Home Blog Page 438

Hudson’s Bay Faces Closure as Liquidation Looms

By
Craig Patterson
-
Image: Hudson's Bay Calgary

Hudson’s Bay Company ULC, the entity behind the 355-year-old retailer Hudson’s Bay and TheBay.com, has announced that it has been unable to secure the necessary financing to restructure its business, potentially leading to the full liquidation of the retailer. Hudson’s Bay stores across Canada could begin liquidation sales as early as next week, marking the end of an era for the country’s last traditional department store chain.

The company has spent the past week in discussions with landlords to find a path forward but has struggled to reach agreements. The financial strain comes after Hudson’s Bay sought creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on March 7, 2025, in a bid to restructure its operations. However, with only limited debtor-in-possession financing secured, the company now says a store-by-store liquidation process will likely be necessary.

On Monday of this week, all escalators and elevators were down at the Hudson’s Bay flagship store in downtown Vancouver. Shoppers had to walk up a set of fire stairs to get to the 6th floor men’s store. Photo: Lee Rivett

A Retail Giant’s Fall

Hudson’s Bay, Canada’s oldest retailer, currently operates 80 locations across the country, as well as TheBay.com. Through a licensing agreement, the company also oversees three Saks Fifth Avenue and 13 Saks Off 5th stores in Canada. The collapse of Hudson’s Bay would be a devastating blow to the Canadian retail landscape, impacting shopping malls, employment, and consumer choice.

The closure would see the loss of approximately 9,364 jobs across the country, while major shopping centres would be left with the task to fill the large anchor spaces occupied by Hudson’s Bay. Many of these locations encompass multiple floors and represent some of the largest tenant retail square footage in malls nationwide. Ontario would be the hardest hit, with 32 stores and more than half of the company’s employees located in the province.

Maje and Sandro women’s fashion concessions were dismantled at Hudson’s Bay Queen Street, coinciding the HBC’s bankruptcy filing.

The Search for a Last-Minute Solution

Liz Rodbell, President and CEO of Hudson’s Bay, said, “Our team has worked incredibly hard to identify a viable path forward, and our resolve is strengthened by the overwhelming support from customers and associates who have shared heartfelt stories about Hudson’s Bay and what our stores have meant to them. These powerful experiences remind us why we must continue to pursue every possible opportunity to secure the necessary support from key landlords and other stakeholders to save The Bay.”

However, with court proceedings expected to approve the liquidation plan on Monday, the timeline for securing an alternative solution is rapidly closing. If no new financial support is found, the liquidation of all Hudson’s Bay stores will begin next week, with final sales events marking the end of the retailer’s storied history.

With Hudson’s Bay now entering the liquidation phase, the retailer has set a firm deadline for the use of its gift cards. Customers will have until April 6 to redeem them, after which they will no longer be accepted. Shoppers can use their gift cards during the ongoing liquidation sales, providing an opportunity to maximize their remaining balances before the deadline. As of February 1, Hudson’s Bay customers collectively held approximately $24.1 million in outstanding gift card value, adding urgency for cardholders to use their funds before they become void.

Hudson’s Bay flagship, Queen Street Toronto. Photo: HBC

Negotiations with Mall Landlords Challenging 

Sources told Retail Insider this week that Hudson’s Bay, its joint-venture partner RioCan, and mall landlords were engaged in negotiations to determine which stores to keep open. Insiders said that by mid-week, only 23 Hudson’s Bay locations had been negotiated to remain open, far fewer than the initial goal of 40 stores under a restructured business model.

According to sources, Hudson’s Bay has been asking landlords to cover renovation costs and offer financial concessions to keep stores operating. However, some landlords, already frustrated by unpaid rent and financial losses tied to Hudson’s Bay, are hesitant to comply. Some are even prepared to reclaim the anchor spaces for redevelopment rather than continue leasing to the struggling retailer.

Struggles Leading to Collapse

Hudson’s Bay claims that its financial difficulties have been exacerbated by multiple factors, including subdued consumer spending, ongoing trade tensions between the U.S. and Canada, and reduced foot traffic in downtown shopping districts following the pandemic. In reality, much of the company’s struggles stem from years of underinvestment by its ownership, which failed to modernize stores, refresh product selections, and improve the overall shopping experience. 

Shoppers have encountered poorly maintained locations with limited staff, broken escalators, and other unresolved maintenance issues. The company also lacked an effective marketing strategy to attract and retain customers, while alienating vendors and not paying them. Cost-cutting measures and prolonged neglect ultimately weakened the chain, leaving it vulnerable at a time when leadership appeared to have cast Hudson’s Bay aside, focusing on the shiny newly formed Saks Global.

Hudson’s Bay owes more than $950 million to an extensive list of creditors, including major fashion brands such as Ralph Lauren, Chanel, Columbia Sportswear, Diesel, and Estée Lauder. Many of these brands have gone unpaid for months, as the retailer struggled to keep up with lease and supplier payments.

The company’s financial turmoil has also led to drastic actions by landlords. According to court filings, a landlord in Sydney, Nova Scotia, forcibly locked Hudson’s Bay out of a store, while bailiffs hired by Cadillac Fairview attempted to seize merchandise from its location in CF Sherway Gardens in Toronto.

Hudson’s Bay at Woodgrove Centre in Nanaimo, BC in November 2023. Photo: Lee Rivett.

The End of Saks Fifth Avenue and Saks OFF 5TH in Canada

The liquidation of Hudson’s Bay would also mean the closure of all licensed Saks Fifth Avenue and Saks OFF 5TH stores in Canada. Saks Fifth Avenue currently operates three locations in the country: two in Toronto and one in Calgary. The Toronto stores, which opened in early 2016, include a downtown flagship spanning three floors of the Hudson’s Bay building and another location at CF Sherway Gardens. The Calgary store, located at CF Chinook Centre, was the last Saks Fifth Avenue to open in Canada. Originally, the retailer had planned to expand to as many as 10 stores nationwide, but growth was halted after the Calgary opening.

The closure will also affect Saks OFF 5TH, the off-price retailer which currently has 13 stores across Canada. The chain, which launched its Canadian expansion in 2016, once operated 18 locations at its peak. However, according to sources, Saks OFF 5TH underperformed in the Canadian market, leading to multiple store closures in recent years. With the liquidation of Hudson’s Bay, Saks OFF 5TH will now fully exit the Canadian market.

Saks Fifth Avenue Toronto

A Historic End to an Iconic Brand

Founded in 1670, Hudson’s Bay is the oldest surviving corporation in North America and has played a pivotal role in Canada’s retail and economic history. What began as a fur-trading enterprise evolved into a national department store chain that defined Canadian shopping for generations. The closure of Hudson’s Bay would represent not just the end of a business but the conclusion of a centuries-old legacy.

The retail industry in Canada is at a crossroads, with the disappearance of traditional department stores accelerating in the face of e-commerce growth and shifting consumer preferences. If Hudson’s Bay ceases operations, it will leave a significant gap in the retail landscape, affecting everything from real estate to employment and consumer habits.

As the company awaits its final court ruling and any potential lifelines, Canada watches closely to see if Hudson’s Bay will be saved at the eleventh hour or if it will join Eaton’s, Sears Canada, Woodward’s, Simpson’s, Morgan’s and others in the annals of Canadian department store history.

Saks OFF 5TH Vaughan Mills. Photos provided by Hudson’s Bay Company.

What’s Happening on Monday:

The Hudson’s Bay Company will appear before the Ontario Superior Court of Justice (Commercial List) on Monday, March 17, 2025, at 9:00 AM, seeking approval for a range of motions that will determine the future of the struggling department store chain. The company is asking for additional financial lifelines and legal protections as it navigates its Companies’ Creditors Arrangement Act (CCAA) restructuring process.

If approved, Hudson’s Bay will have a temporary reprieve to continue operations while selling off inventory, transferring leases, and seeking a potential buyer. If denied, the retailer could be forced into immediate liquidation, accelerating the shutdown of stores across Canada.

Key Requests Before the Court

1. Extension of CCAA Protection Until May 15, 2025

Hudson’s Bay will request an extension of its CCAA protection, which prevents creditors and landlords from taking legal action against the company. The extension would allow HBC to continue restructuring efforts without the immediate risk of eviction from store locations or further financial penalties.

If the court grants this request, Hudson’s Bay will have two more months to execute its turnaround plan. However, if denied, the company could face forced closures and immediate asset liquidation, making it significantly harder to negotiate with landlords and potential investors.

2. Approval of $23 Million in DIP Financing

HBC is also seeking court approval for $23 million in Debtor-in-Possession (DIP) financing, which would provide much-needed capital to keep stores operating in the short term. The funding is being provided by a consortium of lenders, including Restore Capital LLC, Tiger Asset Solutions Canada ULC, and GA Group Solutions, LLC.

This financing is essential for the company’s day-to-day operations, including:

  • Paying rent and supplier obligations to keep stores stocked.
  • Funding liquidation efforts at stores that will close.
  • Covering administrative costs, including legal fees for the restructuring process.

Without this financial injection, Hudson’s Bay would quickly run out of cash, forcing an accelerated shutdown of operations.

3. Approval of a Liquidation Sale Plan

The court will also decide whether Hudson’s Bay can proceed with liquidation sales at select store locations and distribution centres. The company is seeking approval to engage a liquidation consultant to oversee the process, ensuring that remaining inventory and store fixtures are sold in an orderly manner.

If approved, Hudson’s Bay could begin clearance sales as early as next week at affected locations. The sales would run until June 15, 2025, unless extended by the court. However, if the request is denied, Hudson’s Bay may struggle to monetize its inventory, further straining its financial position.

4. Lease Monetization Strategy

Hudson’s Bay is also asking for approval to market and sell its store leases. The company plans to engage a lease monetization consultant to help find businesses interested in taking over leases at various locations.

This process will unfold in two phases, with a series of ten milestones designed to maximize the recovery of value from leases. If approved, the company may be able to generate additional cash flow from lease sales.

If the request is denied, landlords could move to terminate HBC’s leases early, eliminating any chance of recovering value from lease transfers.

5. Sales & Investment Solicitation Process (SISP)

Hudson’s Bay is actively seeking a buyer or investor to rescue part or all of the business. On Monday, the company will ask the court to approve a formal sales and investment process (SISP).

Key deadlines in this process include:

  • April 15, 2025 – Deadline for potential buyers to submit bids.
  • April 29, 2025 – If multiple offers are received, an auction may be held.

If no buyer emerges, Hudson’s Bay could be forced into a complete shutdown.

6. Financial Protection for Executives & Employees

HBC is also asking the court to approve measures aimed at protecting executives and key employees during the restructuring process:

  • Directors’ Charge Increase: The company is seeking to increase executive financial protection from $26.3 million to $49.2 million to shield leadership from personal liability during the bankruptcy process.
  • Key Employee Retention Plan (KERP): Hudson’s Bay is requesting $3 million to retain critical employees needed to oversee the restructuring and liquidation process.

These measures are designed to keep leadership and key staff in place as the company navigates this difficult transition.

What Happens if the Court Denies These Requests?

If Hudson’s Bay is denied court approval on any key motions, the consequences could be devastating:

  • The company may run out of money without DIP financing, forcing an immediate shutdown.
  • Landlords could terminate leases early, pushing HBC out of key retail locations.
  • Liquidation sales could stall, preventing HBC from generating much-needed cash flow.
  • If the company is unable to find a buyer through the SISP process, Hudson’s Bay could cease operations entirely.

Update: RioCan Could Trigger Liquidation on Monday

Documents filed Friday, and uploaded publicly early Saturday, show that RioCan Real Estate Investment Trust is seeking an order from the Ontario Superior Court of Justice to force Hudson’s Bay to fulfill its rent obligations under their joint venture lease agreements. If the court grants RioCan’s motion on Monday, it could have significant financial and operational consequences for both parties.

One of the core requests in RioCan’s motion is the immediate payment of all outstanding rent owed by Hudson’s Bay to the joint venture properties. Currently, HBC is required to pay rent only to cover head leases, leaving RioCan and the joint venture entities without full rental income. If the court rules in favour of RioCan, HBC would be required to make rent payments for all 12 properties held under the joint venture, amounting to approximately $10 million per month. Given HBC’s existing financial difficulties, this could further strain the company’s cash flow, potentially accelerating store closures and liquidation efforts.

Possible Termination of Joint Venture Leases

Should the court compel HBC to pay full rent and the retailer is unable to comply, RioCan could take steps to terminate lease agreements on its co-owned properties. This would give RioCan greater control over these retail spaces, allowing it to repurpose or lease them to new tenants. However, for major flagship locations such as Yorkdale, Square One, and downtown Montreal, repurposing these massive retail footprints could take years, leaving substantial gaps in some of Canada’s most prominent shopping centres and downtowns.

Impact on HBC’s Restructuring Efforts

HBC has been attempting to restructure under the Companies’ Creditors Arrangement Act (CCAA), seeking court protection while it negotiates with creditors. If RioCan’s motion succeeds, it may limit HBC’s ability to defer rent obligations, making it harder to attract investors or find a buyer for its remaining stores. Additionally, RioCan’s request to block any debtor-in-possession (DIP) financing agreements that prevent rent payments to the joint venture could further complicate HBC’s efforts to secure funding.

Implications for Shopping Centres and Landlords

For shopping centres where RioCan and HBC jointly own properties, such as Oakville Place and Georgian Mall, the court’s decision could impact future redevelopment plans. If RioCan gains the ability to re-lease these spaces, it could look to bring in new retailers or mixed-use developments, reshaping the commercial real estate landscape in these locations.

If RioCan’s motion is denied, HBC may continue to delay rent payments while pursuing restructuring efforts, potentially keeping some stores open longer. However, if the court rules in RioCan’s favour, HBC could face an accelerated timeline for closures and liquidations, forcing landlords to seek new long-term solutions for prime retail spaces left vacant by the struggling retailer.

The outcome of RioCan’s motion will be closely watched by retail industry stakeholders, investors, and landlords across Canada, as it may set a precedent for how creditors and joint-venture partners are treated in large-scale retail insolvency cases. The court’s decision on Monday could ultimately determine whether HBC has a path forward or if it will be forced to exit the Canadian retail market entirely.

Final Thoughts: A Defining Moment for Hudson’s Bay

Monday’s court hearing will be a decisive moment for Hudson’s Bay. If all motions are approved, the company will have a temporary lifeline to continue operations while working toward a possible sale. However, if key requests are denied, HBC could face immediate liquidation, bringing an end to a 355-year-old retail legacy.

The fate of Canada’s last remaining major department store chain now rests in the hands of the court.

More from Retail Insider:

Toronto Designers Market Rebranding as ‘Wilkes & Bowens’

By
Craig Patterson
-
Toronto Designers Market, soon to be Wilkes & Bowens, at the Holt Renfrew Centre at 50 Bloor Street West in Toronto. Photo: Craig Patterson

Toronto Designers Market, a retail incubator for Canadian designers, is marking its two-year anniversary at the Holt Renfrew Centre in Toronto. Located on the lower level of the shopping centre at 50 Bloor Street West, the store has become a destination for shoppers seeking unique, locally made fashion, accessories, and home decor. As part of its growth strategy, the retailer is undergoing a significant transformation, rebranding as Wilkes & Bowens within the next month.

The move signals an evolution in the retailer’s mission, with plans to expand its offerings by bringing in designers from across Canada while maintaining its commitment to local talent. Owner Karen Ferguson, who has been at the helm since acquiring the business in 2019, discussed the store’s journey, the rebrand, and the vision for the future.

Toronto Designers Market/Wilkes & Bowens owner Karen Ferguson with a Petit Futé award. Photo supplied

A Decade in the Making

Although the Toronto Designers Market has only been at its Bloor-Yorkville location for two years, the brand itself has a much longer history. Originally launched in Toronto’s Parkdale neighborhood in 2015 by Joshua James, the market has undergone several transitions in leadership and location. Ferguson, one of the original designers at the market, took ownership in 2019 and led its relocation in 2023 to the high-traffic Bloor-Yorkville area.

“We’re actually celebrating two birthdays,” Ferguson said. “Toronto Designers Market has been around for 10 years, but it’s been two years since we relocated to Holt Renfrew Centre.”

The shift to a more upscale location came with both opportunities and challenges. “This space is completely different from our previous one in Parkdale. We had to rebuild and introduce ourselves to a new audience, but it has given us access to a more affluent clientele and a prime retail environment,” she added.

Toronto Designers Market, soon to be Wilkes & Bowens, at the Holt Renfrew Centre at 50 Bloor Street West in Toronto. Photo: Craig Patterson

Rebranding to Wilkes & Bowens

Ferguson is preparing for another major change—renaming Toronto Designers Market to Wilkes & Bowens. The name holds deep personal significance for her.

“Wilkes is my mother’s maiden name, and Bowens is my maiden name—both represent my foundation,” Ferguson explained. “I want to build on that foundation and translate it into the business.”

Beyond sentimental value, the rebrand is also a strategic move to support future expansion. “With ‘Toronto Designers Market,’ the name itself is limiting if we want to expand beyond this city. You can’t really have ‘Toronto Designers Market, Vancouver Edition,’” Ferguson noted. “Wilkes & Bowens allows us to create something that isn’t confined to one city, opening the door to future locations across Canada and even internationally.”

Toronto Designers Market, soon to be Wilkes & Bowens, at the Holt Renfrew Centre at 50 Bloor Street West in Toronto. Photo: Craig Patterson

Expanding Canadian Talent

A core component of the rebrand involves bringing in more designers from across the country. “Over the last two years, I’ve been scouting brands in Montreal, Vancouver, and Calgary—there is incredible talent across Canada,” Ferguson said. “We’re expanding our reach so that it’s not just Toronto-based designers but a true reflection of Canadian creativity.”

While Toronto Designers Market has always provided emerging designers with a platform to test their products in a retail setting, the rebrand will emphasize mentorship and industry education. “We don’t just sell their products; we provide them with resources and knowledge on how to scale their business,” Ferguson said. “From understanding wholesale pricing to learning about UPC codes and fulfilling large purchase orders, we help designers prepare for the next step in their retail journey.”

Toronto Designers Market, soon to be Wilkes & Bowens, at the Holt Renfrew Centre at 50 Bloor Street West in Toronto. Photo: Craig Patterson

A Testing Ground for Emerging Brands

Several designers who launched their brands at the market have successfully expanded into their own retail spaces. One example is designer Ross Mayer, a veteran in the industry who used his time at Toronto Designers Market to re-engage with customers before opening his own store.

“Ross has been designing for over 25 years, and he spent the last two years testing the market with us,” Ferguson said. “It helped him understand his customer base in Yorkville and solidify his decision to open his own boutique.”

This process of incubation has been a defining feature of the market. “A lot of stylists and industry professionals tell new designers that they should come to us first,” Ferguson added. “It’s an opportunity to test their brand in a real retail environment before making the leap to their own store.”

Toronto Designers Market, soon to be Wilkes & Bowens, at the Holt Renfrew Centre at 50 Bloor Street West in Toronto. Photo: Craig Patterson

Evolving Consumer Behaviour and Retail Challenges

The past two years have also brought challenges, particularly in the post-pandemic retail landscape. Ferguson has observed shifts in consumer behaviour, with many shoppers still exercising caution in their spending habits.

“Retail is still recovering from the pandemic. While the government says things are back to normal, consumer mentality hasn’t fully shifted,” she explained. “People are more hesitant, cautious with their spending, and quick in their shopping visits.”

In addition to consumer hesitancy, the store has faced security challenges, including two break-ins. “Shrinkage is a reality for any retailer, but the break-ins were a tough blow,” Ferguson admitted. “Thankfully, Yorkville has a strong retail community and dedicated police presence, which helps create a supportive environment.”

Toronto Designers Market, soon to be Wilkes & Bowens, at the Holt Renfrew Centre at 50 Bloor Street West in Toronto. Photo: Craig Patterson

The Future of Wilkes & Bowens

Looking ahead, Ferguson envisions expanding beyond Toronto. “My dream has always been to take this concept to other places—whether that’s another Canadian city, the Caribbean, or even Paris and London,” she said. “We want to create a space where Canadian designers can showcase their work internationally.”

As part of the transition, the store will launch a new marketing campaign to introduce the Wilkes & Bowens name. “We’ll start with social media, our website, and possibly some in-store events and contests,” Ferguson shared.“We want to engage our customers and make them part of this journey.”

Despite the challenges of rebranding, Ferguson remains optimistic. “It’s been a wild journey, but it’s also exciting. We’re not just changing a name; we’re building something bigger—a brand that can grow and represent Canadian designers on a larger stage.”

More from Retail Insider:

Fraud Cases Drop in Canada, but Risks Persist: Moneris Report

By
Craig Patterson
-
Retail Fraud. Image: Retail Insight Network

Moneris has released new data indicating a 15% decrease in reported fraud cases across Canada in 2024 compared to the previous year. While this decline is an encouraging sign, experts caution that businesses must remain vigilant, as unreported fraud and evolving tactics continue to pose significant risks.

Moneris’ latest report suggests that improved fraud prevention measures and heightened awareness have contributed to the overall drop in fraud cases. However, Yale Holder, Vice President of Customer Experience at Moneris, warns that the numbers may not tell the full story.

Yale Holder, Vice President of Customer Experience at Moneris

“Seeing a significant drop in reported fraud cases, down almost 15 per cent, is encouraging but is a result we’re cautiously optimistic about. Often cases go unreported, and actual fraudulent activity is almost always higher than the data indicates,” said Holder.

The company’s findings highlight key fraud trends that businesses need to monitor, ensuring that they remain proactive in mitigating risks.

MOTO Fraud: The Most Prevalent Threat

Mail Order/Telephone Order (MOTO) fraud remains the leading fraud type in Canada, accounting for 62% of all reported cases in 2024. Despite a 12% decrease from 2023, this method continues to be a major concern.

MOTO fraud occurs when fraudsters provide card details over the phone or through mail, bypassing the need for card-present verification. This method is particularly susceptible to chargeback fraud, where a fraudulent transaction is later disputed by the legitimate cardholder.

To combat MOTO fraud, businesses are encouraged to adopt secure online payment gateways like Moneris Checkout, which integrates fraud prevention tools such as 3D Secure 2.0. This technology shifts chargeback liability to the card issuer, reducing financial exposure for merchants.

Rise in Refund Fraud and Terminal Theft

Another alarming trend in 2024 is the increase in fraud cases related to refund abuse. According to Moneris, refund fraud now accounts for nearly 30% of reported fraud cases, representing a 9% year-over-year increase. This category includes refunds processed on stolen devices, employee-led refund fraud, and abuse of return policies.

Refund fraud has become the second most common fraud type in several provinces, including Ontario, Quebec, and Manitoba. Businesses can protect themselves by implementing stricter administrative controls, such as requiring passwords for refund transactions and limiting access to refund approvals.

Meanwhile, terminal theft remains a growing issue, with refunds processed on stolen payment devices increasing by 3% year-over-year. Now accounting for 16% of all reported fraud cases, stolen terminals enable criminals to process unauthorized refunds or transactions.

To mitigate terminal theft, Moneris advises businesses to:

  • Never leave payment terminals unattended
  • Conduct regular security checks on devices
  • Store terminals out of sight when not in use
  • Ensure transactions take place in view of security systems
  • Immediately report stolen devices to their payment processor

Fraud trends vary by region, with MOTO fraud remaining the top concern nationwide. However, refund fraud on stolen devices ranks as the second most common fraud type in most provinces.

Regional Breakdown:

  • Ontario (39% of cases): MOTO fraud remains the most common, followed by refund fraud on stolen devices.
  • Quebec (29% of cases): MOTO fraud leads, with refund fraud on stolen devices as the second most reported.
  • Alberta (13% of cases): MOTO fraud is the leading fraud type, while account takeover and stolen identity cases have increased.
  • British Columbia (8% of cases): MOTO fraud is the most common, with an increase in card-present fraud cases.

The Future of Fraud Prevention

Fraud prevention strategies continue to evolve alongside emerging threats. Moneris emphasizes the importance of staying informed about fraud trends and implementing best practices to mitigate risks.

“Fraud is often a crime of opportunity. Ensuring you have applied passwords to your terminals and using administrative restrictions that are limited to only authorized employees can help to significantly reduce your risk of experiencing this fraud type,” said Holder.

Businesses are encouraged to take proactive measures, such as adopting advanced fraud detection tools, conducting employee training, and maintaining strong internal controls. As fraudsters develop new tactics, staying ahead requires ongoing vigilance and a commitment to security.

More from Retail Insider:

McArthurGlen Vancouver Expands with New Brands & Phase Three

By
Craig Patterson
-
McArthurGlen Designer Outlets in Vancouver. Image supplied

McArthurGlen Designer Outlet Vancouver Airport continues to strengthen its position as one of Canada’s most successful outlet destinations with the addition of new tenants and plans for a long-anticipated third phase of development. Opened in 2015 as a joint venture between McArthurGlen and Vancouver Airport Authority, the open-air shopping centre has become a go-to destination for both locals and international travelers seeking premium and luxury brands at discounted prices. 

Officially known as McArthurGlen Designer Outlet Vancouver Airport, the centre operates as a collaboration between McArthurGlen Group and Vancouver International Airport Authority, making it a unique retail destination with strong connectivity to international visitors.

New Additions to the McArthurGlen Brand Lineup

The retail mix at McArthurGlen Vancouver is evolving with the addition of new brands, including Marc Jacobs, which has opened its third Canadian location—and the only one on the West Coast. The store initially launched with accessories, including its well-known tote bags, wallets, and other leather goods, with ready-to-wear fashion expected to arrive at a later date.

Robert Thurlow, General Manager of McArthurGlen Designer Outlet Vancouver Airport

“We continue to add to our premium and luxury mix, and Marc Jacobs is a fantastic addition,” said Robert Thurlow, General Manager of McArthurGlen Designer Outlet Vancouver Airport. “Their bags are incredibly popular, and we’re excited to have them here.”

In addition to fashion retailers, McArthurGlen is also enhancing its food and beverage options with the upcoming opening of Kinton Ramen. The new ramen shop, set to open in late summer, will add to the diverse dining selection already available at the centre, which includes Mexican, Italian, Chinese, Japanese, American, and Canadian cuisine.

“We’ve seen the growing popularity of ramen in Vancouver, and we’re thrilled to introduce Kinton Ramen to our centre,” said Thurlow. “There are some fantastic ramen spots downtown that consistently have lineups out the door. This addition will give our shoppers another great option.”

Marc Jacobs store at McArthurGlen Designer Outlet Vancouver Airport. Image supplied

McArthurGlen’s Shopper Demographics: A Mix of Locals and Tourists

McArthurGlen Vancouver has long been a favourite among local shoppers and international visitors alike. Thurlow revealed that approximately 70% of the centre’s visitors are locals living within a 90-minute radius, while the remaining 30% are international tourists.

“Our local shoppers are the real bread and butter of our business,” Thurlow said. “But we also see a significant number of international visitors, particularly from markets like the UK, Germany, Mexico, and parts of Southeast Asia. The increase in direct flights to Vancouver, including from Singapore and the Philippines, has helped sustain international foot traffic.”

While visitor numbers from mainland China have not yet returned to pre-pandemic levels, Thurlow noted that other international markets have compensated for the gap.

A model with a Marc Jacobs handbag at the McArthurGlen Designer Outlet Vancouver Airport. Image supplied.

Expansion Plans: A Long-Awaited Phase Three

McArthurGlen’s success has created strong demand for additional retail space, leading to ongoing discussions about a third phase of expansion. The centre, which originally opened in 2015, expanded once already with the completion of its second phase in August 2019.

“We are currently 99% leased and trading, which is an enviable position to be in,” said Thurlow. “However, we don’t have the 5,000 square feet that some brands are looking for, which makes a potential phase three development incredibly important.”

The proposed third phase would be located in the northeast corner of the property. Though an official timeline has not been announced, Thurlow suggested that news could be coming soon.

“I can’t share a date just yet, but I hope to be able to provide more details imminently,” he said. “Given our high occupancy levels and continued demand from brands looking to enter the centre, we see this as a natural next step.”

McArthurGlen Designer Outlet Vancouver
Image: McArthurGlen Designer Outlet Vancouver

McArthurGlen Vancouver: One of Canada’s Top-Performing Outlet Centres

Since its opening, McArthurGlen Vancouver has consistently ranked among Canada’s best-performing outlet malls. The open-air design, inspired by a European village, has made it a unique retail destination in Metro Vancouver.

“We have gone from strength to strength and are now among the top five centres in Canada in terms of sales per square foot,” Thurlow stated. “One of the keys to our success has been offering aspirational brands at discounted prices, which attracts a broad demographic of shoppers.”

Unlike Toronto Premium Outlets, which features a heavy luxury presence, McArthurGlen Vancouver takes a more balanced approach, incorporating a mix of mid-range and premium brands to appeal to a wider customer base.

“Vancouver is a different market than Toronto,” said Thurlow. “We want to maintain an assortment that appeals to a broader audience while still catering to those looking for premium and luxury brands.”

McArthurGlen Designer Outlet in July 2023. Photo: Lee Rivett.

A Bright Future for McArthurGlen Vancouver

With strong demand from retailers, a solid mix of local and international shoppers, and a third phase of expansion on the horizon, McArthurGlen Vancouver remains one of the most successful retail outlets in Canada.

“I think people love the experience here—not just the shopping but the atmosphere,” said Thurlow. “You can grab a bubble tea, soon a bowl of ramen, and watch flights take off from Vancouver International Airport. It’s a unique and enjoyable setting.”

More from Retail Insider: 

e.l.f. Cosmetics celebrates women in sports

By
Mario Toneguzzi
-
Source: e.l.f. Cosmetics
Source: e.l.f. Cosmetics

e.l.f. Cosmetics recently hit the ice this 2024/2025 season with EYES.LEAFS.FACE. – a first-of-its-kind beauty sponsorship of the NHL’s Toronto Maple Leafs. 

The company is celebrating women in sports – from athletes to fans – by bringing beauty to hockey lovers in a way that only e.l.f. Cosmetics can.  

Patrick O’Keefe, Chief Integrated Marketing Officer of e.l.f. Beauty said: “At e.l.f. Cosmetics, we’re all about breaking boundaries and making the best of beauty accessible for every eye, lip, and face. In Canada, we’ve built a strong and growing presence through major retailers like Shoppers Drug Mart and Walmart, as well as our online channels at elfcosmetics.com and amazon.ca. We’re committed to meeting our Canadian community wherever they choose to shop—whether that’s in-store, online, or in the grocery aisle—so everyone can experience our high-quality, innovative products at an extraordinary value.”

O’Keefe said supporting women in sports is core to who the brand is.

“At e.l.f., we challenge the status quo and drive cultural change by showing up in places you might not expect a beauty brand—like Indy 500, the Billie Jean King Cup, the National Women’s Soccer League, the Wonder Women of Wrestling Tournament, and the Professional Women’s Hockey League, where we’re gearing up for year two of our partnership this month,” he said.

“Beyond the arena, we’re a founding partner of iHeartMedia’s new iHeart Women’s Sports Audio Network—the first audio platform dedicated exclusively to women’s sports—amplifying both prominent and emerging female athletes.

“We believe that sports and beauty share a powerful ability to spark passion, self-expression, and fandom, so we’re constantly looking to empower legendary female athletes and fans—on the field, in the rink, and everywhere in between.”

He said Toronto is a vibrant hub for sports culture, and the Toronto Maple Leafs are one of the most iconic hockey franchises in the world. 

“With nearly half of Leafs fans identifying as women, the partnership perfectly aligns with our commitment to inclusivity and empowerment. By joining forces with the Leafs, we can create meaningful, tailored experiences for a community that’s often overlooked in pro sports marketing—and that’s exactly what e.l.f. is all about.

“We introduced our EYES.LEAFS.FACE. campaign during the 2024-25 regular season to celebrate the intersection of beauty and hockey. This multi-faceted campaign spans pop-up sampling at select Leafs home games, in-arena advertising that connects our fans to the e.l.f. world, and interactive social media activations that bring Leafs Nation along for the ride. 

“Our ultimate goal is to foster creativity, promote inclusivity, and energize the hockey community.”

Genevieve with Power Grip Setting Spray (84759)

O’Keefe said more similar partnerships could be in the works.

“Our commitment to women in sports—from hockey to wrestling to racing—remains steadfast. We’ve been fortunate to collaborate with trailblazers like the Billie Jean King Foundation, and we’re always exploring new ways to amplify the voices and stories of female athletes and fans. 

“Canada is a key market for us, so you can definitely look forward to seeing e.l.f. extend our values of inclusivity, positivity and accessibility throughout the sports world here, including continued involvement with the Professional Women’s Hockey League (PWHL) and other groundbreaking opportunities on the horizon.”

Recently, e.l.f. announced a partnership with the National Women’s Soccer League, LLC. as the Official Makeup and Skin Care Partner of the NWSL in the U.S.

Ariel with Power Grip Setting Spray (84759)

“Of the few women who make it to C-Suite, 94% of them played sports. Access to sports provides leadership and life lessons needed later in life. The next generation can only dream bigger and reach higher if they have a firm starting point. Our partnership with the National Women’s Soccer League (NWSL) is that gateway to opportunities,” said Kory Marchisotto, Chief Marketing Officer, e.l.f. Beauty. 

“Soccer’s global momentum is unstoppable. In the U.S. specifically, soccer attracts the youngest, most inclusive and diverse fanbase, with 54% under age 45 and 40% fans of color. By breaking barriers and connecting communities with the NWSL, e.l.f. furthers its mission to democratize access for every eye, lip and face. We help level the playing field so everyone wins.”

Din Tai Fung preparing for Canadian debut

By
Mario Toneguzzi
-
Source: Din Tai Fung
Source: Din Tai Fung

Din Tai Fung is set to make its long-awaited debut in Canada. 

Opening at 1132 Alberni Street in downtown Vancouver, this iconic restaurant chain will bring its globally acclaimed cuisine to local diners, while contributing meaningfully to the city’s economy.

Jessica Chao
Jessica Chao

Jessica Chao, Vice President of Brand Marketing, Din Tai Fung North America, said the brand’s journey began in 1958 in Taiwan, when Bing-Yi Yang and his wife, Pen-Mei Lai opened a cooking oil shop.

“In 1972, they transformed it into a dumpling and noodle restaurant, unknowingly setting the stage for what would become a world-renowned culinary icon known for its Xiao Long Bao (soup dumplings),” she said. 

“Now, there are over 165 locations in 14 countries, including Canada. What

has made Din Tai Fung stand the test of time is really its commitment to quality in ingredients and service, as well as precision and consistency in its culinary craft. The standard the brand has set for Asian dining has earned Michelin stars and guest love from all over the world.

“In 2000, our founder’s son Frank Yang opened the first U.S. location in Arcadia, California, now home to our North America headquarters. Today, Din Tai Fung North America remains family owned and operated to this day, under the third generation leadership of Co-CEOs Aaron and Albert Yang. We have restaurants across California, Washington, Oregon, Nevada, and New York, with new openings in Santa Monica, CA, and Vancouver, Canada, bringing the total to 17 locations to-date.

1132 Alberni Street in Vancouver. Image: Apple Maps

What makes Din Tai Fung a standout is its meticulous craftsmanship, precision, and ability to create an experience that feels both elevated and welcoming, added Chao.

“The combination of time-honoured recipes executed consistently each time, ambiance rooted in modern comfort, and inviting service from each team member is what keeps our guests coming back. At the heart of our brand is the iconic Xiao Long Bao, with each dumpling meticulously hand-folded with 18 precise folds and weighing 21 grams to achieve the perfect balance of delicate wrapper, rich broth, and flavourful filling.

“This is known as the ‘Golden Ratio,’ and this technique has defined the artistry of Din Tai Fung in many ways. Din Tai Fung is much more than just a restaurant. In a way, we offer a cultural experience, bringing authentic Taiwanese flavours and traditions to the world. We see our restaurants as a gathering place– a haven of sorts– where family and friends can take a pause from their busy day to connect over delicious, quality food. The ambiance is upscale yet always approachable and comfortable. At the end of the day, it’s always about great conversations and great food for us.”

Source: Din Tai Fung
Source: Din Tai Fung

Chao said the Vancouver location will open this spring.

“It will be more than just a restaurant; it will be an immersive cultural experience, staying true to the brand’s high standards for design and hospitality. Information on the overall space will be revealed as the restaurant launches, but one thing’s certain—this location will be designed to accommodate Vancouver’s culinary expectations,” she added.

“Choosing Vancouver for Din Tai Fung’s Canadian debut wasn’t a coincidence. Known as a city that celebrates multiculturalism and world-class food, Vancouver is a natural fit for Din Tai Fung. Its strong food culture, large Asian population, and appreciation for high-quality dining experiences all played a role in the decision,” explained Chao.

“Not only does Din Tai Fung bring a globally renowned brand to the city, but its opening is also set to make a significant impact on Vancouver’s dining landscape by creating 300 new jobs for the industry. We’ve seen how Vancouverites celebrate food and culture in ways that align perfectly with our values at Din Tai Fung. It felt like the perfect place to introduce what we offer to Canada.”

The restaurant is hiring for a diverse range of positions, from operational staff to skilled Dumpling Chefs. 

“We believe that our biggest asset is our team members, and our philosophy is that the care we reflect in, reflects out to our valued guests and communities. When we take care of our team members’ physical, financial and career well-being, they, in turn, will take care of our guests and restaurants,” she said.

“Our people-first culture aims to create long-term success for team members with top compensation and benefits, progressive learning & development program, and harmonious work life integration.”

Applicants interested in working at Din Tai Fung can head to www.dtf.com/careers to submit their resumes.

“There’s so much potential in the Canadian market! For now, we’re focused on making our milestone opening in Vancouver deliver on the best guest experience that our brand is known for,” she noted.

Mario Negris and Martin Moriarty of Marcus & Millichap negotiated the lease deal for the Alberni Street location.

Chick-fil-A launching Mac & Cheese on Canadian menu

By
Mario Toneguzzi
-
Source: Chick-fil-A
Source: Chick-fil-A

Cheese lovers rejoice. Chick-fil-A Mac & Cheese is officially joining the Canadian menu as the second permanent addition since the brand’s first restaurant opened in 2019.  

Starting March 17, Mac & Cheese will be available to be enjoyed on its own or as a side option
with any entrée, Kid’s Meal or catering order at all Chick-fil-A locations in Canada.

“Baked in-restaurant throughout the day, Chick-fil-A Mac & Cheese is a creamy classic including a
blend of cheeses – Grana Padano, Parmigiano Reggiano, Asiago, Pecorino Romano and Cheddar – mixed with macaroni noodles and other ingredients. Topped with a crispy, toasted crust of baked Monterey Jack and Cheddar cheese – it’s a perfect combination of flavour and texture the whole family is sure to love,” said the restaurant chain.

Gaana Nagaraj
Gaana Nagaraj

“As the most requested menu item since we opened our first Chick-fil-A restaurant in Canada, we’re pleased to introduce this classic, comfort item to our guests,” said Gaana Nagaraj, Culinary Lead for International Restaurant Experience. “We’ve taken classic Mac & Cheese flavours and crafted a special recipe for the Canadian market that is sure to delight our guests.”

Starting March 17, Chick-fil-A Mac & Cheese will be available to be enjoyed on its own (in small, medium and large size) or as a side option with any entrée, Kid’s Meal or catering order at all locations in Canada.   

The brand is also helping guests escape to the tropics and look forward to spring with new Pineapple Dragonfruit seasonal beverages, available starting on March 17, for a limited time.  

Additionally, three new restaurants will open in Alberta by this spring, continuing the brand’s plan to open 20 restaurants across the province by 2030. The three restaurants will create approximately 330 jobs combined and will offer dine-in, take-out, and drive-thru service.   

Chick-fil-A at CF Shops at Don Mills (Image: Chick-fil-A)
  • Chick-fil-A Sunwapta West, located at 10175-186 St. NW. in Edmonton, AB., will be opening on Thursday, March 20. Locally owned and operated by Mayur Raj, the restaurant will be open from 10:00 a.m. to 10:00 p.m., Monday through Saturday. 
  • Chick-fil-A The Meadows, located at 2040 38th Ave. NW. in Edmonton, AB., will be opening later this spring. Locally owned and operated by Jag Dhanju, the restaurant will be open from 10:30 a.m. to 10:00 p.m. with the drive-thru open until 11:00 p.m. Monday through Saturday.
  • Chick-fil-A East Hills, located at 75 East Hills Boulevard SE. in Calgary, AB., will be opening later this spring. Locally owned and operated by Paul Bustard, the restaurant will be open from 10:00 a.m. to 10:00 p.m. with the drive-thru open until 11:00 p.m. Monday through Saturday. 

All three restaurants will be participating in the Chick-fil-A Shared Table program, an initiative that redirects surplus food from the restaurant to local soup kitchens, shelters, food banks and non-profits in need. To date, more than 35 million meals have been created using Chick-fil-A Shared Table donations from 2,300 Chick-fil-A restaurants throughout Canada and the U.S. 

Chick-fil-A will donate about C$34,000 (US$25,000) for each new restaurant opening to a local non-profit organization through Second Harvest, one of Canada’s largest food rescue organizations. Since 2020, Chick-fil-A has donated about C$2 million (US$1.46 million) to local hunger-relief organizations through Second Harvest. 

Breathe Outdoors to Shut Down After 62 Years in Alberta

By
Anita Mehra
-
Photo: Breathe Outdoors

After more than six decades of serving Alberta’s outdoor enthusiasts, locally owned retailer Breathe Outdoors (formerly Campers Village) has announced it will be closing all three of its stores in Alberta over the next six months. The company cited economic challenges and shifting retail landscapes as key reasons for the decision.

“This decision is in no way a reflection of the dedication, talent, and hard work of the Breathe Outdoors team,” read a statement from General Manager Doug Dea and company owners Ron and Terry Bryant. “It is clear that with the downturn in the economy, with the challenges faced by the retail industry and the outdoor industry specifically, it is unsustainable for Breathe Outdoors to continue operations.”

A Gradual Wind-Down, Not a Liquidation

The closures will happen gradually rather than as a rapid liquidation, allowing customers time to shop and use gift cards before operations cease. The planned store closures are as follows:

  • April 30, 2025 – South Edmonton location (Gateway Boulevard)
  • June 30, 2025 – West Edmonton location (170th Street)
  • June 30, 2025 – Website sales to cease
  • September 30, 2025 – Calgary location closes

All dates are subject to change based on available inventory. Breathe Outdoors has reassured customers that its online store will remain operational until June 30, and that physical locations will continue regular operations until their respective closure dates.

Photo: Breathe Outdoors

A Legacy of Outdoor Retail in Alberta

Breathe Outdoors traces its roots back to 1963, when it was founded in Edmonton as Campers Village, an offshoot of Northwest Tent & Awning. The parent company had been manufacturing tents and outdoor gear since 1921 to serve settlers in Alberta. Over time, as recreational camping gained popularity, the company evolved to provide high-quality gear for adventurers. In 2021, Campers Village rebranded as Breathe Outdoors, emphasizing the benefits of outdoor exploration.

Despite its deep roots and long-standing community presence, the economic downturn and changing retail environment have made continued operations unsustainable.

Impact on Staff and Customers

The closure will affect 73 employees across the three locations. The company acknowledged the dedication of its staff, stating: “We are incredibly proud of our employees, who have put their hearts into making this business what it is today.”

Breathe Outdoors also addressed customer concerns regarding outstanding purchases and gift cards:

  • Gift cards will be accepted until each store’s closing date.
  • Returns will be accepted under the 30-day policy until June 1 for Edmonton locations and until August 1 for Calgary.
  • Camper’s Club loyalty program will cease operations on March 31, and customers are encouraged to use any remaining perks before that date.
  • Warranty claims will need to be handled directly through product manufacturers after store closures.
Photo: Breathe Outdoors

Final Sales and Inventory Plans

While the company will not conduct major liquidation sales, it will continue selling inventory as usual. Breathe Outdoors confirmed it will still bring in new stock for the upcoming spring/summer outdoor season. However, once current stock is depleted, no additional orders will be placed.

The retailer will also hold one final “Friends & Family Sale” in April, along with smaller promotions throughout the summer months.

A Thank You to the Community

The closure of Breathe Outdoors marks the end of an era for Alberta’s outdoor retail scene. The company expressed deep appreciation for the community that has supported it for decades, both through purchases and involvement in charitable initiatives. One of its most notable contributions was through the Twoonies for Tents program, which raised over $120,000 for Easter Seals Camp Horizon, providing outdoor experiences for individuals with disabilities.

“Being part of Alberta’s outdoor community has been one of the most rewarding experiences of my life,” said General Manager Doug Dea. “We’ve swapped adventure stories, shared gear recommendations, and celebrated the great outdoors together at events and in our stores. This is more than just a business—it’s a community, and I will always cherish the connections we’ve built.”

More from Retail Insider:

Canadian Retail News From Around The Web For March 14, 2025

By
Retail Insider
-
Canadian Retail News From Around The Web

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 24 hours.

Hudson’s Bay focused more on real estate than retail, expert says (CTV)

Court documents reveal Hudson’s Bay owes $950 million to landlords, fashion brands, banks and government (Toronto Star)

Hudson’s Bay anchors London’s two major malls. Can the stores survive? (London Free Press)

Winnipeg shoppers ‘heartbroken’ as future uncertain for Hudson’s Bay Co. (CBC)

Hudson’s Bay Cape Breton location open after one-day closure (PNI News)

Here’s the full and updated list of U.S. products Canada is placing a tariff on (CTV)

Could supporting Canadian at the grocery store come at a price? (CTV)

After pleas from Manitoba, Walmart decides to pull machetes from website, stores across Canada (CBC)

Swan song: After 57 years, Canada’s largest music store, Cosmo Music, is shutting down (Village Report)

Longo’s creates a culinary innovation centre (Grocery Business)

Legal practice preventing competition near existing Manitoba grocery stores might come to an end (CBC)

Deachman: ‘We’ve had a really good run’ — ByWard Fruit Market to close this spring (Ottawa Citizen)

‘A 10 cent premium on a can of beer:’ Toronto brewery says it expects to raise prices as a result of tariffs (CTV)

Empire Company Posts Strong Q3 Earnings with 3.1% Growth

By
Maya Johnson
-
Exterior of FreshCo grocery store. Photo: Supermarket News
Exterior of FreshCo grocery store. Photo: Supermarket News

Empire Company Limited, the parent company of Sobeys, has announced strong third-quarter results for fiscal 2025, marking a 3.1% increase in total sales and improved same-store food sales growth. The company reported net earnings of $146.1 million ($0.62 per share), an 8.9% increase from the previous year, despite ongoing economic pressures and shifts in consumer spending.

The continued expansion of its discount banner FreshCo, increased focus on digital transformation, and cost efficiency initiatives have contributed to the company’s stable financial performance.

“We are pleased to see our strong execution continue in Q3, highlighted by improving same-store sales and our ongoing discipline in managing margins,” said Michael Medline, President & CEO of Empire Company Limited.

Empire’s Q3 sales totaled $7.73 billion, up from $7.49 billion in the same period last year. Same-store food sales grew 2.6%, while fuel sales saw a modest 0.8% increase. The company attributed the rise in food sales to its investments in store renovations, technology upgrades, and supply chain efficiencies.

Gross profit increased 4.8% year-over-year, reaching $2.08 billion, with a gross margin improvement to 27.0% from 26.5%. This was primarily driven by operational discipline aimed at reducing shrink, business expansion (including FreshCo and Farm Boy), and the continued rollout of private-label brands under its Own Brands program.

However, adjusted net earnings saw a slight decline, coming in at $146.1 million compared to $153.1 million in Q3 2024. The company attributed this to strategic investments in e-commerce, technology, and loyalty programs, including its growing Scene+ initiative.

Investments in Store Network and Sustainability

Empire continues to prioritize investments in its store network, with a goal to renovate 20% to 25% of its locations between fiscal 2024 and 2026. This includes capital allocated to store enhancements, refrigeration system upgrades, and other sustainability initiatives aimed at improving energy efficiency.

“Our investment in store renovations and sustainability initiatives will ensure we continue meeting evolving customer expectations,” said Medline. “By modernizing our stores and improving operational efficiencies, we are building a more resilient retail network.”

Additionally, the company remains committed to expanding its discount segment, with FreshCo now operating 48 locations in Western Canada, reinforcing its market presence in price-sensitive regions.

Image: Sobeys Orangeville

E-Commerce and Digital Expansion Fuel Growth

Empire’s digital strategy and e-commerce investments have started to pay off, with online sales increasing by 71.9% compared to last year.

While the company initially planned to open a fourth Customer Fulfillment Centre (CFC) in Vancouver, it has paused construction to focus on optimizing existing facilities in Toronto, Montreal, and Calgary. In a strategic shift, Empire ended its exclusive partnership with Ocado, allowing greater flexibility in its e-commerce expansion.

The company also expanded partnerships with Instacart and Uber Eats, completing a national rollout that enables same-day grocery delivery across its key banners, including Sobeys, Farm Boy, Longo’s, FreshCo, IGA, and Foodland.

“Our e-commerce strategy has been adjusted to ensure long-term profitability,” said Medline. “With a more flexible approach, we can better align our digital offerings with customer demand and the realities of the Canadian grocery market.”

Scene+ Loyalty Program Sees Major Growth

Empire’s co-ownership of the Scene+ loyalty program, alongside Scotiabank and Cineplex, has proven to be a key driver of customer engagement. Membership has grown from 10 million to over 15 million members since its launch, enhancing Empire’s ability to offer targeted promotions and personalized offers.

The company is leveraging machine learning and AI-driven analytics to tailor promotions, ensuring customers receive relevant deals based on their shopping habits. This data-driven approach is expected to further improve customer retention and spending.

Financial Stability and Share Repurchases

Empire maintained a stable financial position, with total assets of $16.75 billion. Free cash flow for the quarter, however, declined to $147.7 million from $349.0 million in the previous year, largely due to increased capital investments and lower operating cash flow.

In line with its commitment to returning value to shareholders, Empire repurchased 6.71 million Class A shares as part of its ongoing Normal Course Issuer Bid (NCIB) program.

The Board of Directors also declared a quarterly dividend of $0.20 per share, payable on April 30, 2025.

Outlook: Inflation, Tariffs, and Market Challenges

Looking ahead, Empire remains cautiously optimistic about its performance despite external economic challenges. The company anticipates that recent tariffs imposed by the U.S. and retaliatory tariffs from Canada could increase costs for imported goods, potentially contributing to higher inflation.

As a result, Empire is shifting focus toward increasing its Canadian-sourced products and securing alternative supply chains to mitigate cost increases.

Additionally, the company expects total capital expenditures to reach $700 million for fiscal 2025, with investments directed toward store renovations, e-commerce expansion, and logistics improvements.

“Despite the uncertain economic environment, we are confident in our ability to drive long-term growth through continued investment in our retail network, digital capabilities, and operational efficiencies,” Medline concluded.

Empire’s ability to adapt to changing consumer trends, optimize its supply chain, and enhance its digital presence positions it well for long-term resilience in the Canadian grocery market. As the company progresses through fiscal 2025, its strategic priorities remain focused on expansion, efficiency, and customer engagement.

More from Retail Insider:

1...437438439...1,380Page 438 of 1,380