Retail Council of Canada held its Retail Secure conference this month, and provided this recap.
Retail crime is the number one issue Canadian retailers are raising with Retail Council of Canada and that reality was front and centre at Retail Secure 2026, their annual loss prevention conference. This year’s event drew hundreds of loss prevention professionals, technology providers, law enforcement partners, and government representatives unified by a shared commitment to making retail safer across Canada.
Workshops: Building the Foundation
Retail Secure launched two brand new half-day workshops on March 11, a shift toward hands-on, peer-driven learning the industry has been asking for.
The Art and Science of Retail Investigations, sponsored by Genetec, brought together retail leaders Alvaro Almeida (LCBO) and Brett Valente (RONA) with Peel Regional Police Deputy Chief Mark Dapat, to explore how collaborative approaches elevate investigative outcomes, from intelligence gathering to Crown reporting.
Collaborate with Confidence: Privacy-Conscious Information Sharing in Retail, led by Sharon Bauer (Bamboo Consulting) and Vy Hoang (i3 International), gave participants practical guidance on what data can be shared, how to structure responsible exchanges, and how to build the cross-organizational trust that makes collaboration sustainable.
Retail Secure Legends Awards
The third annual Retail Secure Legends Awards were celebrated at the event, with thirteen exceptional loss prevention professionals recognized for their leadership, innovation, and dedication to safer retail in Canada. View this year’s winners at rccretailsecure.ca/legends-awards.
30+ Exhibitors on the Floor
The Retail Secure exhibitor hall brought together more than 30 organizations across AI surveillance, evidence management, security staffing, body cameras, legal recovery, and communication technology.
Taking on Organized Retail Crime
ORC dominated the day’s agenda, and three sessions delivered a comprehensive picture of both the challenge and the response.
London Drugs’ Harjot Sahota and lululemon’s Matt Hall showed what effective retail-police partnerships look like in BC, highlighting joint response models and how intelligence sharing can turn fragmented incidents into prosecutable cases. CBSA’s Amik Cardinal raised the stakes further, walking the room through a coordinated cross-border effort that dismantled a sophisticated theft ring operating nationally and globally.
Hamilton Police Inspector John Pauls and Detective Nathan Rowan then presented a multi-jurisdictional investigation called Project Sommes that reframed isolated shoplifting reports as a coordinated criminal organization.
Cybersecurity and the RH-ISAC Partnership
Retail Secure also marked the announcement of a new strategic partnership between RCC and the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC), bringing global cybersecurity threat intelligence directly to retailers in Canada. The partnership will give RCC members access to real-time threat notifications, regional workshops, and RH-ISAC’s collaborative defense network.
Closing Session: From Tools to Tactics
Loblaw SVP Asset Protection Dean Henrico and Peel Regional Police Chief Nishan Duraiappah delivered a candid, ground-level look at LP technology in practice, covering both the investigative and in-field realities, alongside the shift from a reactive, physical approach to a data-driven model.
The conversations, case studies, and connections made at RCC Retail Secure 2026 reflect an industry that is aligned, engaged, and moving with purpose. RCC will continue advancing retail crime as a national priority and fostering the partnerships this community needs to drive meaningful change.
Today’s Retail Insider articles highlight growing Canadian consumer acceptance of AI in online purchases, with 74% comfortable having AI complete transactions, alongside increased AI adoption among small retailers through platforms like Square and Shopify. Meanwhile, loyalty proves critical as a Square report finds repeat customers generate six times more revenue for small businesses. These developments illustrate how AI integration and customer retention are shaping operational and strategic priorities in Canadian retail. Below are more detailed Retail Insider stories followed by Canadian Retail News From Around the Web.
Among Canadian credit card holders, 36 per cent say they typically carry a balance, often relying on credit cards to cover emergencies or when they are short of money, said the report.
Those carrying credit card balances are also more price-conscious in their everyday spending and more likely to cut back on daily expenses. Canadians with mortgages or loans, meanwhile, are more likely to focus on discretionary purchases such as vehicles, electronics, and vacations when managing their budgets, explained Vividata.
Pat Pellegrini
“Debt plays very different roles depending on a household’s financial situation,” said Pat Pellegrini, President and CEO of Vividata. “For some Canadians, credit cards are simply a rewards tool. For others, they’re increasingly being used to cover gaps when money runs short.”
Vividata said the research shows how debt is impact Canadians:redit cards:
58 per cent say they have less disposable income than before;
49 per cent say they often feel they are living paycheque to paycheque;
51 per cent say they need to stick to a budget to make ends meet;
37 per cent say they feel overwhelmed by financial burdens;
71 per cent say the rising cost of living has reduced how much they are able to save ;74 per cent say rising costs have made them more careful about how they spend money
Canadians carrying credit card balances report even higher levels of financial strain, with 68 per cent saying they have less disposable income and 53 per cent saying they feel overwhelmed by financial burdens, added the report.
“Younger Canadians are far more likely to carry non-mortgage debt. Canadians aged 25 to 34 are the most likely to hold credit card balances, personal loans, and other forms of consumer debt,” said Vividata.
“Mortgage ownership, meanwhile, is most concentrated among Canadians aged 35 to 49, who represent the largest share of mortgage holders and are more likely to live in higher-income households with children.
“Higher-income households earning $150,000 or more and families with children are significantly more likely than average Canadians to hold mortgages. Despite high home prices, many homeowners are well into repayment, with about 60 per cent of mortgage holders having 15 years or less remaining on their mortgage.”
Coca-Cola is rolling out a nationwide marketing and experiential campaign tied to the FIFA World Cup 2026, positioning itself at the center of fan engagement as Canada prepares to co-host the global tournament. The initiative includes collectible packaging, retail promotions, and large-scale fan experiences in host cities, reflecting a broad omnichannel strategy that spans in-store, digital, and live event activations.
The campaign arrives as Canada prepares to host 13 FIFA World Cup 2026 matches, the highest number ever held in the country. Coca-Cola’s approach focuses on connecting with consumers through retail touchpoints while reinforcing brand visibility during one of the largest sporting events globally.
Andy Buckingham, General Manager of Coca-Cola Canada, emphasized the importance of the tournament, noting that it represents a significant cultural and national moment for Canadians.
Collectible Packaging Drives Retail Engagement
A central component of the Coca-Cola FIFA World Cup 2026 Canada campaign is a series of limited-edition collectible products designed to drive in-store engagement and repeat purchases. These include commemorative host country cans, collectible country-themed packaging, and a partnership-driven sticker initiative.
The company is introducing a bilingual Commemorative Host Country Canada Can in 355ml sleek formats, available in both Coca-Cola Original Taste and Coca-Cola Zero Sugar. The product is positioned as a keepsake tied to Canada’s role as a host nation and will be distributed nationally beginning in late May.
In addition, Coca-Cola is launching a collection of eight limited-edition country cans inspired by teams that resonate strongly with Canadian fans, including Canada, Argentina, Brazil, England, France, Germany, Spain, and Portugal. The staggered release strategy encourages repeat visits to retail locations, while integrated QR codes provide digital engagement opportunities and contest entries tied to collectible purchases.
Panini Partnership Adds Cross-Category Appeal
Coca-Cola is also leveraging a partnership with Panini to introduce an official FIFA World Cup 2026 sticker collection across North America. Each 500ml bottle of Coca-Cola Original Taste and Coca-Cola Zero Sugar will feature a peel-back label revealing an exclusive Panini sticker.
This collaboration blends beverage retail with collectibles, creating a hybrid product experience that appeals to both sports fans and collectors. The integration of bilingual packaging reflects the Canadian market, while the program is expected to drive incremental sales through gamified engagement and trading activity.
Fan Zones Anchor Experiential Strategy in Host Cities
Beyond retail, Coca-Cola is investing heavily in experiential activations through dedicated fan zones at official FIFA Fan Festival sites in Toronto and Vancouver. These locations, set for Fort York in Toronto and Hastings Park in Vancouver, will serve as high-traffic engagement hubs throughout the tournament.
The Coca-Cola Fan Zones will feature branded experiences including customizable fan apparel, face painting stations, and content capture areas designed for social sharing. The spaces will also offer product sampling and retail sales, reinforcing Coca-Cola’s presence at key moments of fan interaction.
These activations reflect a broader trend in retail and brand strategy, where physical environments are increasingly used to deepen emotional engagement and extend brand storytelling beyond traditional advertising channels.
National Promotion and Contest Incentivize Participation
The Coca-Cola FIFA World Cup 2026 Canada campaign also includes a national promotional contest offering more than 1,000 prizes. Consumers can enter by scanning QR codes and participating through the Coca-Cola Soccer Central platform, with additional entries tied to product purchases and receipt uploads.
Top prizes include travel packages to FIFA World Cup matches, ranging from three to eight days and covering airfare, accommodations, and spending allowances. Weekly draws and digital engagement mechanics are designed to sustain participation over time and encourage repeat interaction with the brand.
Supporting the retail and experiential components is a broader marketing campaign featuring a series of films and a global anthem tied to the tournament. The campaign, rolling out between March and June, highlights the emotional connection fans have with soccer and reinforces Coca-Cola’s positioning as a unifying brand.
The content strategy includes multiple ad spots that depict fan experiences, alongside the release of a global anthem performed by J. Balvin, Amber Mark, Steve Vai, and Travis Barker.
Strategic Implications for Canadian Retail
Coca-Cola’s FIFA World Cup 2026 Canada initiative underscores the growing importance of integrated retail marketing tied to major global events. By combining collectible packaging, digital engagement, and large-scale experiential activations, the company is creating multiple entry points for consumer interaction across channels.
For retailers, the campaign presents opportunities to benefit from increased foot traffic and impulse purchasing driven by limited-edition products and promotional tie-ins. The emphasis on bilingual packaging and national pride also reflects a localized approach within a global campaign framework.
As Canada prepares to host a record number of matches, Coca-Cola’s activation strategy highlights how brands are leveraging major events to drive both immediate sales and long-term brand affinity in the Canadian market.
A new Omnisend survey of 1,087 Canadian shoppers shows that consumers are increasingly trusting AI to take a larger role in how they shop online. Openness to AI tools handling checkouts is up from 68% to 74% since August 2025, with almost 80% willing to hand over their data for more relevant recommendations.
“In a tight economy, shoppers spend more time proving a purchase is worth it. They compare prices, read reviews, look for better options, and still second-guess at checkout. AI can help reduce the effort it takes to feel confident about spending,” said Bernard Meyer, AI Operations Manager at Omnisend. “It’s no wonder that consumers are being more open to it.”
Bernard Meyer
At the same time, there are lines consumers are not willing to cross, such as AI being used to charge different prices for the same product (66%), said Omnisend.
According to the study, 74% of Canadians are now open to AI taking over final transactions. Though many still want guardrails such as final approval (31%) or limits to small purchases (24%), 19% are mostly or fully comfortable letting AI transact independently. Another 13% would even allow automatic reorders without reviewing them.
Also, 79% admit they would share personal information with AI tools for better product suggestions, including location data (29%) and email receipts (26%).
“Despite rising trust, a majority (89%) still report some level of concern about AI in ecommerce. 46% say they worry most about how their data is collected and used, while others are cautious about AI recommendations being biased (28%) or paid for (30%),” explained Omnisend.
Personalized pricing remains a particularly clear red line. The practice, which uses AI to adjust prices based on a shopper’s behavior, location, or purchase history, has drawn criticism for potentially creating unfair or opaque price differences between customers. 66% say they would disengage from, complain, or leave negative feedback about a retailer that uses AI to tailor prices, said the report.
“AI promises fewer steps between intent and purchase, but the ‘one interface’ future only works if shoppers believe the recommendations are earned, not bought, and that the data behind them won’t be used against them,“ added Meyer.
Thirdman photo
With 30% of Canadian shoppers intending to use AI more in the future, Meyer advised online retailers to make their websites easier to navigate, adding helpful content that quickly summarizes why their brand stands out and who it’s made for, plus an FAQ. This will help AI find and recommend retailers to shoppers.
“Our data shows consumers are becoming increasingly comfortable letting AI assist with shopping decisions. As that trust grows, AI usage will increase on both sides — people will trust AI on websites more, but also spend less time manually browsing and instead delegating the work to AI agents that can compare products and surface the best option instantly. For ecommerce brands, that means preparing for a future where they’re selling not just to people, but also to the AI systems acting on their behalf.”
Mars Canada Christmas window display unveiling at the Hudson's Bay/Simpsons building at 176 Yonge Street in Toronto, December 14, 2025. Photo: Craig Patterson
Mars Canada has completed a $180 million investment across its Ontario manufacturing network, marking one of the company’s largest recent commitments to Canadian operations. The multi-year initiative, spanning from 2022 to 2026, is aimed at expanding production capacity, modernizing facilities, and advancing sustainability across four sites in Bolton, Newmarket, and Guelph.
The investment reinforces Mars’ long-standing presence in Canada, where the company has operated for more than a century. With this latest funding, Mars has now invested nearly $400 million in its Canadian operations since 2015, underscoring its continued focus on local manufacturing and economic contribution.
Ellen Thompson, General Manager, Mars Snacking Canada, emphasized the significance of the announcement, noting that the upgrades position the company for long-term growth while supporting Canadian communities and the broader economy.
Production Capacity and Packaging Upgrades Lead Investment
A substantial portion of the funding, more than $100 million, has been directed toward three major packaging line transformations. These upgrades are designed to improve operational reliability and increase production capacity while enabling new product formats aligned with evolving consumer preferences.
The focus on packaging modernization reflects broader industry trends, where efficiency, flexibility, and sustainability are becoming increasingly critical in food and pet product manufacturing.
Breakdown of Investments Across Ontario Facilities
The Mars Canada investment Ontario strategy spans multiple business segments, including snacking, pet nutrition, and food products, with targeted upgrades at each facility.
At the Bolton-based Mars Pet Nutrition site, $86 million has been invested to expand manufacturing capabilities and improve sustainability. The upgrades have resulted in a 50% increase in production capacity for TEMPTATIONS™ products, alongside a 15% reduction in water usage and a 13% decrease in gas and electricity consumption.
In Newmarket, Mars Snacking has received $40 million to upgrade packaging lines producing well-known products such as MARS® bars and MILKY WAY®. These improvements have driven a 25% increase in production capacity while significantly reducing energy consumption, including a 40% drop in electricity use and a 75% reduction in compressed air usage.
The Mars Food & Nutrition facility in Bolton has benefited from a $17 million investment, enhancing production lines for brands such as Ben’s Original™. The upgrades have increased capacity by 8% while reducing daily energy usage, supporting both operational efficiency and sustainability goals.
Meanwhile, the Royal Canin facility in Guelph has received $39 million to modernize operations and improve safety and quality standards. The site has achieved a 12% increase in production capacity, along with reductions in both thermal and electrical energy consumption.
Image: Mars
Sustainability and Workplace Modernization in Focus
Beyond production gains, the Mars Canada investment Ontario initiative includes the implementation of advanced safety systems and sustainability measures across all facilities. These upgrades are designed to enhance environmental performance while creating more modern and efficient workplaces for employees.
Mars employs approximately 1,800 Associates across its Ontario operations, and the company notes that these investments are intended to support both workforce development and long-term operational resilience.
A Broader Strategy for Growth in Canada
The announcement highlights Mars’ broader strategy to strengthen its position in Canada as a key manufacturing hub. By investing in production infrastructure and sustainability initiatives, the company is aligning with both consumer expectations and regulatory pressures around environmental performance.
Company leaders across its divisions noted that the upgrades will enable continued innovation while ensuring that core brands remain competitive in a rapidly evolving market.
Looking Ahead
As Mars Canada continues to expand and modernize its operations, the investment positions the company to meet growing demand across its snacking, food, and pet care categories. It also reflects a wider trend among global consumer goods companies to localize production and invest in resilient supply chains.
With significant capital directed toward Ontario, the Mars Canada investment Ontario initiative signals confidence in the province as a long-term manufacturing base and reinforces the company’s role in supporting Canada’s economic and industrial future.
Eat Up Canada Inc. is sharpening its growth strategy by exiting two restaurant concepts it founded and concentrating on expanding a pair of master franchise brands it believes offer stronger national scaling potential.
George Heos, CEO and co-founder of Eat Up Canada, said the decision reflects a deliberate shift toward building platforms that can grow quickly across the country rather than operating a small number of standalone locations.
“We just didn’t think that there was enough of a lane for us to really expand those quickly across the country,” Heos said in an interview. “We didn’t want to be operators of a handful of locations. Our model is to successfully grow brands across Canada.”
Strategic brand reset
Heos said Eat Up Canada has exited its involvement with Bombay Frankies and is in the process of exiting Mighty Bird through a combination of closures and sales. Both brands were founded by the company, but leadership concluded that capital and operational focus would be better deployed elsewhere.
The move leaves the company concentrating on two key concepts — Pokeworks, where Eat Up Canada serves as the master franchisee for Canada, and Playa Bowls a more recent addition to its portfolio.
The company has built eight Pokeworks restaurants in Canada over the past two years and is planning to open between four and six additional locations this year.
George Heos
Heos said the Playa Bowls agreement, signed several months ago, represents a longer-term national growth opportunity. The master franchise arrangement covers the potential development of up to 160 locations across Canada.
Two corporate-owned Playa Bowls restaurants are currently under construction in the Greater Toronto Area, with the first expected to open at The Well development in downtown Toronto in early May. A second location is being built in Etobicoke near CF Sherway Gardens.
Beyond corporate stores, the company is also working with franchise partners to bring additional locations to markets including Vaughan, Ottawa and Halifax, with a target of opening four to five units this year.
Execution over expansion pace
Heos said Eat Up Canada’s strategy is rooted in experience scaling restaurant brands, citing the company’s earlier effort bringing Firehouse Subs into Canada.
“We opened 50 locations in six years,” he said. “We sold that business and then started these other businesses.”
He added that while industry attention often focuses on branding, real estate and menu innovation, sustained success in the restaurant sector depends on consistent operational execution.
“At the end of the day it really comes down to execution day in, day out,” Heos said. “Sometimes that’s the forgotten ingredient in business, especially in the restaurant business.”
The company places a strong emphasis on customer experience, tailoring operations to the different expectations of dine-in, takeout and delivery customers. Order accuracy and service consistency are critical factors in maintaining guest loyalty, he said.
“Nothing annoys somebody more than waiting for their product at home and it shows up and it’s not what they ordered,” Heos said. “If they’re coming into the location, it’s about making them feel special.”
He suggested that service standards across the industry declined during the COVID-19 pandemic and have not fully recovered, creating an opportunity for operators who prioritize hospitality.
“Service levels have dropped off,” he said. “It was magnified during COVID, and people used it as an excuse to provide poor service.”
Playa Bowls photo
Industry outlook and brand positioning
Despite ongoing economic uncertainty, Heos said he remains optimistic about the restaurant sector’s ability to absorb new entrants — provided they maintain clear positioning and disciplined growth plans.
“There’s always room for new brands — but new brands that really know what they stand for,” he said. “They don’t try to be everything to everybody.”
He pointed to Playa Bowls as an example of a concept with a defined identity and strong consumer appeal. The brand combines a health-focused menu with a distinctive atmosphere designed to create a positive in-store experience, he said.
“We were drawn to it because it’s kind of an interesting mix between great taste and a healthy-focused menu,” Heos said. “There’s this vibrant energy that the brand has. When you walk into Playa Bowls, a smile comes up on your face.”
He added that the brand’s rapid expansion in other markets demonstrates the potential for similar growth in Canada. The brand was started by a couple of surfers.
Playa Bowls photo
For Eat Up Canada, the immediate focus remains on building out its current portfolio and supporting franchise partners as new locations come online.
“We’re very bullish on our businesses because we think they’re in the right category and we think we can execute,” Heos said.
As the company advances its expansion plans, Heos said maintaining operational discipline and guest satisfaction will remain central to its national growth ambitions.
Dr. Sylvain Charlebois, Senior Director, Agri-Food Analytics Lab, Dalhousie University, says new Consumer Price Index data from Statistics Canada shows food inflation in Canada slowed in February, falling to 5.4 per cent from 7.3 per cent, largely in line with expectations following last year’s temporary GST relief. However, he explains that grocery costs remain elevated, particularly in protein categories, with beef, pork, and chicken all posting significant year-over-year increases. Charlebois also notes rising prices for vegetables, coffee, and even typically stable items such as bananas.
He suggests the recent cooling trend may be short-lived due to geopolitical tensions that could drive higher energy costs and push food prices upward as early as April. While general inflation and wage growth have improved, he says many households still feel financial pressure at the grocery store because food inflation continues to outpace income gains, eroding purchasing power since the pandemic.
Comparatively, Charlebois indicates Canada has recorded higher food inflation than other G7 countries in recent months, attributing this to supply chain limitations, reliance on single-source inputs, trade barriers, and policy-related cost pressures affecting industry competitiveness. He adds that products dependent on cold-chain logistics, including meat, dairy, and fresh produce, are particularly vulnerable to price shocks.
On food labeling enforcement, he says regulatory fines signal growing intolerance for misleading “Made in Canada” claims as consumers remain cost-conscious but selectively supportive of domestic products.
Canada’s retail real estate sector has entered a new phase of the cycle. Leasing activity remains strong, vacancy levels are tight in many markets, and rent spreads have widened across the country. At the same time, retailers and landlords alike are navigating rising costs, demographic shifts, and evolving consumer expectations.
Those themes were explored in depth during an online panel discussion hosted by Retail Insider Publisher Craig Patterson for an ICSC webinar on February 27, 2026. The conversation brought together leaders across the retail ecosystem, including Sophie Marai, Vice President of Client Strategy at Environics Analytics; Kate Camenzuli, Vice President of Retail at CBRE Toronto; Ali Baker, Principal and Vice President of the Retail Services Group at Avison Young; Pria Rajput, Founder of Black Label Designs; and Petr Kafka, Principal at Salthill Capital.
The panel examined the evolving Canadian retail leasing market from multiple perspectives, including consumer data, tenant representation, landlord strategy, design trends, and capital markets.
Throughout the discussion, a recurring question emerged: has retail already recovered, and if so, what comes next?
Retail Has Stabilized, But It Has Also Changed
Retail recovery has been widely discussed since the pandemic years, yet panelists suggested the narrative may now need updating.
Kate Camenzuli said the concept of recovery may no longer fully describe the current landscape.
“We’ve been talking about retail recovery for years. The reality is that retail has changed, and that change is showing up in where traffic and growth are happening,” she said.
Population movement has played a major role in reshaping retail demand across Canada. Interprovincial migration and housing affordability pressures have driven consumers out of traditional urban cores and into secondary markets.
According to Camenzuli, cities such as Oshawa, Hamilton, Barrie, and Kitchener-Waterloo are benefiting from these shifts as families seek larger homes and more affordable living.
“Traffic isn’t just about downtown anymore. It’s about where people live, where they move, and how those demographic shifts reshape demand,” she said.
Sophie Marai reinforced that demographic dynamics are increasingly shaping retail performance.
“We’re seeing traffic stabilize overall, but the pattern is highly dependent on demographics and location,” she said.
She noted that population growth and travel activity have helped support retail activity in major urban centres, while regional population shifts have strengthened retail demand in secondary markets.
Yonge Street in Toronto. Photo: Illan Kelman
A Landlord’s Market Emerges
Despite macroeconomic concerns, the supply-demand balance currently favors landlords.
Petr Kafka explained that limited development over the past two decades has created a structural shortage of retail space in many Canadian markets.
“For the first time in my career, this feels like a true landlord’s market,” he said.
Several factors contribute to this dynamic. Canada has experienced substantial population growth while very little new retail space has been constructed. At the same time, many weaker tenants exited the market during the pandemic, leaving behind more resilient operators.
Those surviving retailers have also become more digitally sophisticated, improving their ability to connect with customers and drive sales.
“Retailers came out of the pandemic more resilient, more efficient, and more connected to their customers,” Kafka said.
The result has been significant rent growth in many markets, particularly for high-quality locations and grocery-anchored shopping centres.
“In some cases, landlords are running RFPs for a very limited number of vacancies. That tells you how tight supply has become,” he said.
Rising Rents Create New Tensions
While demand remains strong, rising rents are beginning to test tenant economics.
Camenzuli said many retailers are increasingly concerned about the sustainability of escalating lease costs.
“We’re less worried about weak demand than we are about continued rent escalation. At some point, the market reaches its ceiling,” she said.
As rents increase, some traditional tenant categories are being priced out of certain locations.
“We’re starting to see some food users replaced by other types of tenants,” she said.
Ali Baker said her team continues to see strong demand from retailers looking to expand. However, the shortage of available space has forced brokers to become more creative in securing deals.
“Our biggest challenge is supply. Retailers still want to grow, but there just isn’t much space to choose from,” she said.
Many transactions now involve repositioning existing spaces rather than leasing newly developed ones.
“We’re finding opportunities where landlords want to upgrade a category or replace an underperforming tenant with a stronger concept,” Baker said.
In urban markets, some deals are also occurring off-market through unsolicited proposals or creative leasing strategies.
Gentle Monster at the Yorkdale Shopping Centre in Toronto. Photo: Caroline Mahoney
Retail Categories Continue to Evolve
Another key theme discussed during the panel was the changing mix of retail tenants.
Traditional retail categories remain important, but new types of tenants are increasingly shaping shopping centres.
Experiential uses such as entertainment venues, wellness clinics, and fitness concepts are expanding in both urban and suburban markets.
Pria Rajput said this shift reflects changing consumer priorities.
“Consumers are more selective now, and spending on experiences has been growing faster than spending on goods,” she said.
Retail environments must now communicate value immediately and align with evolving lifestyles.
“The real question is whether a brand is convenience-driven, lifestyle-led, or wellness-focused,” Rajput said.
Wellness-related businesses in particular are generating consistent foot traffic because they encourage repeat visits.
“A fitness operator can drive multiple visits a week, while a longevity clinic brings in scheduled appointments. That creates predictable traffic,” she said.
When combined with complementary food and beverage uses, those businesses can increase dwell time and stabilize shopping centre ecosystems.
Consumer Spending Patterns Are Shifting
Panelists also discussed how evolving consumer behaviour is influencing retail performance.
Marai noted that consumer spending patterns increasingly reflect behavioural and demographic factors.
“Gen X households are driving a lot of spending because they have families and broader household needs,” she said.
At the same time, spending in certain categories has softened. Restaurant spending, for example, has declined in some markets as consumers look for ways to control costs.
Discount retail has been one of the biggest beneficiaries of this shift.
“We’re seeing strong growth in discount categories,” Marai said.
She described a phenomenon sometimes referred to as the “Range Rover in the no-frills parking lot,” where higher-income consumers are increasingly comfortable shopping at discount retailers.
Consumers are also adjusting spending to align with values such as buying Canadian products, which has influenced retail traffic patterns.
Design and Experience Play a Larger Role
As rents rise and competition intensifies, the physical retail environment has become more important than ever.
Rajput explained that design strategies are evolving to support brand identity and consumer engagement.
“Luxury today is less about materials and more about experience,” she said.
Retail environments are increasingly designed to create emotional connections and encourage social sharing online.
Hybrid retail formats are also gaining traction. These combine multiple uses such as retail, hospitality, and services within a single space.
“The goal is to create spaces where people want to spend time,” Rajput said.
Retailers are investing more heavily in store design because the space itself can serve as a marketing tool.
When visually distinctive environments are shared on social media, they can generate organic promotion and drive additional traffic.
Limited New Development Ahead
Looking ahead, panelists expect the Canadian retail leasing market to remain supply-constrained.
Kafka noted that construction costs and development levies have made new retail development financially challenging.
“Without policy changes around development costs and taxation, it’s hard to see a wave of new retail construction,” he said.
Instead, much of the industry’s focus will likely shift toward repositioning existing assets.
Vacancies created by large retailer closures may also present opportunities for redevelopment.
Camenzuli suggested that Canada may be entering a transitional moment in retail real estate.
“We’re likely to see more recycling of space and more focus on finding the highest and best use for existing assets,” she said.
At the same time, new retail concepts and emerging brands could reshape the industry in ways that are not yet fully visible.
“We may not yet know what the next generation of retail businesses will look like, but that innovation is coming,” she said.
Purposeful Shopping and Omnichannel Growth
Finally, the panel addressed the relationship between physical retail and e-commerce.
While online shopping remains important, brick-and-mortar stores continue to play a critical role in the customer journey.
Marai explained that consumers increasingly conduct research online before visiting physical stores.
“We’re seeing more purposeful shopping. Consumers often research online first, then come into store ready to buy,” she said.
This dynamic means foot traffic may not always appear as high as in previous years, but conversion rates can be stronger.
Retailers that effectively integrate digital and physical channels are best positioned to succeed in this environment.
A Complex but Resilient Market
Overall, panelists agreed that the Canadian retail leasing market remains strong, though increasingly complex.
Tight supply, population shifts, changing consumer behaviour, and evolving tenant mixes are all reshaping the industry.
Despite rising rents and economic uncertainty, demand for well-located retail space remains robust.
AI technology is being integrated into retailers. Photo: RI/Google
Artificial intelligence is increasingly moving from experimentation to operational use among Canadian small business owners, including retailers and restaurateurs. New data released by payment and commerce technology company Square suggests that many entrepreneurs are already experimenting with AI tools, while technology platforms are beginning to embed AI capabilities directly into the software merchants use to run their businesses.
The findings highlight how AI tools are beginning to influence decision-making across multiple industries. For retailers and restaurants in particular, the technology is becoming accessible through platforms already used to manage payments, sales data, and day-to-day operations.
According to Square, a 2026 survey of Canadian business owners commissioned by the company found that 60 percent of respondents said they currently use artificial intelligence tools in their businesses. The same survey found that 74 percent reported being familiar with AI technologies that could support their operations. The research covers entrepreneurs across sectors, including but not limited to retail and hospitality.
While the survey results reflect broader small business adoption, they suggest that AI tools are becoming increasingly visible to Canadian merchants as platforms begin integrating these capabilities directly into their systems.
Commerce Platforms Begin Embedding AI
The trend is becoming particularly visible in commerce platforms that are embedding artificial intelligence into their existing software environments. In 2026, Square introduced Square AI, a natural-language AI assistant launched in Canada that is designed to help merchants access insights about their businesses using conversational prompts.
Square says merchants can ask questions such as which items sell best on weekends or how sales performance compares with previous periods. The system then generates responses based on transaction and operational data captured within the Square platform.
For many operators, particularly independent retailers and restaurant owners, extracting insights from sales data has traditionally involved reviewing dashboards or generating reports manually. AI tools integrated directly into commerce platforms are positioned as a way to simplify that process.
As these technologies become more widely available, platforms are increasingly presenting AI as a way that may help small businesses access analytical insights that were once more commonly associated with larger organizations.
Small Businesses Seek Efficiency and Insight
The appeal of AI tools among retailers and restaurant operators often centres on operational efficiency. Running a small business involves managing inventory, staffing, marketing, and customer demand. AI systems that can quickly surface relevant insights may help operators make faster decisions based on available data.
Square’s research suggests that entrepreneurs are particularly interested in AI tools that streamline tasks or provide operational insights. Survey respondents cited potential benefits such as marketing assistance, administrative efficiencies, and improved access to business insights.
Retailers, for example, may use AI tools to better understand purchasing patterns, identify seasonal trends, or evaluate which products perform best at different times of the week. Restaurants may apply similar insights to menu performance or staffing decisions.
The ability to ask software platforms direct questions about business data reflects a broader shift toward conversational interfaces. As AI tools evolve, merchants may increasingly interact with operational software through natural-language prompts rather than traditional reporting dashboards.
Retail Technology Firms Race to Integrate AI
Square’s launch of Square AI reflects a broader shift taking place across the retail technology sector. Companies that provide commerce platforms are increasingly incorporating artificial intelligence into their products as they compete to offer more advanced operational tools.
Canadian-founded platform Shopify has introduced several AI-driven tools for merchants, including Shopify Magic, which assists with content generation and product descriptions, and Sidekick, an AI assistant designed to help merchants navigate reporting, answer operational questions, and receive guidance on managing their businesses.
Similarly, Lightspeed Commerce has integrated AI-powered capabilities within its retail and hospitality platforms. These tools include features designed to support inventory management, demand forecasting, and data-driven insights for merchants operating stores and restaurants.
These developments suggest that AI functionality may increasingly become a standard component of retail platforms rather than a specialized add-on. As the technology becomes more integrated into widely used systems, retailers may rely more heavily on AI-generated insights to guide operational decisions.
AI Adoption Continues to Expand
While artificial intelligence adoption among large corporations has attracted significant attention in recent years, smaller businesses are gaining access to these technologies through the platforms they already use to manage payments and operations.
For many independent retailers and restaurateurs, AI tools are becoming available through familiar commerce systems rather than requiring separate software investments. This shift could lower barriers to experimentation with AI technologies among small business operators.
As commerce platforms continue to introduce AI-driven features, adoption among Canadian merchants may accelerate, particularly as these tools are integrated directly into everyday business workflows.
A New Layer of Intelligence for Retail Operations
The growing integration of artificial intelligence into commerce platforms reflects a broader shift in how businesses interact with operational data. Instead of manually reviewing reports or spreadsheets, merchants may increasingly rely on AI assistants that interpret sales information and provide insights through conversational prompts.
For retailers and restaurant operators navigating competitive markets, these tools are positioned as a new layer of operational intelligence. As AI capabilities continue to evolve, they could influence how merchants evaluate performance, plan inventory, and respond to changes in customer demand.
While the long-term impact of these technologies is still unfolding, the rapid pace of development suggests that AI tools embedded within commerce platforms are likely to play an expanding role in the next generation of retail technology.
