Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Icebug, the Swedish footwear brand known for its industry-leading traction technologies, has officially launched its Canadian e-commerce platform at icebug.ca. With this move, the brand aims to provide Canadians with direct access to its full range of functional and sustainably made footwear, designed to make outdoor activities safer and more enjoyable—even in slippery conditions.
The website marks a significant milestone for the company as it continues its North American expansion. Icebug’s innovative studded and non-studded footwear will now be available to customers across Canada at competitive pricing.
“We are excited to expand our presence as a brand in Canada and to bring our vision for functional, durable, responsibly made footwear to more people there,” said Sebastian Lundfall, Icebug’s Head of Communication. “Thanks to our incredible traction technologies, we’ve changed the way people in Scandinavia feel about winter, and we look forward to doing the same in Canada.”
Pioneers of Grip Technology
Founded in 2001 in Sweden, Icebug has earned a global reputation for its traction-focused designs. The company’s innovative BUGrip® technology is a standout feature, incorporating dynamic steel studs that provide exceptional grip on icy surfaces. Additionally, Icebug’s proprietary rubber compounds ensure reliable traction in wet and cold conditions, making them ideal for Canada’s diverse and often unpredictable climate.
“Canada is a country where winter means adventure,” said Tom Nilsson, CEO of Icebug. “Icebug’s mission is to help people embrace the outdoors year-round, and we’re excited to bring this experience to Canada.”
Footwear for All Seasons
With its Canadian e-commerce launch, Icebug is introducing a comprehensive range of footwear tailored to various activities and conditions:
Winter Boots: Designed to handle ice and snow with superior insulation and grip.
Walking and Hiking Shoes: Perfect for outdoor adventures year-round, with durable traction technologies.
Running Shoes: Studded options for icy trails and non-studded styles for wet or muddy paths.
Warm-Weather Footwear: Grip-focused options for coastal environments, urban settings, and slippery surfaces during rainy seasons.
This versatile lineup ensures that Icebug’s footwear appeals to outdoor enthusiasts, urban commuters, and anyone looking for reliable footwear in Canada’s challenging conditions.
Photo: Icebug
Sustainability at the Core
Beyond its technical innovations, Icebug is also leading the charge in sustainability within the footwear industry. Through its Follow the Footprints Initiative, Icebug provides transparency around the sourcing, manufacturing processes, and carbon footprint of each shoe style. This initiative allows customers to make informed purchasing decisions based on a product’s environmental impact.
Further solidifying its commitment to responsible business practices, Icebug holds the distinction of being the only footwear company in the world to achieve both Certified B Corp status and membership in 1% for the Planet.
These credentials reflect Icebug’s mission to balance business growth with environmental stewardship, setting a benchmark for sustainability in the global footwear industry.
About Icebug
Founded in Sweden in 2001, Icebug designs and manufactures innovative footwear with world-leading traction technologies. The company’s passion lies in creating functional, durable products that enable people to enjoy the outdoors safely, even in slippery conditions.
Driven by a strong commitment to sustainability, Icebug is a Certified B Corp and a member of 1% for the Planet, working to halve its carbon emissions by 2030. The brand aims to inspire a balance between people and nature through responsible business practices and innovative solutions.
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 3 days.
October 2024 has presented a boost for Canadian retailers, with overall sales showing a 4.5% YOY increase for All Stores and discretionary spend (All Stores Less Automotive, Food, and Pharmacies growing 3.6% YOY. This growth is on trend with what consumers were reporting, that they would be spending more going into the holidays (according to the Leger x RCC holiday study). However, this boost is significantly influenced by the automotive sector. When removed, growth in All Stores drops to 2.6% YOY, much more in line with inflation.
As noted, the automotive sector has emerged as a standout performer, with Motor Vehicle and Parts Dealers experiencing a robust 9.5% YOY growth. This surge is particularly noteworthy given the economic uncertainties that typically dampen big-ticket purchases. Several factors, as noted in JCWG’s US NRB for November, may be driving this unexpected boom:
New Model Releases: The introduction of 2025 vehicle models has likely stimulated consumer interest, drawing buyers to showrooms.
Favorable Interest Rates: Potential rate decreases may have made vehicle financing more attractive, encouraging consumers to make purchases they had previously postponed.
EV Incentives: After facing challenges in EV sales throughout 2024, automakers have responded with larger incentives, potentially driving a late-year surge in this segment.
The alcohol retail landscape presents a more complex picture. Beer, Wine, and Liquor Stores saw a modest 1.9% YOY increase, a slight improvement for a category that has been struggling throughout the year. However, this uptick doesn’t tell the whole story. Convenience Stores, which recently gained the ability to sell alcohol in some regions, are down -2.0% YOY and -3.7% YTD. This suggests that the introduction of alcohol sales hasn’t been the cure-all these retailers hoped for. The category could be selling, but it is now taking space up in stores that may have been used for faster-moving products in the past. Regardless, this is surprising considering the higher price point of alcohol compared to other products at convenience stores.
Electronics and Accessories Stores have shown remarkable resilience, with sales up 7.8% YOY. This performance is particularly impressive given the category’s struggles earlier in the year. Several factors may be contributing to this turnaround:
Prime Day Effect: Amazon’s Prime Day event likely boosted sales, with other retailers offering competitive deals to capture consumer attention.
Refresh Cycle: Many consumers who purchased electronics during the pandemic may now be looking to upgrade their devices.
Interest Rate Anticipation: The anticipated rate cut at the end of October may have encouraged consumers to make larger purchases they had been postponing, such as major appliances. Similarly, this uptick in electronics sales may also have had a positive effect on other high-ticket categories, such as Furniture Stores and Home Furnishings Stores (seeing modest growth of 1.6% and 2.9% YOY respectively).
As we look towards the end of Q4 and early 2025, JCWG is considering several key factors that will shape the retail landscape:
Will Black Friday and Cyber Monday sales align with early survey predictions of increased spending?
How will major weather shifts across Canada impact retail during early winter?
Can we expect a boost in spending due to the tax holiday and lower interest rates?
Will the anticipated US tariffs take effect in January?
Are tariffs the only significant impact on Canadian retail sales from the new US administration?
How are YOU preparing for the major upcoming changes to Canadian retail?
Canadian Retail Sales by Product Category, Same Month Comparison
Sales for the Month of October
Oct-24
Oct-23
YOY
All Stores
70,730,575
67,675,476
4.51%
Motor Vehicle and Parts Dealers
20,383,383
18,617,216
9.49%
Gasoline Stations
6,433,882
6,855,550
-6.15%
All Stores Less Automotive
43,913,310
42,202,710
4.05%
Food and Beverage Stores
13,054,942
12,487,959
4.54%
Supermarkets and Other Grocery Stores*
9,295,782
8,816,427
5.44%
Convenience Stores
720,255
735,159
-2.03%
Specialty Food Stores
911,263
848,831
7.36%
Beer, Wine and Liquor Stores
2,127,642
2,087,541
1.92%
Health and Personal Care Stores
5,939,257
5,671,507
4.72%
All Stores Less Automotive, Food, and Pharmacies
24,919,111
24,043,244
3.64%
General Merchandise Stores
9,348,167
9,067,437
3.10%
Furniture, Home Furnishings, Electronic and Appliance Stores
3,761,387
3,591,967
4.72%
Furniture Stores
1,215,232
1,196,382
1.58%
Home Furnishings Stores
736,771
716,287
2.86%
Electronics and Appliance Stores
1,809,384
1,679,298
7.75%
Clothing and Accessories Stores
3,740,024
3,526,887
6.04%
Clothing Stores
2,942,880
2,763,210
6.50%
Shoe Stores
409,798
414,611
-1.16%
Jewellery, Luggage and Leather Goods Stores
387,347
349,065
10.97%
Sporting Goods, Hobby, Book and Music Stores
3,840,014
3,739,828
2.68%
Building Material and Garden Equipment
4,229,519
4,117,125
2.73%
Miscellaneous Store Retailers
2,589,881
2,454,863
5.50%
Cannabis Retailers
456,274
449,162
1.58%
Canadian E-commerce Sales
Ecommerce Sales
Oct-24
Oct-23
Percent Change
Year-to-Date
37,772,654
35,456,880
6.53%
Year-Over-Year
4,185,855
3,799,403
10.17%
Canadian Retail Sales by Store Category, Year to Date Comparison
Year-to-Date, Ending October
Oct-24
Oct-23
YTD
All Stores
660,513,382
654,016,664
0.99%
Motor Vehicle and Parts Dealers
183,553,480
180,263,455
1.83%
Gasoline Stations
64,595,863
66,310,147
-2.59%
All Stores Less Automotive
412,364,039
407,443,062
1.21%
Food and Beverage Stores
127,248,553
125,958,705
1.02%
Supermarkets and Other Grocery Stores*
90,513,860
88,733,221
2.01%
Convenience Stores
7,229,377
7,510,394
-3.74%
Specialty Food Stores
8,762,472
8,398,053
4.34%
Beer, Wine and Liquor Stores
20,742,846
21,317,033
-2.69%
Health and Personal Care Stores
55,126,616
52,657,281
4.69%
All Stores Less Automotive, Food, and Pharmacies
229,988,870
228,827,076
0.51%
General Merchandise Stores
87,558,145
84,074,430
4.14%
Furniture, Home Furnishings, Electronic and Appliance Stores
34,417,486
34,836,762
-1.20%
Furniture Stores
11,433,488
11,781,201
-2.95%
Home Furnishings Stores
6,766,452
6,922,138
-2.25%
Electronics and Appliance Stores
16,217,547
16,133,420
0.52%
Clothing and Accessories Stores
32,642,818
32,552,675
0.28%
Clothing Stores
25,297,944
25,139,281
0.63%
Shoe Stores
3,830,122
3,911,293
-2.08%
Jewellery, Luggage and Leather Goods Stores
3,514,753
3,502,099
0.36%
Sporting Goods, Hobby, Book and Music Stores
36,268,682
37,516,923
-3.33%
Building Material and Garden Equipment
39,101,736
39,846,290
-1.87%
Miscellaneous Store Retailers
23,731,056
24,560,644
-3.38%
Cannabis Retailers
4,252,318
4,284,877
-0.76%
Retail Trade, Canada, All Stores, by Geographic Regions
Primaris also presents its inaugural ESG targets. Consistent with the REIT’s financial disclosures, Primaris aims to provide clear and transparent disclosure and communication about the REIT’s business and ESG practices, said the company in a news release.
Alex Avery
“Through a substantial amount of work across all our functional departments, Primaris is making great progress against our ESG plan,” said Alex Avery, Chief Executive Officer. “This year we made significant improvements in data collection across the organization, as well as year-over-year reductions to greenhouse gas emissions, and energy and water consumption. This is a testament to our very engaged and experienced property management team who are continuously looking for ways to optimize our properties. Primaris will continue to work to achieve our business and ESG objectives while acting in a manner consistent with our core values, and the best-in-class profile we have created, being a respected and sought-after partner and transaction counterparty, and a preferred place for employees to work.”
ESG Report Highlights
Governance
Achieved GRESB 3-star rating in 2024 (scored 80 on a 100-point scale, 15-point improvement);
Achieved an “A” MSCI ESG Rating, up from “BBB”;
Developed ESG targets;
Integrated ESG into employee performance review process;
Maintained open and direct engagement between Primaris’ Trustees and Primaris’ investors, in the absence of management; and
33% of Trustees are female.
Environmental
Implemented utility data management software system;
-4.9% change in like-for-like greenhouse gas (“GHG”) emissions;
-3.7% change in like-for-like energy consumption;
-9.0% change in like-for-like water consumption;
100% of shopping centres are green building certified; and
Incorporated green lease language into standard lease form.
Social
Obtained an 83% satisfaction score pursuant to its 2023 tenant engagement survey;
Females comprise of the following:
38% of executives;
54% of senior management;
56% of total employees; and
Formalized and launched tenant and community engagement program.
In 2024, as part of the ESG Plan, the REIT said it developed ESG targets informed by the material ESG factors and their link to key business performance metrics:
Metric
Target
Current
Measurement Period
Board of Trustee Diversity by Gender
30% female
33% female
Annually
Absolute GHG Emissions Reduction1
25% reduction by 2035
4.9% reduction
Against baseline year, 2022
Green Building Certifications
100% Shopping centres LEED or BOMA BEST certified
100%
Annually
Employee Engagement
≥85%
86%
Every 3 years
Tenant Satisfaction
≥85%
83%
Annually
GRESB
≥80%
80 points
Annually
1 This target includes scope 1, 2, and select scope 3 emissions. Select scope 3 emissions includes downstream leased assets such as tenant emissions.
Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests primarily in leading enclosed shopping centres located in growing mid-sized markets. The current portfolio totals 13.4 million square feet valued at approximately $4.1 billion at Primaris’ share.
NorthBoys store at Hillcrest Mall in Richmond Hill, ON. Photo: NorthBoys
NorthBoys, a specialty retailer focusing on upscale boys’ clothing, has opened its fourth location at Hillcrest Mall in Richmond Hill, north of Toronto. The expansion is part of a growing vision by Cary Ulster, co-founder of NorthBoys and owner of North Brands Group Ltd., who is dedicated to filling a niche in the Canadian retail landscape with stores tailored exclusively to boys’ fashion.
From One Plaza to Four Locations
Founded after a career in the pharmacy industry, Cary Ulster and his wife saw an opportunity to create a unique retail concept for boys. “We were looking for something else,” said Ulster. “There was this empty space near where we live, and we thought, ‘What kind of store should go in there?’ The idea just unfolded from there. We noticed there were no dedicated boys’ fashion stores in the market, and we wanted to change that.”
Cary Ulster
Ulster spent 14 years in retail pharmacy before transitioning to the fashion industry. “I sold the pharmacy business and was looking for my next venture. Seeing that gap in the market—especially for boys’ formal and casual wear—gave us the perfect opportunity,” he said.
The first NorthBoys store opened in Toronto’s Lawrence Plaza and has since expanded to include locations at CF Shops at Don Mills, SmartCentres Thornhill, and now Hillcrest Mall. Ulster’s other venture, NorthGirls, also operates out of Lawrence Plaza, catering to a similar niche for girls.
Hillcrest Mall: A Strategic Move
The new Hillcrest Mall store represents a strategic expansion into an indoor shopping centre. “Our first three locations are in busy outdoor strip plazas,” Ulster explained. “Hillcrest is different, but it felt like the right move to bring NorthBoys into a well-visited mall. The community here has a strong demand for premium children’s fashion.”
The Hillcrest location offers a similar upscale design as its predecessors, with carefully curated fashion collections. “The interiors are sophisticated. We wanted boys to have their own space, their own store experience,” said Ulster. “You don’t get that anywhere else. Even in department stores, boys’ clothing is often a small corner in the children’s section.”
NorthBoys store at Hillcrest Mall in Richmond Hill, ON. Photo: NorthBoys
A “Harry Rosen for Boys”
Ulster envisions NorthBoys as a specialized retailer akin to a smaller-scale Harry Rosen, but for young boys. “Parents are often surprised when they walk in for the first time,” he shared. “They’re shocked to find a store exclusively for boys—it’s not just a novelty; it’s a complete niche. Boys’ clothing has often been an afterthought in larger retail stores, relegated to small sections with limited options. We realized parents were struggling to find high-quality, stylish options tailored specifically for boys. NorthBoys fills that gap by offering a curated selection of premium brands, formal and casual wear, all in an environment that feels dedicated and upscale. It’s not just about filling a retail space—it’s about giving boys and their families a unique shopping experience they can’t find anywhere else.”
NorthBoys offers everything from casual wear to formal suiting, providing a one-stop shopping experience. “We coordinate everything—shirts, ties, pocket squares—and handle alterations as well,” Ulster said. “It’s a seamless process, and parents appreciate that. Plus, we hope they’ll pick up t-shirts, polos, and jeans on their way out.”
Ulster further emphasized the importance of creating a premium experience: “We wanted NorthBoys to feel like a boutique for boys, not an afterthought. The store interiors reflect that vision, with upscale designs and thoughtful details.”
Serving a Niche Market
The concept resonates with parents searching for premium, multi-brand fashion for their sons. NorthBoys features well-known brands like Psycho Bunny and Emporio Armani, alongside curated seasonal offerings. “We knew we had a niche,” said Ulster. “There’s nowhere else quite like it in Canada.”
The reception has been overwhelmingly positive, with parents highlighting the store’s unique offering. “Customer feedback is a big part of what shapes our business,” Ulster explained. “Parents love the idea, and they often say, ‘Why hasn’t someone done this before?’ Boys’ fashion has been underserved for too long.”
NorthBoys store at Hillcrest Mall in Richmond Hill, ON. Photo: NorthBoys
Growth Plans for NorthBoys and NorthGirls
With the success of NorthBoys, Ulster is eyeing further expansion, both in and beyond the Greater Toronto Area. “We see opportunities in Mississauga and other parts of Toronto,” he said. “But the demand isn’t limited to the GTA. There’s interest across the country. Calgary, Vancouver, and Montreal are all markets where we could see NorthBoys thriving.”
Ulster also hinted at future opportunities for NorthGirls. “We opened the girls’ store four years ago after parents kept asking for something similar,” he shared. “It’s been a success, and there’s definitely room for more locations. The response has been incredible.”
E-Commerce and Tailored Offerings
While brick-and-mortar remains the focus, NorthBoys also operates an e-commerce platform. “We sell a lot of suits online, which surprises some people,” said Ulster. “But suits are often an easier sell because parents know the size they need. Casual wear does well too. In terms of performance, our e-commerce platform complements our physical stores, but the in-store experience remains our focus. Parents often prefer to see and feel the products, especially for tailored items like suits, where alterations are critical. That said, online sales continue to grow, particularly for families who are repeat customers and know our sizing. Online shopping for children’s clothing is trending upward overall, but there is still strong demand for hands-on, personalized service, which our physical stores provide.”
The retailer emphasizes personalized service, both online and in-store. “We have trained staff who know the product and can guide parents through the process. The key is making it simple and stress-free,” Ulster added. “It’s that experience—in-store or online—that sets us apart.”
Future Opportunities
When asked about potential expansion beyond Canada, Ulster remained open but cautious. “Right now, we’re focused on Canada,” he said. “The U.S. is a possibility, but we have so much room to grow here first.”
The retailer’s thoughtful approach to growth reflects Ulster’s commitment to maintaining quality and service. “It’s not about opening stores for the sake of expansion—we want each location to deliver that elevated experience.”
Ulster also emphasized the role of feedback in shaping future plans. “We’re always listening to parents and their kids. Whether it’s about product lines or where to open next, their input is invaluable.”
As NorthBoys continues to expand, Ulster’s vision remains clear: to provide a sophisticated, tailored shopping experience for boys and their families. “The boys deserve their own store, their own space,” he said. “We’re giving them that, and it’s resonating.”
Happy Belly Food Group Inc., a leading consolidator of emerging food brands, has secured a location for its smash burger brand Rosie’s Burgers, located at 1542 Avenue Road in Toronto.
Rosie’s Burgers is a boutique quick serve restaurant brand serving original recipe smash burgers, poutine, onion rings, milkshakes and more.
Sean Black
“The Rosie’s brand continues to expand across Canada, and today’s announcement highlights our ability to secure AAA locations for our emerging brands,” said Sean Black, Chief Executive Officer of Happy Belly.
“With multiple locations now in construction and more on the way for 2025 we are about to realize significant growth thanks to our ability to open corporate stores as well as franchise locations in parallel paths.
“This location will be opened and operated corporately which is the second planned corporate Rosie’s location for 2025 along side our recently secured Shops of Don Mills location as we look to reinvest the free cash-flow back into the brand to deliver accelerated growth.
“When we acquired Rosie’s less than a year ago, the brand was operating just two locations in the GTA and had no franchising program in place. Today, Rosie’s has grown to four operational locations across two provinces, with an additional 12 locations either corporate-owned, assigned to franchisees, or under construction. This remarkable growth trajectory demonstrates the strength of the brand, and we have no plans of slowing down.”
The company said the new location is ideally situated in North Toronto’s affluent Avenue & Lawrence neighborhood, and set to open in Q2 2025.
“It is expected to expand Rosie’s customer base in a densely populated area that aligns with the brand’s target demographics, offering significant opportunities both in-store and through delivery. Toronto’s impressive growth and support for homegrown businesses make it an ideal market for expanding our brands. With its thriving food culture and vibrant dining scene, the city’s growing population and enthusiasm for emerging food brands create strong demand for Rosie’s delicious burger offerings,” it said in a news release, adding that its overarching strategy has always been to focus on the development and growth of emerging brands within the food sector.
Photo: Happy Belly Food Group
“We currently have 421 contractually committed retail locations from area developers across all emerging brands in the Happy Belly Portfolio – whether in development, under construction, or already open. As we open new stores, the Happy Belly footprint continues to grow. Our team is committed to sourcing and evaluating real estate, reviewing franchisee applications, and collaborating closely with area developers to support our asset-light franchising model. At present, several of our restaurant brands are simultaneously under construction, and we are excited to announce openings throughout 2024-2025. By focusing on securing high-quality franchisees and prime real estate locations across Canada, we will further strengthen our expansion efforts,” said Black.
The opening marks the brand’s return to Alberta after about seven years. The new shop is the sixth to open as part of an agreement between the brand and McMaster Group Holdings for expansion into the Vancouver and Calgary markets, said the company in a news release.
“I am honoured to have a role in bringing this iconic brand back to Alberta, and especially to the vibrant city of Calgary,” said Ashry. “Baskin-Robbins has a longstanding reputation for quality and innovation, and I’m proud to be part of a brand that has brought joy to millions of customers around the world.”
The company said the new shops feature the brand’s updated look and feel, which includes a bright and inviting interior, flexible and comfortable seating, animated digital menu boards and a more expansive cake display, The Cakery, with a growing assortment of customized cakes and pre-packs.
Baskin-Robbins, founded in the United States in 1945, is the world’s largest chain of ice cream specialty shops, with more than 7,700 retail shops in 33 global markets. Celebrating 53 years in Canada, Baskin-Robbins operates 116 locations in Ontario, Quebec, Manitoba, British Columbia and now Alberta. Baskin-Robbins is part of the Inspire Brands family of restaurants.
No HST on products in a grocery store in Toronto. Photo: Dustin Fuhs
The recently announced GST holiday in Canada has left small businesses scrambling to navigate its complex implementation. Retailers across the country are expressing concerns over increased costs, operational confusion, and the uneven application of the policy between provinces. While the government aims to stimulate spending during the holiday season, experts warn that the short-term policy is burdening businesses at the worst possible time.
“Small businesses must overhaul their IT systems to apply taxes on certain products—only to undo it two months later. It’s a logistical and financial headache,” Pimentel says.
Erica Pimentel, Accounting Professor at Smith School of Business at Queen’s University
A Costly and Complex Process
For many small businesses, the GST holiday requires significant changes to IT systems, inventory management, and staffing processes. Unlike major corporations with advanced IT infrastructure, small retailers are often left to manually update their systems to identify products eligible for the exemption.
“Large retailers like Amazon can use AI and sophisticated databases to determine which items are exempt,” Pimentel explains. “But a small business owner—like a pharmacist who sells shampoos or cosmetics—might not have those resources. They’re going through their inventory, line by line, to comply with the GST holiday.”
The financial burden of compliance extends beyond IT systems. Businesses must allocate staff to verify eligible items and explain the policy to customers, creating additional costs during an already busy holiday season.
“You need frontline staff to handle customer questions, because there’s going to be confusion,” Pimentel notes. “You can’t litigate tax rules at the checkout counter during Christmas rush.”
Uneven Policy Across Provinces
A major point of frustration for businesses and consumers alike is the inequitable application of the GST holiday across provinces. The combined GST and HST savings vary significantly depending on location—with Ontario shoppers saving 14% while Quebec residents only see a 5% reduction.
“If you operate in multiple provinces, you’re facing a logistical nightmare,” says Pimentel. “In Ontario, the customer expects 14% off. In Quebec, it’s only 5%. That means national retailers need to make province-by-province changes to their systems.”
For retailers located near provincial borders, the disparity could lead to unusual shopping patterns. Pimentel describes a scenario in which consumers might cross from Quebec into Ontario to capitalize on the greater savings.
“If you live in a border town, you’re incentivized to shop in Ontario rather than Quebec,” she says. “The savings add up, especially for big-ticket items like electronics or video games.”
Prime Minister Justin Trudeau’s government lifted the GST/HST from some essential items for a two-month period before and after Christmas. (Chris Young/Canadian Press)
Product Eligibility Adds Confusion
The policy’s unclear definitions of eligible products add another layer of complexity for small retailers. Pimentel highlights the arbitrary nature of the exemptions, which can lead to disputes at the point of sale.
“Take Star Wars figurines, for example. If you’re selling vintage collectibles, those are subject to GST. But if it’s a new toy aimed at children, it’s exempt,” she says. “How do you explain that to a customer who thinks they deserve the exemption?”
The confusion extends to digital products versus physical goods.
“If you buy a physical book, it’s exempt from GST. But if you buy an e-book, it’s not. The same applies to video games—physical copies are exempt, but digital downloads are not,” Pimentel explains. “It’s as though the policy doesn’t reflect modern consumer habits.”
Small Businesses Left to Absorb Costs
The financial burden of implementing the GST holiday disproportionately affects small businesses. Without government support or incentives, many retailers must absorb compliance costs while managing razor-thin margins.
“If the government had offered small businesses a tax credit or some kind of financial incentive, this might have been more palatable,” Pimentel says. “Instead, businesses are left to comply on their own, with no additional resources.”
Some retailers are even questioning whether it’s worth participating at all. Pimentel recounts hearing stories of businesses considering non-compliance, only to donate any GST mistakenly collected to charity.
“You can’t do that,” she warns. “If you collect GST, you have to remit it to the Canada Revenue Agency. There’s no way around it.”
Strategies for Small Businesses
Despite the challenges, Pimentel offers practical advice for businesses to navigate the GST holiday. Her primary recommendation is to document every decision and compliance effort to prepare for potential audits.
“Keep records of the analysis you’ve done and any conversations with accountants. The CRA says it’s only targeting egregious non-compliance, but you need to protect yourself,” she advises.
She also stresses the importance of setting clear internal policies and ensuring frontline staff are informed.
“Have a policy in place for determining what qualifies and stick to it. Make sure your staff are trained to answer customer questions, because confusion is inevitable,” she says.
A Perfect Storm for Retailers
The GST holiday comes at a particularly challenging time for Canadian retailers. Businesses are already grappling with inflation, higher shipping costs due to recent postal and port disruptions, and a weak Canadian dollar. Adding the operational burden of the GST holiday could push some small retailers to the brink.
“Retailers are dealing with increased costs from every direction,” Pimentel says. “Higher shipping rates, tariffs, inflation—it’s a perfect storm. And now, they’re being asked to implement a complex policy with no runway to prepare.”
Policymakers Need to Rethink
Pimentel believes the GST holiday highlights a broader need to reconsider Canada’s tax system. Instead of short-term measures, she suggests a more comprehensive approach to exempting essential goods and supporting small businesses.
“If the government wants to provide meaningful relief, they should consider making certain essential items permanently tax-exempt,” she says. “But these quick fixes don’t work. They create confusion and put an unfair burden on small business owners.”
As small businesses grapple with the GST holiday’s implementation, the question remains whether the policy will have its intended impact. Pimentel worries that the short-term stimulus won’t outweigh the long-term costs for retailers.
“We want to see more people shopping and spending during the holidays,” she says. “But if businesses are bogged down by compliance issues and consumers are left confused, I’m not sure it will have the desired effect.”
This festive season, Canadian budgets for holiday goods are seeing a merry increase of 32% year-over-year – the most significant rise since 2019, says a report and survey by JLL Canada.
“Deal seeking behaviour shapes holiday shopping strategies, with nearly 90% of respondents looking for bargains. Saving money remains a top priority, with Gen Z emerging as the biggest savers. Regionally, B.C. and Ontario residents are channelling the generosity of the Ghost of Christmas Present with larger budgets and greater reliance on social media for purchasing decisions, while Albertans are frugal about their holiday wish-lists,” said the report.
“Shopping centres remain the preferred avenue for holiday purchases, with 74% of respondents choosing this option. However, internet platforms are close behind at 70%, indicating a diversified approach to gift-sourcing.
“Nearly all respondents intend to go to shopping centres, with many planning to spend between 30 and 90 minutes there. The weeks leading up to Black Friday are proving to be the most popular shopping period, especially for online purchases. Gift cards, clothing, and shoes top the list of sought-after items, reflecting a trend toward practical and flexible gift options. Mass merchandisers remain the top physical-store type for Canadian holiday shoppers, followed by clothing and accessories stores, then discount or dollar stores. Amazon has strengthened its lead as the preferred choice for Canadian shoppers, followed by Walmart and Canadian Tire.”
The report said Canadians plan to spread 32% more joy, with budgets for holiday goods increasing from an average of $739 in 2023 to $971 in 2024. JLL said this is the most significant increase since it began tracking holiday budgets in 2019.
“Additionally, Canadians are putting more emphasis on experiences, with plans to increase spending from $310 to $553, a 64% increase from last year. As a result, when considering both goods and experiences, the share of experiences increased from 30 to 36%, while the share of holiday expenses such as food and decorations decreased from 21 to 17%.”
Photo by JLL
The report said the younger the generation, the more likely the respondent is to save. While nearly half of Zoomers choose to save, just over one third of Boomers do.
“For 42% of respondents, saving money remains a top priority this year. More Canadians will prioritize saving money or giving their friends and family what they want. At the same time, fewer Canadians will focus on avoiding the hassle and crowds and on having fun,” said JLL.
“More than half of Albertans will prioritize saving money this holiday season, compared with fewer than one-quarter of Saskatchewan shoppers. Saskatchewan is the only province where getting loved ones what they want is the top priority. In turn, Atlantic provinces are more likely to save money than the national average.”
The report said shopping centres remain the preferred shopping method in Canada, with 74% of respondents choosing this option, followed by online purchases from internet platforms at 70%.
Photo by JLL
“Most shopping methods will see increased use this year as shoppers seek more variety for their holiday gift giving. As a result, the average number of channels has increased from 2.4 to 2.7, indicating greater engagement across multiple channels. Buying online from brick-and-mortar stores with home delivery gained the most popularity this year, while buying online for curbside pickup saw almost no growth,” explained the report.
“More shoppers will visit shopping centres this holiday season, with nearly all respondents planning to join the festive fray. The average dwell time has also increased slightly from 65 to 66 minutes. With an expected increase in foot traffic in shopping centres, more shoppers plan to spend between 30 and 90 minutes, growing the percentage of respondents from 50 to 54%. In turn, the percentage of shoppers who spend less than 30 minutes or more than 90 minutes remains unchanged from last year’s holiday rush.
“In addition to those who go to eat and drink, those who spend more than 90 minutes also have a higher average holiday budget for goods and experiences. Those who spend less than 30 minutes, however, don’t necessarily have less to spend but tend to prefer to shop online for their festive finds.”
