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T&T Supermarkets to open 2nd Quebec store at Quartier DIX30

By
Craig Patterson
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Rendering of the T&T Supermarket set to open November 7 at Quartier DIX30 in Brossard. Image: T&T Supermarkets

T&T Supermarkets, Canada’s largest Asian grocery chain, is set to open a new store in Brossard’s Quartier DIX30 on November 7. This will be the chain’s second location in Quebec, following the opening of its first store in Montreal in 2022.

The 54,000-square-foot store will offer T&T’s signature selection of Asian groceries and fresh produce, along with a self-serve hot food counter, and the beloved Chicken Daddy, a customer favourite. The grand opening festivities will begin at 8 a.m. with a traditional lion dance, a nod to the store’s cultural heritage, and the doors will officially open to the public at 9 a.m.

Strategic Expansion in the Growing South Shore

T&T’s expansion into Brossard marks a significant milestone for the company as it continues to grow its footprint in Quebec. Tina Lee, CEO of T&T Supermarkets, said, “South Shore was one of the most requested areas by our community. After the warm reception we received in Montreal, we knew Brossard’s Quartier DIX30 was the ideal spot for our second store.”

Located within Quartier DIX30, Canada’s second-largest retail centre, the new T&T store will cater to a vibrant and growing community. The shopping centre, which spans over 3.2 million square feet, benefits from the REM (Réseau express métropolitain) stations.

T&T Supermarket. Photo: T&T Supermarket

Nicholas Kassis, Head of Leasing at Quartier DIX30, emphasized how T&T’s presence aligns with the centre’s redevelopment strategy. “We saw the potential in Brossard’s South Shore, especially with the growing Asian community. Bringing in T&T is not just about filling a retail space—it’s about elevating the overall shopping experience and attracting new visitors to the area.”

T&T Supermarkets’ Community Focus and Future Vision

T&T Supermarkets has a well-established reputation for offering high-quality products tailored to Canada’s Asian communities. The company, founded in Vancouver in 1993, has since grown to 33 locations across British Columbia, Alberta, Ontario, and Quebec. Its expansion into Brossard reflects T&T’s broader strategy of meeting the growing demand for authentic Asian products while also serving as a key anchor in major retail developments across the country.

The new T&T Supermarket at Quartier DIX30 will not only offer a range of groceries and ready-to-eat meals, but also a wide selection of T&T private label products, including popular snacks, sauces, and household essentials.

T&T Supermarket team and Carbonleo team group photo at the Brossard store front. Photo: T&T Supermarket

A Boost for Quartier DIX30 and Local Retail Landscape

The opening of T&T at Quartier DIX30 is expected to bring a fresh wave of traffic to the shopping centre, which has been undergoing extensive redevelopment under the management of Carbonleo since 2022. New residential units in the surrounding area and the integration of the REM train network will position Quartier DIX30 for significant growth in the future.

“This is more than just a store opening,” said Kassis. “It’s a transformative step in the revitalization of Quartier DIX30. The combination of T&T’s unique offerings and the centre’s ongoing redevelopment will help us attract a broader customer base and create a vibrant community space.”

With the addition of T&T Supermarkets, Quartier DIX30 continues to strengthen its position as a retail destination in the Montreal area. It offers a diverse mix of retailers, restaurants, and services that cater to a wide range of consumer needs.

RONA Foundation presents over $515,000 to 150 organizations across Canada

By
Mario Toneguzzi
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Padam Dugal, Store Manager, RONA Scarborough Midland, and team members. (CNW Group/RONA inc.)

The RONA Foundation, which oversees the philanthropic activities of RONA inc., one of Canada’s leading home improvement retailers operating the RONA+, RONA, and Dick’s Lumber banners, announced Wednesday it raised more than $515,000 in its recent Sweet Home campaign.

The campaign ran from September 1 to October 7. The funds will be used towards revitalizing living environments or improving access to housing for victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues. The 150 organizations were selected by each local team.

Josée Lafitte
Josée Lafitte

“In its second year, the Home Sweet Home campaign showed just how strong our network is and how committed we all are to creating positive change in our communities. Together, we can make a profound and lasting difference in the lives of the most vulnerable populations. I am so proud of what we’ve achieved here,” said Josée Lafitte, Director of the RONA Foundation.

The campaign ran in all of RONA’s corporate stores, as well as in selected distribution centres and participating RONA affiliated stores across the country. The donations were collected through in-store checkouts and during online purchases on the rona.ca website.

Catherine Laporte
Catherine Laporte

“Our troops were particularly motivated this year! Our in-store and distribution centre teams were particularly moved by the current housing crisis and were even more committed because each team had the opportunity to choose the local organization they supported. I would like to thank everyone who contributed so generously to this very dear cause!” said Catherine Laporte, President of the RONA Foundation’s Board of Directors and Senior Vice-President, Marketing and Customer Experience at RONA inc.

Click on one of the following links to find out how much has been donated to the organizations supported in each region:

The RONA Foundation, established in 1998, oversees RONA inc.’s philanthropic activities and supports non-profit organizations that make a significant impact in their communities. For its 25th anniversary, the RONA Foundation redefined its mission, which is to improve the quality of life of Canadians in need by revitalizing their living environments and improving access to housing. More specifically, it aims to help victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues.

RONA inc., headquartered in Boucherville, Québec, is one of Canada’s leading home improvement retailers. The RONA inc. network operates or services some 425 corporate and affiliated dealer stores under the RONA+, RONA, and Dick’s Lumber banners.

Related articles:

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SMEG and OVO Collaborate for Exclusive Appliance Collection

By
Craig Patterson
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SMEG and OVO Collaborate for Exclusive Appliance Collection. Image - SMEG x OVO (CNW Group/SMEG Canada)

SMEG, known for its iconic Italian-designed appliances, has partnered with October’s Very Own (OVO), the globally recognized lifestyle brand co-founded by Toronto’s hip-hop star Drake. 

The collaboration brings SMEG’s retro 1950s-style products into the world of contemporary streetwear with a new limited-edition collection that merges high-end design with urban culture.

The SMEG x OVO collection launched last week, offering customers a unique opportunity to bring fashion into the kitchen. It includes three core products— a mini fridge, two-slice toaster, and kettle—each designed in bold black and white with gold accents and the recognizable OVO owl logo.

SMEG x OVO Collaboration: Fashion Meets Functionality

SMEG’s retro designs have long been a staple in stylish kitchens, but this new collaboration with OVO adds a layer of streetwear influence, creating a standout product line. 

Drake wearing an OVO hoodie. Image: OVO

“This collaboration with OVO merges two iconic brands, each celebrated for their innovation and global impact,” said Gisela Mussen, General Manager of SMEG Canada. The appliances, like the mini fridge and toaster, embody SMEG’s signature 50’s-inspired aesthetic, but with a fresh twist thanks to OVO’s urban flair.

The collection features distinct black and white colourways, embellished with gold touches that make these appliances not just functional, but statement pieces for the home. This marks OVO’s first foray into the world of home appliances, expanding its reach beyond fashion and music to offer a whole new way for fans to incorporate the brand into their daily lives.

Bringing Streetwear Style to Canadian Kitchens

SMEG’s products have long been synonymous with luxury and craftsmanship, and the partnership with OVO brings that quality to a new audience. The limited-edition collection is designed to appeal to both fashion lovers and home design enthusiasts alike. The SMEG x OVO collaboration merges the best of two worlds: SMEG’s 70-year tradition of beautiful appliance design and OVO’s cutting-edge style.

The collection is now available exclusively on SMEG Canada’s website and the OVO online store. 

Rendering of the new Smeg store at 2 Bloor St W in Toronto. Image: Smeg

SMEG’s New Toronto Store Adds to Brand’s Canadian Expansion

In addition to the exclusive SMEG x OVO collaboration, SMEG is continuing to strengthen its presence in Canada with the opening of its first standalone store in the country. To be located at 2 Bloor Street West in Toronto, the new flagship will span over 3,700 square feet across two levels, bringing the brand’s signature Italian design directly to one of Canada’s most prominent retail districts. The store’s ground level will cover 1,137 square feet, while the second floor will offer 2,590 square feet of showroom space, showcasing a full range of SMEG’s premium appliances.

Positioned next to Lululemon’s recently opened flagship, SMEG’s Toronto location is set to become a key destination for design-conscious shoppers and those seeking top-tier kitchen appliances. The opening of the store reflects SMEG’s growing influence in Canada, further solidifying the brand’s appeal in both the luxury and home design markets.

Canadians looking for ways to spend money wisely: Rakuten report

By
Mario Toneguzzi
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Photo- Andrea Piacquadio
Photo- Andrea Piacquadio

Increases in inflation for shoppers and the need for wage increases for retail workers clearly shows that the retail landscape is growing but Canadians’ needs are shifting.

And with the holiday season fast approaching, more surveys and reports are indicating that Canadians are looking for ways to spend their money wisely. 

Rakuten.ca, Canada’s leading shopping rewards program that offers Cash Back and deals from consumers’ favourite brands, commissioned its annual Holiday Spend Survey which found that four-in-five (81 per cent) Canadians are stressed about the cost of buying holiday gifts this year. The survey data highlights that this anticipated stress is due to inflation with gift prices, coordinating schedules, and hosting loved ones.

Key highlights from the survey:

  • Average anticipated holiday spend is $637, up from $570 in 2023;
  • Canadians anticipated to spend the most include parents ($791) – dads at $831 and moms at $762;
  • Many Canadians are planning to use loyalty programs like Rakuten.ca to augment their budgets with cash back (58 per cent);
  • More Canadians than ever are planning to create a holiday budget (88 per cent), up from an average of 76 per cent in 2023.
Danai Mushayandebvu
Danai Mushayandebvu

Danai Mushayandebvu, Social Media and PR Specialist, Rakuten Rewards, said Rakuten Rewards is a Cash Back application where its members, seven million of which are in Canada, have the opportunity to earn Cash Back from their favourite stores when they make a purchase.

“The concept is that by connecting shoppers with the top brands . . . those merchants can provide Cash Back on those items that we use every single day while our retail partners find new loyal customers and drive record sales,” she said, adding those Canadian members earn more than $140 million in Cash Back at their favourite stores. 

“The retail landscape is still growing but I think what is happening is Canadians specifically are becoming more savvy because times are changing. We’re not earning as much per se and the cost of living is higher. So we can get more bang for our buck so to speak and programs like this are advantageous. We’re going to shop anyway. That’s the bottom line. That we are shoppers and if we can make the most of it then why not.”

Mushayandebvu said the Rakuten survey suggests Canadians are budgeting better for the holidays and their anticipated spending. 

“So in 2023, 76 per cent of shoppers were budgeting while this year from the results it shows that 88 per cent of the participants are budgeting. It’s just a reflection of the landscape where we want to spend but we also want to be mindful in that spending and a lot of mindfulness in financial planning is budgeting,” she said.

“Regardless of all of this, Canadians are planning on spending 12 per cent more than they did last year. And I think it does come down to that budgeting. If someone is spending willy nilly, they might not be able to spend as much but if you’re budgeting and planning ahead then it means you’re probably actually able to spend more when the time comes.”

Mushayandebvu said Rakuten membership continues to grow because unlike other rewards programs this is Cash Back versus points. 

“So the return on investment is immediate. You’re getting a cheque in the mail every quarter and you can see and spend that money right away versus like a points program where you know you can collect points for the last 10 years and wondering where those points go to. I think there’s something with the gratification unlike other programs and it’s very enticing.”

Since launching in 2012, Rakuten.ca connects consumers with over 750 stores,.

Related articles:

VIDEO: Navigating threats to the retail supply chain

By
Mario Toneguzzi
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It has been a challenging time in recent years for the retail supply chain network.

Major events such as the COVID pandemic and wars in places like the Middle East and Eastern Europe have caused disruptions in the network.

On top of that have been challenges at ports, railways and airlines with strikes, threats of strikes and access issues.

Gary Newbury, a retail supply chain expert, discusses the state of the current retail chain supply network, how vulnerable retailers are these days and what retailers should do to mitigate their risks.

Newbury said the system broke down very quickly during COVID, leading to a massive disruption. There was a thought that with COVID over it would lead to better times and everything would be back to normal.

But the cost of goods have risen in recent years and for the most part wages have not kept up with the pace of inflation. Increased union activity over these conditions have disrupted the current network.

Today network needs to be flexible, resilient and have the ability to cope with disruptions.

There have always been threats to the supply chain network but those threats have accelerated in recent years. And things have taken place that no one expected. The smart companies have learned through those experiences.

Related articles:

Independent retailers in Canada facing challenges amid rising costs

By
Craig Patterson
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Roncesvalles Village Neighbourhood in Toronto. Independent retailers in Canada. Photo: Life West Real Estate

Independent retailers in Canada are facing rising costs and ongoing economic headwinds, despite a slow recovery in optimism following the pandemic. Andreea Bourgeois, Director, Economics at the Canadian Federation of Independent Business (CFIB), provides a detailed outlook on the challenges small retailers are navigating today. During an interview with Retail Insider, she discussed the current landscape for small businesses, including inflation, wage increases, insurance hikes, and the impact of supply chain disruptions.

Challenges in the Retail Sector After the Pandemic

Bourgeois emphasized that while optimism is improving, it remains below pre-pandemic levels. CFIB’s Business Barometer, which measures confidence, shows that retailers’ optimism stands at 54.5, a significant increase from last year’s 42.7. However, this figure remains below the pre-pandemic range, which used to be in the low 60s. “We’re on the right path,” Bourgeois noted, “but still far from reaching ideal potential.”

Andreea Bourgeois, Director, Economics at the Canadian Federation of Independent Business (CFIB)

The most pressing issue for small retailers is the continuing rise in costs. Inflation, which surged during the pandemic, has led consumers to change their spending habits. Many are opting for essential goods, while reducing purchases of non-essential or higher-priced items. As Bourgeois explained, “Retailers are seeing demand for non-essential items decrease, as customers prioritize essentials like groceries and household necessities.”

Inflation and Insurance: Key Issues for Independent Retailers

Inflation isn’t the only cost concern for small retailers. The sharp rise in insurance premiums has become a significant burden for businesses. Bourgeois pointed out that insurance costs have skyrocketed since the pandemic, driven by factors like adverse weather events. “Retailers have been hard hit by rising insurance premiums, especially in areas affected by wildfires and flooding. In some cases, it’s difficult for them to even find coverage,” she said. The high cost of insurance is now a fixed expense that businesses must bear, regardless of revenue.

Adding to this, wage costs continue to rise, particularly as several provinces have increased minimum wages. Bourgeois explained that when minimum wages increase, it impacts all salary levels within the business. “It’s not just entry-level wages that rise. Retailers need to adjust pay for more experienced staff as well, leading to increased labor costs across the board.”

Independent retailers in Canada : Commercial Drive in Vancouver. Photo: Vancouver Virtual Guide

Independent Retailers in Canada Respond to Supply Chain Issues

Another challenge facing independent retailers in Canada is the ongoing supply chain disruption, which began during the pandemic and continues to this day. While larger retailers may have the resources to navigate these issues, small businesses are more vulnerable. Bourgeois highlighted the fact that many small retailers rely on local suppliers, which has helped mitigate some of the disruptions. “Local sourcing has provided a buffer for some retailers, but global supply chain issues are still causing delays and shortages,” she said.

However, smaller retailers are finding ways to adapt. Many have embraced online platforms to reach a broader customer base and mitigate inventory shortages by offering online ordering options. This flexibility has helped many businesses remain competitive, even as they face logistical challenges.

Looking Forward: Advocacy and Support for Independent Retailers

Despite these significant hurdles, CFIB says it remains committed to advocating for independent retailers and other businesses across Canada. Bourgeois emphasized that CFIB’s focus is on reducing taxes and cutting red tape to make it easier for small businesses to operate. “We’re pushing for the small business tax rate to be reduced to zero in most provinces,” Bourgeois said. “Additionally, we’re working on reducing the regulatory burden so retailers can focus on growing their businesses rather than dealing with excessive paperwork.”

Looking ahead, Bourgeois expressed cautious optimism that small retailers would see further improvements in business conditions, especially as the Bank of Canada is expected to announce more rate cuts, which would ease borrowing costs. Furthermore, the holiday shopping season is expected to provide a much-needed boost in sales for independent retailers across the country.

Related:

Only 18% of business owners would advise someone to start a business right now: CFIB

Sluggish growth for Canadian economy: CFIB report

VIDEO: The state of small business in Canada

Norwell’s Lax-A-Day® Campaign Brings Relief To Commuters Experiencing Transit Delays

By
Retail Insider
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Lax-A-Day®’s innovative campaign is taking a relaxing approach to the frustration of experiencing occasional constipation for Canadians.

Being Canada’s #1 source for gentle relief of occasional constipation, the Lax-A-Day® campaign turned the daily commute into an interactive and playful experience by leveraging a Toronto transit shelter.

Lax-A-Day®’s campaign is set to provide a much needed sense of relief and relaxation with its unique auditory and visual experience.

Commuters passing by the transit shelter at the corner of Queen Street East and Brooklyn Avenue will notice the playful pink wrapping that has transformed this everyday structure into what looks like their home bathroom.

A red button inside the shelter beckoning to be pressed may catch commuters by surprise with its relaxing audio, featuring bird calls, nature sounds and a soothing narrator’s voice encouraging commuters to enjoy their transit experience.

This stunt is part of the Lax-A-Day® campaign launching this fall nationwide. In addition to taking over Toronto transit, playful signage will be posted across the city, including the well-known Dundas Square.

Canadians living outside of Toronto can also experience a moment of comedic relief when viewing the video commercial that will be streaming from their phone and TV screens.

About Lax-A-Day®

Lax-A-Day® is Canada’s #1 doctor and pharmacist recommended laxative. It’s available over-the-counter in 5 formats so you can find the right one for you.

Are you looking for gentle relief from occasional constipation?

Try Lax-A-Day® for relief that’s gentle on your digestive tract and gentle on your taste buds. It’s 100% soluble and free of sugar, taste and grit, for a comfortable experience.

This product may not be right for you. Always read and follow the label. Lax-A-Day® is a registered trademark owned by Norwell Consumer Healthcare.

Partner content. To work with Retail Insider, contact Craig Patterson at: craig@retail-insider.com

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Canadian Retail News From Around The Web For October 16, 2024

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Food prices continue to outpace inflation in Canada (CTV)

Canadian inflation falls further below Bank of Canada’s target (Retail Insider)

Alimentation Couche-Tard’s new CEO is cognisant of the past, focused on the future (CCentral)

Dollarama has settled a $2.6M class-action lawsuit. Here’s how much you could get (Toronto Star)

Store employee attacks and seriously injures shoplifter: Winnipeg police (CBC)

Opinion: Booze ban in stores a giant step backward for Alberta (Calgary Herald)

CNTRBND closes stores in Toronto’s Yorkville, plans return in 2025

By
Craig Patterson
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Former CNTRBND location at 135 Yorkville Ave in Toronto on October 15, 2024. Photo: Craig Patterson

CNTRBND, the luxury menswear retailer specializing in high-end streetwear brands, has closed its two stores in Toronto. The retailer says it’s returning in 2025 with a new store in the city’s Yorkville area while it maintains an online presence.  

The store closures include CNTRBND’s flagship at 135 Yorkville Avenue as well as its Archives store which closed a few weeks ago at 26 Bellair Street.

CNTRBND was founded in 2012 by Christopher Casuga, a Toronto-based entrepreneur who has been integral in shaping the luxury streetwear scene in Canada. Casuga launched CNTRBND after identifying a gap in the Canadian market for high-end, hard-to-find international fashion labels. 

The store quickly made a name for itself by carrying exclusive brands such as Raf Simons, Maison Margiela, and Dries Van Noten, catering to a clientele seeking luxury streetwear. In addition to CNTRBND, Casuga has also been involved in opening Toronto stores for other global brands, including Off-White and Alyx in the past. 

Mounting economic pressures, shifting consumer preferences, and increased competition have led to retailers such as CNTRBND struggling, including with high rents for physical stores.

Social media post from CNTRBND on October 15, 2024.

CNTRBND to Return to Yorkville in 2025 with New Energy

Despite the store closures, CNTRBND is planning a comeback. Casuga has announced that a new store will open in Toronto’s Yorkville area in 2025. Reflecting on CNTRBND’s legacy and the changes in the retail landscape, Casuga shared his excitement for the future.

“After over 10 years in business, helping build the fashion community in Toronto and across Canada, we are excited about the new vibe, energy, and sense of community that our new space in Yorkville will bring.”

While the exact details of the new store remain undisclosed, Casuga acknowledged that the previous space was no longer viable given the current retail climate. Nevertheless, the brand is enthusiastic about reestablishing itself in Yorkville, a district known for its dynamic mix of luxury retailers and vibrant fashion culture. “We still feel energized by Yorkville and its sense of community and look forward to what our new space will bring,” Casuga added.

Former CNTRBND Archives store at 26 Bellair St. in Toronto on October 15, 2024. Photo: Craig Patterson

Yorkville Faces Intensifying Competition Amid Softening Demand

CNTRBND’s store closures highlight broader challenges facing retailers in Canada. In high-rent areas like Yorkville, retailers are dealing with weakening consumer demand for non-essential luxury items. The shift has been exacerbated by the rise of e-commerce and increased competition from established global brands. 

Yorkville in Toronto has also seen increased competition recently, from retailers such as Kith (which opened nearby last year) and The Webster, which carries some of the edgy brands also found at CNTRBND. 

CNTRBND on Crescent Street in Montreal. Photo: Maxime Frechette
CNTRBND at 45 Water Street in Vancouver. Photo: CNTRBND

High rents are becoming an increasingly significant challenge for retailers across Canada, particularly in major urban centres. In premium retail districts, the cost of maintaining a physical store has skyrocketed, forcing many brands to reconsider their long-term strategies. 

CNTRBND expanded beyond the Toronto market in recent years with locations in Montreal, Vancouver and Winnipeg.

Retail Insider will follow up on this story when CNTRBND announces its new Yorkville storefront. The retailer continues to operate online and on other physical locations.

Canadian inflation falls further below Bank of Canada’s target

By
Mario Toneguzzi
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Heal is part of the Happy Belly Food Group (Photo credit: Heal website)
Heal is part of the Happy Belly Food Group (Photo credit: Heal website)

The Canadian inflation rate is slowing but price levels remain elevated.

The Consumer Price Index (CPI) rose 1.6% on a year-over-year basis in September, down from a 2.0% gain in August. This was the smallest yearly increase since February 2021 (+1.1%). The main contributor to headline deceleration was lower year-over-year prices for gasoline in September (-10.7%) compared with August (-5.1%). The all-items CPI excluding gasoline rose 2.2% in September, matching the increase in August for this measure, reported Statistics Canada on Tuesday.

“Although the rate at which prices are increasing has slowed, price levels remain elevated. Compared with September 2021, the CPI rose 12.7% in September. Canadians continue to feel the impact of higher price levels for day-to-day basics such as rent (+21.0%) and food purchased from stores (+20.7%), which increased during that same 3-year period,” said the federal agency.

“On a monthly basis, the CPI fell 0.4% in September, after a 0.2% decline in August. Both the monthly and yearly movement in September were led by lower prices for gasoline. On a seasonally adjusted monthly basis, the CPI was unchanged at 0.0% in September.”

james orlando
james orlando

“With headline inflation now decisively below the Bank of Canada’s (BoC’s) target and core inflation looking likely to follow, inflation risks have eroded over the last few months. Below the surface, this trend looks to continue with housing costs finally starting to subside, with inflation excluding shelter running at a paltry 0.4% y/y. All in, the inflation outlook is looking a bit softer than we expected in our recently published forecast,” said James Orlando, Senior Economist with TD Economics.

“The BoC (Bank of Canada) is scheduled to meet next week and debate over whether the central bank will go big with a 50 basis point cut is rising. Thus far, the bank has been predictable, with a steady streak of 25 bp cuts over the last three meetings. Given the persistent strength of the jobs market, the BoC would be validated in maintaining its steady rate cutting pace. On the other side, market participants are increasingly betting on a 50 bp cut, assuming that the BoC will focus on the downside risks now that headline inflation has moved closer to the bottom end of its target range. Either way, it will be a close call for the BoC next week.”

Year over year, gasoline prices fell to a greater extent in September (-10.7%) compared with August (-5.1%), putting downward pressure on the all-items CPI, said StatsCan, adding that on a monthly basis, gasoline prices fell 7.1% in September following a 2.6% decline in August. The September decline was driven by lower crude oil prices amid increasing concerns over weaker economic growth, as well as lower costs associated with switching to winter blends.

“Prices for food purchased from stores rose 2.4% in September, the same growth rate as in August. This is the second consecutive month that grocery prices increased at a faster pace than headline inflation. While prices declined on a year-over-year basis for some food items, such as seafood and other marine products (-4.9%), nuts and seeds (-0.9%), and fish (-0.3%), others continued to increase and remained elevated, such as fresh or frozen beef (+9.2%), edible fats and oils (+7.8%) and eggs (+5.0%),” said the report.

“Additionally, prices for food purchased from restaurants rose at a slightly faster pace in September (+3.5%) compared with August (+3.4%).”

Claire Fan
Claire Fan

“On the cusp of the next BoC interest rate decision on October 23, the latest CPI report showed inflation pressures continuing to slow in Canada as expected in September,” said Claire Fan, Economist with the Royal Bank of Canada. “The drop in headline CPI reading may have been driven lower by lower gasoline prices but slower growth in the slew of Bank of Canada’s core inflation measures also pointed to progress. To be sure, shelter costs were still growing at a faster rate comparing to the rest of the consumer basket.

“But the scope of price pressure outside of shelter has now normalized more fully to what it looked like before the pandemic. Taken together with the third quarter release of the BOS survey last Friday that pointed to further unwinding in inflation pressures in the future, we think there’s little reason for the BoC to turn their worries back from a weakening economy to inflation, and expect them to go ahead with cutting by 50 bps next week.”

The Conference Board of Canada said lower prices for gasoline relative to the same month last year were largely responsible for the weaker pace of price growth. Yet, price pressures have decelerated unevenly. The Bank’s core inflation measures remained the same in September as they were in August, as did the CPI excluding food and energy

“The Bank is still aiming for a soft landing where economic growth isn’t unduly impaired by its recent monetary tightening cycle,” it said.

“Monetary policy remains in a contractionary range which, if maintained for too long, could sap demand further and drag inflation persistently below the two per cent target.”

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