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Dollarama sales surpass $7 billion in its fiscal year

By
Mario Toneguzzi
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Dollarama (PHOTO: WWW.THECENTREMALL.COM

Dollarama Inc. reported on Tuesday its financial results for the fourth quarter and fiscal year ended February 1, 2026 with annual sales surpassing $7 billion.

“We have met or exceeded our guidance for Fiscal 2026 on all metrics, despite unfavourable weather conditions in the fourth quarter which negatively impacted store traffic during peak sales periods. Looking at the full year, our compelling year-round value continued to resonate with Canadians, as we also reached new customers through the opening of an exceptional 75 net new stores,” said Neil Rossy, President and CEO.

“Fiscal 2026 was also a milestone year for our international expansion, with Dollarcity entering its fifth market of operation in Mexico and our acquisition of a national discount retail chain in Australia. In Fiscal 2027, we will continue pursuing disciplined profitable growth in our core Canadian market, while executing on our priorities across our complementary growth platforms. As we advance these plans, our aim is to deliver unbeatable value to customers in every market in which we operate and unlock long-term value for our shareholders.”

Fiscal 2026 Fourth Quarter Results Highlights Compared to Fiscal 2025 Fourth Quarter
(13 weeks compared to 14 weeks)

  • Sales increased by 11.7% to $2,101.3 million, compared to $1,881.3 million
  • In Canada, Comparable store sales, determined on a 13-week basis, increased by 1.5% (or 3.5% excluding the impact of the calendar shift), compared to 4.9% growth in the fourth quarter of the previous year
  • EBITDA increased by 6.2% to $711.5 million, representing an EBITDA margin of 33.9%, compared to 35.6%
  • Operating income increased by 4.7% to $584.4 million, representing an operating margin of 27.8%, compared to 29.7%
  • Net earnings increased by 0.4% to $392.5 million, resulting in a 2.1% increase in diluted net earnings per common share to $1.43, compared to $1.40
  • 7 net new stores opened in Canada, compared to 15 in the corresponding period of the previous year, and 1 net new store opened in Australia under the “The Reject Shop” banner
  • 888,309 common shares repurchased for cancellation for $174.8 million

Fiscal 2026 Results Highlights Compared to Fiscal 2025 (52 weeks compared to 53 weeks)

  • Sales increased by 13.1% to $7,255.8 million, compared to $6,413.1 million
  • In Canada, Comparable store sales, determined on a 52-week basis, increased by 4.2%, compared to 4.6% growth in the previous year
  • EBITDA increased by 13.5% to $2,408.2 million, representing an EBITDA margin of 33.2%, compared to 33.1%
  • Operating income increased by 13.3% to $1,937.9 million, representing an operating margin of 26.7%, unchanged from Fiscal 2025
  • Net earnings increased by 12.1% to $1,309.4 million, resulting in a 13.7% increase in diluted net earnings per common share to $4.73, compared to $4.16
  • Unrealized gain of $10.4 million recorded in the first quarter of Fiscal 2026 relating to the derivative on equity‑accounted investments, positively impacting EBITDA margin by 20 basis points and diluted net earnings per common share by $0.03
  • 75 net new stores opened in Canada, compared to 65 in the corresponding period of the previous year, and 7 net new stores opened in Australia under the TRS banner since closing of the TRS Transaction
  • 4,426,267 common shares repurchased for cancellation for $834.2 million

Founded in 1992 and headquartered in Montréal, Quebec, Canada, Dollarama is a leading Canadian value retailer with international reach with more than 2,800 stores and over 43,000 employees. Dollarama operates more than 1,700 stores in Canada. In Australia, Dollarama operates the country’s largest discount retail chain, The Reject Shop, with a national network of over 400 stores. Dollarama is also the majority shareholder, through its equity-accounted investments, in Latin American value retailer Dollarcity which has more than 700 stores located in Colombia, El Salvador, Guatemala, Mexico and Peru.

More from Retail Insider:

Galleria Opens Largest Store with K-Town Concept

By
Lee Rivett
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Galleria Supermarket in Thornhill. Photo: Galleria Supermarket

Galleria Supermarket has opened its largest location to date with the launch of its K-Town concept in Thornhill, Ontario. The new store, located at 300 Steeles Avenue West, welcomed customers last week, marking a milestone for the Korean grocery chain as it expands its presence and evolves its retail offering in the Greater Toronto Area.

Positioned as more than a conventional supermarket, the Galleria K-Town flagship store has been designed as a multi-faceted destination where retail, dining, and cultural experiences converge. The opening reflects broader shifts in grocery retail, where experiential environments and culturally driven concepts are increasingly shaping consumer engagement.

A Cultural Retail Destination for the GTA

The new K-Town location introduces a concept that is positioning the space as a hub that celebrates Korean culture while making it accessible to a wider, multicultural audience across the region.

“K-Town is envisioned as a symbolic space — a slice of Korea within Toronto,” said a Galleria spokesperson. “We aim to make K-Town a cultural hub that will be cherished by both Korean-Canadians and multicultural communities alike.”

The expansive layout allows for a blend of food retail, prepared meals, and lifestyle offerings. As a result, the Galleria K-Town flagship store aims to serve both as a daily shopping destination and as a place for discovery and community gathering.

Galleria Supermarket K Town branch in Toronto: Fruit and vegetable counter. Photo by Galleria Supermarket

Expanded Food Offering Anchors the Experience

At the core of the new location is an enhanced grocery and prepared food offering that builds on Galleria’s established strengths. The store features fresh produce, a broad assortment of grocery and household goods, and what is described as the company’s largest deli kitchen to date.

Meals will be prepared fresh daily using established recipes and quality ingredients, reinforcing the importance of ready-to-eat and home meal replacement categories within the business model. These offerings have become a key differentiator for Galleria, particularly as consumers increasingly seek convenience without sacrificing authenticity.

The flagship also introduces Galleria Avenue, a food court concept that brings together a curated mix of Korean and Asian dining options. Vendors include Kenzo Ramen, Myungpoom Seolleongtang, Woojoo Bunsik, and a Bûngopang café, providing a range of traditional and contemporary menu items.

The location also features the arrival of Ediya Coffee, marking the brand’s first Canadian outpost, alongside the addition of Paris Baguette, further enhancing the international appeal of the food offering.

Galleria Supermarket K Town branch – Deli Kitchen Island. Photo by Galleria Supermarket

Integrating Retail, Beauty, and Lifestyle

In addition to food, the store incorporates a range of complementary retail concepts designed to broaden its appeal. Yeowoo, a dedicated beauty retail space within the store, offers a curated assortment of K-beauty products, including popular and trend-forward brands.

This integration of grocery, foodservice, and lifestyle retail reflects a growing trend among international supermarket operators to create more immersive, multi-category environments. By doing so, Galleria is aligning itself with global retail formats that emphasize experience alongside transaction.

The store also features a cooking class studio equipped with 12 individual kitchen stations. These facilities are expected to host interactive programming for customers of all ages, reinforcing the location’s role as both a retail and educational space.

Galleria Supermarket K Town Branch Food Court

Strategic Expansion and Market Positioning

The opening of the Galleria K-Town flagship store represents a significant step in the company’s broader growth strategy. Founded in 2003, with roots in the Korea Food Trading wholesale business dating back to the 1980s, Galleria has grown into Canada’s largest Korean grocery chain.

The company operates multiple formats across the GTA, including large-format supermarkets and smaller urban “Express” stores tailored to downtown consumers. Its vertically integrated supply chain, supported by Korea Food Trading, allows Galleria to offer a wide range of imported and exclusive products while maintaining competitive pricing.

In recent years, the retailer has pursued expansion opportunities across Ontario, targeting both suburban and urban markets. The K-Town concept reflects an evolution of this strategy, positioning Galleria as not only a grocery operator but also a cultural and experiential retail leader.

Galleria Supermarket K Town Branch – Kitchen Catering Corner. Photo by Galleria Supermarket

Community Impact and Future Outlook

The K-Town development is also expected to play a meaningful role within the local community. Galleria has indicated plans to introduce outreach programs, events, and partnerships tied to the new location, continuing its efforts to promote Korean culture in Canada.

Beyond its immediate retail function, the space is being framed as a gathering place that supports cultural exchange and community engagement. This aligns with broader trends in retail development, where physical spaces are increasingly designed to foster connection and shared experiences.

The existing Galleria store nearby at 7040 Yonge Street will remain open for the time being, although it is expected to relocate in the future as part of a planned redevelopment in the area.

Galleria Supermarket K Town branch. Photo by Galleria Supermarket

A New Benchmark for Ethnic Grocery Retail

The launch of the Galleria K-Town flagship store signals a new phase in the evolution of ethnic grocery retail in Canada. By combining grocery, dining, and cultural programming within a single environment, Galleria is setting a benchmark for how specialty retailers can expand their role in an increasingly competitive market.

As consumer expectations continue to evolve, concepts like K-Town show how retailers can differentiate themselves through experience, authenticity, and community-driven design. For Galleria, the new Thornhill location represents both its largest store and its most ambitious vision to date.

Galleria Supermarket K Town Branch Opening Ribbon-Cutting Ceremony. Photo by Galleria Supermarket

More from Retail Insider:

Galleria Supermarket Embarks on Strategic Store Expansion Across Ontario, Targeting Key Urban Areas [Interview]

KEEN launches trail running category

By
Mario Toneguzzi
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KEEN photo
KEEN photo

After 22 years of outdoor performance and hybrid footwear, KEEN’s trail running movement continues to grow with the launch of its dedicated trail running category. 

The new category is Seek, the brand’s first trail runner, and its latest innovation, Roam – an adaptive trail runner for gravel, dirt, and road.

Shaun Bohnsack
Shaun Bohnsack

“Trail running was a natural progression for KEEN,” said Shaun Bohnsack, VP of performance footwear at KEEN. “We’ve been consciously creating durable, comfortable shoes for the trail for over 22 years – innovating materials and construction methods to get lighter and faster, with less impact on the planet.

“We’re taking that same trail DNA, and our signature durability and comfort, to make trail running more accessible to our fans – creating trail running footwear for different terrain and performance goals.”

KEEN said its innovation team spent nearly two years developing the Seek trail runner – insight that was used to start building out KEEN’s trail running offering. While Seek delivers maximal comfort and pinnacle performance, Roam, the company said its latest release is a versatile, daily trainer that can span all terrain. Both trail running models were Consciously Created with enhanced durability, as they share the same high-abrasion formulation of KEEN.ALL-TERRAIN rubber – independently tested by Heeluxe to be about twice as durable as a typical trail running shoe. They also both offer KEEN’s signature roomy forefoot with plenty of space for toes to naturally splay.

KEEN  has been family-owned for over 20 years.

Matt Merko
Matt Merko

Matt Merko, Director of Insights and Engagement at Keen Canada, said besides its online presence that ships across the country the retailer also has a wholesale presence coast to coast. 

“We’re in a lot of the larger outdoor stores I’m sure you’re very familiar with, but we’re also in some of the smaller mom-and-pop shoe stores as well,” he said. 

There is not a storefront presence in Canada but the retailer has two in the U.S., in Portland and in Palo Alto, California, and a few overseas in Japan.

“The brand is only 22 years young, which in the grand scheme of footwear is nothing compared to some other brands. We were established in Canada a year after that — so 2005, the tail end of 2005,” said Merko.

“I’m about to be in year 10 with the brand this November. Prior to that, I was with a few other athletic footwear companies. The last 10 years for footwear in general has been such a crazy ride, especially when you throw a pandemic in there and what that does not only for supply chain, but people’s demands, interests, and activities. We’ve really seen it be a rollercoaster.

“Traditionally when we started, it was brown leather hiking boots and sandals that could get wet. That’s where we built our business. But as trends change and style and interests change, people are looking for stuff that’s more colourful, more lightweight, and more versatile. We’ve definitely seen our business evolve, even just from five or six years ago. We’re really just trying to keep up with the demand we’re seeing from our fans.”

KEEN photo
KEEN photo

Merko said the brand is seasonally diversified. A sandal business does really great in spring and summer. An insulated business does really well when it gets cold. 

“We have a lifestyle business that’s a constant right through the season, and hiking is usually spring and fall,” he said.

“What we do see is that seasonality has shifted in terms of timing. If winters are hitting later or summers are starting later, we’re seeing some of that. But the diversity of the business has helped us continue to grow.

“We’re also getting into newer categories. Trail running is a newer one for us. You would think as an outdoor brand we already had a trail running line, but it’s brand new. I think that’s opening doors in terms of new retail categories. The traditional running category, which we really were not in, has opened some doors for us. I would say we’re definitely experiencing very stable growth, and these new categories are helping accelerate that.”

Product development takes place at the Portland, Oregon head office. But there is a lot of regional input, especially when it comes to things like insulated product. 

“Nobody knows insulated footwear as well as Canadians. The product teams are really great at getting feedback from all regions in terms of what Canadian fans need, or fans in Japan or Europe. I feel like we have strong input into that, which has been great,” said Merko.

“People don’t know that KEEN is a privately owned company. Some people think it’s part of a larger shoe conglomerate. It’s privately owned and what we call values-led.

KEEN photo
KEEN photo

“I’ve worked at other footwear brands, and they all talk about being values-led and giving back. My experience at KEEN has been completely different — for the better. The way we build product, the way we give back to the community, the way we help Canadians in disaster response — that was never on anyone’s radar at other footwear companies. With us, it’s different.

“I think that’s why Canadians and fans like us so much. We have this core following. Talking to retail partners, people come in and say, “I just want another pair of size nine Newport sandals.” They don’t want to try them on — they just know that’s their sandal and they’ve had it for many seasons.

“We have a really loyal following, but we’re also getting momentum with younger fans coming to us for the first time. It’s exciting because we have core traditional categories and newer growing categories, and that’s really helping accelerate our business. It’s a fun time. It’s been 10 years, but it’s still super exciting. I still feel like we have a ton of potential and opportunity.”

More from Retail Insider:

Rexall expands Moore Park Pharmacy in Toronto to offer more same-day care services amid family doctor shortage

By
Mario Toneguzzi
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Rexall photo
Rexall photo

Rexall recently opened its significantly expanded pharmacy at 325 Moore Avenue in Moore Park in Toronto, adding more clinical space and on-site services that give residents additional same day options for common health needs.

The company said independent research shows a growing primary care gap in Toronto, with more than 500,000 residents already without a family doctor and projections approaching one million by 2026. Pharmacies are taking on a larger role in same day care as patients look for timely assessment and treatment, added Rexall.

What is new at this site:

  • Minor illness assessment and prescribing for common conditions, supported by expanded consultation space
  • Medication management for people with complex prescriptions
  • Seasonal and routine vaccinations with increased capacity
  • A larger, modernized pharmacy footprint designed to improve flow and reduce wait times

These services are provided at the Moore Avenue pharmacy, with the expanded layout designed to make them easier to access.

Heidi Wittke
Heidi Wittke

Heidi Wittke, VP of Pharmacy,  said Moore Park really reflects Rexall’s focus on supporting the community. 

“We often look at where we’re going to place our pharmacies, both from a pharmacist-led clinic perspective, and there’s a lot of thought that goes into that. We definitely saw a need to be able to provide access to trusted healthcare providers and additional clinical services at a pharmacy level,” she said.

“It reflects our commitment to modernize the store, expand access to our pharmacist-led clinics and services, while investing in those neighborhoods where trusted health support is really needed most.”

With the expanded scope of practice for pharmacists and them being able to work within the education they’ve gone to school for, there are more opportunities now for delivery of care, especially through minor ailments assessment for common conditions.

“We’re certainly seeing opportunity now for pharmacists to help really bridge that gap in the healthcare system and then really work within it in an integrated, collaborative care model, working closely with physicians and prescribers as well to meet that demand,” explained Wittke.

“We definitely want to make sure, first and foremost, that patient comfort and privacy is our number one priority. So we do create a space that feels welcoming, where they can have those conversations with our pharmacists.

“Oftentimes, too, you might see some equipment that you would see in some primary care physicians’ offices. You might see things like a blood pressure machine. You might see things like body composition tools that help to assess and provide additional information and clinical results for patients as well.

Rexall photo
Rexall photo

“You may also see other tools to be able to provide some of those clinical services and assessments, especially around minor ailments and conditions. It’s also a place where we provide a lot of vaccinations. Patients come to us for travel consults as well.

“We’ve really tried to curate that space to meet the needs of the patients and, again, support that expanded scope of practice for our pharmacists.”

Currently, Rexall has just under 400 locations and operates 22 pharmacist-led clinics. 

Rexall photo
Rexall photo

“We’re really thoughtful about where we expand. Our grand reopening in Moore Park really reflects that broader strategy — to elevate the pharmacy experience, expand those clinical services, and really modernize the way we show up in communities across Canada to better support that expanded scope of practice that our pharmacists do have,” said Wittke.

“So we’re really looking at that as an example . . . more modern, more service-focused, and more aligned with what Canadians need, really supporting Canada’s health one person at a time.”

Wittke said there’s opportunity for that integrated care model with pharmacists and prescribers. 

“We see that there is a healthcare gap. In Ontario specifically, we know 2.4 million Ontarians are without access to family doctors,” she said.

“So having a reopening like that helps to improve access to convenient, high-quality healthcare for patients living and working in those communities. Certainly, I think there’s opportunity for expansion.

“We’re very thoughtful in where we do expand, and again, that reopening in Moore Park reflects that broader strategy for us.”

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Daily Synopsis: Mar 23, 2026

By
Retail Insider
-

Today’s Retail Insider articles cover rising grocery prices driving Canadian households to cut back on premium items and seek discounts, reflecting ongoing food affordability issues. Toronto’s retail availability has dropped to a record low amid high demand from food and experiential retailers pushing rents up. Groupe Dynamite’s expected earnings surge highlights strategic real estate shifts boosting performance. These stories together show how consumer behaviour, retail space scarcity, and retailer agility define the current Canadian retail environment. Further discussion follows below, alongside Canadian Retail News From Around the Web.

 

🗞️ The Day’s Retail Insider Article List

 

🌐 Canadian Retail News From Around the Web

Rising Grocery Prices in Canada Are Changing Consumer Behaviour

By
Sylvain Charlebois
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Grocery store in Quebec. Photo: Vergo Construction

Surveys after surveys tell the same story: Canadians are struggling at the grocery store. And yet, despite the mounting evidence, the situation is not improving.

Our lab has been tracking consumer sentiment on food affordability for years. The latest results, based on a national survey of more than 3,000 Canadians conducted earlier this month, in partnership with Caddle, confirm what many already feel at the checkout: the pressure is not easing.

Yes, food inflation eased slightly to 5.4 per cent in February. But for most households, that number is largely irrelevant. What matters is the total bill — and for many, it remains uncomfortably high.

 

In fact, 81 per cent of Canadians identified food as the expense that has increased the most over the past 12 months. Not housing. Not energy. Not transportation. Food.

That alone should be a wake-up call.

But what is more concerning is how Canadians are coping.

Our data shows that 34 per cent of households have drawn from savings or taken on debt just to put food on the table over the past year. That is not a marginal statistic — it is a structural sign. It suggests that food affordability is no longer being managed through simple budget adjustments. It is now eroding financial resilience.

Canadians are adapting, but not necessarily in ways we should be comfortable with.

Nearly half of respondents — 44.4 per cent — say they are seeking out more sales and discounts. Another 23.7 per cent are spending more time searching online for better prices, while 23.3 per cent report using more coupons. About 23.2 per cent are switching to cheaper stores altogether.

These are not minor adjustments. They represent a fundamental shift in how Canadians shop for food.

At the same time, households are making more difficult trade-offs. About 21.1 per cent say they are buying fewer non-essential items, while 19.7 per cent have switched to cheaper brands and 16.2 per cent are opting for generic products.

Even more telling is what Canadians are removing from their carts.

 

Roughly 15.4 per cent report buying fewer premium foods such as meat and fresh produce, while 13.4 per cent are buying more bulk items and 8.6 per cent are relying more on staple foods like pasta and beans. Some are even turning to food-rescue or surplus apps, though adoption remains limited at 8.5 per cent.

Others are making sacrifices beyond food. About 12.3 per cent say they are spending less on goods like clothing or electronics just to maintain their food consumption.

And despite all of this, only 5.9 per cent of Canadians report making little or no change to their grocery habits.

In other words, almost everyone is adjusting — and most are doing so significantly.

Beneath these behaviours lies a deeper shift.

Many households are quietly reshaping their food baskets.

They are buying less meat, fewer fresh products, and cutting out discretionary items altogether. These decisions help in the short term, but they come with longer-term consequences — particularly when it comes to nutrition and health.

This is not the traditional image of food insecurity. There are no empty shelves. No visible shortages.

Instead, what we are seeing is something far more subtle — and arguably more pervasive: a gradual erosion of quality, choice and dietary diversity. A quieter form of food insecurity, unfolding in real time.

And it is largely being misunderstood.

Much of the public debate continues to fixate on grocery chains and retail pricing. While scrutiny is warranted, focusing solely on grocers oversimplifies the issue.

Food prices are shaped by a complex system — one that includes energy costs, transportation, labour shortages, regulatory burdens, and global commodity markets. Retail is simply where all these pressures converge.

If we are serious about affordability, we need to look beyond the checkout counter.

There are deeper structural issues at play.

Since the late 2000s, food prices in Canada have increasingly diverged from overall inflation. At the same time, population growth has accelerated, putting additional strain on supply chains that were never designed for this level of demand.

Yet policy responses remain fragmented.

Improving productivity in the agri-food sector, reducing interprovincial trade barriers, and strengthening domestic production capacity are not glamorous solutions — but they are necessary ones. So is creating a regulatory environment that allows smaller players to compete and scale.

In the meantime, households are left to absorb the shock.

There is no widespread shortage of food in Canada. That is not the issue.

The issue is that food is becoming one of the most difficult expenses to manage.

And when one in three households starts relying on savings or credit to cover basic nutrition, it is no longer just an affordability problem — it is an early warning sign.

Food affordability has always been a cornerstone of Canada’s standard of living. If that foundation continues to weaken, the consequences will extend far beyond the grocery aisle.

The data is clear.

The question is whether we are ready to act on it.

More from Retail Insider:

Toronto Retail Availability Hits Record Low

By
Craig Patterson
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Queen St. W. in Toronto. Photo: Richie Diesterheft (CC BY 2.0)

Toronto retail availability has reached a historic low, underscoring continued demand for well-located storefront space across the city’s core shopping corridors.

According to a new report from JLL, retail availability across 14 tracked Toronto corridors declined to 6.22% in the fourth quarter of 2025, marking the third consecutive quarter of tightening and the lowest level recorded since tracking began. The data points to a market that remains highly competitive, even as broader economic conditions introduce new uncertainty.

Brandon Gorman, Executive Vice President at JLL Canada, said the milestone reflects sustained leasing activity and limited supply in key urban streets.

“It’s  the third consecutive quarter of tightening availability and the lowest availability rate that we’ve seen since we started this report” he said in an interview.

Leasing Momentum Continues Across Core Corridors

Brandon Gorman

Toronto’s retail leasing market remained active through the end of 2025, with 24 new lease transactions totaling more than 41,000 square feet completed in the fourth quarter alone. Activity was particularly concentrated along Yonge Street between Gerrard and Bloor, which recorded the highest number of deals and total square footage leased.

Food and beverage operators led leasing activity, accounting for the largest share of transactions. The category continues to anchor street-level retail demand, supported by evolving consumer preferences and strong foot traffic in urban neighbourhoods.

Experiential concepts are also gaining traction. Entertainment-focused tenants such as Hyve and Cardify secured space on Queen Street West, highlighting a broader shift toward activity-based retail that complements traditional merchandising.

Strong Fundamentals Despite Economic Headwinds

While retail fundamentals remain robust, the outlook for 2026 is expected to moderate as economic conditions evolve. JLL notes that slower population growth, softer disposable income gains, and reduced consumer confidence could temper spending in the near term.

However, Toronto’s underlying economic strength continues to support retail demand. The city recorded more than 28 million visitor arrivals in 2025, surpassing pre-pandemic levels, while tourism spending reached a record high. These trends have reinforced the role of streetfront retail as a key component of the urban economy.

Photo: Downtown Yonge BIA/Toronto

At the same time, office utilization patterns are stabilizing. Midweek attendance has climbed significantly, with Wednesdays reaching approximately 96% occupancy, providing a consistent boost to retailers that rely on weekday traffic.

Tight Supply Driving Competition for Space

The decline in Toronto retail availability reflects a broader supply constraint across many of the city’s most desirable corridors. In several submarkets, availability has effectively disappeared, creating intense competition among tenants seeking high-quality locations.

Even in areas with higher reported availability, such as parts of the downtown core, conditions are more nuanced. Gorman noted that headline availability figures can sometimes overstate true supply, particularly where redevelopment activity or limited-term leasing opportunities restrict tenant options.

“Tenant demand remains strong, but term constraints in recent years significantly narrowed the pool of prospective tenants,” he said.

This dynamic is especially evident on corridors where redevelopment has either removed inventory or created uncertainty around lease durations, shaping the types of tenants that can realistically secure space.

Yorkville Avenue in Toronto. Photo: Craig Patterson

Average Rents Continue to Climb

As availability tightens, rental rates have continued to edge upward across Toronto’s urban retail corridors. Average asking rents reached $94.24 per square foot in Q4 2025, reflecting steady growth quarter over quarter.

Prime corridors continue to command significantly higher rents, with top-tier locations achieving multiples of the citywide average. This pricing gap reinforces the bifurcation between prime and secondary streets, as well as the increasing importance of tenant mix and location strategy.

Toronto Retail Market Positioned for Long-Term Growth

Despite near-term economic uncertainty, Toronto’s retail sector remains well positioned for long-term growth. The combination of population density, tourism recovery, and a resilient urban economy continues to support demand for physical retail space.

Gorman emphasized that while conditions may evolve, the fundamentals underpinning Toronto’s retail market remain strong.

“I think if you look at it from that perspective, it’s a very tight market,” he said.

As retailers continue to compete for limited space in high-performing corridors, Toronto retail availability is expected to remain a defining metric for the market heading into 2026.

More from Retail Insider:

Icebug Expands Trail Line with Myr RB9X Launch

By
Craig Patterson
-
Myr RB9X – The versatile newcomer with exceeding comfort. Photo: Icebug

Swedish footwear brand Icebug is expanding its presence in the Canadian market with the introduction of its Spring and Summer 2026 trail collection, anchored by the launch of the new Myr RB9X. The release builds on momentum from the brand’s previous Järv model while reflecting a broader strategic shift in how Icebug operates and distributes in Canada.

The latest collection highlights Icebug’s continued focus on technical performance, grip innovation, and sustainability, positioning the brand within a growing segment of consumers seeking high-performance outdoor footwear with environmental accountability.

 

Myr RB9X Introduced as Technical Evolution of Järv

The Myr RB9X represents Icebug’s newest addition to its trail lineup and is positioned as a more technical counterpart to the Järv RB9X, which debuted previously. Designed for versatility across trail and mixed terrain conditions, the Myr features a fully cushioned sole, high responsiveness, and the brand’s proprietary RB9X rubber outsole.

The RB9X outsole remains central to Icebug’s product offering. It is engineered to provide grip on wet rocks, uneven trails, and slippery urban surfaces without the use of metal studs. The Myr model incorporates 24 percent recycled materials and 7 percent bio-based materials, with a reported climate footprint of 10 kg CO2e per pair. The model will retail for $149.95 and be available in multiple colourways, including Triple Blue and Black.

The launch signals Icebug’s continued investment in trail running and outdoor performance categories, where demand has grown alongside consumer interest in year-round outdoor activity.

Järv Gaiter RB9X GTX – 100% grip. 100% waterproof. Photo: Icebug

Expanded Lineup Includes Updated Järv and Waterproof Gaiter Model

In addition to the Myr RB9X, Icebug is refreshing several existing models with updated colourways and technical enhancements. The Järv RB9X returns as a high-performance trail shoe, now offered in new colour combinations such as Grapefruit/Green and Black/White, with a climate footprint of 7 kg CO2e per pair.

A notable addition is the Järv Gaiter RB9X GTX, which integrates a waterproof GORE-TEX membrane. The design aims to prevent mud, gravel, and moisture from entering the shoe, addressing conditions commonly encountered in Canadian environments during transitional seasons. The gaiter model carries a higher price point at $249.95 and incorporates increased bio-based material content.

These updates reinforce Icebug’s positioning around durability and all-season usability, particularly relevant in markets such as Canada where terrain and weather conditions vary significantly.

Järv RB9X – High-performance trail shoe in new colours. Photo: Icebug

Canadian Market Strategy Shifts to Direct Operations

A significant development for Icebug trail footwear Canada is the company’s transition to a direct-subsidiary model. As of June 2025, Icebug assumed full control over its Canadian operations, including sales, logistics, and customer service.

Previously, the brand operated through Alberta-based Rock Gear Distribution. By internalizing distribution, Icebug aims to strengthen control over brand messaging, pricing, and its environmental transparency initiatives.

The shift aligns with the company’s “Follow the Footprints” program, which provides detailed reporting on the environmental impact of each product. Direct control allows Icebug to implement this level of transparency more consistently across the Canadian market.

The move also reflects a broader industry trend toward direct-to-consumer engagement, particularly for niche performance brands seeking closer relationships with their customer base.

 

E-Commerce Expansion Supports National Reach

Icebug’s Canadian e-commerce platform, launched in late 2024, has become a central component of its growth strategy. The site offers access to the brand’s full global assortment, including specialized models that were previously limited in availability through Canadian retail channels.

To support this expansion, Icebug maintains Canadian-based warehousing, enabling domestic shipping and avoiding cross-border duties. This infrastructure supports both accessibility and pricing competitiveness, which are key considerations for Canadian consumers.

The direct-to-consumer model also complements the company’s sustainability messaging, allowing it to communicate product-level environmental data without intermediary interpretation.

Continued Role for Specialty Retail Partners

Despite the shift toward direct operations, Icebug continues to work with a network of specialty retailers across Canada. These partnerships remain important for brand visibility and customer engagement, particularly in technical categories where in-store expertise can influence purchasing decisions.

Key retail partners include specialty running and outdoor stores in markets such as Alberta, Ontario, and Quebec. These locations serve as experiential touchpoints where consumers can interact with the product and better understand its performance features.

This hybrid approach allows Icebug to balance direct distribution with selective wholesale relationships that support brand credibility and market penetration.

Sustainability Remains Central to Brand Positioning

Icebug continues to emphasize sustainability as a core differentiator. The company has positioned itself as a leader in environmental transparency within the footwear industry, with initiatives that include detailed carbon footprint reporting and material sourcing disclosures.

The Spring and Summer 2026 collection reflects incremental progress toward the brand’s stated goal of reducing the average carbon footprint per shoe to 6 kg CO2e by 2030. Current models in the lineup range between 7 kg and 10 kg CO2e per pair.

The company also continues to incorporate recycled and bio-based materials into its products, alongside innovations such as algae-based foam and natural rubber components.

This focus resonates with a segment of Canadian consumers who are increasingly evaluating products based on environmental impact alongside performance.

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Groupe Dynamite Earnings Expected to Surge

By
Craig Patterson
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Dynamite store. Photo: Groupe Dynamite

Montreal-based fashion retailer Groupe Dynamite is expected to deliver another strong quarter, reinforcing its position as one of the most resilient and high-performing apparel companies in North America.

According to a new earnings preview from Stifel analyst Martin Landry, Groupe Dynamite earnings are projected to show significant year-over-year gains when the company reports its fourth quarter fiscal 2025 results on April 1. While another earnings beat is considered likely, the report suggests the magnitude may be more moderate than in previous quarters as expectations have risen.

Even so, the broader narrative remains one of sustained momentum, operational discipline, and strategic execution in a challenging retail environment.

 

Revenue Growth and Profitability Continue to Surge

Martin Landry
Martin Landry

Stifel forecasts that Groupe Dynamite will report fourth quarter revenue of approximately $378 million, representing a 39% increase compared to the same period last year. Comparable store sales are expected to rise by roughly 30%, reflecting continued strong demand across both physical stores and digital channels.

At the same time, profitability is expected to improve significantly. Adjusted earnings per share are projected to more than double year-over-year to $0.66, supported by higher margins and operating leverage.

The report points to EBITDA margins approaching the high-30% range, a level that places Groupe Dynamite among the most profitable operators in the apparel sector. This margin expansion reflects a combination of gross margin improvement and disciplined cost management as the business scales.

Looking ahead, Stifel expects Groupe Dynamite earnings to remain strong through fiscal 2026, with comparable sales growth projected in the range of 6% to 10% and EBITDA margins potentially reaching 37% to 38%.

Operational Discipline Underpins Performance

A key factor behind the company’s performance is its operational efficiency. Groupe Dynamite has built a supply chain model that allows it to respond quickly to changing fashion trends, reducing inventory risk while maximizing sell-through.

The report notes that a significant portion of the company’s product assortment can move from production to store shelves in a matter of weeks. This level of speed enables the retailer to align closely with consumer demand, particularly within the fast-moving women’s fashion segment.

As a result, Groupe Dynamite has maintained strong inventory turnover and profitability metrics, which Stifel identifies as industry-leading. The company’s ability to execute consistently has contributed to investor confidence, even as broader apparel retailers face volatility.

 

Real Estate Strategy Driving Incremental Growth

Beyond merchandising and operations, Groupe Dynamite’s real estate strategy is emerging as a meaningful driver of future growth.

The company has been actively relocating stores from lower-tier shopping centres into higher-performing retail environments. According to the report, these relocations can significantly increase sales productivity, in some cases generating multiple times the revenue within the same footprint.

With a meaningful portion of the store network still positioned in lower-tier locations, this strategy provides a clear runway for continued improvement. It also aligns with broader trends in Canadian retail, where both landlords and tenants are increasingly focused on quality over quantity in physical store portfolios.

Garage store at The Mall at Millenia in Orlando, Florida. Photo: The Mall at Millenia

International Expansion and Market Dynamics in Focus

Investors will also be watching the company’s expansion into international markets, particularly the United Kingdom, where Groupe Dynamite has recently opened its first store and is expected to open additional locations.

At the same time, broader macroeconomic factors remain relevant. The report highlights the potential impact of tariff changes on apparel imports into the United States, noting that lower year-over-year tariff levels could provide a tailwind for margins in the first half of fiscal 2026.

Pricing strategy will also be an area of focus, especially in a scenario where cost pressures ease and retailers must decide whether to pass savings on to consumers or retain them to support profitability.

Resilience in a Competitive Apparel Landscape

While risks remain, including shifting fashion trends and potential economic headwinds, Groupe Dynamite appears well positioned relative to peers.

The company operates two complementary brands, Garage and Dynamite, targeting different customer segments and providing diversification within the women’s apparel category. Garage, in particular, continues to resonate strongly with younger consumers, supporting growth in both Canada and the United States.

Stifel characterizes Groupe Dynamite as one of the best-managed companies in the apparel sector, citing its strong return on invested capital, efficient inventory management, and consistent execution.

Following a recent pullback in the company’s share price, the report suggests that the stock may present an attractive entry point for investors seeking exposure to a high-growth retail operator.

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Restaurant merch becoming increasingly more popular: Lightspeed Commerce

By
Mario Toneguzzi
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The Tavern Collective in Calgary. Photo by Mario Toneguzzi
The Tavern Collective in Calgary. Photo by Mario Toneguzzi

Restaurant merch used to be a souvenir, something you grabbed on your way out. Now, it can feel more like something you want to be seen in.

Hoodies that sell out, a sticker on your laptop, tote bags that start popping up all over the city. What once sat behind the register is now part of how people signal who they are.

What makes this moment different is the cultural weight restaurants now carry.

According to new data from Lightspeed Commerce, nearly 20% of hospitality businesses are now selling branded merchandise. For some successful restaurants, merch can represent as much as 11% of monthly revenue, even as high as 27% in some cases.

But it’s more than sales. Restaurants have become status markers. The spots you frequent reflect your taste and your circle. Wearing a restaurant’s logo is not just about loyalty. It reflects alignment. 

And alignment can quickly translate into demand. After a character on the TV series Heated Rivalry was shown wearing a St-Viateur Bagel T-shirt, the Montreal institution saw its logo tees surge in popularity, with merch sales nearly tripling in the weeks that followed. In moments like that, merch becomes more than apparel, it is cultural currency.

Restaurants are not just serving food. They are becoming part of how people express themselves.

Adoniram Sides
Adoniram Sides

“Restaurants are increasingly operating as lifestyle brands, not just places to eat. Consumers today are more intentional about where they spend their time and money, and they’re looking for ways to express that identity beyond the dining experience,” said Adoniram Sides, Senior Vice President, Lightspeed Commerce.

“At the same time, operators are facing tighter margins and shifts in consumer behavior, for instance around lower alcohol consumption, which has traditionally been a high-margin category. Merchandise offers a relatively low-lift way to diversify revenue without adding significant operational complexity. It’s also never been easier to execute. With integrated POS and e-commerce platforms, restaurants can launch and manage merchandise as a true retail category.

“There’s also a post-pandemic shift at play. Restaurants built stronger emotional connections with their communities, and merch has become a way for customers to continue supporting and engaging with those brands.”

For many restaurants, merch is becoming a meaningful and strategic revenue stream, said Sides.

“What makes it particularly attractive is margin. Unlike food, merch doesn’t carry the same level of perishability or operational cost, which can make it a higher-margin category when executed well. It also extends customer lifetime value. A guest who buys a hoodie or tote is staying connected to the brand long after they’ve left the restaurant, which can drive repeat visits and word-of-mouth,” he said.

“Cultural influence is a major accelerator. Social media has turned restaurants into highly visible, shareable brands, and that visibility translates directly into demand for merchandise.

“We’re also seeing moments in pop culture, when a restaurant shows up in a TV show, on social media, or through a celebrity moment, it can instantly drive demand. 

“For example, after a character on the TV series Heated Rivalry wore a St-Viateur Bagel T-shirt, the Montreal institution reported that sales of the item nearly tripled in the weeks that followed. It shows how quickly cultural visibility can translate into demand. Restaurants are no longer just places people go to eat. They’re brands people want to take home.”

Sides said urban markets tend to lead, particularly cities with strong local identity like Montreal, Toronto, New York, or LA. In these environments, restaurants are deeply tied to neighbourhood culture, which makes their brands more wearable.

“In terms of concepts, restaurants with a clear point of view, whether that’s design-forward cafés, iconic institutions, or places with a strong community following, tend to perform best,” he explained.

Tim Hortons photo
Tim Hortons photo

“What separates success from underperformance is intentionality. The restaurants that win treat merch like a true extension of their brand, investing in quality, design, and storytelling, rather than treating it as a novelty.”

This is part of a broader, lasting shift in how consumers engage with brands. People are looking for deeper, more personal connections, and restaurants are uniquely positioned to deliver that because of the experiences they create, noted Sides.

“That said, merchandise is not a fit for every restaurant, and not every restaurant will succeed. What makes sense for something like St-Viateur Bagels may not make sense for a fine dining establishment. It’s about making sure this extension of the business makes sense with the overall brand narrative and the target consumer,” he said.

“The future of restaurant merch will be less about simply having products, and more about having a brand people genuinely want to be associated with.”

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