Walk through any mid-size factory in Germany or Ohio right now, and you’ll notice something odd. The machines are newer. The dashboards are shinier. But the data still lives in three systems that don’t talk to each other. That’s the real problem in manufacturing IT in 2026 — not a shortage of tools, but a messy middle layer between what exists and what needs to work together. Below are seven companies helping manufacturers close that gap.
7 IT Services Providers Working in Manufacturing Automation
1. DXC Technology
DXC isn’t a household name outside IT, but in heavy industry they show up constantly. Their focus is the OT/IT convergence layer: that painful zone where a 2003 PLC needs to somehow feed data into a cloud analytics platform without getting hacked or breaking down.
Core manufacturing services:
IIoT and smart factory — connecting shop floor equipment to dashboards via edge nodes and sensors
SAP S/4HANA migrations — with actual manufacturing configs: MRP, production planning, quality management
OT cybersecurity — industrial control system protection; Norsk Hydro’s 2019 ransomware attack cost around $70M and is still the cautionary tale
Cloud infrastructure — AWS, Azure, and hybrid setups designed around the reality that not everything can leave the building
Worley built their name in oil and gas engineering. Their Advisian Digital practice now covers industrial automation for process manufacturing (chemical plants, LNG terminals, pharma) where AspenTech or AVEVA environments need connecting to live operational data. Pure-IT firms rarely understand front-end engineering design. Worley does.
3. Hexagon AB (Sweden)
Hexagon is known for measurement hardware but their professional services arm is substantial. The HxGN EAM platform handles asset performance management; the Nexus ecosystem connects production data across systems. Their quality automation work is the standout: inspection data captured by hardware and fed directly into MES, no manual logging. They’ve worked on Airbus production lines in Hamburg and Toulouse.
4. Persistent Systems (India/Global)
Persistent doesn’t have big brand recognition but their manufacturing practice has real domain depth. They work closely with PTC (ThingWorx for IIoT, Windchill for PLM) and with Rockwell Automation on connected factory deployments across North America. Standout capability: computer vision quality inspection on assembly lines, with defects logged and traced in MES automatically.
5. msg group (Germany)
Family-owned German IT firm, ~10,000 employees, built around the automotive supply chain. Their msg.IoT platform integrates SAP PP with Siemens SIMATIC shop floor systems. They also handle digital thread consulting — product data traced from CATIA design through production and into after-sales. Active with Tier 1 and Tier 2 suppliers in Stuttgart and Munich.
6. Hitachi Vantara (Japan/Global)
Hitachi Vantara’s differentiator: Hitachi is also a manufacturer. Factories in Omika and Kasado have run the Lumada platform in production for years — so the failure modes they help clients avoid are ones they’ve personally hit. Lumada Manufacturing Insights is built for shop floor analytics, not adapted from a generic BI tool. Strong practical choice for Asia-Pacific production footprints.
7. Atos / Eviden (France/Europe)
Atos restructured heavily in 2024–2025; digital services now run under the Eviden brand. Corporate story is messy, but the technical teams in France, Germany, and the Netherlands are still in place. Strong areas: industrial cybersecurity (IEC 62443, NIS2 compliance), HPC for simulation — Eviden runs supercomputer infrastructure used by automotive clients for crash simulation and generative design and PLM cloud migration for Siemens Teamcenter or PTC Windchill.
Who to Call for What
OT/IT convergence, legacy systems → DXC, Hitachi Vantara, Atos/Eviden
Process manufacturing (chemicals, LNG, pharma) → Worley, Hexagon
German/Central European automotive supply chain → msg group, Atos
Custom IIoT application development → Persistent Systems
Asia-Pacific operations → Hitachi Vantara
Quality inspection automation → Hexagon AB
Most serious automation programs involve more than one vendor. DXC for ERP, Hexagon for quality, Persistent for custom apps — a realistic combination. The harder question is who owns the integration between them.
FAQ
What does manufacturing IT services cover? ERP and MES systems, IIoT platforms, OT cybersecurity, automation consulting — anything that directly affects how a factory plans, runs, and tracks production.
How long do these projects take? A focused IIoT pilot — 50 machines connected to a monitoring system — can go live in three to four months. A full SAP S/4HANA migration across multiple sites is an 18–36 month commitment.
Does automation make sense for mid-size manufacturers? More than it did five years ago. Cloud-based MES and IIoT platform costs have dropped enough that plants with 200–500 employees can make the numbers work.
What goes wrong most often? Treating it as a pure IT rollout. The projects that fail most visibly are the ones where operators find out about new systems at go-live rather than during design.
Inventory ages. And the longer it sits, the more it costs you. Storage fees accumulate, capital stays tied up, and space that could be moving product is instead holding product that isn’t selling.
Multi-channel retail has made this harder to manage. Demand shifts fast, return rates stay stubbornly high, and even a single forecast miss can leave you holding pallets of overstock, discontinued SKUs, or packaging that’s already been replaced. These aren’t edge cases. For most brands, they’re a regular part of doing business.
The question isn’t whether you’ll have excess inventory. It’s what you do with it.
That’s where experienced inventory liquidation buyers earn their keep. Rather than grinding through markdowns or handing product off to speculative marketplace listings, brands that work with the right buyers get predictable recovery, faster warehouse clearance, and a process that doesn’t create new problems around channel conflict or brand exposure.
This guide covers the top 10 inventory liquidation companies of 2026, vetted for process, execution, and the ability to actually move volume. If you’re a retailer, e-commerce seller, or brand looking for the right partner, this is a solid place to start.
The Top 10 Inventory Liquidation Companies
These companies were selected based on factors including industry reputation, buyer network size, inventory categories accepted, geographic reach, transaction transparency, and overall liquidation capabilities.
1. Overstock Trader
Overstock Trader is a leading inventory liquidation company that helps brands and retailers efficiently and discreetly manage surplus inventory. With a vast buyer network and extensive industry expertise, they provide transparent and reliable solutions for businesses looking to recover top value on excess inventory. Their reputation for driving measurable recovery has positioned them as a strong option for companies seeking to maximize value on excess inventory while maintaining discretion.
2. Total Surplus Solutions
Total Surplus Solutions offers a streamlined and effective approach for larger companies looking to liquidate various types of excess inventory. This includes surplus stock, customer returns, and salvage items. As an all-in-one direct buyer, they purchase inventory outright and handle the entire downstream process, giving companies a single point of contact and immediate clarity. With a flexible, easy-to-navigate approach, they work directly with businesses to move surplus goods quickly and efficiently while maintaining discretion and operational simplicity.
3. Merchandise USA
Merchandise USA is a reliable company in the closeout business. They help businesses liquidate both large and small inventory lots. They are known for their integrity and excellent customer service, offering transparent pricing and accurate information about the condition of the inventory throughout the process. Their ability to work with businesses of all sizes, combined with a reputation for reliable and efficient liquidation services, makes them a strong option for companies looking to manage excess stock effectively.
4. Pink Liquidation
Founded in 2020, Pink Liquidation focuses on selling off fashion and lifestyle products for retailers and eCommerce businesses throughout the UK. They provide customized solutions to help businesses sell seasonal and branded inventory quickly and easily. With a strong 82% sell-through rate for end-of-line stock, Pink Liquidation aims to maximize recovery value for clients. They are known for their quick response times, often answering inquiries within an hour, and can collect surplus stock from locations across the UK within 24 hours.
5. BULQ
BULQ is a well-established liquidation marketplace owned and operated by Optoro, offering customer returns, overstock, and shelf pulls across categories such as apparel, electronics, and home goods. One of its standout features is a 98% manifest accuracy guarantee, ensuring buyers receive detailed product descriptions and condition grades that match actual lot contents, or BULQ refunds the difference. With fulfillment centers strategically located across the country and flat-rate shipping nationwide, BULQ is a transparent and reliable solution for businesses looking to recover value from surplus inventory.
6. ViaTrading
ViaTrading is a versatile liquidation company that offers a wide range of products, including electronics, clothing, and home goods. They cater to businesses across various industries. With a solid reputation and extensive customer base, ViaTrading utilizes its vast network of pallet buyers to bulk liquidate surplus inventory. Their expertise and reliable services make them a solid choice for both small retailers and large enterprises looking for straightforward inventory liquidation solutions.
7. AAA Closeout Liquidators
AAA Closeout Liquidators helps retailers efficiently liquidate unsold merchandise, particularly large quantities of excess, discontinued, or outdated merchandise. They are known for their capability to manage substantial inventories and utilize a wide network of buyer connections to facilitate quick liquidations. Their expertise in handling large-scale inventory, combined with strong relationships, makes them a good option for businesses seeking effective liquidation solutions.
8. We Buy Overstock
We Buy Overstock specializes in overstock liquidation, purchasing surplus, closeout, and discontinued products directly from retailers, wholesalers, manufacturers, and online sellers. They buy a wide range of merchandise, including electronics, apparel, home goods, health and beauty products, tools, and general merchandise, and are known for their straightforward process, fair pricing, dependable logistics, and fast, confidential service trusted by businesses of all sizes and industries nationwide.
9. 888Lots
888Lots is an effective platform for liquidating excess inventory, providing clear pricing and transparent transactions. Their online catalog system allows companies to easily browse and select liquidation lots, with accessible information on product conditions ensuring complete transparency. Flexible buying options cater to diverse needs, making 888Lots a convenient and customizable option for companies looking to get rid of unsold inventory.
10. BlueLots
BlueLots is a popular option for small to medium-sized businesses that want to sell inventory effectively. It is known for its strong support for sellers, wide marketplace reach, and clear information about product conditions and pricing. BlueLots offers a simple process that connects sellers with various buyers. Their focus on customized solutions and building trust makes them a dependable platform for handling surplus stock.
Conclusion
Excess inventory can tie up capital, consume valuable warehouse space, and reduce profitability if left unmanaged. Partnering with a reputable inventory liquidation company allows businesses to recover value quickly while maintaining operational efficiency. Whether you are managing customer returns, overstock liquidation projects, discontinued products, or seasonal inventory, the companies featured in this guide offer a range of solutions to help move excess stock effectively. By evaluating your inventory type, recovery goals, and preferred liquidation model, you can select the partner that best aligns with your business needs.
Zellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
A giant inflatable Zeddy Bear towered above Zellers‘ new Toronto store Thursday morning as customers gathered in the rain for the opening of the retailer’s latest standalone location.
The weather did little to dampen enthusiasm. Shoppers, media representatives and social media influencers assembled outside the store at 80 Orfus Road ahead of a ribbon-cutting ceremony led by Zellers Chief Operating Officer Joey Benitah and his father, Isaac Benitah, and other family. As the ribbon was cut, the crowd applauded and cheered before customers quickly streamed inside. Throughout the morning, he and members of his family greeted customers, spoke with media and helped host the opening-day celebrations.
The turnout was notable given the conditions. Despite steady rain, customers arrived early for the opening, while major media outlets including CBC and Global News were also on hand to cover the event.
Retail Insider walked through the store, noting key merchandise categories, value pricing and experiential features such as the Zellers Diner on Wheels and the return of the kiddie ride.
Zellers store/food truck at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
A New Home for the Standalone Zellers Concept
The Toronto location occupies a building owned by the Benitah family that previously housed Designer Depot, a discount retail concept that operated at the site for years. Today, little evidence of the former retailer remains.
The building has been extensively transformed, featuring a bright red exterior, prominent Zellers branding and a fully redesigned interior. The result feels like a dedicated retail destination rather than a temporary concept.
Unlike many major retail openings in Toronto, the store is located in a commercial district near Yorkdale Shopping Centre rather than within a traditional enclosed mall. Most visitors are likely to arrive by automobile, making the location more of a destination shopping experience than a typical mall-based department store.
Bright Interior, Modern Presentation
Inside, the store is bright, spacious and well organized. High ceilings, wide aisles and modern fixtures contribute to an open shopping environment that feels larger than the store’s approximately 25,000-square-foot footprint might suggest.
Dedicated departments for men’s, women’s and children’s apparel occupy much of the perimeter, while home furnishings, toys, collectibles confectionary, and seasonal merchandise are positioned prominently throughout the centre of the store.
The presentation is clean and contemporary. Bold department signage, coordinated fixtures and consistent branding create a shopping environment that feels distinctly different from the Hudson’s Bay shop-in-shop Zellers locations that launched in 2023.
The checkout area near the front of the store was fully staffed for opening day, reflecting the importance of the Toronto launch.
Kiddie ride in the Zellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
Customers Explore the Merchandise
Once the doors opened, customers quickly dispersed throughout the store. The home furnishings department appeared particularly busy during Retail Insider’s visit, while toy and collectibles sections also attracted considerable attention.
Licensed merchandise tied to Disney and other entertainment properties was prominently displayed, alongside apparel, home goods and private-label merchandise developed by the Benitah family.
Families with children were among those attending the opening, though the crowd reflected a broad mix of ages and backgrounds. One shopper in his mid-70s told Retail Insider he wanted to see whether the new store captured the spirit of the Zellers locations he remembered from decades ago.
Front cash desk in the Zellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
While nostalgia clearly played a role in attracting visitors, shoppers appeared equally interested in the merchandise itself. Customers could be seen carrying baskets through the store and leaving with purchases in Zellers-branded shopping bags. Several shoppers commented positively on the product assortment and pricing.
Retail Insider observed aggressive pricing across multiple categories. Disney graphic T-shirts, for example, were priced at $10, while apparel throughout the store featured value-oriented pricing intended to appeal to budget-conscious consumers.
The assortment combines national brands, international labels and private-label merchandise, creating a mix that balances recognizable names with exclusive offerings.
Familiar Elements Return
Several familiar features from the Zellers brand were integrated into the opening-day experience. Near the entrance, a red kiddie ride quickly attracted attention from families. Children climbed aboard while parents stopped to take photos, creating some of the morning’s most memorable scenes.
Zeddy was equally popular. The mascot spent much of the morning greeting customers, posing for photographs and interacting with shoppers throughout the store. Visitors of all ages stopped for photos and videos, while others shared the experience on social media.
Adding to the atmosphere was a soundtrack featuring popular music from the 1980s, reinforcing the nostalgic tone that surrounded the opening.
Diner on Wheels Draws Steady Lineups
Outside, the Zellers Diner on Wheels proved to be one of the day’s most popular attractions.
The branded food truck serves menu items inspired by the retailer’s former in-store restaurants, including the Big Z Burger, Hot Gravy Chicken Sandwich and other diner favourites.
Approximately 20 people were waiting in line during Retail Insider’s visit, with customers eager to sample menu items that have been frequently requested since the Zellers brand returned.
The lineup underscored the continued emotional connection many Canadians have with the retailer while adding another experiential element to the opening-day festivities.
Zellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
Strong Interest Despite the Weather
The strongest impression from opening day was the level of customer interest despite the rain.
People arrived early, lined up outside, explored merchandise throughout the store and waited for food at the Diner on Wheels. Customers took photos with Zeddy, children tested the kiddie ride and shoppers filled baskets with merchandise.
Many visitors undoubtedly arrived because of their connection to the Zellers name. What stood out, however, was the degree to which customers appeared engaged with the retail offering itself.
Zellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
For a retailer working to establish a national standalone chain, that may be among the most encouraging signs from the Toronto opening.
The new store combines familiar elements from the brand’s past with a modern retail environment focused on value, merchandise and customer experience. Based on opening-day response, shoppers appear willing to give the concept a serious look.
As Zellers continues its expansion across Canada, the Toronto location offers the clearest indication yet of how the next phase of the retailer’s revival is taking shape.
Zellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig PattersonZellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig PattersonZellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig PattersonZellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig PattersonZellers store at 80 Orfus Road in Toronto, June 18, 2026. Photo: Craig Patterson
Empire reported that sales reached $31.95 billion in its fiscal year and $7.8 billion in Q4.
Since fiscal 2018, the company said it has been expanding its FreshCo discount banner to Western Canada and its significant growth has been driven by store conversions and regional expansion.
“The value proposition and strong multicultural assortment, along with the addition of the Scene+ loyalty program, has supported the growth and expansion of the Discount banner across Ontario and Western Canada. In fiscal 2027, the company will open its first FreshCo stores in Atlantic Canada,” it said.
Empire Company Limited is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. With approximately $32 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 130,000 people.
As at June 17, 2026, FreshCo has a total of 161 FreshCo stores, 53 stores operating in Western Canada and 108 stores operating in Ontario. The company expects to have opened 65 FreshCo stores in Western Canada over the next couple of years. In fiscal 2027, the Company expects to open approximately 15 new FreshCo stores across Western Canada, Ontario and Atlantic Canada.
“We delivered a solid finish to fiscal 2026, with adjusted EPS growth of 27 per cent, reflecting disciplined execution and continued progress against our strategic priorities,” said Pierre St-Laurent, President & CEO, Empire. “As we enter fiscal 2027, our focus remains on driving growth within our existing network, advancing key growth engines, and continuing to elevate our value proposition for customers in what remains a challenging economic environment.”
Pierre St-Laurent
Empire said its ambition is to be the best retailer in Canada, providing quality and value with differentiated offerings and seamless experiences, with a strong focus on serving local cultures in every community.
“Empire recently launched its new three-year corporate strategy which is anchored to four core priority focus areas: Customers, Stores, Growth, and Cost Efficiency. Empire’s belief is that long-term success is driven not solely by scale or market presence, but by the quality of the relationships the teammates in stores build with customers and the experiences they consistently deliver,” it explained.
“Technology is a critical enabler of Empire’s strategy. Advanced analytics, artificial intelligence, and modern digital platforms are being applied thoughtfully across the business to enhance the customer experience, support better decision making and improve how Empire’s teams work every day.”
Food sales for the quarter increased by 2.1%, primarily driven by positive growth across the business, particularly in the Full-Service and Discount banners and the Company’s national wholesale distribution network, said Empire, adding that fuel sales for the quarter increased by 4.9%, primarily driven by higher fuel prices.
Food sales for the fiscal year increased by 2.8% primarily driven by positive growth across the business, particularly in the Full-Service banners, the Company’s national wholesale distribution network, and in the Discount banner. Fuel sales for the fiscal year decreased by 6.9% driven by lower fuel prices due to the removal of the government carbon tax.
Empire said gross profit for the quarter increased by 2.0% primarily driven by higher food sales, strong performance and operational discipline in Full-Service and Discount banners. Gross margin for the quarter remained consistent with the prior year at 27.6%. Excluding the mix impact of fuel sales, gross margin for the quarter increased by 1 basis point.
It said gross profit for the fiscal year increased by 3.4% primarily driven by higher food sales and strong performance and operational discipline in Full-Service and Discount banners. Gross margin for the fiscal year increased to 27.1% from 26.8% in the prior year, primarily driven by strong performance in Full-Service and Discount banners as a result of disciplined execution and several targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control and the mix impact of lower fuel sales, partially offset by the mix impact of higher wholesale distribution sales, it explained.
Photo: FreshCo
The company said it invested $260 million and $842 million in capital expenditures for the quarter and fiscal year (May 3, 2025 – $233 million and $721 million), respectively including renovations and construction of new stores, investments in advanced analytics technology and other technology systems.
“In fiscal 2027, capital expenditures are expected to be approximately $850 million, with approximately 50% of this investment allocated to store renovations and new store expansion (including approximately 1.5% growth in store footprint expansion driven by new stores), approximately 25% on IT projects and business development projects and the remainder allocated largely to logistics and sustainability. The company is planning to renovate approximately 20% to 25% of the network between fiscal 2027 and fiscal 2029,” said Empire.
No Frills, one of Canada’s leading hard-discount grocery retailers, has opened new location in Brockville, marking a major milestone for the banner as its 200th store in Ontario.
Located at 2 Windsor Drive, Sheldon’s No Frills brings Brockville customers the great value, quality groceries and everyday low prices No Frills is known for, in a fresh new store format designed to make discount grocery shopping feel brighter, warmer and more welcoming, said the company in a news release.
The brand is part of the Loblaw group of companies.
The Brockville store is part of No Frills continued evolution of the discount grocery experience, one that keeps affordability at the centre while creating a shopping environment customers can feel proud of. Featuring an innovative hybrid timber and steel design, the new format offers a modern take on the traditional warehouse-style store, while maintaining the efficient, value-driven model that helps keep prices low, said the brand.
No Frills photo
“Opening this No Frills in Brockville is an incredible milestone, both personally and for the No Frills brand,” said Sheldon Veenstra, Store Owner. “This area has always felt close to home for me, so it’s a real privilege to bring something new to Brockville, create local jobs, and build lasting relationships in the community for years to come.”
Sheldon’s No Frills offers a wide selection of groceries tailored to the Brockville community, including multicultural foods, fresh ready-to-eat meals, hot rotisserie chickens, and freshly baked bread and pastries. Customers can also take advantage of the PC Optimum program to earn points on eligible purchases and help stretch their grocery budgets further, it said.
“As Ontario’s 200th No Frills store, Brockville represents an exciting moment in the growth of our banner and the future of discount grocery,” said Jennifer Teixeira, SVP, No Frills Operations. “We know value matters more than ever, and customers shouldn’t have to choose between affordability, quality and a great shopping experience. This new format allows us to deliver the low prices No Frills® is known for in a space that feels fresh, warm and welcoming.”
No Frills photo
Jennifer Teixeira
Beyond groceries, the company said the opening represents an investment in the Brockville community, creating 120 new local jobs and supporting important community programs.
To celebrate the grand opening, Sheldon’s No Frills will donate $1,500 to The Brockville and Area Food Bank and $1,500 to The Salvation Army to support essential programs and services for local residents.
Sheldon’s No Frills will be open daily from 7 a.m. to 9 p.m.
Caffeo, Toronto’s innovative specialty coffee destination where robotics meets craftsmanship, is entering its next chapter with the unveiling of a fully redesigned flagship location at 405 Richmond Street West.
The relaunch introduces a vibrant new visual identity and an expanded precision-brewed menu, elevating the experience for coffee lovers at the city’s only 24/7 robotic café, said the company.
Caffeo photo
Since opening its doors in Toronto’s Fashion District, Caffeo said it has challenged conventional expectations of automated coffee service by combining state-of-the-art robotics with premium specialty coffee. The robotic brewing system precisely calibrates and executes each step of the coffee-making process, ensuring every beverage is prepared to exact specifications using premium locally roasted beans.
“Drawing inspiration from the creativity and energy of Toronto’s Fashion District, the refreshed design transforms the cafe into an immersive visual experience. The bold mural-style aesthetic combines vibrant colours, expressive illustrated faces, coffee-inspired imagery and modern geometric patterns, creating a welcoming space that celebrates the intersection of art, technology and community,” explained the brand.
“We wanted to build a space that feels as exciting and innovative as the coffee itself, while staying focused on what matters most: delivering an exceptional cup every single time,” said Samee Motiwala, Founder and CEO of Caffeo. “Being open 24/7 in the heart of downtown Toronto allows us to serve the city on its schedule, whether that’s early-morning commuters, students studying late into the night, hospitality workers finishing a shift or anyone looking for a premium coffee experience whenever they need it.”
Alongside the redesign, Caffeo noted it is introducing an expanded specialty coffee menu featuring new additions like the Osmanthus Latte and Caramel Popcorn Latte, alongside a selection of matcha-based drinks. With additional recipes and seasonal offerings currently in development,
On June 14, the US and Iran announced a deal that the Strait of Hormuz reopens. The signing happens this coming Friday, June 19th.
That is an important political event but the operational one runs on a different clock.
What the numbers actually say
Today, more than 800 vessels are still stranded inside the Gulf. Insurance premiums that averaged 0.25% of vessel value before February have surged to between 3% and 8%. That translates to $3-8 million per transit for a large tanker. Insurers have said publicly they will not normalize rates until the region shows sustained stability, which they measure in months.
Logistics analysts put vessel repositioning at 8-12 weeks, assuming the reopening holds. Full freight rate normalization, based on what happened after the 2024 Red Sea disruption, extends across multiple quarters. However, some forecasters are pointing to the second half of 2026 at the earliest.
There is also a congestion problem that has not gotten much attention yet. When the strait reopens, ships that took the Gulf route will arrive at European and Asian ports at roughly the same time as ships that spent the past months rerouting around Africa. Two delayed streams converging on the same ports at once means 2-3 weeks of port congestion on top of everything else.
The strait opening is a headline but the backlog isn’t, and right here is a problem.
Glebs Vrevsky
What I am seeing on the operations side right now
The teams I spoke with over the past three months did what they always do when their systems stop reflecting reality – they built spreadsheets. Manual exception lists, daily allocation calls, side trackers that captured what the ERP could not show. Those workarounds kept things moving.
The risk now is that the same teams assume those workarounds can be switched off because the news says the crisis is over.
The delayed stock is still delayed. Purchase orders that look stalled in the system have not been formally resolved. Customer commitments made against arrival dates that are now weeks out of date have not been renegotiated. None of that clears on the day the strait reopens. It clears when each of those threads gets worked through, one by one, by planners who are still looking at the same legacy systems they had before February.
For most retailers and distributors, that work happens across June and July, without urgency, without visibility, under the assumption that the problem is behind them.
The pattern
The Strait of Hormuz closed in 2019 over tanker attacks. The Red Sea disrupted in late 2023, and the IMF reported a 50% year-over-year drop in Suez Canal trade by early 2024. Then Hormuz in February 2026. Each time, the interval between events is shorter. Each time, teams that had no visibility layer scrambled to build one out of spreadsheets.
A furniture supplier we worked with during this closure had no usable picture of which inbound shipments were at risk, which were already allocated to customers, and which were generating duplicate replenishment orders because the original POs looked stalled. We built a working visibility layer on top of their existing ERP in three days. A pharmaceutical distributor cut duplicate data entry by 60-70% in the first week by consolidating exception views across their systems into one ranked queue.
Neither required replacing any core infrastructure; the data was already there. It just could not be surfaced in a usable form.
The window
Recoveries are when this kind of work actually gets done. The urgency is lower, budgets are available, and the pain is recent enough that nobody has forgotten what it cost.
The companies that handled this disruption better than the last one did not wait for a crisis to expose the gap. They used the previous recovery window to close it.
The strait is reopening Friday. That is good news. But the supply chain problem it exposed has been there for years and will still be there next week.
Measured on a scale between 0 and 100, an index below 50 means owners expecting their business’s performance to be weaker over the next three or 12 months outnumber those expecting stronger performance.
“Although early signs from abroad suggest the worst of the fuel shock may be behind us, many consumers and businesses remain under strain, and the outlook is still uncertain. We see this month marks a low point for confidence heading into the summer but we hope it will rebound in the upcoming months, though important challenges remain,” said Simon Gaudreault, CFIB chief economist and vice-president of research.
Simon Gaudreault
Price plans have held near the 3% mark for three consecutive months, at the upper end of the Bank of Canada’s inflation target range, said the CFIB.
Fuel costs remain the top cost constraint for 66% of small businesses, while weak demand continues to weigh on more than half (53%) of small firms. Meanwhile, the share of businesses reporting challenges with capital equipment and technology costs has steadily climbed over the past two and half years, reaching 38% of small firms, added Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
Laure-Anna Bomal
“Businesses are being squeezed from all sides, including by rising input and occupancy costs, with the shares of affected firms on track to nearly double historical norms. At the same time, their capacity to absorb higher costs is limited, and recent years have taken a toll on overall business health, reflected in a net share of just 18% of firms now reporting they are in a good general situation,” said Laure-Anna Bomal, CFIB senior economist.
Despite summer being the busiest season for tourism and other sectors, hiring plans remained muted, with 12% of small firms planning to hire full-time staff and 11% planning to hire part-time employees over the next three months.
“The economy is resilient, but cracks are starting to show. The longer conditions remain weak, the greater the risk for many businesses,” said Gaudreault. “One of the most impactful things Canadians can do this summer is shop local and promote local businesses, and CFIB’s upcoming Big Thank You Contest is a great way to get involved.”
TM Wander at Tsawwassen Mills in South Delta, BC, May 30, 2026. Photo: Craig Patterson
Across Canada, retailers and landlords have spent the past several years investing in food halls, event programming, experiential concepts and public gathering spaces designed to bring people together.
A new study suggests those investments may be aligning with a broader shift in consumer behaviour.
The HumanKind 2026 study from Leo Toronto found that many younger Canadians are increasingly seeking connection, community and experiences that bring meaning to everyday life, even as affordability concerns, economic uncertainty and other pressures continue to shape household decisions.
Rather than withdrawing further from social activities, many consumers appear to be making a deliberate effort to reconnect with friends, participate in their communities and spend time on activities that provide enjoyment and a sense of belonging.
Sarah Carpentier, Strategy Director at Leo Toronto and one of the leaders behind the annual HumanKind study, says the findings point to a subtle but important change in how Canadians are responding to ongoing challenges.
Over the past five years, the study has tracked rising concerns around affordability, financial security, trust and social anxiety. Yet this year’s research found signs that many consumers are becoming more confident in their ability to improve their lives, even if the broader environment remains difficult.
“We do see this sentiment of all of those things are still true and people are still struggling, but they are starting to think about, ‘Okay, this is life. How can I make it better? How can I start to feel better?’” Carpentier told Retail Insider.
“The world, it doesn’t seem, is going to get better for me. So how can I find those little moments of hope, those little moments of levity, things that within the terribleness of the world can make my own life better?”
The study found that 58 per cent of Canadians aged 16 to 45 feel more confident than they did a year ago, while 69 per cent say they are hopeful they can make life better for themselves and the people they care about.
For retailers, the findings may help explain why experiences, community-building and authentic engagement continue to gain importance across the industry.
Crowds at the Miniso Hello Kitty pop-up at Scarborough Town Centre in Toronto. Photo: Oxford Properties
From Comfort Zones to Community
One of the strongest themes emerging from the HumanKind study is a renewed emphasis on social connection.
Carpentier believes many Canadians became a little too comfortable in their comfort zones during and after the pandemic. Staying home, cancelling plans and embracing self-care became common behaviours as people navigated uncertainty and disruption.
“I think a lot of people got a little too comfortable in their comfort zones,” she said. “Putting their sweatpants on and watching a movie and just cancelling plans in the name of self-care or protecting their peace and just kind of staying home.”
While those behaviours provided comfort at the time, Carpentier says many consumers are beginning to recognize that meaningful relationships require participation.
“We’re kind of starting to see this increase in people going back out and celebrating with friends and realizing that if you want a village, you have to be part of it,” she said. “You have to show up even when it’s inconvenient or you’re tired and you’ve had a long day.”
The study found that 74 per cent of respondents agreed that if people want others to show up for them, they need to show up for others, even when it is inconvenient. Meanwhile, 56 per cent said they are trying to show up more for people they care about, while 47 per cent said they are actively pushing themselves to socialize more for their own well-being.
Researchers summarized the trend with a simple observation: “If you want a village, you have to be a villager.”
Carpentier says many Canadians are beginning to realize they played an active role in their own loneliness during the years following the pandemic.
As consumers spend more time together, the study also found an increase in the number of Canadians who believe most people can be trusted, reversing a trend of declining trust observed in previous years.
“We’re seeing those little moments and reminders of how good it actually feels to be around other people,” Carpentier said. “Even when we don’t know them and how nice those connections are.”
For retailers, that trend may help explain why food halls, public gathering spaces, events and experiential concepts continue to gain traction.
Across Canada, landlords are investing in programming that encourages consumers to spend more time together. Retail destinations increasingly compete on their ability to create memorable experiences and foster community alongside traditional shopping.
Consumers Are Looking for Micro-Doses of Happiness
The study also suggests many consumers are actively seeking small moments of enjoyment as a way of coping with a world that still feels uncertain.
Carpentier describes the trend as a search for “little moments of hope” and “micro-doses of happiness” that can make daily life feel more rewarding.
That desire is showing up in a wide range of activities. The report identified substantial increases in interest surrounding beginner-focused experiences, including stand-up comedy, crafts, open mic nights and other social activities that encourage participation.
“There was a 750 per cent increase in stand-up comedy searches,” Carpentier said. “People are just wanting to exhale and let their hair down a little bit.”
The trend reflects a broader shift away from the pressure to constantly optimize every aspect of life.
For years, social media and hustle culture encouraged consumers to turn hobbies into side businesses, build personal brands and pursue constant self-improvement. Today, many consumers appear to be moving in the opposite direction.
“Can I just do it? Can I do pottery and just be bad at it and have fun with it?” Carpentier said. “There’s a lot of celebrating the beginner mindset and doing things just for the sake of enjoying them.”
The study also reported a 2,500 per cent increase in searches related to inspirational drama books and stories that focus on overcoming challenges.
“It’s stories of people who are struggling and have challenges, but then they get through them,” Carpentier explained.
For retailers, the implications extend across a variety of categories.
Businesses built around participation, learning and shared experiences may be particularly well positioned to benefit from consumers’ desire to reconnect with activities that feel rewarding, social and fun.
The trend can be seen in everything from hobby-focused retailers and bookstores to entertainment venues, recreation concepts and retailers that offer workshops, classes and community events.
Miniso Land at West Edmonton Mall. Photo: Miniso Canada
Canadian Identity Extends Beyond Buy Canadian
The HumanKind study also found that many Canadians are thinking differently about their relationship with local businesses, Canadian brands and national identity.
While Buy Canadian initiatives received renewed attention this year amid tariff disputes and political tensions with the United States, Carpentier believes something deeper is taking place.
According to the study, 53 per cent of respondents say they are supporting more Canadian brands than they were a year ago, while 52 per cent report supporting more local businesses.
Carpentier says recent events prompted many Canadians to think more deliberately about what makes the country unique.
“Canadians are thinking about how they’re unique in a way that they haven’t done in a while,” she said. “Donald Trump said we should just be the fifty-first state because we’re basically the same as America, and a whole bunch of Canadians went, ‘No, no, no, no, no.'”
The study found that 57 per cent of Canadians say they are prouder than ever to be Canadian given everything happening in the world today.
For Carpentier, that pride extends beyond products manufactured in Canada.
“There is this Canadian sentiment that’s not just about hockey and Canadiana-type things,” she said. “It’s not just as easy as asking if something is made in Canada or not.”
Instead, many consumers appear to be looking for stronger connections to local communities, Canadian businesses and brands that reflect their values.
That sentiment may continue to benefit retailers that emphasize authenticity, local engagement and meaningful connections with the communities they serve.
Researchers caution, however, that consumers are becoming increasingly discerning. The report warns against what it describes as “maplewashing” — emphasizing Canadian identity without meaningful action behind the claim.
Consumers are paying closer attention to whether businesses genuinely support Canadian communities, workers and economic activity.
Trust Remains Difficult to Earn
While consumers may be feeling more hopeful about their ability to improve their lives, the HumanKind study suggests trust remains a significant challenge for brands.
Just 14 per cent of Gen Z and Millennial respondents said they trust brands and private companies to have their best interests at heart, while 71 per cent either disagreed or were uncertain that brands truly understand their concerns.
The findings suggest that consumers are becoming increasingly selective about which businesses they support and which messages they believe.
For retailers, that means authenticity is becoming increasingly important.
Consumers may be willing to support businesses that align with their values, participate in their communities and provide meaningful experiences. However, they are also quick to question messaging that feels disconnected from reality.
A Shift Toward Participation
The HumanKind 2026 study paints a picture of consumers who continue to face significant economic and social pressures but are increasingly choosing to engage with the world around them.
They are spending more time with friends, trying new activities, supporting local businesses and seeking experiences that create a sense of connection.
Many are no longer waiting for circumstances to improve before trying to improve their own lives.
That shift may help explain several trends already visible across Canadian retail. Landlords continue to invest in food halls, public gathering spaces and event programming. Retailers are expanding experiential offerings, while local businesses and Canadian brands continue to resonate with consumers seeking authenticity and connection.
Consumers continue to care about value and affordability. They remain concerned about economic uncertainty. Yet many are also actively searching for opportunities to participate, connect and engage with the world around them.
For retailers, creating spaces, experiences and communities that support those goals may become just as important as the products they sell.
