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Canadian Retail Industry Thrives Amid Polarization: Luxury and Value Sectors on the Rise: Michael Kehoe (Video)

By
Mario Toneguzzi
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Canada’s retail industry is on the cusp of a transformative period, marked by a wave of construction and new brand entrants, according to Michael Kehoe, Broker of Record at Fairfield Commercial Real Estate. 

Kehoe recently shared his insights, expressing optimism about the country’s evolving retail landscape.

MICHAEL KEHOE, RETAIL SPECIALIST WITH FAIRFIELD COMMERCIAL REAL ESTATE IN CALGARY

“It’s an exciting time in the retail industry in Canada,” Kehoe said, describing a sector brimming with new developments and a distinct split in consumer demand between affordability and luxury. 

“We see tremendous polarization, with strong growth in both the value and luxury sectors,” he explained. This divergence, he believes, reflects a clear response to shifting consumer preferences.

While retail giants are making strides by focusing on affordable, value-driven merchandise, the luxury sector is also flourishing. Canada’s high-end retail is no longer confined to traditional shopping districts like Toronto’s Yorkville, Vancouver’s Burrard Street, and Yorkdale Shopping Centre. 

Kehoe noted, “We’re now seeing luxury clusters emerge at locations such as West Edmonton Mall, Calgary’s Chinook Centre, and Montreal’s upcoming Royalmount.” Additionally, Vancouver’s Oakridge Park is set to bring another robust luxury node to the West Coast.

In Alberta, Kehoe highlighted an impressive surge in the food service sector, particularly in sit-down and quick-service restaurants. 

“With strong population growth and good disposable income in Alberta, full-service restaurants are thriving, and quick-service chains are expanding significantly,” he said.

However, Kehoe cautions that retailers without a clearly defined brand identity may struggle. He noted that the middle market, lacking a unique value proposition, could face significant challenges.

 “If you’re in that ‘mushy middle,’ you’re vulnerable,” he stated. To succeed, Kehoe advises brands to “define your target market, dominate your category, and go after your customer with confidence.”

The mood among retail professionals has been largely optimistic, Kehoe observed, especially following the recent ICSC conference in Toronto, where leasing activity was strong. 

“Deal sentiment was extremely positive, with active discussions on leasing transactions across enclosed malls, grocery-anchored retail centers, and main street retailing,” he said. 

Kehoe expects new store openings to ramp up significantly by the second and third quarters of 2025.

Still, Kehoe acknowledged that retailers are navigating a landscape of rising costs, from rent and labor to utilities, contributing to heightened uncertainty. He predicts that as the holiday season approaches, affordability will remain a core concern for Canadian consumers. 

“This year, I think consumers are going to be guarded, focusing on value-driven merchandise and experiences,” he said.

Ultimately, despite the challenges, Kehoe expressed optimism about the season ahead.

 “There’s a lot of noise out there, and standing out is essential,” he emphasized. “Whether in retail or food service, you have to make your statement, differentiate, and capture consumer attention.”

As Kehoe sees it, Canada’s retail industry has solid momentum, bolstered by a steady influx of young talent, ongoing development projects, and an expanding luxury market. All signs, he said, point to a strong finish for Canadian retail as it heads into a competitive and promising holiday season.

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Canadian Port Strikes Disrupt Supply Chains: What Businesses Can Do to Mitigate Future Risks: Avison Young

By
Retail Insider
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Photo: Avison Young
Photo: Avison Young

The 2024 East Coast port strike that lasted three days (October 1 to October 3) was the largest shutdown of its kind in almost 50 years. As the distribution chain continues to recover from this historic event, it was announced on October 31 that Port of Montreal dockworkers have begun a partial and unlimited strike at the Viau and Maisonneuve terminals. This has resulted in a 40 percent reduction of the port’s total container-handling capacity. This recent shutdown was further amplified on November 4, as the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 (ILWU) also started a lockdown across British Columbia. 

What can we learn from recent events, and what can occupiers do now to mitigate future supply chain disruption risks?

First things first: what’s happening right now in Montreal and British Columbia ports?

The Montreal and British Columbia port strikes may be the latest, but they won’t be the last. With these  ports on strike, 70% of Canadian container traffic is on full stop as respective local unions work to hammer out a deal with the Maritime Employers Association (MEA) and BC Maritime Employers Association (BCMEA). Contracts between the two expired in December (Montreal) and March (Vancouver) of 2023, and they have been unable to come to agreeable terms for continued engagement thus far.

The latest strikes effectively put a halt on the flow of a wide variety of goods coming into Canada: everything from bananas and clothing to household goods and auto parts and, notably, critical parts needed to keep Canadian factories (and plant jobs) running.

Disputes like these are all too familiar these days, as supply chain disruptions in places like the United States, Canada, China, Egypt, Panama, and many more critical locations, seem to be occurring a few times each year now—with the last major North American strike having taken place only a little more than a month ago across Canadian rail systems.

What happened during the recent Canadian rail strikes?

Union labour disputes with the Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC) led to a mass freight railway shutdown in August.

While the strike—from lockout to ordering trains to resume operations—lasted only a day, its impacts extended wide across the supply chain (imports and exports), had U.S. trade implications, and impacted commuter train functionality for tens of thousands of people, creating myriad ripple effects.

Warren D'Souza
Warren D’Souza

“When the Canadian rail strike happened, we had to anticipate significant delays between when an agreement could be reached and the point where labour and supply could recover. On an annual basis 21,500 freight trains cross into the U.S. from Canada, averaging out to 59 trains per day. Any disruption to this system has a ripple effect on the supply chain infrastructure. It creates significant strain and bottlenecks to the movement of freight that will need to be worked through and managed,” said Warren D’Souza, Senior Manager, Market Intelligence, National Industrial Lead for Avison Young.

In a similar fashion, current port strikes could lead to shipping backlogs five times the length of halts, with a variety of major impacts felt across retail, automotive, energy, manufacturing, and agricultural sectors.

What can the rail strike tell us about what might happen next during the port strikes?

We can look at what happened during the recent Canadian rail strike and past port strikes for indications of what might come next with the port strikes now in full swing.

A wide variety of household goods we use daily could become in demand quickly as bottlenecks and delays increase need—and prices.

A prolonged strike could cripple the agricultural export market share, and surge prices for consumers, while dropping prices for producers. A strike would cause disruption, and likely increase prices on consumer staple foods that are also being imported, largely via container, such as bananas, other fruits, vegetables, and other grocery items at a time when inflation is one of the largest issues out there.

Both strikes also come with risk of leaving shippers stranded at sea, anchored until further notice, with myriad untold impacts. And with billions in goods crossing the U.S.-Canada border each day, helping both economies, it’s easy to say that there’s a lot at stake, even if the ports shutter for a day, let alone days to weeks at a time.

For those less prepared, what should occupiers across Canada – and, indeed, across North America – do now to mitigate current and future risk during events like this?

Supply chains have never been more fragile amidst shifts in global production and consumption. Consumers are increasingly invested in convenient retail (direct to doorstep) at a time when the labour movement is only growing in power.

While increased production in Mexico and recent railroad mergers across the North American transportation network have left us more connected than ever before, this concentration also carries risk.

Luckily, there is a lot occupiers in this space can do right now to make it through tough times in the future:

  • Add on. More warehouses or short-term space for season overflow in more places helps spread out risk.
  • Bring operations closer to home. Shifting production closer to consumption means less distance to travel, less delay when delays occur.
  • Diversify hubs. Spreading out ports, including a mix of U.S. and Canadian ports, can help ensure that, no matter what, operations don’t come to a full halt.
  • Engage outside. Utilize a 3PL to help handle ebbs and flows in demand, have drayage drivers on standby, and be able to quickly arrange for alternative shipping methods.
  • Have a plan for extra. Determine the best lease/sub-lease plan for proactive excess inventory, and be ready with extra parking for containers or for large amounts of products (from delay or otherwise) that might come in all at once.

With tactics like these in place, the industry may be better prepared to keep things running and ready, regardless of when the inevitable next big disruptor hits.


(Content supplied by Avison Young)

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Montreal dockworkers strike threatens retail supply chain

American Express backs 20 Canadian restaurants with grant program

By
Mario Toneguzzi
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Photo: American Express

In a move to foster community resilience and support local culinary heritage, American Express has awarded $19,500 grants to 20 Canadian restaurants through its “Backing International Small Restaurants” program, marking its third consecutive year of grants in Canada and the program’s first expansion to Montreal.

The initiative, launched in 2022 in partnership with the International Downtown Association (IDA) Foundation, aims to support independently-owned restaurants that contribute to the fabric of their communities and face economic or operational challenges. This year, the grants have reached both Toronto and Montreal, with funds designated for digital or physical upgrades that boost long-term growth and sustainability, said the company in a news release.

One of the program’s proud beneficiaries is Bocadillo, a cherished Venezuelan restaurant in Montreal that has been serving as a hub for the city’s Latin American community since 2008. Bocadillo has earned a reputation for its warm atmosphere, cultural music nights, and Venezuelan cuisine, becoming a celebrated gathering spot for Montreal’s Venezuelan diaspora.

Laura Uzcategui
Laura Uzcategui

“We are honored to be recognized for our dedication to bringing Latin music and culture to Montreal,” said Laura Uzcategui, owner of Bocadillo. “These funds will allow us to deepen our impact on the community and continue our mission to be a space where culture and cuisine thrive together.”

Since its inception, the “Backing International Small Restaurants” program has awarded grants to over 135 restaurants worldwide, expanding its reach in 2024 to nine cities globally, including Canada’s two largest cities. According to American Express Canada’s Kerri-Ann Santaguida, Vice President and General Manager of Merchant Services, the program reflects a commitment to sustaining small restaurants that create vibrant, culturally-rich neighborhoods.

Kerri-Ann Santaguida
Kerri-Ann Santaguida

“Small restaurants bring flavor and soul to our communities, introducing new cuisines and offering spaces where neighbors connect,” said Santaguida. “It’s a privilege to support these businesses as they enhance the local landscape and make a meaningful difference.”

American Express Canada’s ongoing “Backing Small” initiative has been a major part of its commitment to the success and survival of small businesses, focusing on essential financial resources and operational support to address unique challenges that local entrepreneurs face.

For David Downey, Executive Director of the IDA Foundation, expanding the program’s reach is about creating global networks of resilient local businesses.

David Downey
David Downey

“We are thrilled to see the program’s success extend to nine cities, thanks to American Express’ ongoing support,” said Downey. “We’re proud to contribute to the vitality of neighborhoods around the world by empowering these exceptional small businesses.”

As more small businesses face financial and operational hurdles, initiatives like “Backing International Small Restaurants” play an essential role in preserving the diversity and dynamism of local culinary scenes, said American Express.

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Square One adding new retailers, dining, and family spaces

By
Craig Patterson
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Square One shopping centre in Mississauga, Ontario. Photo: Oxford Properties

Square One Shopping Centre, Ontario’s largest retail hub and a key player in Mississauga’s urban landscape, is set for an exciting season. Known as one of Canada’s top-performing shopping centres, Square One is introducing an array of new brands, lifestyle retailers, and unique amenities, creating an enhanced experience just in time for the holidays.

Square One’s Director, Stephen Gascoine, shared insights on the new high-end offerings and community-oriented spaces being added to the centre.

Expanded Luxury and Fashion Lineup

This season, Square One enhances its luxury lineup with iconic brands, including Hugo Boss, which makes its Square One debut. Popular jewelry brands Mejuri, Lisa Gozlan, and Lovisa are also joining, each bringing distinct offerings for shoppers. 

Stephen Gascoine

“We’re thrilled to welcome brands like BOSS and Mejuri to Square One,” Gascoine said. “These additions strengthen our luxury and lifestyle positioning, appealing to Mississauga’s sophisticated shoppers.”

Dining Experience Expands in the Food District

Square One’s Food District continues to attract shoppers with its unique dining options. Occupying 40,000 square feet, the district offers a boutique-style experience with diverse culinary choices. New vendors Egg Club and Marry Me Mochi bring innovative breakfast and dessert offerings. Soon, Refuel Juicery, Mogouyan Hand Pulled Noodles, and Blossom Moments Florist & Café will join, adding more variety for visitors seeking fresh, high-quality dining options.

“The Food District is more than just a place to eat—it’s a community hub,” said Gascoine, emphasizing its role as a vibrant gathering space that’s a draw for both locals and visitors.

Square One shopping centre in Mississauga, Ontario. Photo: Oxford Properties

New Family Spaces and Community Events

Square One’s family-friendly offerings are growing, with Boogles Playhouse opening in December. This Montessori-inspired play area provides supervised, drop-in play and “Baby & Me” classes, creating a valuable resource for parents during the busy holiday season. Square One’s holiday events include seasonal decor and cultural celebrations, establishing the centre as a place for memorable family experiences.

“We see Boogles Playhouse as part of our commitment to serving families and enhancing community values,” explained Gascoine, underscoring the centre’s dedication to creating a welcoming atmosphere for all.

A Hub for Urban Growth in Mississauga

The Square One District project is increasing residential density around the centre, solidifying its position as Mississauga’s downtown anchor. With surrounding residential towers and close proximity to Sheridan College, City Hall, and other institutions, Square One provides an essential destination for shopping and dining.

“The residential density around Square One is transforming it into a space where people can live, work, and shop,” said Gascoine, noting how this growth supports retail demand and strengthens Square One’s community role.

Square One shopping centre in Mississauga, Ontario. Photo: Oxford Properties

A Diverse Shopping Environment

Square One’s tenant mix reflects Mississauga’s vibrant diversity, ranging from Holt Renfrew to Dollarama, catering to a wide range of preferences and budgets. “Square One serves a broad spectrum of shoppers,” Gascoine shared, emphasizing the centre’s inclusive approach.

The mall’s additions this season reaffirm its role as a premier destination in the GTA, with upscale brands, family-friendly amenities, and innovative dining options enhancing the shopping experience for residents and visitors alike.

Upcoming Brands and Unique Experiences

Zara is expanding its Square One store into a 40,000 square foot flagship spanning two floors, combining its current space with additional area below. The store will feature a modern, spacious layout with an extensive range of collections. This expansion supports Square One’s goal of attracting top retailers, enhancing its appeal as a prime destination for fashion-forward shoppers.

In early 2025, Square One will welcome Ontario’s first enclosed, full-price Columbia store, catering to the demand for outdoor and adventure gear. 

Recently expanded offerings such as Nike’s new 17,000-square-foot location and Abercrombie & Fitch’s position Square One as a destination for new, exclusive retail experiences in Ontario. US-based Alo Yoga and Swiss chocolatier Läderach also recently opened in the centre. 

T. LINE to open new retail shop-in-shop concept in Toronto

By
Mario Toneguzzi
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T.LINE x Holt Renfrew Calgary (Image: T.LINE)

T. LINE, a contemporary womenswear brand producing thoughtfully crafted, classic shirting in Canada, is set to open T. LINE Studio, a new brick-and-mortar retail experience in Toronto’s Rosedale neighbourhood. 

Situated on the second floor of vert at 1062 Yonge Street, the shop-in-shop concept was thoughtfully crafted to be a natural extension of the T. LINE brand and style offerings.

The new T.LINE location opens November 14.

Britt Barkwell (l) and Alia Bissett
Britt Barkwell (l) and Alia Bissett

“T.LINE and vert have always shared the same ethos of making dressing effortless,” said T. LINE co-founder Britt Barkwell. “We’re so thrilled to be an extension of their retail experience.”

“We see T. LINE Studio as the next step in the brand’s evolution,” said T. LINE co-founder Alia Bissett. “Bringing our elevated outlook and close clientele connection to an in-person format has always been an ambition of ours.”

The retailer says vert’s highly edited curation of style essentials from sought-after brands—including Toteme, Cecilie Bahnsen, Filippa K, Rodebjer, and LIE Studio—beautifully dovetails with T.LINE’s own philosophies.

Designed by Toronto-based firm Kessler Levitan Design to mirror the brand’s functional-yet-stylish sensibility, T.LINE Studio will feature herringbone floors, paneled walls, hints of unlacquered brass and streamlined furniture in its signature striped shirting fabric, it said.

Britt Barkwell
Britt Barkwell

“We want T. LINE Studio to feel warm and welcoming, with the intimacy of a home,” said Barkwell. “With comfortable places to sit, browse and enjoy refreshments with friends, it’s completely aligned with our elegant-meets-effortless mandate.”

T. LINE Studio will be home to the entire T. LINE collection, including its seasonal releases and Les Essentiels, a curation of perennial pieces made for styling simplicity. T. LINE Studio also offers the opportunity for clients to try on the breadth of the brand’s thoughtfully made shirting silhouettes, including mainstays like the Isabel and Ava, as well as newer styles like the James and Coco.

Out of the Studio space, the brand will offer new ways to connect with their clients. These exclusive opportunities—smaller shopping gatherings and one-on-one styling sessions by appointment—will be available to book at ShopTLINE.com beginning November 15th. In the future, T. LINE also has plans to invite like-minded, complimentary brands into the space for trunk shows and collaborations.

The brand was founded in March 2022 by Barkwell and Bissett, two former Holt Renfrew executives.

The brand is also launching two pop-ups at goop—one in Los Angeles and another in New York City this December. In 2008, actor Gwyneth Paltrow launched goop from her kitchen as a homespun weekly newsletter.

Bissett said the brand enters retail spaces that strongly align with the T. LINE concept. T.LINE has a presence with TNT in Toronto, Foreign Affair in Halifax, and Tanya Taylor in New York City.

Alia Bissett
Alia Bissett

It recently launched in approximately 30 places in the U.S. It has partnered with showroom in the US

“We’re really starting to slowly, slowly grow our distribution footprint in the US,” added Bissett.

Barkwell said the company has entered into a lease for its new location in Toronto.

“It’s a really beautiful extension of their store and their brand. They have a lot of great adjacencies to us, a lot of first to market brands, in particular Scandinavian brands,” she said. “It’s exciting for us to kind of partner with them on this. We’re renovating the space and it’s going to really be an extension of our brand and the look and feel. Everything from the flooring to we’re covering the chairs and the furniture with our classic striped shirting fabric. We’re really trying to make it warm and inviting for our customers. 

“A lot of our DTC customers are based in this area, in Toronto, and they’ve really been wanting to have a destination to come and touch and feel the product and get the full assortment. Because obviously, when we partner with our wholesale partners, they don’t have everything that we have to offer. We are excited to have this opportunity. We’re going to offer one on one appointments through a booking tool on our website, and also kind of focus on smaller events that kind of cater to different groups.

“The other really exciting piece is as part of our wholesale expansion into the US market, we were approached by goop . One of the fashion directors had sampled some of our shirts and was really impressed with the quality and the fabrications . . . She approached us, and we’re going to do a series of popups in LA on December 4 and 5, at their Brentwood market location, and then New York at their Bond Street location, December 13, 14. So it’s a really nice opportunity for us to reach a larger customer there. A lot of our wholesale growth in the US has been really tailored to smaller markets.
We do have a great store in LA but we’ve got a great store in Savannah. We’ve got a store in Texas. And we’re in talks for Spring, Summer 2025 with some larger retailers in New York and in LA to really grow those markets. So this goop opportunity is a nice kind of segue to that.”

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Costco Brantford opening with Ontario’s 1st in-store sushi bar

By
Craig Patterson
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Costco is opening a store in Brantford, Ontario this week, with Ontario's first Costco sushi bar. Photo Costco

Costco is set to launch its first location in Brantford ON on November 8, 2024, at 175 Roy Boulevard, near Lynden Park Mall. The latest warehouse spans 150,000 square feet and introduces several features, including Ontario’s first Costco in-store sushi department.

In addition to the sushi department, members will have access to 24 gas pumps and 813 parking spaces. The store will also feature a selection of alcoholic beverages, including beer, wine, champagne, and ready-to-drink options, catering to a growing interest in convenience for a variety of household needs.

This location will also provide Costco’s well-known member services for optical needs, hearing aids, and prescriptions. These services are designed to give Costco members easy access to essential health and wellness products, further adding to the convenience that defines the retailer’s offerings.

First Ontario Costco with Sushi Department Reflects Changing Consumer Tastes

Costco’s decision to introduce an in-store sushi department in Brantford reflects a larger trend within the company to adapt to evolving consumer preferences. Following the successful launch of Canada’s first Costco sushi department in Richmond, British Columbia, earlier this year, the Brantford location brings this innovative offering to Ontario for the first time. Freshly prepared daily, sushi options include popular choices like salmon rolls, California rolls, and vegetarian options, catering to members seeking healthy, convenient meal options.

The inclusion of sushi aligns with similar moves by Costco in the United States, where the chain launched its Kirkland sushi line at the Issaquah, Washington location in June 2023.

Creating Jobs and Boosting Economic Activity in Brantford

Costco’s entry into Brantford has generated 180 permanent jobs, along with an additional 80 seasonal positions. The store’s opening is expected to drive local economic growth, as Costco’s presence tends to attract additional commercial activity in the surrounding area.

Costco’s Success and Expansion Across Canada

Since entering the Canadian market in 1985, Costco has grown to become one of the country’s largest and most successful retailers, now operating about 110 stores nationwide. This success is rooted in Costco’s commitment to providing quality products at competitive prices, which has helped the chain attract a loyal membership base.

Ribbon-Cutting Ceremony to Mark the Grand Opening

To celebrate the opening, Costco will host a ribbon-cutting ceremony at the new Brantford warehouse. Media representatives are invited to attend the event, which will offer an exclusive first look at the new store layout and amenities.

  • Date: Friday, November 8, 2024
  • Time: Ceremony begins at 6:30 a.m. (media arrival at 6:15 a.m.); doors open to the public at 7:00 a.m.
  • Location: 175 Roy Boulevard, Brantford, Ontario

Purdys Chocolatier opens 6 pop-ups to test Canadian markets

By
Craig Patterson
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Purdys Chocolatier pop-up store at Lloyd Mall in Lloydminster, Alberta. Photo: Purdys Chocolatier

Vancouver-based Purdys Chocolatier is bringing its renowned chocolates to new communities just in time for the holiday season. As part of a strategy to reach untapped markets, the company has launched six new pop-up locations across British Columbia, Alberta, Saskatchewan, and Ontario. The temporary stores, which opened on November 1, aim to evaluate demand in new regions as part of a broader initiative that could lead to permanent stores in these areas.

According to Kriston Dean, Vice President of Sales and Marketing at Purdys, the pop-up strategy extends the brand’s reach and provides a meaningful way to connect with new communities, ultimately determining which markets are ready for a long-term Purdys presence. This move follows the success of last year’s pilot pop-up locations, which saw a positive response and led to two permanent stores in Cranbrook, BC, and Fort McMurray, AB.

Pop-Up Locations Across Four Provinces

Kriston Dean

The six new pop-ups are located at Driftwood Mall in Courtenay, BC; LloydMall in Lloydminster, AB; South Edmonton Common in Edmonton; Cornwall Centre in Regina; The Centre Mall in Saskatoon; and Niagara Pen Centre in St. Catharines, ON. The selection was driven by a mix of data from Purdys’ distribution channels, social media feedback, and direct customer requests.

The Cornwall Centre store is the first for Regina, and The Centre Mall location is the second in Saskatoon.

“Locations like Lloydminster and St. Catharines have loyal customers who are thrilled to see Purdys arrive closer to home,” said Dean. “These pop-ups give us a chance to build connections with these communities and understand their needs before potentially committing to a permanent presence.”

Data-Driven Decision-Making for Pop-Up Locations

Purdys carefully considered its customer base in selecting these locations, employing a mix of quantitative data and anecdotal insights. Dean explained that the team analyzed data from Purdys’ fundraising and group purchase programs, which don’t require physical stores. They also reviewed feedback from social media and surveys, as well as comments from loyal customers who had often voiced their interest in having Purdys locations in underserved markets.

“Customers in places like Lloydminster and Courtenay have been asking for us,” Dean shared. “We combined sales data with customer feedback to make informed decisions about where to open these new pop-ups. It’s about being where our customers want us to be.”

Purdys Chocolatier pop-up store at The Centre Mall in Saskatoon, Saskatchewan. Photo: Purdys Chocolatier

Modular Design Ensures a Consistent Brand Experience

Each pop-up features modular fixtures designed to replicate the familiar look and feel of a permanent Purdys store. This innovative setup allows Purdys to maintain its brand identity in a temporary setting. The pop-ups are nearly indistinguishable from permanent locations, although they lack certain offerings like ice cream and custom chocolate cases due to food safety and plumbing requirements.

Dean explained that these modular designs are key to providing a consistent customer experience across all pop-up locations. “We’ve developed these pop-ups to be as close to our permanent stores as possible,” she noted. “This approach ensures new customers feel the full Purdys experience, even if it’s just temporary.”

Image: Purdys Chocolatier

Six-Month Trial Period Provides Insight for Future Locations

The new pop-ups will operate through Easter, giving each location a six-month period to evaluate customer demand beyond the holiday season. This extended timeline allows Purdys to observe customer response over multiple months, ultimately helping the company decide whether any of these locations should transition to permanent stores. Last year, similar pop-ups exceeded sales targets by 14.5%, which led to permanent stores in Cranbrook, BC, and Fort McMurray, AB.

“Operating through Easter gives us a real sense of the community’s response and sales performance,” Dean added. “With a six-month trial, we can make better-informed decisions about which markets have the potential for a permanent Purdys store.”

Purdys Chocolatier pop-up store at Driftwood Mall in Courtenay, BC. Photo: Purdys Chocolatier

Testing New Retail Formats at Power Centres

In addition to expanding geographically, Purdys is testing different retail formats through this pop-up initiative. Traditionally focused on mall-based stores, Purdys is now trying out locations in high-traffic power centres like South Edmonton Common to assess how the brand performs in a non-mall environment. 

Dean emphasized the strategic importance of this experiment, as Purdys has built a strong presence in Edmonton over 45 years, making it an ideal location to explore new retail approaches.

Ontario Growth and Future Expansion Opportunities

While Western Canada is Purdys’ traditional stronghold, Ontario remains a significant growth area for the brand. With 27 stores across the province, Purdys continues to identify untapped opportunities in communities like Kitchener and Barrie. Dean highlighted that Ontario, though home to many Purdys stores, still offers a range of expansion possibilities, particularly in regions that are currently underserved.

“Ontario remains a priority for us, as do other regions where we’re not yet present,” Dean explained. “There are still several communities that would love to have a local Purdys, and we’re excited to explore these areas.”

Image: Purdys Chocolatier

Looking Ahead: Further Canadian Expansion

Beyond Ontario, Purdys sees potential in other provinces, including Quebec and the Maritimes, where the brand has not yet established a physical presence. Dean noted that while Purdys has significant brand recognition in Western Canada, there is ample room for growth across the country.

“We’ve been expanding eastward for years, but there are still many Canadian communities without a local Purdys,” Dean said. “We want to be where our customers are, and as a Canadian-owned, Canadian-founded chocolatier, there’s a special connection we aim to share with communities nationwide.”

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Restaurant Brands experiences sales growth in Q3

By
Mario Toneguzzi
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Image: Tim Hortons

Restaurant Brands International Inc. (TSX: QSR) reported financial results for the third quarter ended September 30 showing an increase in system-wide sales. 

Restaurant Brands International Inc. is one of the world’s largest quick service restaurant companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in more than 120 countries and territories. RBI owns four of the world’s most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®.

Third Quarter 2024 Highlights:

  • Consolidated comparable sales were 0.3% and net restaurants grew 3.8% versus the prior year;
  • System-wide sales increased 3.2% year-over-year;
  • Income from Operations of $577 million versus $582 million in the prior year;
  • Adjusted Operating Income of $652 million increased 6.1% organically (excluding FX and RH) versus the prior year;
  • Diluted EPS of $0.79 was consistent with the prior year;
  • Adjusted Diluted EPS of $0.93 increased 4.6% organically (excluding FX and RH) versus the prior year.
Josh Kobza
Josh Kobza

“Our results demonstrate the resilience of our business and the dedication of our teams and franchisees. We remain focused on providing great value for guests, improving franchisee profitability, and investing in our brands for the long-term. We have been pleased to see an improvement in consolidated comparable sales in October and remain confident we will achieve our 8% plus Adjusted Operating Income growth target for 2024 and beyond,” said Josh Kobza, Chief Executive Officer of RBI, in a news release.

The company completed the acquisitions of Carrols Restaurant Group Inc. and Popeyes China on May 16, 2024 and June 28, 2024, respectively. Consolidated results include Carrols and PLK China revenues, expenses and segment income from their acquisition dates.

RBI hosted an investor event on February 15 and announced the following long-term consolidated performance that the company continues to expect to achieve, on average, from 2024 to 2028:

  • 3%+ Comparable Sales;
  • 5%+ Net Restaurant Growth;
  • 8%+ System-wide Sales growth; and
  • Adjusted Operating Income growth at least as fast as system-wide sales growth.

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Pet Valu sees increase in sales and revenue in Q3

By
Mario Toneguzzi
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Pet Valu Ottawa (Image: Fox Contracting)

Pet Valu Holdings Ltd.,  the leading Canadian specialty retailer of pet food and pet-related supplies, announced Tuesday that system-wide sales and revenue in the third quarter, ending September 28, were up compared to a year ago.

Richard Maltsbarger
Richard Maltsbarger

“Third quarter performance tells a story of continued resilience and responsible execution as we delivered 5% revenue growth and 13% Adjusted EBITDA growth in a constrained demand environment,” said Richard Maltsbarger, Chief Executive Officer of Pet Valu, in a news release.

“We also reached an important milestone in our supply chain transformation with the successful transition and start-up of our new Surrey DC, unlocking incremental capacity and productivity in Western Canada.

“As we ramp up for the holidays, our merchandising and marketing teams have crafted an exciting slate of events delivering value and expertise to devoted pet lovers when they need it most. Supported by hundreds of local stores, a sharpened digital platform and an enhanced supply chain network, our curated offering of competitively priced premium products will help inspire magical holiday moments with pets.”

Highlights of the company’s Q3 include:

  • System-wide sales were $358.2 million, an increase of 0.3% versus Q3 2023. Same-store sales growth was -2.5%;
  • Revenue was $276.0 million, up 5.2% versus Q3 2023;
  • Adjusted EBITDA was $64.6 million, up 13.0% versus Q3 2023, representing 23.4% of revenue. Operating income was $40.4 million, up 8.0% versus Q3 2023;
  • Net income was $23.2 million, up from $18.0 million in Q3 2023;
  • Adjusted Net Income was $29.9 million or $0.41 per diluted share, compared to $28.2 million or $0.39 per diluted share, respectively, in Q3 2023;
  • Opened 6 new stores and ended the quarter with 805 stores across the network;
  • Officially opened the new Metro Vancouver Region (“MVR”) distribution centre;
  • The Board of Directors of the Company declared a dividend of $0.11 per common share.

The company said it expects revenue between $1.08 and $1.10 billion, supported by approximately 40 new store openings and flat same-store sales growth, Adjusted EBITDA between $243 and $246 million, and Adjusted Net Income per Diluted Share between $1.50 and $1.53 for 2024.

Pet Valu is Canada’s leading retailer of pet food and pet-related supplies with over 800 corporate-owned or franchised locations across the country. The company, which has been around for about 45 years, is headquartered in Markham, Ontario and its shares trade on the Toronto Stock Exchange (TSX: PET). 

DUER opens Edmonton store at Southgate Centre (Interview/Photos)

By
Mario Toneguzzi
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Photo- DUER
Photo- DUER

Canadian performance lifestyle apparel brand DUER, known for flexible fabrics that offer versatility and style, has opened its first Edmonton storefront at Southgate Centre. 

Stuart Skinner
Stuart Skinner

DUER has partnered with Edmonton Oilers’ goaltender Stuart Skinner for the Grand Opening Weekend on November 15-17.

“After decades making jeans for some of the world’s best brands, I started DUER because I couldn’t find pants I’d want to wear to ride my bike to an important meeting—this was the inception story of Performance Denim,” said Gary Lenett, CEO of DUER. 

“Partnering with Edmonton’s own Stuart Skinner is a natural fit as he embodies the active, on-the-go lifestyle that our clothing is designed for and has deep roots in the community.

“With our latest store in Southgate Centre in Edmonton now open, we are sitting at six stores in Canada and two in the United States. We had hoped to open a handful of stores this year but are judicious about signing the ‘right’ leases. We did open Ottawa in July to a really strong initial response that we’ve maintained. I’d like to think we got the lease right in this market!  We’re hoping to see the same enthusiasm for DUER in Edmonton.”

Gary Lenett (Image: DUER)

Lenett said the retailer has some pretty grand goals for the business in the coming years. 

“Our strategy is centered on expanding our retail footprint so more customers can experience the clothing firsthand. This in-person approach is how new customers understand what sets DUER apart from other apparel brands,” he said.

“Beyond North America, we’re working hard to establish a greater presence in the EU. We have an amazing network of partners around the globe and we’re now zeroing in on specific territories so we can level up the brand familiarity in geographies like Germany and the UK.

“On the manufacturing side, we’ve worked hard to advance the technology in our owned factory based in Lahore, Pakistan. From advanced laundry systems to solar panels that power much of our energy needs, we’re really driving at being a leader in this space.”

Photo- DUER
Photo- DUER

During the Grand Opening Weekend for the Edmonton store, fans can enter to win an exclusive meet-and-greet with Skinner, who was recently captured wearing DUER’s famous Performance Denim along with the brand’s more formal offering, NuStretch. 

“These DUER pants feel awesome and look great too,” said Skinner. “Now that I’ve found pants with stretch that fit my muscular legs, they’ll be my Go-to.”

The 1,750-square-foot store will showcase DUER’s full range of men’s and women’s apparel.

“We’ve had a lot of success in Calgary and, even though the two markets are different in a number of ways, we believe we’ve got a lot of “Duers” in Edmonton,” explained Lenett.

“As is the case with any new venture, we’ve put in the groundwork and built a strong customer base in our wholesale division, which helps mitigate any risk and gives us a solid foundation to build on.

“We spent a long time looking at specific locations in Edmonton and ultimately Southgate Centre felt like the right fit, with neighbours like Apple and lululemon and an ideal store footprint. It’s also the mall where the locals go to shop, giving us a real opportunity to become a part of the community.”

He said the retailer’s stores typically range from 1,500 to 2,500 square feet, depending on the location and layout, giving it the flexibility to create an engaging shopping experience tailored to the market.

Photo- DUER
Photo- DUER

“We look at several factors, with an emphasis on our existing customer base. We look at demand from local wholesale partners like MEC and Sporting Life, online sales, and regional brand awareness,” said Lenett of the company’s real estate strategy.

“We’ve brought on local hockey star Stuart Skinner to support us in the launch period of the new store. This partnership supports our desire to build community in the markets we are entering. And in terms of Stuart, he absolutely embodies the active, on-the-go lifestyle that our clothing is designed for.

“I really believe consumers are much more curious about the experience rather than the ‘thing’. What I mean by this is although they may be coming into our store for pants, it’s going to be the atmosphere and experience that’ll leave an impression. And this goes beyond excellent store staff – although I genuinely believe we have the best in the business. It extends to the imagery and storytelling that appears throughout the store, making the space feel relatable and connected to who we are as a brand.”

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