reflects the dynamic personalities of its co-founders. The brand combines edgy rock-inspired pieces with softer, more bohemian elements, creating what Naomi describes as a balance of “rock and karma.”
“The rock is our edgy, black pieces with hand beading, while the karma reflects our pretty, flowy summer dresses that are often bright and colourful,” Naomi explained. The brand’s signature approach includes hand-painted clothing and intricate beaded details, ensuring that each garment is one-of-a-kind.
Inside the new Rock ‘N Karma store at 132 Cumberland Street in Toronto. Photo: Rock ‘N Karma
“Every piece starts off white and is hand-painted for that specific garment. From there, many of them are hand-beaded, which makes the designs unique,” she added.
The collection is also size-inclusive, ranging from extra small to 3X. “We’ve always believed in creating fashion for every body. Fit and comfort are just as important as style.”
Inside the new Rock ‘N Karma store at 132 Cumberland Street in Toronto. Photo: Rock ‘N Karma
Designing for the Real World
What sets Rock ‘N Karma apart is its ability to marry fashion with function. Naomi highlighted the versatility of their signature pieces, which include flared pants, machine-washable suits, and garments crafted from what the sisters call their “miracle fabric.”
“Our clothing is made to last. It doesn’t fade, pill, or bag. You can roll it up in a suitcase, travel for 20 hours, and it still looks perfect,” Naomi said. This practical approach to design has garnered the brand a loyal following, including professionals, musicians, and fashion-forward individuals of all ages.
“Our customers are real people. From teachers and teenagers to lawyers and creatives, our clothing appeals to anyone who values quality, comfort, and individuality.”
Inside the new Rock ‘N Karma store at 132 Cumberland Street in Toronto. Photo: Rock ‘N Karma
The New Yorkville Boutique Experience
Stepping into the new Rock ‘N Karma boutique is an experience in itself. The bright, contemporary space reflects the brand’s playful yet polished personality. “We wanted a space that feels alive, where the clothing pops off the floor,” Naomi said. The boutique features sleek white floors, colourful art on the walls, and a big screen showcasing the brand’s past campaigns and photo shoots.
“Shopping here is an experience. It’s not just about buying clothes; it’s about connecting with the brand and having fun while you’re here,” Naomi added.
The store also offers carefully curated accessories and unique jewelry pieces, many of which are one-of-a-kind. “We carry things that you can’t find anywhere else. The accessories are designed to complement our clothing, and the overall experience is meant to feel special,” she noted.
Photo: Rock ‘N Karma
From Street Vending to Yorkville Success
Naomi’s journey as a designer is as inspiring as the brand itself. She started selling her clothing as a street vendor on the corner of Yonge and Bloor in Toronto when she was a teenager. Over the years, her passion for fashion has remained unwavering.
“I’ve been making clothing since I was eight years old. When I was in high school, I’d make pieces and sell them on the street. I graduated in fashion design and worked for [Canadian fashion icon] Marilyn Brooks for a couple of years. Funny enough, this address—132 Cumberland Street—used to be Marilyn’s store. It’s come full circle,” Naomi shared.
Inside the new Rock ‘N Karma store at 132 Cumberland Street in Toronto. Photo: Rock ‘N Karma
“Yorkville Has Always Been the Heart of Toronto”
While Queen Street West is known for its creative, street-style vibe, Naomi feels that Yorkville provides the right kind of traffic for Rock ‘N Karma’s clientele. “The convenience of Yorkville is unmatched. There’s parking, there’s the subway, and it’s central for people coming from all over the city or beyond,” she explained.
Naomi also acknowledged the challenges of Queen Street West, citing ongoing construction and changes in the neighbourhood. “Queen Street was great for a time, but it was no longer the right fit for us. Yorkville has always been, and always will be, the heart of Toronto.”
Window display, as seen from inside the new Rock ‘N Karma store at 132 Cumberland Street in Toronto. Photo: Rock ‘N Karma
Looking Ahead: A Unique Shopping Experience
While Naomi remains open to future opportunities, her focus is on making the Cumberland Street boutique a flagship destination.
“This store is designed to host events, and it’s a space where customers can feel at home. We’re committed to offering a unique shopping experience with exceptional customer service,” she said.
Naomi’s passion for her work shines through every detail, from the meticulously crafted clothing to the vibrant energy of the new space. “You can’t buy karma, but you can create positive energy and an experience that people will remember. That’s what Rock ‘N Karma is all about.”
Final Thoughts: A Brand That Evolves With Its Customers
Over the past three decades, Rock ‘N Karma has evolved from a single pair of funky pants to an entire collection of eclectic, wearable art. With its return to Yorkville, the brand continues to celebrate individuality, inclusivity, and timeless design.
“We design for real people. We listen to our customers, and we create clothing that makes them feel confident and comfortable. That’s what makes us unique,” Naomi concluded.
Holiday shopping at CF Toronto Eaton Centre. Image: Dustin Fuhs
Canadian consumers are increasingly frugal as economic uncertainty looms, with Black Friday and Holiday spending reflecting careful decision-making, according to recent surveys conducted by DIG360 in partnership with the Angus Reid Group.
“This year, we observed that frugality isn’t just a trend but a dominant force,” said David Ian Gray, founder and strategist at DIG360. “Shoppers are prioritizing needs over wants, hunting for deals out of necessity, not excitement.”
David Ian Gray
The surveys, which took place immediately after Cyber Monday and the first week of December, paint a picture of cautious spending and growing cynicism about holiday promotions.
Black Friday Participation Holds Steady, but Cynicism Grows
Approximately 70% of Canadians engaged in Black Friday promotions this year, consistent with 2023 but markedly higher than pre-pandemic levels of around 50%. Despite this, Gray highlighted an underlying dissatisfaction among consumers: “Most shoppers rated the deals as poor, which aligns with retailers attempting to protect margins.”
In fact, 49% of those who made purchases reported encountering misleading advertisements or what they considered “fake discounts”. Gray noted this growing cynicism could present long-term risks for retailers: “The more consumers distrust the deals, the less effective these promotions will become.”
A notable shift in 2024 was the concentration of purchasing in the final week of November, which Gray attributes to last-minute decision-making. “More units likely moved, but they came at lower price points, benefiting value-focused retailers the most,” he explained.
Black Friday Promotions Overwhelm Many Consumers
The survey uncovered a notable consumer sentiment: promotional fatigue. Over half (56%) of Canadians reported feeling overwhelmed by the sheer volume of Black Friday advertising.
“This is a signal for the industry to re-evaluate its reliance on daily promotions,” said Gray. “The constant push of discounts – may deliver short-term gains, but it erodes brand loyalty and consumer trust over time.”
Postal Strike Impacts Online Shopping
With the Canada Post strike beginning mid-November, 64% of online Black Friday shoppers reported shipping delays. This figure was up slightly from 56% in 2023, signaling mild but notable disruptions.
Looking ahead, concerns about delivery timelines remain high: 71% of online Black Friday buyers expressed apprehension about receiving their holiday purchases on time. This uncertainty has made brick-and-mortar stores an attractive fallback.
“Physical stores are becoming more critical as we approach Christmas,” Gray observed. “When shoppers want certainty, they’re more likely to rely on in-store shopping.”
Holiday Gift Spending Down Amid Economic Constraints
As December began, 87% of Canadians planned to purchase gifts for the holiday season. However, the surveys revealed a significant divide along income lines:
21% of households earning under $50,000 reported they would not buy gifts.
In comparison, just 7% of households earning over $100,000 planned to skip gifting entirely.
Self-reporting spending is down for Holidays in every category, including travel, Holiday events, and dining out. Gray pointed to this as evidence of economic strain. “We’re expecting fewer gifts per household and smaller ticket items prioritized. It’s not that people are skipping gifting altogether, but they are being selective, postponing expensive items until the price is right.” The only constant reported was spending time with family and friends – just not at a cost.
Amazon Dominates, but Physical Stores Play Key Role
When asked where shoppers sought inspiration for holiday gift ideas, Amazon dominated the results:
63% of respondents turned to Amazon for ideas.
TEMU and Shein registered minimal influence, at 7% and 3% respectively.
Despite media attention, only 3% of shoppers reported using AI tools like ChatGPT for inspiration.
The physical store resurgence also stood out, with 49% of respondents identifying stores as a key source of inspiration, second only to Amazon. “The store remains omni-relevant, and 60% view it as the key channel in the final two weeks before Christmas,” said Gray. “Shoppers want certainty, and physical retail delivers that when online reliability falters.”
Notably, 41% of online shoppers had already experienced delayed, lost, or incorrect orders this season, further emphasizing the dependability of in-store shopping.
Boxing Day Outlook: Fewer Expectations for Deals
Looking ahead, 36% of holiday gift shoppers plan to shop on Boxing Day, a figure below the 50% participation seen on Black Friday this year. However, the surveys revealed deep skepticism: 72% of Canadians believe Boxing Day sales will offer no better deals than those seen on Black Friday.
“The consumer cynicism is clear,” Gray noted. “Shoppers are fatigued, and many simply don’t trust these promotions anymore.”
For retailers, this fatigue may signal a need to rethink their strategies. Rather than prioritizing deep discounts to drive unit sales, Gray suggests focusing on margins and overall brand value.
Second-Hand Gifting on the Rise
Another emerging trend is the mainstreaming of second-hand and vintage gifting. Approximately 31% of Canadian gift-buyers reported incorporating resale, thrift, or vintage products into their holiday shopping.
“The stigma around second-hand gifting appears to be diminishing,” Gray observed. “This reflects both a shift in consumer mindset and the ongoing focus on affordability.”
Performance Marketing and the Long-Term Risks for Retailers
One of the most significant concerns raised in the surveys is the impact of performance marketing at the expense of brand marketing on retail strategies. Gray emphasized that while constant discount-driven messaging can generate short-term sales, it comes at a long-term cost.
“Over-reliance on promotions trains consumers to expect deals, undermines brand equity, and cuts into margins,” he said. “Retailers need to strike a balance between driving immediate sales and building sustainable customer relationships.”
Conclusion: A Cautious, Cynical Consumer Base
The findings from DIG360 and Angus Reid Group highlight a Canadian consumer base that is increasingly cautious, frugal, and cynical about holiday promotions. While Black Friday participation remains high, satisfaction with deals is low, and shoppers are carefully monitoring their budgets.
Physical stores remain a vital player in the retail landscape, particularly as delivery challenges persist. Meanwhile, Boxing Day faces declining consumer enthusiasm as shoppers express doubts about the value of post-Christmas promotions.
“Retailers face a challenging end to 2024,” Gray concluded. “Those who prioritize transparency, value, and reliability will fare best in the face of economic uncertainty. Will this foreshadow more restructurings in 2025? Time will tell.”
Responsible procurement and the fight against climate change remain at the heart of its priorities, said the company in a news release.
“METRO notably disclosed for the first time its results against its five near-term science-based greenhouse gas emission reduction targets set in 2023. The company also continued its partnership with Sphera, formerly SupplyShift, to assess the practices of its suppliers and thus improve transparency within its supply chain. In terms of community investment, METRO continued to roll out its strategy and increased its corporate donations compared with 2023. Finally, the company maintained its efforts to promote a diverse and inclusive organizational culture, making progress towards its equity, diversity and inclusion objectives, it said.
“As we are halfway through implementing our Corporate Responsibility Plan for 2022–2026, our rigorous approach in this regard, anchored in our business practices, continues to create long-term value for the company and our stakeholders. Once again this year, the work of our teams enabled us to make progress on our priorities, and we are on track to achieve most of our objectives within the next two years, ” said Eric La Flèche, President and CEO of METRO.
Eric La Flèche
2024 Highlights
Responsible procurement
Continuing partnership with Sphera, formerly SupplyShift, to assess the performance of its suppliers against the principles of its Supplier Code of Conduct for responsible procurement:
19% of its active suppliers assessed, representing 60% of its purchases, i.e. twice as many as in 2023;
91% of these purchases made from suppliers who meet METRO’s expectations.
First disclosure of its results against its five near-term science-based greenhouse gas emission reduction targets set in 2023;
Significant improvement in waste diversion rate compared to 2023:
Stores: 72%, an increase of 6%
Distribution centres: 82%, an increase of 11%.
Reduction of single-use plastic
Transition of all Metro Go ready-to-eat meals in Quebec to aluminum containers: 91 tonnes of plastic replaced by aluminum;
Participation in a groundbreaking pilot project for sharing reusable containers in Ontario.
Socioeconomic contribution
Increase in our financial contribution compared to the previous year, reaching a total of $8 million in 2024, an 8% increase compared to 2023;
Over 8.5 million kilograms of food recovered in its distribution centres and stores participating in its One More Bite program, the equivalent of more than 17 million meals redistributed in its communities;
Creation of the METRO Shared Kitchens community network: investment of $2 million for the first edition.
With annual sales of more than $21 billion, METRO Inc. is a food and pharmacy leader in Québec and Ontario, providing employment to more than 97,000 people. As a retailer, franchisor, distributor, manufacturer, and provider of eCommerce services, the company operates or services a network of 995 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson, and some 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.
The brand has opened four locations this year, bringing its total restaurant count to 82. The three newest stores are part of the company’s second-generation restaurant strategy. This strategy focusses on securing locations with lower build costs, resulting in more attractive returns on the franchisee’s investments, it said in a news release.
The new second–generation locations are:
Promenade Mall, Thornhill (Opened September 2024): This location introduces a twist on the dining experience. Guests can now enjoy state-of-the-art golf simulators, marking a first-of-its-kind offering for the St. Louis brand.
Yonge & St. Clair, Toronto (Opened November 2024): Situated at one of Toronto’s busiest intersections, this prime location captures the vibrancy of midtown with a thriving after-work and dinner business.
Walker’s Line, Burlington (Opened November 2024): The newest St. Louis Bar & Grill is the brand’s second location in Burlington and is ideally situated in a neighbourhood with both a residential and commercial audience.
Steven Pelton
“In our continuous efforts to provide superior return on investment, St. Louis has adopted a second-generation restaurant strategy,” said Steven Pelton, President & CEO of Aegis Brands Inc. “Converting existing restaurants to St. Louis allows our franchisees to open much more quickly and with much less capital. This strategy creates a much better return on investment for our franchisees. This also allows for the opening of more restaurants in the near future.
“Additionally these new stores opened with our new menu which is designed to appeal to a broader audience. Wings are and have always been our hero product. However, the menu in these new stores provides expanded options for everyone.”
The early results from the three new St. Louis Bar & Grill locations have been positive, with increasingly strong traffic and a different sales mix compared to the existing stores in the chain. These results suggest the top line growth is not only a result of the location but also the new, more broadly appealing menu offerings. The new menu will launch in the rest of the St. Louis restaurants in the spring of 2025, said the company.
Aegis currently owns and operates St. Louis Bar & Grill.
St. Louis Bar & Grill is a 100% Canadian-owned and operated casual dining restaurant with 82 locations across Canada. It opened its first location in 1992.
Walmart Canada to match donations collected in Christmas pots placed in its stores up to $100,000 (CNW Group/The Salvation Army)
In collaboration with Walmart Canada, the 15th annual “Fill the Kettle Day” by the Salvation Army will play an instrumental role in ensuring the immediate needs of struggling Canadians are met during the festive season.
During Fill the Kettle Day on Saturday, December 21, Walmart Canada will match donations made by individuals to Salvation Army Christmas kettles in participating Walmart Canada stores nationwide, up to a maximum of $100,000.
John Murray
“Every day, more Canadians are struggling with tough decisions,” said Lieut.-Colonel John Murray, territorial secretary for communications. “A recent survey by The Salvation Army found that one in four parents ate less so their children or family members could eat. People across the country are facing impossible choices. With generous donors, supporters and partners such as Walmart Canada, The Salvation Army can be their answer and give hope to vulnerable people when it matters most.”
Since 2007, Walmart Canada and its customers have contributed over $44 million to The Salvation Army. This holiday season, Walmart Canada has already donated more than $55,000 to CTV Toy Mountain in Toronto, Ottawa and Winnipeg, assisting The Salvation Army in procuring new toys for distribution to children in need this Christmas, said the retailer.
Rob Nicol
“Walmart Canada takes great pride in helping people live better, which is why we’re very proud to support The Salvation Army every year,” said Rob Nicol, vice president communications and corporate affairs, Walmart Canada. “The Salvation Army does an incredible job bringing Christmas cheer and hope to Canadians in need. Fill the Kettle Day will get everyone in the giving spirit to help The Salvation Army hit their fundraising goal this holiday season.”
With a national fundraising goal of $22 million, the Christmas Kettle Campaign supports programs and services in 400 communities across the country. Last year, more than three million visits were made to The Salvation Army for assistance, said a news release.
When you donate to a Christmas kettle, funds raised stay in the local community to give help and hope at Christmastime and throughout the year. From substance-use recovery and housing supports to life-skills training and emergency disaster services, Canadians are breaking the cycle of poverty and looking to a future filled with peace and security, it said.
“Your generosity on Fill the Kettle Day will alleviate the daily burdens faced by those striving to make ends meet,” said Lieut.-Colonel Murray. “Together we can provide encouragement to those affected by poverty and help them overcome obstacles and achieve goals.”
The Salvation Army, an international Christian organization, started in Canada in 1882 and has since evolved into one of the country’s largest direct providers of social services. It operates in 400 communities across Canada and more than 130 countries worldwide,.
Bell Media, Canada’s leading media and entertainment company, has partnered with Shopsense AI, the leader in shoppable TV technology, to bring innovative second-screen shopping experiences to millions of Canadian viewers.
This collaboration marks Shopsense’s first expansion outside of the U.S. and the first integration of its powerful Commerce OS into Canadian entertainment programming. The partnership will debut on CTV’s popular daily shows The Good Stuff with Mary Berg andEtalk, said a news release.
Bell Media is now the fifth major media organization to partner with Shopsense since its launch in April, joining an impressive lineup that includes Paramount, Univision, Tastemade, and Nexstar Media Group (The CW), added the release.
Stewart Johnston
“Bell Media is always looking for new and innovative ways to strengthen connections and create an interactive viewing experience for our large and loyal audience,” said Stewart Johnston, SVP, Content and Sales at Bell Media. “Our partnership with Shopsense provides our viewers with a next-level viewing experience, while giving our clients valuable integrated opportunities to engage with consumers.”
The Good Stuff with Mary Berg, a lifestyle series with a strong focus on food, will offer foodie-focused gift guides, host-inspired fashion, and affordable home décor, creating a trendy and hyper-curated marketplace to recreate what viewers are seeing on screen. Meanwhile, Etalk, Canada’s longest running entertainment news program, will introduce a shoppable experience featuring accessible fashion inspired by today’s biggest stars, giving audiences the opportunity to easily recreate their favorite celebrity styles, said the release.
Brands will soon be able to sponsor second-screen experiences during pivotal moments on The Good Stuff with Mary Berg and Etalk, and across both series impressive social media channels, which have a combined reach of over 1.5M followers. A recent eMarketer study found that TV viewers prefer mobile devices to shop for products seen on TV. Engaging living room audiences on the second-screen alongside TV activations offers brands the opportunity to gain incremental time and influence with customers, it said.
Glenn Fishback
“Partnering with Bell Media and launching shoppable TV on CTV is a significant milestone for Shopsense,” said Glenn Fishback, CEO and Co-founder of Shopsense. “Canadians have trusted CTV as a leader in entertainment for years, and this collaboration allows us to enhance their viewing experience while providing innovative solutions for Bell Media’s advertisers.”
Shopsense AI’s Commerce OS offers a comprehensive suite of tools designed to enhance TV shoppability and activate consumers across multiple channels where they engage with content. The platform empowers broadcasters with innovative features like the Shopsense Lens, enabling viewers to use their smartphones to snap images of their screens and shop millions of products powered by proprietary AI. It also includes AI-curated Storefronts for fast online retail store deployment, SEO-optimized tools driving Organic Store Traffic, and Retail Media Ad Units that extend shoppable sponsorships across websites and apps. Additionally, its Shopper Intelligence provides detailed insights into consumer behavior, covering the entire purchase journey from consideration to conversion, explained the release.
“U.S. retailers such as Amazon, Walmart, and Best Buy represent a significant share of Canada’s e-commerce spending. Through the Shopsense AI partnership, Bell Media will gain access to these leading U.S. retailers, as well as prominent Canadian retailers such as Canada Goose, Roots, and SSENSE, expanding opportunities across both markets,” it said.
“Bell Media has plans to scale shoppability across its extensive content library, including award shows, scripted dramas, and unscripted programs, paving the way for immersive, interactive television experiences throughout their portfolio. Bespoke brand partnership opportunities for advertisers will be available through the Bell Media Brand Partnership team around brand inspired collections.”
Photo by Shopsense
Bell Media is Canada’s leading media and entertainment company with a portfolio of assets in premium video, audio, out-of-home advertising, and digital media. This includes Canada’s most-watched television network, CTV; the largest Canadian-owned video streamer, Crave, with a premium add-on to include STARZ; a powerful suite of specialty channels; the most-trusted news brand, CTV News; Canada’s cross-platform sports leaders, TSN and RDS; leading out-of-home advertising network, Astral; Québec’s fast-growing conventional French-language network, Noovo; the country’s leading radio and podcast app, iHeartRadio Canada; and a range of award-winning original productions, brands, and services.
As a content leader and partner in Sphere Media, Montréal’s Grande Studios, and Dome Productions, one of North America’s leading production facilities providers, Bell Media said it is committed to keeping Canadians entertained and informed.
Shopsense AI unlocks new revenues for media companies, like linear and streaming TV platforms, by making their original content instantly shoppable within their own e-commerce sites and mobile apps. The patent-pending, enterprise SaaS solution allows consumers to easily find and buy AI-curated collections of clothing, home goods, sports gear and other products inspired by what they see on their favorite shows, movies, sports events and livestream broadcasts. Offering a low-lift, no-SDK integration, the Shopsense platform allows publishers to quickly activate second-screen shopping experiences that keep viewers inside their content and commerce ecosystem, driving revenue, engagement, and loyalty.
