Home Blog Page 454

October 2024 Canadian Retail Sales See 4.5% YOY Growth

By
Retail Insider
-
St. Laurent Shopping Centre in Ottawa (Image: Dustin Fuhs)

By J.C. Williams Group

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 OctoberOct-24Oct-23YOY
All Stores70,730,57567,675,4764.51%
Motor Vehicle and Parts Dealers20,383,38318,617,2169.49%
Gasoline Stations6,433,8826,855,550-6.15%
All Stores Less Automotive43,913,31042,202,7104.05%
Food and Beverage Stores13,054,94212,487,9594.54%
Supermarkets and Other Grocery Stores*9,295,7828,816,4275.44%
Convenience Stores720,255735,159-2.03%
Specialty Food Stores911,263848,8317.36%
Beer, Wine and Liquor Stores2,127,6422,087,5411.92%
Health and Personal Care Stores5,939,2575,671,5074.72%
All Stores Less Automotive, Food, and Pharmacies24,919,11124,043,2443.64%
General Merchandise Stores9,348,1679,067,4373.10%
Furniture, Home Furnishings, Electronic and Appliance Stores3,761,3873,591,9674.72%
Furniture Stores1,215,2321,196,3821.58%
Home Furnishings Stores736,771716,2872.86%
Electronics and Appliance Stores1,809,3841,679,2987.75%
Clothing and Accessories Stores3,740,0243,526,8876.04%
Clothing Stores2,942,8802,763,2106.50%
Shoe Stores409,798414,611-1.16%
Jewellery, Luggage and Leather Goods Stores387,347349,06510.97%
Sporting Goods, Hobby, Book and Music Stores3,840,0143,739,8282.68%
Building Material and Garden Equipment4,229,5194,117,1252.73%
Miscellaneous Store Retailers2,589,8812,454,8635.50%
Cannabis Retailers456,274449,1621.58%

Canadian E-commerce Sales

Ecommerce SalesOct-24Oct-23Percent Change
Year-to-Date37,772,65435,456,8806.53%
Year-Over-Year4,185,855  3,799,40310.17%

Canadian Retail Sales by Store Category, Year to Date Comparison

Year-to-Date, Ending OctoberOct-24Oct-23YTD
All Stores660,513,382654,016,6640.99%
Motor Vehicle and Parts Dealers183,553,480180,263,4551.83%
Gasoline Stations64,595,86366,310,147-2.59%
All Stores Less Automotive412,364,039407,443,0621.21%
Food and Beverage Stores127,248,553125,958,7051.02%
Supermarkets and Other Grocery Stores*90,513,86088,733,2212.01%
Convenience Stores7,229,3777,510,394-3.74%
Specialty Food Stores8,762,4728,398,0534.34%
Beer, Wine and Liquor Stores20,742,84621,317,033-2.69%
Health and Personal Care Stores55,126,61652,657,2814.69%
All Stores Less Automotive, Food, and Pharmacies229,988,870228,827,0760.51%
General Merchandise Stores87,558,14584,074,4304.14%
Furniture, Home Furnishings, Electronic and Appliance Stores34,417,48634,836,762-1.20%
Furniture Stores11,433,48811,781,201-2.95%
Home Furnishings Stores6,766,4526,922,138-2.25%
Electronics and Appliance Stores16,217,54716,133,4200.52%
Clothing and Accessories Stores32,642,81832,552,6750.28%
Clothing Stores25,297,94425,139,2810.63%
Shoe Stores3,830,1223,911,293-2.08%
Jewellery, Luggage and Leather Goods Stores3,514,7533,502,0990.36%
Sporting Goods, Hobby, Book and Music Stores36,268,68237,516,923-3.33%
Building Material and Garden Equipment39,101,73639,846,290-1.87%
Miscellaneous Store Retailers23,731,05624,560,644-3.38%
Cannabis Retailers4,252,3184,284,877-0.76%

Retail Trade, Canada, All Stores, by Geographic Regions

RegionYear-to-Date 2024Year-to-Date 2023YTD
British Columbia88,708,38488,831,582-0.14%
Vancouver44,215,83543,754,8741.05%
Alberta85,578,56784,714,8891.02%
Prairies*44,003,95443,211,6821.83%
Ontario245,496,455244,234,0150.52%
Toronto110,065,745110,589,208-0.47%
Québec148,764,164146,658,9021.44%
Montréal73,992,74673,207,8051.07%
Atlantic Canada45,599,72644,119,1853.36%
Territories2,362,1322,246,4075.15%

Thank you J.C. Williams Group for this report.

More from Retail Insider:

Primaris REIT releases its 2nd ESG Report

By
Mario Toneguzzi
-
Image- Primaris
Image- Primaris

Primaris Real Estate Investment Trust has released the publication of its second Environmental, Social & Governance (ESG) Report, in which Primaris outlines its ESG plan and the material ESG factors, governance practices, accomplishments, and metrics that impact its business.

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
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:

MetricTargetCurrentMeasurement Period
Board of Trustee Diversity by Gender30% female33% femaleAnnually
Absolute GHG Emissions Reduction125% reduction by 20354.9% reductionAgainst baseline year, 2022
Green Building Certifications100% Shopping centres LEED or BOMA BEST certified100%Annually
Employee Engagement≥85%86%Every 3 years
Tenant Satisfaction≥85%83%Annually
GRESB≥80%80 pointsAnnually

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.

Related Retail Insider stories:

NorthBoys Opens at Hillcrest Mall with Plans for Expansion

By
Craig Patterson
-
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.”

More from Retail Insider:

Happy Belly’s Smash Burger brand Rosie’s Burgers secures location in Toronto’s Avenue & Lawrence neighbourhood

By
Mario Toneguzzi
-
Photo: Happy Belly Food Group
Photo: Happy Belly Food Group

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
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
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.

Related Retail Insider stories:

Baskin-Robbins celebrates official return to Alberta at Calgary’s Southcentre Mall

By
Mario Toneguzzi
-
Photo: Baskin-Robbins

Baskin-Robbins opened its newest shop in Canada this week, located at Southcentre Mall in Calgary.

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.

Adel Ashry
Adel Ashry

It said Adel Ashry, franchisee of the new location and head of McMaster Group Holdings, has more than two decades of experience in franchise development.

“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.

Related Retail Insider stories:

Canada’s GST Holiday Creates Challenges for Small Businesses

By
Craig Patterson
-
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.

Erica Pimentel, Accounting Professor at Smith School of Business at Queen’s University, outlines the major issues facing small retailers, describing the policy as “an implementation nightmare.”

“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.”

More from Retail Insider:

Bigger holiday budgets defy deal-hunting: JLL

By
Mario Toneguzzi
-
Photo by JLL
Photo by JLL

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
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
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.”

JLL Graphic
JLL Graphic

Related Retail Insider stories:

Retail sales climbed in October: Statistics Canada

By
Mario Toneguzzi
-
Photo By- Kaboompics.com
Photo By- Kaboompics.com

Retail sales increased 0.6% to $67.6 billion in October. Sales were up in five of nine subsectors and were led by increases at motor vehicle and parts dealers, according to a report released Friday by Statistics Canada.

Core retail sales—which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers—were up 0.2% in October. In volume terms, retail sales were unchanged in October, said the federal agency.

Sales up at motor vehicle and parts dealers

The largest increase in retail sales in October was observed at motor vehicle and parts dealers (+2.0%). Higher sales at new car dealers (+2.5%) led the increase, followed by used car dealers (+2.5%). Automotive parts, accessories and tire retailers (-3.3%) were the only store type within this subsector to record a decrease in October, it said.

Sales at gasoline stations and fuel vendors (-0.5%) were down for a sixth consecutive month in October. In volume terms, sales at gasoline stations and fuel vendors decreased 4.7%, following an increase of 4.1% in September, it added.

Core retail sales rise

“Core retail sales increased 0.2% in October, posting their second consecutive monthly increase. The gain was led by higher sales at furniture, home furnishings, electronics and appliances retailers (+2.5%). In October, higher sales were also recorded at health and personal care retailers (+0.8%),” noted Statistics Canada.

“The largest decrease in core retail sales in October came from food and beverage retailers (-0.7%). Sales at food and beverage retailers were down from lower sales at supermarkets and other grocery retailers (except convenience retailers) (-0.9%) and beer, wine and liquor retailers (-0.4%).”

On a seasonally adjusted basis, retail e-commerce sales were up 1.5% to $4.2 billion in October, accounting for 6.2% of total retail trade, said StatsCan.

“Statistics Canada is providing an advance estimate of retail sales, which suggests that sales were relatively unchanged in November. Owing to its early nature, this figure will be revised. This unofficial estimate was calculated based on responses received from 50.6% of companies surveyed. The average final response rate for the survey over the previous 12 months was 88.7%,” it said.

Andrew Grantham
Andrew Grantham

Andrew Grantham, Senior Economist, CIBC Capital Markets, said Canadian retail sales posted a second consecutive 0.6% advance in October, although the details were not as strong as in the prior month.

“Much of the gain in October sales was driven by prices, and by increased spending in the often volatile auto sector . . . Gains in furniture & electronic stores were offset by declines in building materials & supplies and food & beverage. The advance estimate for November pointed to no change in sales relative to the prior month. However, the announcement by the Federal government in late November of a GST holiday beginning mid-December may have encouraged some households to defer purchases and therefore could have dampened November retail sales slightly. We will need to see the December data to get a full view of holiday spending,” he said.

“Even though the latest release wasn’t as strong as the prior one, consumer spending has still clearly improved relative to the trend seen earlier in the year. However, that fact is to be welcomed and not feared from an inflation point of view. Evidence of bloated inventory levels in the retail sector during the first half of the year showed plenty of room for spending to accelerate without necessarily resulting in upward pressure on prices.”

Maria Solovieva
Maria Solovieva

Maria Solovieva, Economist, TD Economics, said Canadians embraced the festive spirit in October, with spending gaining momentum as the official retail holiday season got underway.

“While the advance estimate for November suggests some softening, the GST holiday is expected to ring in stronger sales for December, giving retail cash registers a boost,” she said.

“With inflation back at target, the three month average real retail sales per capita trend – a key indicator of purchasing power and consumer activity – posted growth for the second consecutive month. We forecast real personal consumption expenditure to grow at a tad above-trend pace of 1.9% annualized in Q4.”

Advance estimate for wholesale trade

Statistics Canada said it is providing an advance estimate of sales in the wholesale trade sector for November. The advance results for November indicate that wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 0.7%. The decline reflects lower sales in the motor vehicle and motor vehicle parts and accessories subsector.

This estimate was calculated based on a weighted response rate of 58.8%. The average final response rate to the survey over the 12 preceding months was 81.9%. As Statistics Canada continues to collect data for the November reference month, this early indicator is subject to a higher revision rate than the regular monthly release, it said.

Retail payroll employment on the rise: Statistics Canada

By
Mario Toneguzzi
-
Photo by cottonbro studio
Photo by cottonbro studio

In October, payroll employment in retail trade increased by 4,200 (+0.2%), partially offsetting the decline in September (-8,400; -0.4%). Despite the October increase, overall payroll employment in the sector has generally trended downward since February 2024, with a net decline of 21,200 (-1.1%) over the period, according to recent data from Statistics Canada.

This net decline since February was concentrated in sporting goods, hobby, musical instrument, book, and miscellaneous retailers (-9,000; -4.2%), building material and garden equipment and supplies dealers (-7,900; -5.5%) and clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (-6,700; -3.2%), said the federal agency.

However, gains in payroll employment in several retail trade industries have dampened the overall downward trend since February. The gains over this period were concentrated in food and beverage retailers (+4,400; +0.8%), health and personal care retailers (+3,000; 1.4%) and motor vehicle and parts dealers (+2,300; +1.0%), it added.

Photo by Arina Krasnikova
Photo by Arina Krasnikova

“Job vacancies in retail trade declined by 5,700 (-12.1%) to 41,400 in October, their lowest level since April 2016 (40,600). The number of vacancies in the sector was down by 22,500 (-35.2%) on a year-over-year basis, and down by 71,300 (-63.3%) compared with the peak in December 2021 (112,700),” explained Statistics Canada.

“In October, the job vacancy rate (2.0%) in retail trade also reached the lowest rate since April 2016 (when it was also 2.0%). Month over month, the job vacancy rate in October 2024 was down 0.3 percentage points from September (2.3%) and 1.1 percentage points from October 2023 (3.1%).”

The job vacancy rate corresponds to the number of vacant positions as a proportion of total labour demand.

In October, payroll employment in accommodation and food services (-3,500; -0.3%) declined for the second consecutive month, following a drop of 8,400 (-0.6%) in September, said the report.

“The cumulative declines in this sector in September and October were attributable to declines in full-service restaurants and limited-service eating places (-14,000; -1.4%). In October, this industry accounted for more than three-quarters (76.9%) of overall payroll employment in the accommodation and food services sector,” it said.

“On a year-over-year basis, payroll employment in accommodation and food services was down 13,700 (-1.0%) in October.”

Nationally, Statistics Canada said the number of employees receiving pay and benefits from their employer—measured as “payroll employment” in the Survey of Employment, Payrolls and Hours—fell by 21,100 (-0.1%) in October, following little change in September and August. On a year-over-year basis, payroll employment was up 125,800 (+0.7%) in October.

Meanwhile, job vacancies decreased by 15,000 (-2.8%) to 513,200 in October, following little change in September and a decrease of 16,700 (-3.1%) in August.

“In October, monthly payroll employment declines were recorded in 7 out of 20 sectors, led by manufacturing (-5,900; -0.4%), professional, scientific and technical services (-3,700; -0.3%) and accommodation and food services (-3,500; -0.3%),” noted the report.

“The declines in October were partially offset by gains in retail trade (+4,200; +0.2%), construction (+3,400; +0.3%), public administration (+3,300; +0.3%) and health care and social assistance (+3,300; +0.1%). The remaining nine sectors were little changed.

“Job vacancies decreased by 15,000 (-2.8%) to 513,200 in October, following little change in September and a decrease of 16,700 (-3.1%) in August. The number of job vacancies in October was down by nearly half (-48.9%) from the peak of over one million reached in May 2022. Compared to October 2023, job vacancies were down by 159,400 (-23.7%) in October 2024.”

The job vacancy rate was 2.9% in October, down by 0.1 percentage points from the previous month (3.0%) and down by 0.9 percentage points from October 2023 (3.8%), added StatsCan.

It said there were 2.8 unemployed persons for every job vacancy in October 2024, up from 2.7 in the previous month. Since October 2023, the unemployment-to-job vacancy ratio rose from 1.8 to 2.8, reflecting the cooling of labour market conditions over this period.

Related Retail Insider stories:

How AI will reshape businesses in 2025: Google Cloud Canada

By
Mario Toneguzzi
-
Photo by Sanket Mishra
Photo by Sanket Mishra

(Submitted content: Sam Sebastian, VP & Country Manager, Google Cloud Canada)

Sam Sebastian
Sam Sebastian

As we bid goodbye to 2024, I have been reflecting on how generative AI has continued to evolve from a nascent technology into a powerful force driving real business value. In conversations with Canadian customers earlier this year, many were taking their first tentative steps, exploring how generative AI could impact their organizations through pilot projects and small-scale deployments.

But the landscape has shifted dramatically. Companies have moved beyond AI experimentation to full-scale deployments, transforming specific parts of their business. Many of these projects, while not always immediately noticeable to consumers, have focused on optimizing back-end processes or enhancing customer-facing platforms, yielding impressive cost savings and productivity improvements. Companies like TELUS and Dollarama are already reaping the rewards, and it’s encouraging to see other Canadian businesses across all industries follow suit, establishing their own generative AI strategies.

This momentum positions 2025 as a pivotal year for generative AI adoption in Canada. As the technology matures and initial deployments demonstrate tangible value, executives will face the imperative to build winning AI strategies that fundamentally transform how their companies operate, compete, and innovate.

AI Trends to Watch in 2025

Our recent Economic Impact Report highlighted AI’s potential to boost Canada’s economy by $230 billion and save the average worker 175 hours per year. The scale of this opportunity demands that every business leader pay close attention to key AI trends in 2025.

Here are a few that I believe will positively impact key industries in Canada and drive real productivity growth across the country:

  • Companies will release more customer-facing AI products. AI-powered solutions will revolutionize the customer experience, enabling organizations to anticipate needs and forge stronger customer connections. Thomson Reuters, with the launch of Co-Counsel 2024, provided an early example. In 2025, organizations across all sectors will launch AI-powered products designed to increase revenue and efficiency, boost efficiency, and cultivate brand loyalty.
  • AI agents will streamline workflows and empower employees. As AI agents become more sophisticated, they’ll manage complex workflows, automate business processes, and empower employees. Bell Canada, an early adopter, partnered with us to transform their contact center with AI, including with Conversational Agents and Agent Assist. Bell’s CEO recently described how this transformation improved the customer experience and generated $20 million in savings.
  • Canadian startups will scale with AI. Canada is already home to successful AI startups like Cohere. Next year, we’ll see Canadian startups launch AI-powered products across a diverse array of sectors. We’re proud to work with many emerging startups in Canada – like Viral Nation – and can’t wait to see what they’ll accomplish in 2025.

Industry-Specific Predictions

Beyond these overarching predictions, I’m particularly excited about how different industries will continue to adopt generative AI and drive innovation for their customers, specifically in the following sectors:

  • Retail: In 2024, successful retail projects focused on delivering real value for both consumers and employees, particularly in customer service, marketing and digital commerce, where generative AI search and agents enhanced existing human capability. Dollarama, for example, successfully supported customer service agents with AI by analyzing and summarizing thousands of customer service calls, saving employees dozens of minutes per call, which allowed them to support more customers.

2025 prediction: AI will change shopping experiences, both online and offline. One example is the evolution of the drive-thru. We’ll see how natural language processing and voice recognition can improve the quick-service food industry for both customers and employees. Wendy’s began piloting this with Google Cloud in 2023, and as customer-facing AI applications proliferate, we expect to see drive-thrus and digital ordering revolutionized by AI.

Conclusion 

2024 laid a strong foundation for the future of AI in Canada. 2025 will be a year of increased innovation, broader adoption, and even greater impact. Now is the time for leaders across all sectors to seize the AI opportunity. This means not just experimenting with the technology but actively developing comprehensive AI strategies that integrate this transformative technology into every facet of their operations. I, for one, am incredibly excited to witness the accomplishments that lie ahead.

Related Retail Insider stories:

1...453454455...1,342Page 454 of 1,342