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Q1 2026 Grocery Retail Report: Discount Expansion and the Shift to Value

By
Craig Patterson
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As part of Retail Insider Reports, this Q1 2026 Grocery Retail Report provides structured analysis of the Canadian grocery sector, drawing on Retail Insider’s ongoing coverage to identify key market dynamics, emerging trends, and strategic shifts. These reports are designed to deliver executive-level insights across major retail sectors and can be accessed through the Retail Insider Report Hub.

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Canada’s grocery sector entered 2026 under mounting pressure from food inflation, shifting consumer behaviour, and rising operating costs. Grocery prices increased 4.4% year-over-year as of March 2026, significantly outpacing the national inflation rate of 2.4%, reinforcing the financial strain facing households and intensifying demand for value-oriented retail options.

In response, major retailers are accelerating a structural pivot toward discount formats, while also investing in artificial intelligence and supply chain innovation to protect margins and maintain relevance.

The result is a sector undergoing significant transformation. Large players such as Loblaw Companies Limited are leveraging scale to expand aggressively, while others are restructuring operations to adapt to changing market conditions. At the same time, more complex or labour-intensive concepts are struggling to remain viable, highlighting the growing importance of efficiency and value positioning.

Loblaw’s $2.4 billion investment plan for 2026, which includes the opening of 70 new stores and the renovation of nearly 200 locations, illustrates the scale of this shift. A significant portion of that expansion is focused on discount banners such as Maxi and No Frills, reflecting a clear alignment with consumer demand for value. Meanwhile, Empire Company Limited has moved to streamline its e-commerce operations, closing Alberta fulfillment centres and increasing reliance on third-party delivery partnerships.

Loblaws at Humbertown Plaza in Toronto. Photo: Loblaw Companies

Retail Insider Coverage Reflects Sector Transformation

Retail Insider tracked 64 grocery-related articles in Q1 2026, reflecting a high level of activity across the sector. Coverage was led by trend analysis, followed by expansion, partnerships, and new format launches.

This editorial activity mirrors broader market developments. Loblaw continues to dominate headlines through expansion and investment, while Metro and Empire are advancing discount strategies and refining their store networks. Strategic partnerships, including sustainability initiatives and technology integrations, point to a sector focused on long-term positioning as much as short-term performance.

At the same time, contraction remains part of the story. Store closures and operational restructuring across several operators highlight the uneven nature of growth, with some concepts proving difficult to sustain in the current economic environment.

Discount Formats Drive Growth and Market Share

The expansion of discount grocery formats has emerged as the defining trend in early 2026. As consumers become more price-sensitive, retailers are repositioning their portfolios to emphasize value-oriented banners. Recent data indicates that more than 70% of Canadian consumers now prioritize discount or value banners for their primary grocery shop, underscoring a meaningful shift in shopping behaviour.

Loblaw is leading this transition through continued investment in Maxi and No Frills stores across Canada, including new co-located concepts that integrate grocery and pharmacy offerings. Metro and Empire are following similar strategies, expanding Food Basics, Super C, and FreshCo banners while reducing exposure to higher-cost full-service formats.

This shift reflects more than a short-term response to inflation. It signals a structural rebalancing of the grocery landscape, where discount formats are gaining share at the expense of traditional banners. Hard-discount formats in particular have outperformed conventional stores in year-over-year sales growth, reinforcing the long-term nature of this transition.

New concept No Frills store in Komoka. Image: Loblaw Companies

Market Rationalization Occurs Alongside Expansion

Despite continued store openings, Canada’s grocery footprint is becoming more concentrated. Store density has declined in recent years, falling from 22.1 stores per 100,000 residents in 2020 to an expected 20.9 in 2026.

At the same time, market concentration remains exceptionally high. The five largest grocery retailers — Loblaw, Sobeys, Metro, Walmart, and Costco — collectively control approximately 90% of the Canadian grocery market, with Loblaw alone accounting for roughly 32%. This level of consolidation continues to shape competitive dynamics, limiting new entrants while reinforcing the importance of scale.

This apparent contradiction reflects a broader rationalization of the market. New store development is often offset by closures or conversions, as retailers optimize their networks to focus on higher-performing locations and formats.

For real estate stakeholders, this creates a more nuanced outlook. Demand for grocery-anchored retail remains strong, but site selection and format alignment are increasingly critical. Growth is now more about refining portfolios to match evolving consumer demand.

AI Integration Accelerates, Raising New Questions

Artificial intelligence is becoming a central focus for grocery retailers, offering opportunities to improve efficiency, personalize customer experiences, and streamline operations.

Loblaw’s integration of its PC Express platform with AI-powered tools, along with partnerships involving conversational commerce, highlights how quickly the sector is moving in this direction. These technologies have the potential to reshape how consumers interact with grocery retail, from product discovery to checkout.

At the same time, AI introduces new challenges. Consumer trust remains a critical factor, particularly when it comes to pricing transparency and data usage. Grocery retailers operate within a highly sensitive category, where perceived unfairness or lack of clarity can quickly lead to reputational risk. As a result, the adoption of AI will require careful management to balance innovation with consumer expectations.

Supply Chain Pressures and Cost Management Intensify

Cost pressures continue to build across the grocery supply chain, driven by both domestic policy and global factors. Rising carbon pricing, set to increase further in 2026, is adding measurable costs to transportation and logistics, particularly for retailers serving geographically dispersed markets.

At the same time, geopolitical tensions and shifting trade dynamics are influencing sourcing strategies. This has increased interest in domestic production and alternative supply models, including controlled-environment agriculture and automated farming solutions.

Companies such as Haven Greens are emerging as part of this shift, using technology to produce food closer to urban centres and reduce reliance on imports. While still developing, these models highlight the growing importance of supply chain resilience in a volatile environment.

Entrance to the former L’OCA Market in Sherwood Park, Alberta. Photo: Christa Patterson

Operational Complexity Challenges Experiential Formats

The closure of L’OCA Quality Market’s Edmonton-area stores provides a clear example of the challenges facing more complex grocery concepts. Despite offering a differentiated, experience-driven retail environment, the model proved difficult to sustain financially in a market defined by cost sensitivity.

This outcome reinforces a broader trend. While innovation remains important, it must be balanced with operational efficiency and cost discipline. In the current environment, formats that require high labour inputs or complex execution face greater risk, particularly when competing against lower-cost alternatives.

Sector Outlook: Efficiency and Value Take Priority

Canada’s grocery sector is undergoing a structural transformation shaped by inflation, evolving consumer expectations, and operational pressures. While expansion continues, it is increasingly focused on formats that deliver value and efficiency.

At the same time, technological innovation and supply chain adaptation are reshaping how retailers operate and compete. The balance between growth, cost management, and customer trust will define performance in the coming years.

Editor’s Take

The most important development in Canada’s grocery sector is the accelerating shift toward discount formats. This is not a temporary adjustment, but a fundamental realignment of retail strategies in response to sustained consumer price sensitivity, particularly as grocery inflation continues to outpace overall inflation.

Loblaw Companies Limited stands out for its scale-driven expansion and willingness to invest in both physical retail and technology. Metro and Empire are also repositioning their portfolios, although with varying degrees of success as they navigate operational and strategic challenges.

At the same time, the difficulties faced by concepts such as L’OCA Quality Market highlight the risks associated with complex, high-cost formats in the current environment. Efficiency, rather than experimentation, is becoming the dominant priority.

Looking ahead, several factors will shape the sector. The continued evolution of AI in grocery retail will require careful management of consumer trust. Ongoing market concentration will continue to influence competition and pricing dynamics. Meanwhile, supply chain pressures and the push toward local production will remain central to cost management strategies.

Together, these forces point to a grocery sector that is not slowing down, but rather becoming more disciplined, more focused, and increasingly defined by value.

Selected Coverage

Retail Insider Introduces Canadian Retail Sector Analysis

By
Craig Patterson
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Retail Insider is launching Retail Insider Reports, a new structured intelligence product providing sector-level analysis across the Canadian retail landscape. Built on Retail Insider’s ongoing coverage, these reports synthesize market activity into clear insights on trends, performance, and strategic shifts. Explore the full Reports Hub here: https://retail-insider.com/retail-reports/

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Canadian retail is no longer moving in a straight line.

Consumer spending is fragmenting across categories, sector performance is diverging, and individual headlines are no longer enough to explain what is happening in the market. Retailers, landlords, and service providers are navigating a more complex environment shaped by inflation, shifting priorities, and broader economic pressure.Canadian retail is no longer moving in a straight line.

A More Connected View of the Retail Landscape

The initial series, all available through the retail Reports Hub, focuses on seven core retail sectors:

Each reflects a different dimension of consumer behaviour in 2026, from reduced discretionary spending and value-seeking behaviour to increased demand for wellness, experience, and category-specific growth.

More importantly, the reports show how these sectors interact, not just how they perform individually.

Changes in one category increasingly influence another. Reduced spending on dining out has direct implications for grocery retail. Shifts in housing activity affect demand for home furnishings. Growth in wellness and healthcare continues to reshape both beauty and pharmacy retail. At the same time, lifestyle and fitness trends are influencing retail real estate and experiential formats.

Taken together, these dynamics provide a more accurate picture of how Canadians are reallocating spending, and where opportunities and pressure points are emerging across the market.

Data and Context Supporting Editorial Coverage

The reporting format integrates publicly available data, industry research, and Retail Insider’s editorial coverage to provide additional context.

Data is used selectively to support clear conclusions. The intent is not to overwhelm, but to clarify where the market is moving and why.

This approach reflects feedback from readers who want a more structured understanding of the developments they are already seeing across the industry.

Supporting a Changing Industry

As retail continues to evolve, the need for connected analysis is increasing.

Retailers, landlords, service providers, and investors are making decisions in an environment where performance is shaped by broader economic and behavioural trends, not just category-specific factors.

Retail Insider’s expanded reporting is designed to support that shift by offering a clearer view of how the market is changing and where risks and opportunities are developing.

Editor’s Take

The volume of retail news has never been the issue. Interpretation has.

Retail Insider has been documenting the Canadian retail landscape in real time for years. These reports are the next step, turning that coverage into structured insight that explains where the industry is heading, not just what has happened.

Q1 2026 Apparel & Fashion Report: Expansion, Restructuring, and the Rise of Experiential Retail

By
Craig Patterson
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As part of Retail Insider Reports, this Q1 2026 Apparel & Fashion Retail Report provides structured analysis of the Canadian apparel and fashion sector, drawing on Retail Insider’s ongoing coverage to identify key market dynamics, emerging trends, and strategic shifts. These reports are designed to deliver executive-level insights across major retail sectors and can be accessed through the Retail Insider Report Hub.

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The Canadian apparel sector in early 2026 is marked by a stark divide: digitally savvy, strategically expanding brands are capturing market share and profitability, while legacy retailers rooted in traditional mall-based models face restructuring and contraction. This tension underscores a broader challenge for apparel executives — balancing physical retail growth with omnichannel innovation amid shifting consumer preferences and real estate dynamics. Winners are those who leverage disciplined expansion, targeted partnerships, and experiential retail to deepen brand engagement, while exposed players grapple with governance issues, operational inefficiencies, and the erosion of mall relevance.

Consider Aritzia’s record Q3 fiscal 2026 results, with net revenue soaring 43% year-over-year to $1.04 billion, driven by robust U.S. growth and digital initiatives. In contrast, Eddie Bauer’s Canadian store operator filed for Chapter 11 bankruptcy, preparing to shutter all brick-and-mortar locations after decades of presence. Meanwhile, Groupe Dynamite’s strategic relocations and international expansion fuel strong comparable sales growth and margin expansion. These examples illustrate how the sector’s winners are those who combine operational discipline with innovative real estate strategies, while legacy players face mounting pressures from changing consumer behaviors and capital markets.

Overall Apparel & Fashion Coverage by Retail Insider

Retail Insider covered 58 apparel and fashion articles in Q1 2026, reflecting a vibrant mix of expansion, financial performance, partnerships, and product launches. Expansion and financial performance each accounted for 11 articles, highlighting the sector’s dual focus on growth and profitability. Partnerships and new concepts also featured prominently, underscoring evolving distribution models and experiential retail trends. The coverage density of 19.3 articles per month signals sustained executive interest and sector activity.

This volume translates into tangible real-world moves: Aritzia’s acquisition of the Fred Segal brand and Melrose lease signals a bold U.S. expansion and experiential retail play; Abercrombie & Fitch announced multiple new Canadian stores targeting key urban markets; and Lane Bryant entered Canada through a Walmart partnership to address the underserved plus-size segment. Conversely, Eddie Bauer’s restructuring and store closures foreshadow challenges for mall-based retailers, while Roots’ strategic review and potential sale highlight capital market pressures on heritage brands. These developments collectively paint a sector in flux, balancing growth ambitions with operational and market realities.

Key Developments and Patterns

Disciplined Omnichannel Expansion Drives Market Leadership

Aritzia exemplifies how disciplined omnichannel strategies and geographic expansion underpin sustainable growth. Its Q3 fiscal 2026 net revenue of $1.04 billion, up 43% year-over-year, was fueled by a 54% increase in U.S. revenue and a 58% jump in e-commerce sales. The company’s strategic marketing, digital initiatives including a new app, and 13 new boutique openings (mostly in the U.S.) contributed to margin expansion and a 55% increase in adjusted net income per diluted share. Aritzia’s acquisition of the Fred Segal brand and the iconic Melrose Avenue lease in Los Angeles further enhances its experiential retail footprint, blending heritage with modern retail innovation to create destination shopping experiences.

This approach reflects a broader structural shift where physical retail remains vital but must be integrated seamlessly with digital channels. Aritzia’s success in leveraging private label strength, controlled distribution, and brand storytelling positions it well against competitors. The second-order implication is that retailers lacking such integration risk falling behind as consumer expectations for seamless, engaging experiences intensify.

Mid-Tier Brands Leverage Real Estate Optimization and International Growth

Groupe Dynamite’s performance underscores the importance of operational efficiency and selective real estate strategies. The company reported a projected 39% revenue increase and more than doubled adjusted EPS in Q4 fiscal 2025, driven by strong comparable store sales growth of 26.6% year-to-date. Its strategy includes relocating stores from lower-tier malls to higher-performing retail environments, significantly boosting sales productivity. The brand’s expansion into the U.K. market and rising digital penetration further diversify revenue streams and reduce reliance on any single geography.

This real estate optimization is a non-obvious takeaway: financial performance in apparel increasingly hinges on strategic store placement and footprint management. Groupe Dynamite’s ability to execute rapid inventory turnover and align product assortments with consumer demand enhances resilience amid competitive pressures. The competitive consequence is a widening gap between operators who actively manage their physical portfolios and those who maintain legacy, underperforming locations.

Legacy Mall-Based Retailers Face Restructuring and Exit Risks

Eddie Bauer’s Chapter 11 bankruptcy filing for its Canadian store operator and planned closure of all brick-and-mortar locations starkly illustrate the vulnerabilities of legacy mall-based apparel retailers. Despite a 50-year presence in Canadian malls, the brand’s physical footprint has steadily contracted, with recent closures in major Toronto malls and other provinces. The restructuring separates store operations from the brand’s e-commerce and wholesale channels, which will continue under a different licensee.

This development signals significant risks for landlords facing increased vacancies and tenant churn, especially in mid-tier malls. The shift away from physical stores toward digital and wholesale models reflects changing consumer preferences and cost pressures. The broader implication is that mall-based retailers without adaptive omnichannel strategies or real estate optimization face existential threats, accelerating sector polarization.

Strategic Partnerships Unlock Underserved Market Segments

Lane Bryant’s entry into Canada via an exclusive partnership with Walmart Canada exemplifies how strategic collaborations can efficiently address underserved segments. Launching online immediately and rolling out in 320 Walmart stores nationwide, Lane Bryant targets the plus-size market with a monobrand strategy leveraging Walmart’s scale and national reach. This approach bypasses traditional standalone store openings or department store distribution, reflecting evolving apparel distribution models.

The partnership addresses a notable gap in Canadian plus-size fashion, offering consistent sizing and trend-forward apparel. For Walmart Canada, it strengthens the value proposition in a category where consumers have long cited limited options. This model illustrates how partnerships can accelerate market entry, reduce capital intensity, and enhance brand relevance, providing a competitive advantage over slower organic growth strategies.

Experiential Retail and Heritage Brand Revival Resonate with Consumers

Westbeach’s relaunch with a flagship store in Vancouver’s Kitsilano highlights the growing importance of experiential retail and community engagement. Led by CEO Braden Parker and supported by founder Chip Wilson, Westbeach emphasizes a retail-first approach focused on physical experience, heritage storytelling, and product durability. The store features a skateboard mini ramp, a coffee bar, and curated displays blending vintage and new product, creating a community hub rather than a traditional apparel shop.

This deliberate, measured expansion prioritizes quality and authenticity over rapid growth, aligning with consumer preferences for meaningful brand connections. The delayed e-commerce launch further reinforces the focus on physical retail experience. Westbeach’s strategy reflects a structural shift where heritage brands can differentiate through immersive environments and community-building, offering a counterpoint to purely transactional retail models.

Synthesis: These developments collectively reveal a Canadian apparel sector where success depends on integrating omnichannel capabilities with strategic real estate management and experiential retail. Market leaders like Aritzia and Groupe Dynamite combine digital innovation with selective physical expansion and operational discipline, while partnerships unlock new customer segments efficiently. Legacy mall-based retailers face mounting risks without adaptation, and heritage brands find renewed relevance through community-driven retail. Executives must navigate these forces carefully to capture growth and mitigate exposure amid evolving consumer behaviors and capital market expectations.

Editor’s Take

The defining tension in Q1 2026’s apparel sector is the divergence between digitally enabled, strategically expanding brands and legacy retailers struggling with mall-based footprints and governance challenges. This divide shapes competitive positioning, real estate dynamics, and investor sentiment, underscoring the necessity for disciplined omnichannel execution paired with innovative physical retail concepts.

Winners include Aritzia, whose robust omnichannel growth and strategic acquisitions elevate its brand and margins; Groupe Dynamite, leveraging operational efficiency and real estate optimization to drive profitability; Lane Bryant via its Walmart partnership, efficiently addressing a growing plus-size market; and Westbeach, revitalizing heritage through experiential retail that resonates with modern consumers. Exposed players include Eddie Bauer, facing bankruptcy and exit from Canadian physical retail, revealing vulnerabilities of legacy mall-based models; Lululemon, grappling with leadership turmoil and profit declines despite international sales growth, highlighting risks in governance and geographic shifts; and legacy mall retailers broadly, challenged by changing consumer preferences and increasing store closures.

Looking ahead, executives should watch the outcomes of Roots’ strategic review and potential sale, which could reshape Canadian retail heritage and market consolidation. Eddie Bauer’s restructuring process will continue to impact mall tenancy and real estate dynamics. The pace and success of experiential retail concepts leveraging heritage brands will test their ability to attract and retain consumers. Additionally, advances in returns management technologies will influence profitability and customer loyalty in apparel retail. Navigating these inflection points will be critical for sector resilience and growth in 2026 and beyond.

Selected Coverage

Pierre Cardin Opens First Canadian Store in Expansion

By
Craig Patterson
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Pierre Cardin at Tsawwassen Mills in South Delta, BC. Photo: Shally Huai

Pierre Cardin has opened its first Canadian store at Tsawwassen Mills in Metro Vancouver, marking the beginning of a broader North American strategy led by a Vietnam-based operator with global ambitions. The new location represents a shift in how the brand is entering Canada, moving beyond traditional licensing toward a vertically integrated retail model with centralized control over manufacturing, distribution, and merchandising.

The store is operated by a partner group connected to Vietnam’s Emall, which holds rights to develop Pierre Cardin footwear and leather goods across Canada and other regions. The opening signals the start of what executives describe as a long-term rollout, with additional stores planned in Toronto and Montreal as part of the Pierre Cardin Canada expansion.

A Strategic Entry Point at Tsawwassen Mills

The choice of Tsawwassen Mills reflects a deliberate entry strategy. The shopping centre draws a diverse customer base, including a strong Asian demographic that is already familiar with the Pierre Cardin name through its extensive presence in Asia.

“This is our first footprint in Canada,” said Patrick Nguyen, a partner overseeing the Canadian expansion. “We want to build everything here with a long-term plan and grow the brand step by step.”

The store spans approximately 2,800 square feet and focuses on footwear and accessories, supported by back-of-house storage to manage inventory flow. Nguyen noted that the Vancouver market offers a combination of favourable leasing conditions and a receptive customer base, making it an effective launchpad for the brand’s reintroduction.

Pierre Cardin at Tsawwassen Mills in South Delta, BC. Photo: Shally Huai

From Licensing Fragmentation to Focused Retail

Pierre Cardin’s global history has been defined by an extensive licensing network that often led to fragmented brand positioning across categories and markets. The current strategy aims to simplify that model by narrowing the focus to core product categories and exerting tighter operational control.

In Canada, the emphasis is on footwear, particularly men’s and women’s dress shoes, along with complementary accessories such as belts and bags. Prices range from approximately $90 for entry-level styles to around $400 for premium in-store offerings. The brand is positioned as a stable, “timeless” alternative in the market, with limited reliance on discounting and a focus on consistent pricing.

“We are not chasing trends,” Nguyen said. “We want to offer products that are consistent and reliable, and that customers can come back to.”

Vertical Integration and Supply Chain Control

A defining feature of the Pierre Cardin Canada expansion is its vertically integrated structure. Unlike previous distributors that operated as intermediaries, the current operator controls manufacturing facilities in Vietnam and oversees the full supply chain from production to retail.

This approach allows for tighter quality control, pricing stability, and faster response to market demand. It also supports the company’s growing e-commerce ambitions, which are expected to play a key role in reaching customers across Canada without the need for a large network of physical stores.

Nguyen emphasized that the strategy prioritizes a limited number of flagship locations, complemented by digital channels, rather than a rapid rollout of numerous storefronts.

Pierre Cardin at Tsawwassen Mills in South Delta, BC. Photo: Shally Huai

Filling a Mid-Market Gap in Canadian Retail

The brand’s positioning comes at a time when Canada’s retail landscape is undergoing significant change. The decline of traditional department store anchors has reduced the availability of mid-tier footwear and accessories, creating an opportunity for new entrants.

Pierre Cardin is targeting what it describes as “affordable luxury” in the businesswear segment, offering leather footwear and accessories that sit above entry-level price points while remaining accessible to a broad consumer base.

Industry observers note that this segment has become increasingly underserved, particularly as consumers look for quality products without entering the highest luxury tiers.

In addition to its core assortment, the company is developing a higher-end offering that includes custom-made footwear. The concept involves in-store scanning technology that captures foot measurements in seconds, with made-to-order shoes delivered within approximately two weeks. Prices for these products are expected to range from $2,000 to $3,000.

The company is also exploring complementary services, including shoe repair, reconditioning, and the development of specialized insoles. These initiatives are intended to support a longer product lifecycle and reinforce a service-oriented retail model.

Nguyen added that the company is evaluating the feasibility of an extended warranty or replacement program, though details have not yet been finalized.

Pierre Cardin at Tsawwassen Mills in South Delta, BC. Photo: Shally Huai

Expansion Plans Across Canada and Beyond

Following the Vancouver opening, the company is actively evaluating locations for a Toronto flagship. Montreal is also part of the near-term expansion plan.

Beyond Canada, the operator has outlined ambitions to enter the United States, with potential locations in New York City and California once market and political conditions stabilize.

“We want to establish Canada first and build a strong foundation,” Nguyen said. “From there, we can expand into the U.S. and continue to grow.”

The longer-term vision includes positioning Canada as a central hub for the business, with potential capital market activity, including a public listing, being explored as part of future growth plans.

A Global Platform Anchored in Southeast Asia

The Canadian expansion is supported by a substantial existing footprint in Asia. The operator manages more than 100 stores across Vietnam and has expanded into Thailand and other Southeast Asian markets, while also participating in broader global production for Pierre Cardin footwear.

This scale provides the financial and operational foundation for the North American push, allowing the company to leverage established supply chains while adapting to local market conditions.

As an historical note, Pierre Cardin had a presence in Canada during its peak couture years. In 1968, the brand opened a location at Westmount Square in Montreal, which had just debuted as one of the country’s most prestigious retail destinations. At the time, the complex also housed the first and only Canadian locations for luxury fashion houses including Louis Féraud, Lanvin, and Hermès, reflecting the level of international prestige associated with the development nearly 60 years ago.

In the decades that followed, Pierre Cardin remained visible in Canada primarily through licensed products sold across multiple categories in department stores and multi-brand retailers. Those efforts were often fragmented, with different operators managing various product lines.

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RONA welcomes J.R. Roy to its network of affiliated dealers

By
Mario Toneguzzi
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RONA store. Photo: RONA Inc.

RONA inc., one of Canada’s leading home improvement retailers, operating and servicing over 425 corporate and affiliated stores, announced Monday that J.R. Roy is joining the RONA network of affiliated dealers.

Firmly rooted in the administrative region of Bellechasse-Etchemin, this company operates two home improvement centres with strategic locations in Lac-Etchemin and Saint-Léon-de-Standon, serving a territory where access to a complete offering of renovation supplies and services is a substantial issue for consumers and professionals, said the retailer.

On April 28, as part of a structuring internal succession project, three employees acquired the two stores that were previously owned by Émile Bilodeau. Already highly involved in daily operations, Ginette Carrier, Dominique Corriveau and Charles Grenier have over 75 years of combined experience in the construction and home improvement supply industry. Their two RONA J. R. Roy inc. stores offer a wide assortment of around 11,000 products, as well as key services, including a drive-through lumberyard to meet the needs of local DIY enthusiasts and contractors, explained the retailer.

“Supported by their 22 employees, the three co-owners are deeply motivated to maintaining their operational continuity, to keep providing proximity services and a well-established local expertise, and to developing their offering for DIY enthusiasts and Pros. Their commitment will be a powerful lever to accelerate the performance of both stores and ensuring structured, long-lasting growth in the region,” it said.

“Becoming RONA affiliated dealers is the outcome of a major strategic thought process on our acquisition journey, and a reflection that came naturally to us. We know our teams, our customers and our market really well, and we are eager to continue developing our stores while maintaining a high level of service and proximity in the community,” said Ginette Carrier, co-owner of J.R. Roy.

Alain Ménard
Alain Ménard

“First and foremost, succession is an entrepreneurial achievement that is driven by the commitment and vision of our dealers. Having a structured and well-defined succession plan is essential. In the RONA network, we firmly believe in the importance of continuity and legacy, which are vital to ensuring the longevity of local businesses and to keep meeting the needs of communities in the long term. We are happy to welcome and support the J.R. Roy group. Ginette, Dominique and Charles, we’re glad to have you in the RONA family”, added Alain Ménard, Senior Vice-President, RONA Affiliated Dealers.

RONA inc. is one of Canada’s leading home improvement retailers, headquartered in Boucherville, Quebec. The RONA inc. network operates and services over 425 corporate and affiliated dealer stores.

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High operating costs, uneven consumer spending put restaurants under pressure: Restaurants Canada

By
Mario Toneguzzi
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Denys Gromov photo
Denys Gromov photo

Canada’s restaurant industry is under growing financial strain in early 2026, as persistent affordability challenges, rising operating costs, and uneven consumer spending continue to erode profitability, says Restaurants Canada.

New data from the organization’s Q1 Quarterly Report highlights uneven foodservice sales growth driven by ongoing affordability pressures, with lower-income Canadians especially pulling back on spending, it said.

Kelly Higginson
Kelly Higginson

“The restaurant industry is typically the first to feel economic pressure when Canadians are struggling. And right now, that pressure is building,” said Kelly Higginson, President and CEO of Restaurants Canada. “Canadians visit restaurants 23 million times every day, supporting 1.2 million jobs across the country. When affordability is strained, it doesn’t just affect restaurants, it ripples through communities, supply chains, and local economies.”

Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $125 billion industry employing 1.2 million Canadians and the number one source of first-time jobs in Canada.

Quarterly Report at a glance:

  • Real commercial foodservice sales are expected to decline by 0.2% in 2026 (inflation-adjusted), following 2.3% growth in 2025.
  • 49% of operators report lower sales so far in 2026; 54% report fewer guests and 71% report declining profitability.
  • Quick-service restaurants are hardest hit, with 81% reporting declining profitability (vs. 70% full-service).
  • 36% of operators are operating at a loss or breaking even, which is triple the levels from 2019.
  • Cost pressures remain widespread: 91% cite food costs, 87% labour, and 69% report customers dining out less due to affordability constraints.

Restaurants Canada said a strong restaurant sector supports workers, communities, and supply chains that underpin broader growth:

  • Canadians visit restaurants 23 million times daily, generating $125 billion in annual sales, equal to 3.9% of GDP.
  • The sector is the fourth-largest private sector employer, with 1.2 million workers, including 480,000 youth.
  • Restaurants employ more Canadians than auto manufacturing, aerospace, banking, primary agriculture, and steel combined, and support 17.7 jobs per $1 million in output – more than double the industrial average.
  • Every $1 spent in restaurants generates $2.25 in total economic output, well above the national average.
  • This multiplier drives activity across agriculture, food production, transportation, wages, and local businesses.

The federal government has set an ambitious economic agenda, from trade diversification to major infrastructure and defence investment. Feeding people is foundational to all of it, added Restaurants Canada.

Ron Lach photo
Ron Lach photo

The organization is calling on the federal government to take targeted action that both improves affordability for Canadians and supports investment in a key job-creating sector.

  • Permanently exempting all food from GST would provide direct relief to Canadians while addressing a fundamental issue of tax fairness. Today, similar food items can be taxed differently depending on where they are purchased. This distorts consumer behaviour and undermines affordability objectives.
  • Enabling accelerated capital cost allowance for the foodservice industry would support reinvestment, modernization, and growth, helping operators expand, upgrade equipment, and improve productivity.

“Treating food consistently in the tax system and supporting investment in our sector would help Canadians today while strengthening one of the country’s most important engines for jobs and local economic activity,” said Higginson.

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Staples Canada launches Care Cookie to help tackle health inequity across Canada

By
Mario Toneguzzi
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Staples Oakville (Image: Staples Canada)

Staples Canada has launched the “Even the Odds Care Cookie,” a limited-edition treat available in stores across Canada, with proceeds supporting health equity programs in local communities.

The Care Cookie is the latest expression of Staples Canada’s multi-year Even the Odds partnership with MAP (St. Michael’s Hospital), Canada’s largest health equity research centre, offering Canadians a simple and meaningful way to make a difference, said the retailer.

Since launching Even the Odds in 2021, Staples Canada has raised more than $9 million for MAP’s evidence-based health programs, helping to fund research and community initiatives that address the root causes of health inequity. The “Care Cookie” builds on that momentum, creating a new, tangible way for Canadians to give back every time they visit a Staples store, it noted.

Adrian Lang
Adrian Lang

“Health inequity touches far too many people across Canada, and through Even the Odds, Staples and our customers are helping to change that,” said Adrian Lang, Chief People and Legal Officer, Staples Canada. “The Care Cookie turns a simple, everyday purchase into real impact because when our customers choose to support this initiative, they’re directly funding programs that improve lives and are making a meaningful difference in their communities.”

Baked in partnership with Cookie It Up, a Canadian bakery based in Aurora, Ontario, the Care Cookie was developed specifically to serve as a national fundraising vehicle for Even the Odds. Proceeds from every cookie sold support MAP’s full suite of health equity programs, including APPLE Schools, Navigator, Our Healthbox, and the Food Prescription Program, which together serve tens of thousands of Canadians facing barriers to good health, explained Staples.

“We are so proud and grateful to partner with Staples Canada on this national program,” said Dr. Stephen Hwang, MAP’s director and the Canada Research Chair in Homelessness, Housing and Health. “Thanks to Even the Odds, MAP has been able to scale our evidence-backed programs to reach communities from coast to coast. This kind of impact never would have been possible without the incredible support of Staples associates, vendors and customers across the country.”

MAP said its programs are designed to address the conditions that make health inequity possible in the first place: food insecurity, lack of access to care, and under-resourced communities. Staples Canada’s sustained investment in MAP through Even the Odds has helped fund the expansion of these programs to new provinces and communities.

These equity-building initiatives include:

  • Navigator, an innovative solution to help people who are unhoused have a better recovery after hospitalization.
  • APPLE Schools, an award-winning health promotion initiative to support a healthy start for children in underserved communities.
  • Healthy Food Prescription, a landmark research trial to test a promising approach to food insecurity and chronic disease inequities: grocery store vouchers prescribed by physicians to low-income patients with diabetes.
  • Healthbox, ‘smart’ vending machines that dispense free health supplies, HIV self-tests and essentials, such as warm socks and hygiene products, to people experiencing major barriers to healthcare.

Staples customers across Canada can support Even the Odds in three ways:

  • Buy a Care Cookie in-store at any Staples Canada location for $4.99, or online at staples.ca
  • Make a donation at checkout at your local Staples store or online at staples.ca.
  • Become an ongoing supporter by donating directly online at staples.ca/eventheodds

The “Care Cookie” is available in stores while supplies last. Customers can make a direct donation in-store from until June 14.

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FIFA World Cup a prime opportunity for small businesses: VistaPrint

By
Mario Toneguzzi
-
Omar Ramadan photo
Omar Ramadan photo

With the FIFA World Cup kicking off in a few weeks, a new national survey of 300+ small businesses from host cities reveals how many are hoping for an influx of business, but are scrambling to prepare. 

Conducted by Angus Reid Institute in partnership with VistaPrint, the research points to a clear divide between opportunity and preparedness, with timing, investment and business size emerging as key factors in who stands to benefit most.

With an estimated $3.8 billion benefit for Canada as 2026 World Cup co-host, the FIFA World Cup will be a prime opportunity for small businesses to enhance visibility from increased demand, and the findings highlight how this opportunity is already taking shape, including:

  • Investment strategies vary widely: Businesses are leaning on a mix of tactics to drive conversion, including social media (43 per cent), special offerings (23 per cent) and signage (22 per cent), though adoption remains uneven.
  • Execution will separate winners from laggards: Larger small businesses are significantly more likely to adjust staffing levels (51 per cent vs. 12 per cent), giving them a clearer path to handle and monetize increased demand.
  • Revenue Expectations: 56 per cent of small businesses expect increased foot traffic, while 41 per cent anticipate revenue gains of 20 per cent or more, signalling strong upside tied to the tournament.
  • Execution will define brand impact: Businesses with greater resources are better positioned to support their marketing efforts with staffing and in-person execution, highlighting the link between brand visibility and the ability to deliver on the customer experience.

The data suggests the FIFA World Cup will act as a high-stakes moment for small businesses, one where preparedness, operational capacity and early investment will ultimately determine who translates increased visibility into meaningful revenue growth.

Erin Shea, Senior Director of North America Marketing at Vista, said the gap right now is between awareness and action. 

“Small businesses know the opportunity is coming. Our survey shows that nearly half (49 per cent) of respondents say the tournament will be ‘very important’ for attracting customers, and among businesses that expect a positive impact, 61 per cent are anticipating a revenue increase of some kind. That’s a meaningful signal,” she explained.

“But knowing an opportunity exists and being positioned to capture it are two very different things. This is especially pronounced among solo operators, where only 37 per cent say they feel ready. In many cases, it comes down to limited time, budget, and resources. Larger teams have already started adjusting staffing, planning promotions, and thinking through operations, while smaller operators are still in early-stage planning. 

“That window to act is narrowing quickly. The research highlights a divide between opportunity and execution—what specifically are the top actions that separate businesses that will capitalize on the event from those that won’t?”

Erin Shea
Erin Shea

Shea said it is important to plan early and execute with intent.

“The businesses that stand to benefit most are the ones already aligning their operations with the expected surge in demand. That includes adjusting staffing, inventory, and marketing ahead of time. In fact, 44 per cent plan to increase inventory, 38 per cent are adding staff, and 36 per cent are extending hours. That’s a clear, deliberate push to meet rising demand before it arrives,” she said.

“On the marketing side, businesses are leaning on social media (43 per cent), special promotions (23 per cent), and signage (22 per cent to capture attention, though adoption remains uneven. The businesses that wait until the last minute risk missing the initial surge entirely. The first wave of foot traffic is often where the biggest gains are made.”

Shea said business size creates real structural differences in both capacity and investment. 

“Our data shows that 69 per cent of businesses with 10 or more employees feel prepared for the FIFA World Cup , compared to just 37 per cent of solo operators. When it comes to budget, that gap is equally pronounced: while 24 per cent plan to invest $5,000 or more to prepare for the FIFA World Cup , 43 per cent aren’t planning to spend anything at all, with smaller operators accounting for the majority of that group and are far less likely to allocate budget,” she said.

“That said, smaller businesses can still compete by being focused and strategic. They don’t need to do everything, they just need to do a few things well. Simple, high-impact actions like clear storefront signage, a strong social media presence, and one or two well-executed promotions can go a long way. Agility is actually an advantage; smaller teams can move quickly and create more personalized, local experiences that resonate.”

Before any tactic lands, the visual identity of the business is what customers encounter first, noted Shea. 

“In a high-traffic moment like the FIFA World Cup, that first impression sets the stage for everything that follows. Social media leads adoption at 43 per cent, but it functions primarily as an awareness driver. It gets people through the door. The conversion work happens in-store, and that’s where signage and special promotions become critical. Customers who have been primed by a social post and then walk in to find clear, relevant messaging and a compelling time-sensitive offer are far more likely to spend than those who arrive without context,” she said. 

“Bundled offers, event-themed promotions, and time-sensitive discounts are particularly effective because they create urgency and encourage customer engagement. They help businesses convert foot traffic into real revenue, rather than just browsing. The businesses that connect every touchpoint, from the social post to the in-store experience are the ones that have the chance to unlock a customer relationship.”

Shea said the FIFA World Cup is a compressed window of elevated visibility, and the businesses that treat it only as a short-term revenue event will leave a lot of value on the table. 

“The smarter play is to think beyond the event itself and use that surge of new traffic as a gateway to long-term growth and build retention.

That starts with making the experience itself memorable, not just well-stocked shelves or a promotional sign, but something that feels genuinely connected to the moment and gives customers a reason to comeback. Then it requires actively capturing those new visitors: it can be as simple as encouraging social follows, collecting emails, or offering incentives for repeat visits.

“Our research shows that 56 per cent of businesses with potential upside expect customer traffic to increase during the tournament. That’s a significant influx of new faces. If businesses can convert even a fraction of those into repeat customers, the return of any FIFA World Cup investment multiplies considerably. The match ends in 90 minutes. The customer relationship doesn’t have to.”

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Deloitte: Export diversification now an execution challenge for Canadian firms

By
Mario Toneguzzi
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cottonbro studio photo
cottonbro studio photo

New research from Deloitte’s Future of Canada Centre shows that export diversification — long treated as a strategy challenge — has become a supply‑chain and procurement execution problem.

Drawing on interviews with 32 Canadian exporters and a survey of 256 firms, the report finds that preparedness and capability — not market access — increasingly determine which organizations can compete in today’s trade environment.

The findings highlight several implications for supply‑chain and procurement leaders:

  • Compliance capability is no longer optional; audit‑ready data, traceability, and origin verification now directly determine access to key markets.
  • Firms with embedded optionality (pre‑qualified suppliers, alternative inputs, flexible finishing locations) can move faster and at lower cost.
  • Execution capacity inside Canada — including facilities, labour, certification, and regulatory speed — shapes whether diversification plans can be realized in practice.
  • Procurement, trade, and supply‑chain functions are increasingly interdependent, requiring coordinated investment and governance.

In a Question & Answer with Retail Insider, Lisa Zajko, Global Trade Advisory Leader at Deloitte Canada and Jim Kilpatrick, Global Supply Chain & Network Operations Leader at Deloitte Canada, provided some insights on the issue.

Lisa Zajko
Lisa Zajko

Question: How has export diversification shifted from a strategic priority to an execution challenge for Canadian companies?

Answer: Export diversification has long been a strategic priority for governments, reflected in trade agreements and market access efforts. For many Canadian companies, however, it has not historically been a business imperative. The U.S. market has been relatively accessible, familiar, and profitable, reducing the pressure to invest in alternative global markets.

That calculus is now changing. Rising geopolitical uncertainty, shifting trade rules, regulatory divergence, and supply chain disruptions have increased both the cost of concentration and the cost of inaction. As a result, Canadian companies are increasingly treating diversification as an urgent priority rather than a long-term aspiration.

The challenge is execution. Success requires adapting products for new markets, building unfamiliar customer and partner relationships, building new supply chain and order fulfillment capabilities, and navigating tax, regulatory, and business model considerations across different jurisdictions.

Deloitte’s recent research report shows that diversification success depends less on intent and more on a company’s ability to operationalize change – making execution capacity, not strategy alone, the primary differentiator.

Q: What critical compliance capabilities are needed for global market access, such as traceability and origin verification?

A: Compliance has become a prerequisite for market access, not a backoffice exercise. Canadian exporters increasingly need robust traceability, origin verification, and documentation capabilities to meet stricter, or different, international requirements, and to take advantage of preferential tariff treatment under trade agreements.

With more active enforcement, firms must be auditready, supported by credible supply chain data that substantiates product origin and value. Firms that lack these capabilities face delays, added costs, or barriers to entry. Those that invest early in compliance and traceability are better positioned to maintain access and improve competitiveness across global markets.

Q: How are leading organizations building optionality into supply chains, and what practical advantages does this provide?

A: Leading organizations are designing optionality directly into their supply chains by qualifying alternate suppliers, adopting more modular production models, and maintaining flexible logistics routes.

This approach allows companies to respond more quickly to external shocks—whether tariffs, regulatory changes, or disruptions—often adjusting in weeks rather than months. The practical advantage is resilience and speed. Firms can protect margins, preserve market access, and capitalize on opportunities when less flexible competitors are constrained.

Jim Kilpatrick
Jim Kilpatrick

Q: To what extent do domestic constraints like labour, facilities, certification, and regulatory timelines limit export diversification?

A: Domestic execution constraints are a significant, and often underestimated, barrier to export diversification. Skills shortages, facility capacity, certification bottlenecks, and lengthy regulatory timelines can slow or prevent firms from scaling into new international markets.

Deloitte’s latest report, Continental divides: North American and global exporters in a new trade era, highlights that execution capacity at home often determines whether international demand can be converted into growth. When workforce availability, infrastructure readiness, or approval processes lag, companies are more likely to delay expansion, miss market opportunity windows, or redirect investments to jurisdictions with more predictable operating conditions.

Q: What recommendations can you offer for evolving procurement, trade, and supply-chain functions to operate more cohesively in a complex, conditional trade system?

Canadian companies should bring procurement, trade, and supply chain functions closer together to operate as an integrated system rather than in silos. That means aligning compliance, risk management, and data capabilities across functions.

Investments in end-to-end visibility, scenario planning, and cross-functional governance can enable faster, more informed decision making in a complex and conditional trade environment.

Firms that prioritize compliance capabilities, supplier diversification, and digital enablement will be better positioned to adapt, maintain access, and compete globally.

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Fairmont Waterfront announces multi-year renovation plan 

By
Mario Toneguzzi
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Fairmont Waterfront
Fairmont Waterfront

Fairmont Waterfront in Vancouver says it has completed the first phase of its comprehensive, multi-year renovation. 

This initial phase marks the transformation of 96 guest rooms across the hotel’s top four floors, introducing a refined design that reimagines the property’s signature Pure Coastal Luxury identity, it said. 

The full renovation, scheduled for completion by the end of 2029, will thoughtfully refresh all guest rooms and hotel amenities, further elevating the guest experience while remaining true to the hotel’s distinctive West Coast setting, it added.

Since July 1991, Fairmont Waterfront said it has remained a cornerstone of Vancouver’s luxury hospitality scene, with panoramic harbour and city views showcased across all 489 guest rooms. Defined by its distinctive West Coast aesthetic, the hotel’s heated rooftop pool, pioneering bee program, and vibrant downtown setting have cemented its reputation as one of the city’s most iconic luxury destinations, it noted.

“Many of the hotel’s much-loved offerings will be updated throughout the four-year project, including all 489 guest rooms, Fairmont Gold, the hotel lobby, pool area and ARC Restaurant + Bar,” said the hotel.

“Guest rooms have been thoughtfully reimagined to reflect Vancouver’s unique blend of waterfront and forest, drawing inspiration from the natural beauty that surrounds the property. Enhancements include 65″ HD flat-screen TVs, elevating both comfort and convenience. In place of a traditional desk, each room features an elegant table with versatile seating options, creating a flexible, multi-functional space for working, dining, or unwinding.

Fairmont Waterfront
Fairmont Waterfront

“Guests will also enjoy the Fairmont Signature Bed, designed for exceptional comfort and support, featuring the Fairmont Sealy Stearns & Foster Luxury Euro Plush Pillowtop mattress, alongside elevated Fairmont’s distinctive Le Labo bath products.”

“At Fairmont Waterfront, every guest moment matters,” said Randall Williams, General Manager of Fairmont Waterfront. “This renovation reflects our dedication to elevating those moments through thoughtful design, enhanced comfort, and an enduring sense of Pure Coastal Luxury. We are proud of the work completed so far, and we look forward to welcoming guests into refreshed spaces that feel truly inspired by the remarkable Pacific Northwest.”

The transformation has been brought to life through a partnership with Montreal-based design company CAMDI.

The hotel’s waterfront setting has thoughtfully inspired the layout and design, reflected in a calming palette of coastal blues, greens, and soft greys. A carefully curated mix of natural woods, stone-inspired finishes, woven textiles, and layered fabrics brings the outdoors in, creating a sense of depth, texture, and understated warmth throughout the space, added the hotel.

Karine Bannon
Karine Bannon

“The guest rooms have been reimagined as restorative sanctuaries,” said Karine Bannon, Designer and Senior Project Director at CAMDI. “The transformation focuses on spatial clarity, enhanced comfort, and stronger visual connection to the harbour, mountains, and skyline. Layouts feel more intentional and fluid, furnishings are refined and contemporary, and the atmosphere is calmer and more immersive. The result is a space that supports both relaxation and productivity — reflecting the hotel’s role as a destination for both leisure and corporate travelers.”

The second phase of the renovation will resume in the fall, with the next collection of guest rooms set to be unveiled and available for booking in Spring 2027.

Fairmont Waterfront
Fairmont Waterfront

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