Higginson said Canada’s foodservice industry is pleased that Parliament has approved the temporary GST cut on holiday essentials, including all restaurant meals, wine, beer, cider and coolers.
“Restaurants Canada’s Chief Economist estimates this move could boost foodservice sales by nearly a billion dollars over the two-month tax break,” she said.
“The timing of the initiative is especially important, as it aligns with a typically challenging time for restaurants. January and February sales are on average more than 10% lower than other times of year, so giving Canadians a reason to go out in the cold of winter is a great support to our industry and increases the quality of Canadians’ day-to-day lives.
“This is a conservative estimate that only takes into account the tax consumers will save on restaurant meals. When GST was first introduced in 1991, it led to an immediate decrease in restaurant sales proportional to the new tax. Even if Canadians don’t increase their restaurant spending, the 5% that would have gone to the government through GST will now remain in the business, increasing profits.”
Canadians will be saving money on a wide range of essential purchases
Higginson said Canadians will also be saving money on a wide range of essential purchases such as diapers, children’s car seats and clothing, prepared food and snacks, and more. Putting more money in their pockets at a time when many are facing difficult decisions, like keeping the lights on or buying gifts for the holidays, will relieve some pressure and allow them to spend a little more on discretionary purchases than they had originally planned.
“Restaurants Canada has already reached out to the major POS providers and been assured that the changes will not be onerous or costly to implement for restaurant businesses. We expect more information to come from government now that the tax holiday is official and will share details with restaurant operators as they become available,” said Higginson.
“While the timeline for implementation is short, it’s important to remember that our industry is in worse condition now than at any point in recent history, including the pandemic. More than half of restaurant companies (53%) are operating at a loss or just breaking even, compared to just 12% pre-pandemic. A 5% increase in sales is a lifeline that will save many from the brink of closure and carry them through the typical January and February slump in our industry. It will also protect jobs and increase hours for hourly employees, who typically face reduced hours during this season. Restaurants Canada calls this a win-win-win.”
Canada’s First Electric Mobile Market Hits the Road to Serve Individuals and Families Living in Food Deserts in Niagara Falls. (CNW Group/GROW Community Food Literacy Centre)
GROW Community Food Literacy Centre, Canada’s first community food literacy centre established in 2019, said in a news release that it is taking its innovative approach to addressing food insecurity on the road with the launch of GROW-on-the-GO, Canada’s first electric mobile market. This initiative will directly bring fresh, affordable produce to communities facing barriers to accessing healthy food.
Pam Farrell
“Born from research by Dr. Pamela Farrellfrom the University of Calgary, GROW has already served thousands of vulnerable families through its unique food literacy centre in Niagara Falls. The centre features a family teaching kitchen and a fully stocked, low-cost grocery store offering subsidized prices to increase affordability and accessibility. With the fully electric GROW-on-the-GO mobile market truck, GROW expands its reach to serve up to 10 locations throughout the Niagara Region, promoting health and social well-being for low-income individuals and families living in food deserts,” it said.
Rose Iannacchino
“This mobile market is a game-changer for our community,” said Rose Iannacchino, Co-Executive Director of GROW. “By bringing fresh fruits and vegetables directly to neighbourhoods with limited access, we are removing transportation barriers, increasing affordability, and empowering individuals to make healthier choices for themselves and their families.”
Farrell, Founder and Co-Executive Director of the GROW Community Food Literacy Centre and Assistant Professor at the University of Calgary, whose research investigates sociocultural factors impacting and influencing food literacies, emphasized the importance of community collaboration in the GROW-on-the-GO mobile market launch:
“The launch of the GROW-on-the-GO mobile market is a testament to what we can achieve when communities come together. With the collective commitment of partners like the Public Health Agency of Canada, the Branscombe Family Foundation, the Rotary Club of Niagara Falls, Farmers’ Truck, and the Tim Hortons Smile Cookie Campaign, we are taking a significant step toward supporting food security in Niagara. This initiative directly brings fresh, affordable, and healthy options to those who need them most, and I am deeply grateful for the collaboration that made this possible.”
Located at 1509 8th Street Southwest, Rosie’s is a boutique QSR restaurant brand serving up its signature smash burgers, poutine, onion rings, milkshakes, and more, the company said in a news release.
Sean Black
“Opening our first location in Alberta for Rosie’s is a huge step in planting the flag for our smash burger brand. This is just the start of our contractually committed 20 units for the province of Alberta. Many more still to come as we continue to leverage our franchising experience to accelerate our growth and secure prime real estate locations for our franchisees across Canada,” said Sean Black, Chief Executive Officer of Happy Belly.
“Seeing the team work side by side with our franchisee reinforces how we respect and support everyone that is part of the Happy Belly family. We are actively engaged in discussions with various groups across Canada to accelerate the growth of Rosie’s along side our brand portfolio. As we organically expand Happy Belly’s presence in the QSR space, numerous opportunities are emerging. We are excited to share updates on newly secured locations for our brands as we continue to drive growth through our asset-light franchise model.”
Photo courtesy of Happy Belly Food Group
“The area of 1509 8th Street Southwest is a prime location for a Rosie’s to thrive being situated in the heart of Calgary’s Beltline district. This location benefits from heavy pedestrian traffic, including professionals, residents, and visitors exploring the vibrant area. The dynamic atmosphere creates a consistent demand for quick, delicious food options. The Beltline is known for its eclectic mix of young professionals, students, and families, all of whom appreciate quality, convenient dining options. A smash burger brand with its appeal to comfort food enthusiasts and trendy food seekers fits perfectly. Not to mention being surrounded by bars, lounges, and cultural hubs. A smash burger spot would attract patrons looking for a quick bite before or after their activities. We anticipate this location will expand Rosie’s customer base in a densely populated area that matches the brand’s demographics. This presents substantial opportunities both in-store and through delivery services.
“This marks another step forward in our mission to become a predictable and disciplined growth company. We currently have 421 contractually committed retail locations from area developers across all emerging brands in the Happy Belly Portfolio – whether in development, under construction, or already open. As we open new stores, the Happy Belly footprint continues to grow.”
The retail trade sector increased 1.0% in September, representing its largest monthly growth rate since October 2023, as retailing activity in most subsectors grew in September 2024, reported Statistics Canada on Friday.
“The food and beverage stores subsector expanded 2.4% in the month, driven by higher retailing activity at the beer, wine and liquor retailers. Higher activity in gasoline stations (+3.8%) and building material and garden equipment and supplies dealers (+2.6%) further contributed to the growth. Meanwhile, motor vehicle and parts dealers, which was the largest driver of growth in the sector in the previous two months, contracted 0.8% in September, offsetting part of the gains recorded in July and August,” said the federal agency.
Real gross domestic product (GDP) edged up 0.1% in September, after remaining essentially unchanged in August.
Services-producing industries rose 0.2% in September, in large part driven by increases in the retail and wholesale trade sectors. This was the fourth consecutive month where the services-producing industries increased. Goods-producing industries contracted 0.3% in September, as the mining, quarrying, and oil and gas extraction and the manufacturing sectors contracted in the month. Goods-producing industries were down for a second month in a row. Overall, 11 of 20 sectors expanded in September.
StatsCan said real gross domestic product (GDP) edged up 0.1% in September, after remaining essentially unchanged in August.
“Services-producing industries rose 0.2% in September, in large part driven by increases in the retail and wholesale trade sectors. This was the fourth consecutive month where the services-producing industries increased. Goods-producing industries contracted 0.3% in September, as the mining, quarrying, and oil and gas extraction and the manufacturing sectors contracted in the month. Goods-producing industries were down for a second month in a row. Overall, 11 of 20 sectors expanded in September,” it said.
The report also said GDP by industry rose 0.2% in the third quarter following a 0.5% increase in the previous quarter. Services-producing industries (+0.5%) drove the increase in the third quarter, continuing the uninterrupted quarterly increases that began in the third quarter of 2020. Goods-producing industries contracted 0.4% in the third quarter of 2024, partially offsetting the increase recorded in the previous quarter. Overall, 12 of 20 industrial sectors grew in the third quarter.
After moving to Calgary, she wanted to create a business that was an extension of her values and lifestyle. Nan and her partner Michael Going founded the first Good Earth Coffeehouse in 1991 and set out to serve exceptional coffee and wholesome food, in an authentic coffeehouse environment.
“My passion has always been brand development, marketing and of course great coffee,” she says.
Nan Eskenazi
Growing up she lived in seven or eight States before she was in Grade 5. Her father served in the air force and the family did move around a lot. They finally settled on Whidbey Island in Puget Sound, north of Seattle, Washington.
Eskenazi went to Western Washington University in Bellingham and then at the University of Washington in Seattle.
“I graduated with a degree from the School of Communications. It was a real focus on marketing and advertising but it was a broader communications degree and I also spent a lot of time investing in the graphic program and indulging in the anthropology courses,” she said.
Why did she move to Calgary?
“Well I fell in love with a Calgarian,” she laughs. “And it didn’t hurt that I heard it was always sunny here. My husband Michael Going and I were both working in the shopping centre industry, very immersed in retail,” she said.
“I was marketing director at a regional shopping mall in the Seattle area and had been through the ICSC program. I really learned how to work with a large group of constituents. There were 150 retailers where I worked and they were neither my employees nor my bosses. The parallels between working with a group of retailers in the shopping centre industry and working as a franchisor with a group of franchisees, they’re very comparable. The kind of dynamic of communication and working together toward a common goal.
“When I moved up to Calgary I was ready for a change. I had already opened one little espresso bar in the shopping mall where I worked so I had a little inkling of what that felt like. My sister helped me out with that and when I moved up here Michael and I founded Good Earth in 1991 and opened our first location together.”
Eskenazi says she liked the idea that coffee is something people can enjoy every day. It can be a meaningful and enjoyable part of a person’s daily life.
“But larger than that I really liked the idea of a coffee house as a place in a community where people could gather whether they knew each other or not. I really liked the idea of a coffee house as a gathering place and wanted to try and create that with Good Earth,” she explains.
Eskenazi says one of the important parts of what she does is trying to make sure that the values at the core of the brand are woven through what the company does.
Nan Eskenazi
“I try to nurture and protect our brand by bringing decision-making on our team back to values or voice the customer perspective in conversations. I think that’s a really important element of my role. Much like coffee houses, I think a leader really has an important role to play to bring people together so that they can move the brand forward,” she says.
“Bringing people together and encouraging relationship building and really trusting the people that I work with, being curious with them, asking questions. I’m reminded almost on a daily basis how important relationships are in what we do and I think this is true throughout life but right here where I’m sitting I’m thinking about relationships with my co-workers, my team. I’m thinking about relationships with suppliers and how those bear fruit. The relationships with our franchisees, we call them partner. And obviously the overriding picture of the relationships we’re building with our customers and our communities. That’s so core to what we do and how we grow.”
Eskenazi says the brand has been bringing people together since 1991 and it has worked on making ethical choices that address social and environmental considerations.
“We aim to serve our best coffee and our food and attitude every day. We want to do all of this while fostering a greater good. We think that a community-oriented business like ours can help make the world a better place. That sounds kind of lofty but I think it’s a human responsibility.”
Those values come from her parents. She says they were wonderful role models.
“I asked each of them a number of years ago what they most admired in their own parents. The answers were really simple. They admired their parents for compassion and seeing humanity in every person they encountered. That was just a really nice thread through my life.”
In response to high demand, SUITABLEE, the world’s first AI custom suit brand based in Montreal, has recently opened a new location downtown Ottawa and has plans to expand. The company has also expanded to include women’s suits and has become a wedding suit destination.
“We did a wedding show back in the day in Ottawa to test out the market and my co-founder, Jean-Jeremie Siow, and I went a few times to Ottawa to speak to the local businesses and we found there was definitely a need for custom suiting. We were very impressed, especially by the wedding industry in Ottawa, so after a lot of research, we jumped in and started looking at interesting locations and the rest is history,” says Jean-Sebastien Siow, co-founder of SUITABLEE.
Photo provided by SUITABLEE
New location in Ottawa
The new location is at 275 Slater in Unit 15, which is in the downtown core of Ottawa.
The showroom offers the same tailoring experience as Montreal, but is the first location that is downtown. Siow says the building is perfect and fits the brand as it is in the business and government district.
“We are the only company that provides this custom suiting experience, which includes the creation of patterns using automatic sizing and the use of infrared scans to get a very precise fit. So it is an extension of what we are doing in Montreal, but now we are able to provide locally in Ottawa so they don’t have to drive or order online.”
The Ottawa location is in addition to SUITABLEE’s two other locations in Montreal.
Tailoring to the wedding industry
Photo provided by SUITABLEE
Siow says another reason the brand expanded into Ottawa was because of its vibrant wedding scene.
The location specializes in private fittings for grooms and groomsmen, ensuring each suit is not just a garment, but a keepsake of the special day.
“Ottawa’s vibrant wedding scene is an ideal match for our custom suiting services. When groups come in to get fitted, it is a very private and unique moment. And in many cases, we are able to reserve the room uniquely for a wedding party, so it becomes a very private event. They are also able to bring a bottle of champagne and create those special moments.”
Siow says SUITABLEE ensures its services are all inclusive and reflective of all couples. The wedding services are available now at all locations and through online consultations.
Category expansion: Women’s suiting
Men and women’s custom suits. Photo provided by SUITABLEE
SUITABLEE expanded into offering women’s suiting this past summer and has quickly expanded its offerings. This initiative allows the brand to provide custom suits to a wider demographic, including the LGBTQ+ community.
“We got the chance to fit the first female coach in the NHL – Jessica Campbell,” says Siow on a LinkedIn post.
The plan to launch womenswear started over a year ago as Siow says they had to develop women-specific patterning using AI, allowing for precise custom fits tailored to individual body types.
Siow says the women’s section has gained attention on social media showcasing its custom suits for women.
“Our women’s patterning has been finalized and we are now able to use women patterning using our AI system – it has really taken off. We have had a few viral videos on our social media – Instagram, Facebook, and TikTok – and that has really brought awareness to the brand,” says Siow. “A lot of custom suiting companies are still not really offering suits for women, and in this case, custom suiting. So I think we are at the forefront of custom women’s formal wear and that is now official – so we serve both men and women.”
SUITABLEE has already had a lot of requests for women suiting, including a custom made suit designed for NHL’s first female coach Jessical Campbell, assistant coach for The Seattle Kraken.
Expansion plans – Looking towards the East Coast
Siow says the brand’s focus right now is to expand in North America, with Toronto and Halifax as high-priority locations.
“As there is a lot of energy in Toronto for SUITABLEE, it is still in the books. As we started looking at the data as well, we noticed there is a tremendous amount of energy coming from Atlantic Canada. So that is one thing that often gets overlooked when it comes to our national brands that look at expanding. We sort of love to go where nobody is, and I think there is a similar opportunity in Atlantic Canada so we will look there.”
Siow says he is hoping to open a location in Halifax within the next 12 months.
Testing markets with pop-ups
SUITABLEE is also testing the United States market with pop-up retail shops in areas such as Florida, Texas, Arizona, and New York. These pop-ups will allow the company to test the market, ensuring they have a strong consumer base before committing to permanent locations.
Looking ahead, Siow says once it has expanded in the North American market, it will be looking at entering European and Mexican markets. But for now, it will keep its focus on the North American market where Siow says he sees the biggest opportunities for growth.
Online and in-store presence
On top of expansion plans, the brand will continue to enhance its physical and online presence, including improving its AI capabilities across all platforms. With improving experience and integration of its brick and mortar store and online presence, consumers can expect a seamless tailoring experience whether it’s online, in-store, or both.
“With the transition over the last year to more of a brick and mortar business to combine with our online, the growth of our brick and mortar is absolutely essential to our retail business. Everyone went online and now they are a swing back to the middle, where online is absolutely an important part of retail, but when you can complement that with actual physical locations – it not only strengthens your brand because people can actually see you, but it provides a better customer experience overall.”
SUITABLEE offers a variety of suiting options under formal, business, and casual – and offers a variety of affordable prices.
Consumers can expect to be able to experience the full AI custom tailoring online with its design option or in-stores with a variety of product offerings and price levels. SUITABLEE offers custom suits, coats, shirts, and accessories for every occasion.
In an exclusive interview while visiting the company’s fulfillment centre in Rocky View County just outside Calgary, Gebara told Retail Insider the retailer continues to look at ways to grow its business in Canada.
Gonzalo Gebara
“We like to say that we are back in growth mode. We are going to be opening stores again. We’re going to continue to invest in our supply chain network . . . That’s very important for us. We want to continue to grow our e-commerce business. We’re going to continue to renovate our stores to bring the best standards for customers to have the best shopping experience. It’s a combination of different areas of focus where we will be continuing to invest so that we can accelerate growth for Walmart in Canada.
“This coming year, we will for sure open one, maybe two. Most, probably two. They will be Supercentres. We believe that the Supercentre concept is where the one-stop shop concept continues to be relevant for Canadian customers.”
Gebara said the company intends to continue to accelerate its e-commerce capabilities so that it can offer customers great options to have their groceries delivered, groceries picked up in the stores, general merchandise delivered or picked up in the stores.
“It’s a combination of resources that we are deploying and capabilities that we’re deploying so that our customers continue to make the choice to come to Walmart,” he added.
The two stores to open in 2025 are in the Toronto area. A new Supercentre will be located in Port Credit. The other location has not yet been announced.
Gebara said the company has approved three new stores for Alberta for the next few years.
Walmart has plans to invest about $300 million in Alberta to build those new stores in Calgary, Fort McMurray, Edmonton as well as modernizing more of its store fleet in the province.
“We are going everywhere in the next few years,” he said.
Customers looking for value and convenience
Gebara said the company is seeing similar patterns that it’s seen in the last 12 to 18 months with customers weighing heavily on value.
“And that’s where Walmart does a good job. We think that we show very good value in the way that we show up for our customers,” he said.
“I think customers also want convenience. They want us to show up in different ways, and we’re trying to offer all the different ways and different channels in which they can connect with Walmart, and I think that’s important.
Photo by Mario Toneguzzi
“The other thing that I’m seeing is slow but steady improvement in consumer confidence. There’s some general indicators that are moving in the right direction as inflation goes down, interest rates go down. We believe that’s going to bring some positive feelings on the side of consumption, but still, we know that consumer confidence is not at the level where it should be. It’s going to continue to take a while.”
He said Walmart was built on the concept of everyday low prices and “we work very hard to provide low prices for customers everywhere we operate.”
“Canada is a very important market for us. We want to continue to grow here. We want to continue to serve more Canadians,” Gebara explained. “We have a very good business here in Canada and we think it can be even better. We just need to make the right investments, continue to put the customer at the centre of our value proposition and be very aware of their needs and the evolution of their needs so that we can adapt and evolve fast. I think that’s what’s making Walmart around the world do well for all the customers.
“We’re fast in adapting to new trends and then we just need to stay true to our everyday low price philosophy, showing value to our customers, convenience and being a place where customers can trust that they can find everything they want at the lower prices. That’s what we’re doing and that’s what we’re going to continue to do in Canada for at least 30 more years.”
Dealing with union activity
The company has been in the news recently with some of its workplaces looking to unionize.
When asked about that, Gebara said: “We believe that we have a great purpose. And we are all very proud to work for a purpose where we want to give the chance to people to save money and live better. So I think that’s great. All of us who work here we work for that purpose and then we have very strong values. Our values are how we bring our Walmart culture to life.
“And that’s the way we believe that we offer a great experience for all of us, the associates of Walmart. We invest in our associates, we develop ourselves, we provide resources so that we can all build a career at Walmart. There’s many, many examples of lots of associates who joined Walmart just for a job and built a career and many years, decades later, they are leaders of our organization.
“Unfortunately we had some areas of our business that had union activity. We’re disappointed with it. We believe that the best way to connect with our associates is directly and not through an intermediary, but we’re working on it and we will continue to stay true to our values to our leadership principles and continue to support our associates so that they can continue to choose us to be a great place to work.”
Recently, Walmart Canada announced the company is investing an additional $46 million in pay increases and benefit enhancements for eligible supply chain associates.
“This is the latest step in the retailer’s journey to invest in associates through a combination of wages, leading benefit plans, skills training and education offerings at no cost to the associate,” it said.
Earlier this year, Walmart Canada announced over $145 million in new investments in wages for logistics, fleet and retail associates.
In late 2025, Shoppers Drug Mart will unveil a new 17,000-square-foot store on the concourse level of 700 University Avenue in Toronto. The location, nestled in the heart of Toronto’s Discovery District, reflects a strategic expansion designed to cater to the needs of both tenants and visitors in one of Canada’s most prestigious medical and research hubs.
The area is home to major institutions such as Princess Margaret Hospital, Toronto General Hospital, Mount Sinai, The Hospital for Sick Children, Women’s College Hospital and the Toronto Rehabilitation Institute, creating a natural synergy for Shoppers Drug Mart’s service-oriented offerings. The University of Toronto and Queen’s Park are also close by.
Direct Access and Connectivity Enhance Customer Convenience
The new Shoppers Drug Mart store will offer direct street-level access from University Avenue, providing easy entry for pedestrians and commuters. Additionally, the store will connect to Toronto’s PATH network and the Queen’s Park TTC subway station, located on the Yonge-University-Spadina line. This connectivity will make it a convenient stop for both professionals working within the 1.2 million square foot Class ‘A’ office tower and transit riders passing through.
Given the structural constraints of the 700 University Avenue building, creative and thoughtful store planning was essential to bring Shoppers Drug Mart’s vision to life. This development required close collaboration between Shoppers Drug Mart and the building’s management team. Allan Caiado, representing Shoppers Drug Mart, negotiated the lease alongside Bryon Breau of Triovest, the property manager, with Jaimy Hunt of KingSett Capital handling the transaction on behalf of the building’s owner.
About 700 University Avenue: A Class ‘A’ Office Tower
700 University Avenue is more than just an office tower—it is a vital center of innovation and healthcare services in Toronto. The 20-storey building boasts over 1.17 million square feet of office space and 51,500 square feet of retail amenities. Recognized for its sustainability and technological integration, the building holds BOMA BEST® Gold, WiredScore Platinum, and Fitwel® certifications. Located at the intersection of University Avenue and College Street, it offers direct access to public transit and major vehicular routes, making it highly accessible for both tenants and visitors.
In addition to Shoppers Drug Mart’s upcoming store, 700 University Avenue features a range of on-site amenities, including a food court, restaurants, banking facilities, daycare services, and more. The addition of Shoppers Drug Mart will further enhance the building’s offerings, delivering essential health, wellness, and convenience products to a diverse audience in the heart of Toronto.
Additional Retail Leasing Opportunities Available
With the introduction of Shoppers Drug Mart, 700 University Avenue is actively exploring additional retail leasing opportunities. The management is targeting quick-service restaurants, fitness centres, service-oriented businesses, and medical-related uses to further complement the existing tenant mix and meet the needs of those who work, visit, and commute through this key Toronto intersection.
Black Friday 2024 is shaping up as a critical barometer for Canadian retail trends, with consumers navigating high prices, cautious spending habits, and evolving shopping preferences. Insights from David Ian Gray, founder and strategist at DIG360 and Angus Reid Group provide a snapshot of what to expect this year, including high participation rates and an increased focus on value. However, as the retail landscape continues to evolve, new challenges and opportunities are emerging for retailers.
Economic Realities Drive Pragmatic Shopping
David Ian Gray
Economic uncertainty remains a defining feature of the 2024 Black Friday shopping season. Inflationary pressures, interest rate hikes, and stagnant wage growth have made many Canadians more budget-conscious. This caution is evident in their shopping priorities.
“In 2023, 93% of consumers reported being more careful with their spending,” Gray points out. “We expect this trend to continue into 2024, with many Canadians seeking the best savings while maintaining quality within a set budget.”
The broader economic context has influenced retailers as well, with many downgrading their Q4 expectations. While the desire for value is strong, fewer Canadians are splurging on big-ticket discretionary items unless substantial discounts are offered.
High Participation, Uneven Gains for Retailers
Participation in Black Friday shopping is expected to remain robust this year, matching or exceeding the record levels of 2023, when 49% of adult Canadians purchased at least one deal. The timing of Black Friday 2024, falling later in the month, could further boost turnout as it aligns closely with the holiday shopping season.
However, not all retailers will benefit equally.
“Big-ticket purchases will remain limited unless major discounting occurs,” Gray explains. Retailers offering smaller, value-driven promotions may find success, but those relying on higher price points without competitive discounts could struggle to attract consumers.
Deal Fatigue Among Shoppers
While Black Friday is synonymous with steep discounts, Canadian shoppers have grown increasingly dissatisfied with the deals on offer. In 2023, 61% of participants rated the promotions as poor or mediocre, a trend likely to persist this year.
Several factors contribute to this disconnect:
Higher Expectations: As Canadians tighten their budgets, the demand for significant discounts has grown, but many retailers are offering only modest reductions.
Advertising Shifts: In 2023, many retailers cut back on mass advertising to save costs, which dampened excitement. While advertising efforts have rebounded this year, the depth of discounts remains underwhelming in many cases.
Improved Inventory: Stockouts, a major frustration in 2023, are less prevalent this year. This change could improve perceptions of the shopping experience, even if deals don’t meet expectations.
Online Shopping Dominates, With Challenges Ahead
The shift toward online shopping, a long-term trend accelerated by the pandemic, continues to gain momentum. In 2023, 90% of Black Friday shoppers purchased at least one item online, with 46% relying exclusively on e-commerce.
Amazon remains a dominant player, with 57% of Black Friday deal-seekers making at least one purchase from the platform in 2023. Its wide selection, competitive pricing, and convenience have solidified its position as a go-to destination for Canadian shoppers.
However, logistical issues could impact online sales in 2024. Recent port and postal strikes may push some consumers back to physical stores, particularly for last-minute gift buying. This shift could provide an opportunity for brick-and-mortar retailers to regain some lost ground.
Challenges for Local Independent Stores
Despite a growing interest in supporting local businesses, independent retailers struggle to compete during Black Friday. In 2023, only 19% of shoppers made purchases from local stores, citing higher prices and limited selection as key barriers.
The promotional noise of emails, flyers, and advertisements from larger retailers often drowns out local efforts. For independent stores, the challenge lies in differentiating their offerings and emphasizing personalized customer experiences, which can’t be easily replicated by larger competitors.
Gray said that the Canada Post strike could lead to more consumers choosing to shop in physical stores, where they won’t have to worry about shipping.
He also suggests that independent retailers can stand out this Black Friday season by focusing on unique experiences rather than discounts. “By offering special services, seasonal events, or curated features, independents can attract shoppers who are looking for alternatives to the consumerism of Black Friday,” says Gray. “Positioning themselves as a refuge from the promotional frenzy allows them to connect with the growing minority of Canadians seeking more thoughtful and meaningful shopping experiences.”
Self-Gifting Declines as Consumers Tighten Budgets
Self-gifting, once a staple of Black Friday shopping, has seen a notable decline. In 2023, only 37% of deal-seekers purchased items for themselves, down from a consistent 50% in prior years. Gray anticipates this trend will continue in 2024, reflecting a broader pullback in discretionary spending.
“Consumers are prioritizing gifts for others and essential purchases over personal indulgences,” Gray observes. This shift underscores the impact of economic pressures on shopping habits, with Canadians making more thoughtful, needs-based buying decisions.
Physical Stores Adapt to New Realities
While online shopping dominates, physical stores still play a crucial role during Black Friday, particularly for specific categories like apparel, home goods, and electronics. In 2023, 53% of shoppers made at least one in-store purchase, a significant drop from 80% in 2018.
This year, retailers are leveraging experiential elements to draw shoppers back to stores. From exclusive in-store deals to immersive brand experiences, physical retailers are emphasizing what e-commerce cannot replicate. “The tactile experience of shopping, combined with immediate access to products, remains a key advantage for physical stores,” Gray says.
What This Means for Retailers
For retailers, the 2024 Black Friday season presents a mixed bag of opportunities and challenges. Those who adapt to changing consumer expectations by emphasizing value, convenience, and personalized experiences will be better positioned for success.
Retailers that will succeed are doing the following:
Deepening Discounts Strategically: While maintaining margins is important, offering meaningful discounts on key items can drive traffic and sales.
Enhancing Online Platforms: With online shopping dominating, retailers must prioritize seamless digital experiences, including fast shipping and easy returns.
Leveraging Local Appeal: Independent retailers can focus on unique, locally made products and community-driven messaging to stand out.
Investing in Inventory Management: Avoiding stockouts and ensuring availability of popular items can mitigate shopper frustration and boost satisfaction.
Looking Ahead: Holiday Trends and Beyond
As the holiday shopping season progresses, Black Friday will serve as a crucial litmus test for consumer behaviour. Gray and DIG360 will release further insights in December, shedding light on emerging trends and offering a clearer picture of what to expect through the end of the year.
“Black Friday 2024 reflects the economic realities Canadians are facing,” Gray concludes. “It’s a pivotal moment for retailers to understand their customers and adapt accordingly.”
Taylor Swift’s much-anticipated six-show stop in Toronto as part of her Eras Tour brought more than just music to the city. Over a ten-day period, spending in downtown Toronto surged by an impressive 45% week-over-week, according to data from Moneris, the Canadian commerce provider. The concerts, which concluded on November 23, provided a significant boost for retailers, restaurants, and other businesses, illustrating the power of large-scale events to drive local economies.
Retailers Strike Gold with Taylor Swift-Inspired Shopping
Retailers in downtown Toronto saw the biggest gains during the ten-day period, with clothing stores reporting a 49% increase in spending and accessory and specialty stores seeing a staggering 102% surge. Fans flocked to stores to shop for concert outfits inspired by Taylor Swift’s iconic “eras” or to purchase memorabilia.
“Tourists extending their stay may have added shopping to their itinerary as spending at accessory stores more than doubled, and clothing stores were up over 80 per cent,” said Sean McCormick, Vice President of Business Development and Data Services at Moneris. “This highlights how the spillover effect of such events can benefit businesses beyond the concert venue.”
Downtown malls and standalone boutiques became hotspots for Swifties, while international visitors contributed significantly to these figures. Foreign spending during the period rose by 48%, with U.S. travellers driving 83% of this increase.
Capturing the Eras: A Taylor Swift Photojournalism Showcase” at CF Toronto Eaton Centre. Photo: Cadillac Fairview
Restaurants See a Moderate Boost from Extended Stays
Toronto’s restaurant scene also benefited from the influx of concertgoers, though the growth was more measured than in retail. During the first three concerts, spending at restaurants increased by only 2% week-over-week, reflecting capacity constraints at peak times. However, when the entire ten-day period was considered, restaurant spending rose by 12%, with foreign spending at eateries up by 57%.
“When we look at the tour’s full ten-day run, restaurants saw a more notable 12 per cent increase, with a 57 per cent increase in foreign spend,” McCormick noted. “The concert’s real impact for restaurants wasn’t making the busier days busier, but rather helping fill seats during off-peak days.”
Notably, bakeries saw a 54% growth in spending, suggesting that quick bites were a popular choice for concertgoers seeking convenience before or after the shows.
CF Toronto Eaton Centre (Image: CF)
Entertainment and Hospitality Get a Lift
While Taylor Swift dominated the headlines, her fans also engaged with other forms of entertainment in the city. Spending at cinemas increased by 30%, and theatrical productions saw a 130% boost as visitors sought additional activities during their stay.
Toronto’s hotels reaped the rewards of the increased foot traffic, with overall spending up 16% and foreign spending on accommodations climbing by 45%. The impact of international tourists was evident across the board, underscoring the importance of catering to their needs.
A Broader Economic Impact
The data demonstrates how large-scale events like the Eras Tour can have far-reaching effects on a city’s economy. For businesses, the concerts underscored the importance of being prepared for an influx of tourists. Offering payment solutions like Moneris’ Dynamic Currency Conversion, which allows customers to pay in their home currency, is one way retailers can better accommodate international visitors.
“Across key categories, foreign spend has contributed significantly to increases in overall spend,” McCormick explained. “Being set up to accommodate different currencies can give businesses an advantage by being able to better serve tourists.”
Lessons for the Future
As Toronto moves forward from this high-profile event, the data offers valuable insights for local businesses. The Eras Tour highlighted how sustained activity, spread over several days, can provide opportunities to capitalize on periods of slower foot traffic.
For retailers, restaurants, and other businesses, the takeaway is clear: events that draw tourists are not just about the main attraction but also about the additional experiences visitors seek during their stay.
As Taylor Swift bids Toronto farewell and moves on to her final Eras Tour stop in Vancouver, she leaves behind memories of unforgettable performances and an economic boost that will resonate with local businesses for weeks to come.
