Minakakis says a brand must be a reflection of a retailer’s vision.
He recalls how his father once told him that your business can only do two to three things well.
Fundamentally brands are made up of a whole bunch of attributes and each brand is different but for the most part for a lot of them it comes down to who is the brand’s target audience.
Over the years many retailers have come and gone in Canada. Their brands wavered. They tried to be too many things to too many people.
Minakakis says retailers need to protect their brands and protect the sanctity of their brand from being marred by anything. By doing too many things, brands get thin and end up not doing everything very well.
He says Artificial Intelligence is going to change things for a lot of brands and how brands reach consumers.
Minakakis says proper branding is important for any size of retailer from a solopreneur to a major company.
“If you do too many things, it becomes confusing,” he says.
Minakakis says some jingles from commercials and slogans by brands have a never-ending impression on consumers. They get into a person’s mind and stick – becoming a part of a person’s DNA. And they’re powerful. But only a few retailers still do it and do it well in a crowded marketplace.
Upper Canada Mall is celebrating 50 years this year as Newmarket, Ontario’s community hub.
And it continues to evolve to meet the growing needs of a burgeoning region.
Ryan Da Silva
“The region has expanded dramatically in the past 50 years and Upper Canada Mall has been keeping pace with this growth with a 100,000-square-foot expansion in 2008 and a 40,000-square-foot expansion in 2018 when we welcomed Market & co. We can’t wait to see where the next 50 years take us as we continue to bring the brands people love closer to home,” said Ryan Da Silva, Upper Canada Mall’sDirector and General Manager.
“Upper Canada Mall has definitely been the heart of the community. There’s been a lot of growth within the York region and it continues to be one of the fastest growing regions. So the mall has adapted and evolved over the many years to meet customer needs and desires. We brought in a number of new retailers.
“As things change, as tenants come and go, we continue to evolve and bring in new retail brands that definitely help boost the mall’s traffic. Where a lot of malls are finding they may be down in traffic and sales, we’re actually up. We’re up three per cent in our customer traffic and our sales trends are aligned with that as well (compared to last year) . . . We’re back to pre-pandemic traffic and sales.”
Upper Canada is the premiere shopping destination in Newmarket, Ontario located just 30 minutes north of Toronto. On May 1, it celebrated 50 years. Co-owned by Oxford Properties Group and CPP Investment Board (CPPIB) and managed by Oxford Properties Group, Upper Canada is an award-winning shopping centre featuring more than 200 stores in one million square feet of retail space, including Zara, lululemon, Apple, Aritzia, Sephora, MAC Cosmetics, Michael Kors and Market & Co. – a 40,000-square-foot market concept with fresh, local and convenient food and dining offerings.
Da Silva said the mall does have plans to build residential on the property in the future.
“Being at the corner of Yonge and Highway 9, Yonge and Davis, it’s an ideal location in the heart of Newmarket. Transit is flowing up north on Yonge Street. So there’s new transit that’s currently under construction and will allow people to flow quickly and easily. So that’s where we are looking at aligning with the growth of Newmarket. Our northeast corner would probably be the first phase of future development but we’re probably five years plus in terms of all that,” explained Da Silva.
“We don’t have any definite plans in the works. We continue to work with the city on master planning but no shovels in the ground planned as of yet. We’re still a few years away.”
As part of its 50th anniversary and philosophy of giving back to the community, earlier this year Upper Canada Mall donated $50,000 to the Southlake Foundation. Since opening in 1974, Upper Canada Mall has prioritized a commitment to the community having long supported Southlake Regional Health Centre and other partners such as Easter Seals, the York Region chapter of Girls Inc., York Pride, Ontario SPCA and Humane Society.
Jennifer Klotz-Ritter
“We’ve been very fortunate at Southlake to be supported by long-standing organizations, like Upper Canada Mall, who have shared in our vision of access to leading edge care, close to home for our community,” said Jennifer Klotz-Ritter, President and CEO of Southlake Foundation. “We’re honoured to receive this generous and thoughtful gift from Upper Canada Mall in celebration of their 50th Anniversary. Upper Canada Mall has been a long-time partner of the hospital, and we’re so grateful for their continued support.”
Established in 1960, Oxford and its portfolio companies manage approximately C$82 billion of assets across four continents on behalf of their investment partners. Oxford’s owned portfolio encompasses office, logistics, retail, multifamily residential, life sciences, hotels and credit in global gateway cities and high-growth hubs. Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario’s municipal employees.
goop Beauty, the clean beauty line from Gwyneth Paltrow’s lifestyle brand, is set to make its exclusive debut at Holt Renfrew stores across Canada. This partnership marks an important expansion for the brand in Canada.
A Clean Beauty Revolution
The collaboration brings goop’s innovative products to Holt Renfrew’s discerning clientele. Shoppers can now access popular items like the Microderm Instant Glow Exfoliator and Youth-Boost Peptide Serum. These products epitomize goop’s commitment to clean beauty.
goop’s journey began in 2008 when Paltrow launched the brand. From the start, clean beauty was a core principle. The company helped define and shape the clean beauty category. Their approach involves careful ingredient selection and rigorous safety standards.
Expanding goop Beauty’s Presence with Holt Renfrew
This exclusive partnership solidifies goop’s presence in Canada. It builds on previous Canadian initiatives, including events in Montreal and Vancouver. The brand also operated a pop-up store in Toronto in 2019.
Gina Lucania. Photo: LinkedIn.
Gina Lucania, goop’s VP of Wholesale Sales and Marketing, expressed enthusiasm for the collaboration. She noted Holt Renfrew’s alignment with goop’s values. Carolyn Wright of Holt Renfrew echoed this sentiment. She highlighted the shared commitment to empowering self-expression and driving positive change.
goop’s strict ingredient policy sets it apart in the beauty industry. The brand avoids potentially harmful substances like parabens and synthetic fragrances. Instead, they focus on premium, clinically-proven ingredients that are environmentally friendly.
The goop Beauty line at Holt Renfrew will feature a range of products. These include skin, hair, and body care items. The collection also offers colour cosmetics and wellness supplements. Each product embodies goop’s innovative approach to clean beauty.
This expansion reflects growing consumer interest in clean beauty products. It also demonstrates Holt Renfrew’s commitment to meeting evolving customer preferences. The partnership promises to bring a new level of clean beauty innovation to Canadian consumers.
Mark your calendars for October 16, 2024—Retail Council of Canada’s(RCC) Retail Sustainability Conference returns, this year to the Toronto Congress Centre for another landmark event. Building on last year’s success, which brought together over 600 industry leaders, this year’s conference will dive even deeper into strategies for addressing retail’s most pressing sustainability challenges.
With consumer expectations rising and regulatory demands tightening, the need for sustainable practices has never been greater. RCC Retail Sustainability Conference 2024 (see Agenda) will spotlight retail’s role in the circular economy, offering practical solutions for Canadian retailers and manufacturers. It’s designed for mid to senior-level sustainability professionals ready to lead the charge for meaningful change.
Last year, participants explored actionable paths to reducing plastic waste, achieving net-zero emissions, and advancing decarbonization. This year builds on that momentum, offering even more real-world solutions and fostering additional collaborative approaches to sustainability challenges.
Key Sessions You Can’t Miss
The conference opens with an impressive panel featuring Sam Wankowski (Walmart Canada), Olivier Lemire (Keurig Dr Pepper Canada), and Margaret Hudson (Burnbrae Farms Limited) sharing insights on leadership in sustainability.
A highlight will be Driving Innovation and Collaboration with the Consumer Goods Forum, led by Cedric Dever of the Consumer Goods Forum. This session explores how leaders like Alain Brandon (Loblaw), Katie Decker (Kenvue Canada), and Jeff Bezzo (SC Johnson) are reducing environmental impact through ethical sourcing and product transparency, with a special focus on the Golden Design Rules aimed at cutting packaging waste.
Another key session, Collaboration is Key to Managing Scope 3, tackles indirect emissions in the supply chain. Speakers Tim Faveri (Nutrien Inc.), Jackie Cobb (Schneider Electric), and Paul Yang (RBI) and Daniel Reshef (Nestlé Canada) will share best practices for working with partners to measure and reduce Scope 3 emissions.
For those focused on packaging, Recyclability and the Impact on Packaging offers valuable insights into how retailers like Anthony Wolf (Canadian Tire Corporation) are improving product and packaging lifecycles. The session will be led by Patrick Dovigi, Founder and CEO of GFL Environmental, along with Stephen Miranda (GFL Environmental), who will explore collaborations to design more sustainable products. Jonathan Ménard (Machinex) will also join the panel to discuss key technological advancements in recycling that are driving innovation in the industry
Another must-see session, Sustainable Growth: Navigating Brand Responsibility and Consumer Demands, moderated by Kasia Sell (Deloitte Canada) in discussion with Leigh Pearson (Staples Canada) and Lindsey Colley (Canadian Tire Corporation) will show how brands can balance growth and sustainability while maintaining trust. The session will cover consumer trends, investments for long-term resilience, and navigating the legal risks of sustainability claims.
Why You Should Attend
RCC’s Retail Sustainability 2024 Conference is about more than learning—it’s about action. Whether you focus on packaging innovation, reducing emissions, or aligning growth with sustainability, this event will provide the tools and connections to lead your organization into a sustainable future.
With Early Bird pricing offering $100 savings until September 18, now is the time to secure your spot. Don’t miss this opportunity to network with industry leaders and explore the latest strategies driving retail’s sustainable transformation. Visit the RCC Sustainability Conference website for tickets.
Join us on October 16, 2024, and help shape the future of retail and sustainability. Together, we can lead the industry toward a circular and responsible future.
*Partner content. To work with Retail Insider, contact Craig Patterson at: craig@retail-insider.com
The retail space is broken into three rooms, one in front of the other, with a back wall housing a coffee bar where Champagne is also served to visitors. An expansive range of Brunello Cucinelli clothing as well as bags, accessories, footwear and some home items are also carried in the store. Brunello Cucinelli is known for its high-quality cashmere garments, some with eye-popping prices.
Brunello Cucinelli store at Toronto’s Yorkdale Shopping Centre. Photo: Tablizo MediaBrunello Cucinelli store at Toronto’s Yorkdale Shopping Centre. Photo: Tablizo Media
The store’s overall design was inspired by large Italian cities, according to the brand. The entrance of the store features an oval mahogany table from the early 1900s. Other furniture pieces include Remmi armchairs (designed in 1969), known for their clear lines. They sit alongside Saporiti Italia sofas that were designed in the 1980s.
Perimeter walls of the store are covered with a modular system designed for the display of clothing, accessories and other items, allowing for product updates as seasons change. Clever storage spaces were also created to house product efficiently.
Brunello Cucinelli store at Toronto’s Yorkdale Shopping Centre. Photo: Tablizo MediaBrunello Cucinelli store at Toronto’s Yorkdale Shopping Centre. Photo: Tablizo Media
David Wedemire and Stan Vyriotes of DWSV Realty Inc. negotiated the Yorkdale lease deal on behalf of Brunello Cucinelli. Oxford Properties is the landlord for Yorkdale.
The team at DWSV Realty also negotiated a lease deal for a new Brunello Cucinelli store that will open at Vancouver’s Oakridge Centre in the fall of 2025. That location was announced publicly in February of 2024, joining the brand’s downtown retail spaces.
Coffee/Champagne bar at the Brunello Cucinelli store at Toronto’s Yorkdale Shopping Centre. Photo: Tablizo Media
Brunello Cucinelli’s Canadian store expansion has been ongoing for nearly a decade. The brand’s first Canadian store opened at 745 Thurlow Street in Vancouver in the fall of 2015, spanning about 2,700 square feet. A flagship location opened in early 2019 at 102 Yorkville Avenue, spanning more than 8,000 square feet over three floors. The brand also operates an outlet store at the Toronto Premium Outlets in Halton Hills.
At Yorkdale, Brunello Cucinelli opened a ‘world of’ concession at Holt Renfrew about three years ago. The concession remained open for a couple of years before it moved into a temporary space across from its new permanent storefront in early 2024. Chanel is currently expanding its concession presence at Holt Renfrew, which included annexing the former Brunello concession space as well as the entire Holts women’s contemporary department upstairs.
Chanel will be expanding its concession at Holt Renfrew Yorkdale. That includes annexing space occupied by Brunello Cucinelli in this photo from December of 2023, while also taking space upstairs. Photo: Craig PattersonChanel’s concession at Holt Renfrew Yorkdale is expanding significantly, including taking the former Brunello Cucinelli concession space on the main floor. Photo: Craig Patterson
In Canada, Brunello Cucinelli also operates concession spaces at Holt Renfrew stores. The Vancouver concession on the third floor of Holts is said to do particularly well, with a combined offering of women’s and men’s fashions. Harry Rosen also houses a selection of Brunello Cucinelli fashions, as do a handful of high-end independent retailers such as Via Cavour in Toronto.
Luxury wing at Toronto’s Yorkdale Shopping Centre, September 2024. Photo: Craig Patterson
The new Yorkdale luxury wing is well under development. The approximately 60,000 square foot space was created by relocating retailers along the central hall of the mall, creating a new luxury offering that will include more big names. A Rimowa store will open soon beside Brunello Cucinelli, and Versace and Jimmy Choo will open across the hall. A Loewe store opened across the hall from Brunello Cucinelli in April of 2024. Another Italian luxury cashmere brand, Loro Piana, opens soon in Yorkdale’s luxury wing as well. More will soon be announced (DWSV Realty represented Versace and Jimmy Choo in Yorkdale lease deals).
Future Rimowa store next to Brunello Cucinelli at Toronto’s Yorkdale Shopping Centre. Photo: Craig Patterson
These new retailers join the biggest clustering of luxury brands in Canada, which have opened at Yorkdale over the past decade. It’s one of two luxury nodes in Toronto, with Bloor-Yorkville also attracting shoppers to its numerous luxury stores. Vancouver will also have two luxury nodes next year, with Oakridge Park competing with the downtown core for luxury shopping dollars. Luxury retail dynamics in Montreal also recently changed with the opening of Royalmount earlier this month, featuring a range of luxury brands, many of which open early next year.
The federal agency said the Consumer Price Index (CPI) rose two per cent on a year-over-year basis in August and down from a 2.5 per cent gain in July.
“The deceleration in headline inflation in August was due, in part, to lower prices for gasoline, due to a combination of lower prices and a base-year effect. Excluding gasoline, the CPI rose 2.2 per cent in August, down from 2.5 per cent in July,” it said.
“Mortgage interest cost and rent remained the largest contributors to the increase in the CPI in August. On a monthly basis, the CPI fell 0.2 per cent in August, after a 0.4 per cent increase in July. The monthly decline was led by lower prices for air transportation, gasoline, clothing and footwear and travel tours. On a seasonally adjusted monthly basis, the CPI rose 0.1 per cent in August.”
Year over year, prices at the pump fell 5.1 per cent in August following a 1.9 per cent increase in July, said StatsCan.
“This was due to a combination of a base-year effect and current events, with prices, on a month-over-month basis, rising 4.6 per cent in August 2023 and falling 2.6 per cent in August 2024, the third monthly decrease in four months. The decline in August 2024 was mainly due to lower crude oil prices amid economic concerns in the United States and slowing demand in China.”
Prices for clothing and footwear declined 0.6 per cent on a month-over-month basis in August. A drop in prices in the month of August has not been observed since 1971, as this month is typically associated with back-to-school clothes shopping, with stronger demand putting upward pressure on prices. Compared with August 2023, retailers offered more and larger discounts in August 2024 to entice consumer spending amid recent slowing demand, said the federal agency.
Photo by cottonbro studio
Year over year, clothing and footwear prices fell for an eighth consecutive month, down 4.4 per cent in August following a 2.7 per cent decline in July, it added.
“On a year-over-year basis, consumers paid 2.4 per cent more for food purchased from stores in August after a 2.1 per cent increase in July. This was the result of a base-year effect, notably coming from prices for dairy products (+3.3 per cent) and fresh fruit (+1.5 per cent). Despite this, grocery prices decreased on a month-over-month basis in August (-0.2 per cent), largely due to a seasonally typical decline in prices for fresh vegetables (-2.8 per cent).”
DAVIDsTEA, a leading tea merchant in North America, saw increasing sales during its second quarter for the period ended August 3, the company announced on Tuesday.
Key financial highlights include:
Sales of $11.1 million, an increase of 12.8 per cent over the prior year;
Gross profit margin of 47.3 per cent, significantly better compared to 36.9 per cent in prior year;
SG&A expenses of $6.7 million, down 15.2 per cent versus prior year;
Net loss of $1.5 million, improved from loss of $4.3 million in prior year:
Adjusted EBITDA1 of negative $0.3 million versus negative $2.6 million in prior year;
New store opened September 5 in Montreal’s Royalmount Mall; and
Additional store opening in the Montreal Eaton Centre expected in early November
Image: Sarah Segal
“We are pleased to report that DAVIDsTEA reached a key inflection point in the second quarter of 2024 with sales increasing by 12.8 per cent year-over-year,” said Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA. “We are grateful for the trust of our loyal consumers who seek out the best flavour profiles available on the market as we continue to innovate and introduce new and incredible tasting tea blends for consumers to enjoy.
“Sales momentum continues into the early third quarter with revenues up more than 18 per cent compared to the same period in 2023. We are excited to mark our renewed focus on brick-and-mortar retail with the opening of a new location in the Royalmount Mall in Mount Royal, Quebec, and look forward to launching a new store in downtown Montreal in early November, raising the total number of flagship stores to 20. As we prepare for the revenue-intensive third and fourth quarters, our focus remains on delivering excellent value, service and innovation to our consumers.”
“Revenues are up and costs are down, both year-over-year and sequentially, across all categories. We also have significant leverage in our business model, which positions us well for the second half of the year as we stabilize the business against unfavourable headwinds and double down on investments in both our brick-and-mortar and online operations,” he said.
DAVIDsTEA offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform and the Amazon Marketplace, its wholesale customers which include over 4,000 grocery stores and pharmacies, over 1,500 convenience stores in Canada and 170 grocery stores in the United States, as well as 19 company-owned stores across Canada.
OBSESSIONS was originally founded in 1988 in the trendy area of Earls Court, London England. A small boutique store offering a unique selection of personal and home accessories.
The Vancouver store was founded in February 1998 by Mark Kenna, who arrived in Canada from England with a dream of introducing distinctive gift products to Vancouver and OBSESSIONS quickly made its mark.
Starting with a modest kiosk selling funky watches, men’s and ladies accessories, the kiosk success led to the expansion of two additional kiosks within three months. By June 1998, OBSESSIONS opened its first full-fledged store on Denman Street, and by 2006, it had grown to four locations throughout downtown Vancouver.
Often voted ‘Vancouver’s Best Gift Shop’ now a beloved icon in the heart of Vancouver, it is celebrating its 25th anniversary this year.
Photo courtesy of OBSESSIONS
“We are incredibly grateful to our loyal customers and dedicated team who have supported us throughout the years,” said Kenna. “Reaching this 25-year milestone is a testament to our commitment to providing a unique shopping experience and our passion for sourcing unique, quality and affordable products. We look forward to continuing to serve our community and welcoming both new and returning customers to experience what makes Obsessions truly special.
Since its inception, OBSESSIONS has evolved from a small kiosk at Pacific Centre Mall into one of the city’s most recognized and award-winning gift stores, establishing itself as a premier destination for unique, affordable and high-quality gifts.
Photo courtesy of OBSESSIONS
The company was an instant success when it first started in Vancouver, growing from one small kiosk in Pacific Centre Mall, downtown Vancouver to four street locations within five years plus a vibrant ‘Corporate Gift Division’ plus an online website.
“Unfortunately the company was hit hard by the world wide recession some years ago and an unforeseen government construction project outside one of the company’s stores which inhibited consumer access both led to the company being downsized then subsequently being purchased by a new business partner with the co-operation of Mark Kenna who still manages and purchases the stores gift items,” says the company on its website.
“Despite the company’s ups and downs, this store is considered one of Vancouver’s premier gift stores often winning annual awards for ‘Best Gift Shop’. The company has one prime location in the centre of town on the corner of Dunsmuir and Howe Street, and is comfortable with no intention of expanding except for a new website with the ability to buy online. The ‘Corporate Sales Division’ continues to also thrive and increase annually. Providing first class customer service to its many loyal shoppers and greeting many new ones each day and each season as the tourists come and go…after 28 years in business this robust, hardy and unique company intends to be around for many more years to come.”
Today, it operates from its prime location at the corner of Dunsmuir and Howe Street, continuing to offer a curated selection of exceptional gifts plus design-led personal and home accessories. Also known for its engraving facility, with fast turnaround times—often as little as 24 hours—it boasts no minimum order requirements, setting it apart from many competitors.
OBSESSIONS offers an exclusive selection of pens and art supplies by the Swiss manufacturer ‘Caran d’Ache’, also the Swiss made line of watches ‘Mondaine’ and the hugely popular line of plushies by ‘Jellycat’ from the UK. It also supports many Canadian designers such as Pixie Mood and Matt and Nat bags and wallets plus much, much more including a fantastic collection of cards and gift wrap. Whether it be Christmas, Valentines, Mothers Day etc. OBSESSIONS is ‘the ’ go-to’ destination for gifts for every occasion. In recognition of its outstanding service and unique offerings, OBSESSIONS has repeatedly been awarded ‘Best Gift Shop’ in annual city-wide awards. Despite its success, the company remains committed to its core location and high-quality, personalized service, with plans to enhance its online presence through a new website, allowing ‘Corporate’ customers to shop from anywhere.
“We’re located in the downtown core so we have the office workers during the week but we’re also close to the cruise ships and we have a big tourist customer,” added Kenna, saying the tourism industry has returned.
“We were lucky. After we got through COVID that was a struggle and a lot of our bread and butter wasn’t there. A lot of people were working from home. It was a slow turnaround. Like most businesses, we were sort of on our knees basically just trying to get through it. Fortunately after we came out of the COVID we saw that weather was mild and we found more Canadians traveling locally or from other provinces. And there was a lot of drive to support local businesses. Now we’re seeing more international people coming to us as well.”
OBSESSIONS has a special ‘25th Anniversary’ event until September 29. Expect to see special offers all around the store, multiple daily prize draw give aways from gifts donated from all our loyal suppliers over the past 25 years plus a massive draw at the end of the event for a prize price worth more than $1,000.
Q2 2024 average asking rents across Toronto’s 11 retail corridors decreased by 2.2 per cent to $91.58 net per square foot;
The number of direct ground floor availabilities totaled 109, or 8.26 per cent of the storefronts in the corridors tracked by JLL; and
Ossington Avenue, Leslieville and Queen Street West (Spadina to Bathurst) remain Toronto’s tightest submarkets.
“Torontonians have significantly adjusted their spending habits, prioritizing essential expenses such as housing, rent, and food. Discretionary categories, including previously strong performing sectors like home improvement and furnishings, footwear, sporting goods, and cannabis, have faltered,” said the JLL report.
“Notably, laptops and cell phones have emerged as resilient segments. Despite challenges in retail, Toronto’s real estate market has demonstrated its resilience and remarkable recovery. Downtown office worker attendance has consistently increased, with Wednesdays witnessing an impressive return to nearly 80 per cent of pre-pandemic levels. Local transit and regional commuter rail have witnessed a commendable resurgence, reaching 78 per cent of pre-pandemic ridership.
“Toronto’s tourism industry is also showing promising signs of revival, outpacing 2019 spending figures, particularly with the return of international visitors. Furthermore, the downtown core has become an attractive investment hotspot, fueled by the resurgence of office workers and the revival of tourism.”
The report said the recent opening of three exciting food halls, Queen’s Cross at the Eaton Centre, Wellington Market at The Well, and Waterworks at 50 Brant Street, has added to the vibrant culinary landscape, catering to both Torontonians and visitors.
“Despite sector-specific challenges, the Toronto real estate market is displaying positive recovery and adaptive characteristics. The increasing presence of office workers, strong public transit ridership, robust investments in the downtown core, and the gradual revival of tourism collectively contribute to the ongoing recovery of the city’s real estate market,” added the report.
In total, 24 new leases were transacted in Q2 2024 totaling over 41,000 square feet. The two most active submarkets by number of lease transactions completed were Queen Street West (Spadina to Bathurst) with eight and Yonge Street (Eglinton to Blythwood) with five, explained JLL.
The largest lease of Q2 2024 was signed by a medical clinic who leased over 4,600 square feet at 11 Yorkville Avenue at the base of Riocan, Capital Developments and Metropia’s new 11YV development, it added.
“Queen Street West (Spadina to Bathurst) saw the greatest number of square feet leased at 12,365 square feet with Yonge Street (Eglinton to Blythwood) in second position at 6,929 square feet. Once again, food & beverage (F&B) was the leading category in terms of number of new retail transactions (12) as well as total square footage leased at nearly 22,000 square feet,” said the report.
“Notable transactions include Alpha’s Shawarma securing approximately 3,000 square feet at 245 Yonge Street and Poulet Rouge leasing nearly 2,700 square feet at 360 Queen Street West.
“The average availability rate for the 11 retail corridors tracked by JLL decreased to 8.26 per cent, the lowest figure since the inception of this report. King Street West (Spadina to Bathurst) had the highest percentage of available retail space at 18.42 per cent, while Ossington Avenue (Queen to Dundas) had no availability as of June 30, 2024.
“Average Asking Rents across Toronto’s 11 retail corridors decreased to $91.58 per square foot, led by Bloor Street at $219.92 per square foot and followed by Yorkville Avenue (Yonge to Avenue) and Queen Street West (John to Spadina) at $102.50 and $90.50 per square foot, respectively at $107.50 and $100.57 per square foot, respectively.”
The retail industry is undergoing financial stress, according to Equifax Canada’s Q2 Business Credit Trends Report, which reveals an uptick in businesses missing credit payments.
The report said the retail sector is experiencing a rise in payment arrears especially in financial trade delinquencies, where the 60+ day delinquency rate has risen from 3.7 per cent in Q2 2023 to 4.2 per cent in Q2 2024.
“The slowdown in consumer credit card spending and increased missed credit payments may have a direct impact on retail businesses as we enter the holiday season. Meanwhile, businesses in the retail sector are pushing holiday promotions even earlier in the year, potentially reflecting a growing reliance on the holiday season to boost revenues. However, the retail sector could continue to face high delinquency rates as inflation and unemployment impact household budgets,” added Equifax.
According to the data from Equifax, over 56,000 businesses missed at least one financial trade in Q2 2024, up 10.2 per cent from the same period in 2023.
At a trade level, the 60+ day (volume) financial trade delinquency rate went up from 2.8 per cent to 3.1 per cent in the last 12 months, driven largely by installment loans. Businesses that rushed to take installment loans to pay off their Canada Emergency Business Account loans before the deadline, coupled with elevated interest rates, may be contributing to this rise in loan arrears. The delinquency rate for industrial trades saw a similar rise from 5.1 per cent in Q2 2023 to 5.7 per cent in Q2 2024. Data also indicates that businesses that opened in the last 24 months are starting to miss more payments, though still at lower levels than the national average, said the report.
Jeff Brown
“As we analyze the current landscape, while business insolvencies are stabilizing, delinquency rates continue to rise across the board. Sectors like retail and construction could be feeling the pressure as consumer spending weakens and uncertainty remains high for many Canadian businesses,” said Jeff Brown, Head of Commercial Solutions for Equifax Canada. “The economic impact of natural disasters, inflation, and fluctuating interest rates have created a challenging environment for businesses to navigate.
“As we head into the holiday season, businesses are preparing for one of the most crucial periods of the year, but many are entering it from a weakened position. There is still a lot of uncertainty in the market, and businesses are being very prudent with their financial planning.”
The report said the gradual lowering of interest rates may provide the economic boost many businesses have been hoping for. While interest rates have been lowered in response to the lull in economic activity, the conservative pace of these reductions may have left businesses and consumers hesitant to make significant investments.
