Net earnings of $211.3 million, down 34.6% and adjusted net earnings of $262.6 million, down 20.9%
Fully diluted net earnings per share of $1.00, down 32.4% and adjusted fully diluted net earnings per share of $1.24, down 18.4%
Estimated lost profit and direct cost impact of the ongoing labour conflict at our produce distribution centre in Laval of $66 million after-tax or $0.32 per share (results are not adjusted for this impact)
Retail and distribution network non-recurring restructuring expenses and impairment of assets totaling $42.6 million after-tax ($0.20 per share) expected to generate recurring annual net earnings improvement of approximately $15 million ($0.07 per share) by the end of Fiscal 2028 (results are adjusted for these charges)
Returned $154.1 million to shareholders through share repurchases
Opened five stores in the quarter
“Our third quarter results were significantly impacted by the ongoing labour conflict at our produce distribution centre in Laval. We continue to execute our contingency plan and our Quebec stores are generally well stocked. I want to thank our teams for their outstanding resilience and their relentless focus to deliver the best possible shopping experience to our customers during this challenging period. We remain committed to reaching a negotiated agreement that recognizes the contribution of our employees. As much as the strike is having a significant temporary impact, we must preserve the long-term competitiveness of our operations and our ability to continue serving our customers effectively in a competitive market. We will not compromise on this objective. While our food business continues to face this headwind in the fourth quarter, we are pleased with the continued strength of our pharmacy business and with our discount acceleration plan which is on track and delivering good results.
Eric La FlèchePhoto: Metro
“As previously announced, I will retire as CEO at the end of this fiscal year and become Chairman of the Board. It has been an honor and a privilege to lead METRO and to work alongside such talented and dedicated teams across our stores, distribution centres and offices. Alongside my Board colleagues, I look forward to METRO’s continued success under Marc Giroux’s leadership and I am confident that the company will continue to deliver long-term value to customers, employees and shareholders,” said Eric La Flèche, President and Chief Executive Officer.
The company said sales in the third quarter were positively impacted by new store openings, but were unfavourably impacted by the ongoing labour conflict at its produce distribution centre in Laval and its consequences on its food retail network in Quebec.
“The strike at our produce distribution centre in Laval is ongoing. After four weeks in the fourth quarter, our food same-store sales are down 1.5%. Given that we do not have a clear resolution timeline for this conflict, we expect that our fourth quarter results will continue to be significantly impacted,” said the grocery store chain.
CT REIT says strong Canadian retail real estate fundamentals are increasing competition for quality properties, with high occupancy and rising rents supporting values across the sector.
The Canadian Tire-backed real estate investment trust ended the second quarter of 2026 with occupancy of 99.5% and completed more than 618,000 square feet of lease renewals at a blended rental increase of 10.4%. Canadian Tire store renewals accounted for approximately 515,000 square feet at a 10.9% increase, while roughly 103,000 square feet involving other tenants generated an 8.3% increase.
Those conditions are also making acquisitions more competitive. President and CEO Kevin Salsberg told analysts that relatively little property is currently being marketed that fits CT REIT’s investment strategy, which includes Canadian Tire stores, single-tenant properties and strategically located assets near sites the REIT already owns.
Salsberg described retail fundamentals as strong, but said they have contributed to increased competition and elevated pricing for investment properties. CT REIT is remaining selective while evaluating acquisitions, development opportunities and properties that could eventually be transferred from Canadian Tire Corporation.
Retail Space Remains Tight Across Canada
CT REIT’s experience is consistent with conditions being reported by other major Canadian retail landlords, where occupancy remains in the high-90% range and rents continue to rise on renewals.
RioCan reported retail committed occupancy of 98.8% in the second quarter, while other major Canadian retail landlords have similarly reported occupancy in the high-90% range. Several of the country’s largest retail property owners are also recording double-digit increases on lease renewals, reflecting continued demand for well-located retail space.
CT REIT’s 99.5% occupancy places its portfolio at the upper end of an already tight market. The REIT completed nine Canadian Tire store renewals during the quarter and has addressed upcoming Canadian Tire lease expirations through the first half of 2027.
The renewal process typically begins about 18 months before lease expiry, giving CT REIT visibility into upcoming leasing activity. Canadian Tire leases had a weighted average remaining term of 7.1 years at quarter-end.
Strong operating fundamentals are also making quality retail properties attractive to investors at a time when relatively few suitable assets are reaching the market. Salsberg said broader real estate transactions and merger-and-acquisition activity could create acquisition opportunities for CT REIT, although management did not identify any specific deals.
Canadian Tire Holds 10 to 15 Potential REIT Properties
Canadian Tire Corporation remains CT REIT’s dominant tenant and provides another potential source of acquisitions through properties that can be sold to the REIT in transactions known as vend-ins.
Salsberg estimates Canadian Tire currently has approximately 10 to 15 properties on its balance sheet that meet CT REIT’s investment criteria. Management is discussing some of those assets with Canadian Tire, providing a potential acquisition pipeline outside the increasingly competitive market for third-party properties.
One such transaction was completed during the second quarter in St. Catharines, Ontario, where CT REIT acquired a Canadian Tire store and Canadian Tire Gas+ property for approximately $13 million. The property added about 52,400 square feet of gross leasable area and is expected to generate a going-in yield of 6.9%.
Salsberg said CT REIT had been discussing the St. Catharines property with Canadian Tire for some time and had effectively established the pricing earlier. The property is located near Pen Centre in what management described as a strong market for Canadian Tire.
CT REIT also closed approximately $76 million of previously announced investments during the quarter, adding more than 232,000 square feet. They included Centre 50, a Canadian Tire-anchored multi-tenant property in Edmonton, and Marché Rosemère, a retail property adjacent to an existing Canadian Tire store in Rosemère, Quebec.
The REIT also acquired land adjacent to an existing property in Oliver, British Columbia, and completed intensification projects at Canadian Tire stores in Penticton, B.C., Burlington, Ontario, and Valleyfield, Quebec.
PHOTO: CANADIAN TIRE
Canadian Tire Development Cycle Shifts
Canadian Tire remains central to CT REIT’s business, but management expects fewer Canadian Tire-related development projects to enter the pipeline than during the previous several years.
Salsberg said the pace of new projects has slowed, largely because fewer Canadian Tire-related developments are being added. He linked the change to Canadian Tire’s move from its previous Better Connected strategy to its current True North strategy.
Better Connected generated an active period of investment in Canadian Tire’s physical network and development activity at properties owned by CT REIT. Canadian Tire continues to invest in store improvements under True North, but Salsberg expects Canadian Tire-related retail development flowing through CT REIT to be lower over the next few years than during the previous strategy cycle.
CT REIT is also pursuing retail development opportunities independently of Canadian Tire. Management pointed to land acquired in British Columbia’s Okanagan Valley as a future retail project unrelated to Canadian Tire and said a couple of similar opportunities are in the works.
Those projects add another potential source of growth alongside Canadian Tire vend-ins, third-party acquisitions and intensification of properties already in the portfolio.
Development Pipeline Totals $354 Million
Despite fewer projects entering the pipeline, CT REIT has substantial development activity underway. At the end of the second quarter, nine projects represented approximately $354 million in total development costs. About $191 million had been spent, with another $66 million expected to be invested over the following 12 months.
Approximately 488,000 square feet of space under development was subject to committed leases, equal to 94.2% of total gross leasable area under development. Canadian Tire accounted for 91.6% of that leased space.
Salsberg noted that while the number of projects has declined over the past year, the dollar value of the pipeline remains substantial, in part because of the scale of the Canada Square project in Toronto.
Canada Square Retrofit Advances
CT REIT continues to advance the modernization of two existing office buildings at Canada Square at Yonge Street and Eglinton Avenue in Toronto. The current project involves approximately 680,000 square feet at 2180 and 2200 Yonge Street, more than 90% of which has been leased. Upgrades to the curtain wall systems are underway, interior improvements at 2180 Yonge are nearing completion and work on new elevator systems has begun.
Approximately 17% of the project budget had been spent by the end of the second quarter. Management said the retrofit is expected to continue through the end of 2028 and indicated that the project will cost a little more than $200 million at completion.
Management also provided further clarity on the longer-term redevelopment of Canada Square. The current office retrofit represents Phase I, while a future Phase II would involve residential development on the remaining Canada Square lands.
Phase II would involve ground-up construction rather than another retrofit and would have its own scope, budget and development timeline. No timetable for proceeding with that phase was announced.
CT REIT Reports Higher NOI and AFFO
CT REIT’s same-property net operating income, including the impact of property intensifications, increased 2.5% from the second quarter of 2025. Overall NOI increased 4.8%, reflecting contractual rental increases and contributions from properties acquired and developed over the past two years.
Adjusted funds from operations per diluted unit increased 2.5% year-over-year to $0.326, while the AFFO payout ratio was 72.7%, compared with 72.6% a year earlier. CT REIT also implemented a previously announced 3.5% increase in its monthly distribution during the quarter.
The REIT ended June with approximately $312 million of liquidity, including cash and an undrawn $300-million committed bank credit facility. A separate $300-million uncommitted facility with Canadian Tire had approximately $187 million available at quarter-end.
The company said it expects Decker to return within the next few months.
The board of directors, in alignment with Decker’s recommendation, has chosen two long-time Home Depot executives to oversee the operations of the office of the CEO during his absence. Ann-Marie Campbell, senior EVP, will provide oversight of Home Depot’s day-to-day operations, while Richard McPhail, EVP and CFO, will provide oversight of the company’s financial management and Pro subsidiaries. In his role as independent lead director, Greg Brenneman will chair the board during Decker’s leave, explained the company.
Ted Decker
“The Home Depot has the best management team in retail. Both Ann-Marie and Richard are strong, seasoned executives who have worked together for more than 20 years,” said Brenneman. “We are confident in Ann-Marie’s and Richard’s ability to lead the company during this time, and we look forward to Ted’s return.”
At the end of the first quarter, the company operated a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs over 470,000 people.
'Bookshop' Section in Indigo at The Well (Rendering: Indigo)
Canada helped drive stronger international results for Scholastic as blockbuster children’s franchises generated demand across bookstores, online channels and school-based sales programs despite growing pressure on discretionary consumer spending.
During its fiscal 2025 third-quarter earnings call, Scholastic identified Canada as one of its strongest international markets, pointing to exceptional demand for Dav Pilkey’s Dog Man: Big Jim Begins. The company said sales in Canada, the United Kingdom and New Zealand helped improve the performance of its international division during the quarter.
Subsequent Canadian market data reinforced that momentum. BookNet Canada ranked three Scholastic titles as the country’s top-selling Juvenile and Young Adult books in 2025: Suzanne Collins’ Sunrise on the Reaping, followed by Dog Man: Big Jim Believes and Dog Man: Big Jim Begins.
The performance reflects the continued strength of children’s publishing in Canada. BookNet Canada reported that approximately 47.9 million physical books were sold nationally during 2025, representing roughly $1.15 billion in sales. Juvenile and Young Adult books accounted for 39 per cent of Canada’s print market, underscoring the importance of younger readers to the country’s bookselling industry.
“International revenues and profits increased, driven by our major markets including Canada, the U.K. and New Zealand, all of which benefited from strong sales of Dog Man: Big Jim Begins,” Scholastic President and CEO Peter Warwick told analysts.
Canada Strengthens International Results
Scholastic’s international division generated revenue of US$59.3 million during the quarter. Excluding foreign exchange impacts, revenue increased by US$2.9 million year over year.
Chief Financial Officer Haji Glover said higher revenue in Canada and the United Kingdom helped improve the segment’s performance. The international division also reduced its adjusted operating loss to US$2 million from US$5.9 million a year earlier.
The company did not disclose Canadian revenue or profitability separately, making it impossible to determine Canada’s exact contribution. Nevertheless, management’s repeated references to Canada during the earnings call suggest the market played an important role in the division’s improved performance.
Scholastic reaches Canadian readers through bookstores, mass retailers, online channels, Book Clubs and school Book Fairs, giving the publisher multiple opportunities to connect with families throughout the year.
Various Dog Man books
Dog Man Continues to Deliver
Dog Man: Big Jim Begins became the top-selling book across all categories in both Canada and the United States following its release and had sold nearly 2.5 million copies globally by the time Scholastic reported quarterly results.
Scholastic supported the release with an extensive campaign that included retail merchandising, author appearances, school Book Fair promotions and the release of the animated Dog Man feature film.
The attention surrounding the newest title also lifted demand for earlier Dog Man books as well as Dav Pilkey’s Captain Underpants and Cat Kid Comic Club series.
The company later reported that combined English- and French-language Canadian sales of the Dog Man series increased 73 per cent year over year, making it Canada’s top-selling children’s book series.
For retailers, that illustrates the long-term value of established publishing franchises. A successful new release often generates sales well beyond a single title by encouraging readers to discover or revisit earlier books in the series.
Warwick noted that successful frontlist publishing remains one of the strongest drivers of backlist sales, extending the commercial life of established properties.
Graphic Novels Continue to Shape Children’s Publishing
Scholastic said graphic novels remain one of the strongest areas of children’s publishing and are particularly effective at engaging developing and reluctant readers.
At the time of the earnings call, the publisher held 12 of the top 15 positions on The New York Times graphic novel bestseller list.
Canadian data supports the trend. BookNet Canada reported that graphic novels represented 15 per cent of Juvenile Fiction sales during the first quarter of 2026, making them the largest category within Juvenile Fiction. The format also accounted for roughly one-third of juvenile-fiction library loans and renewals.
Dog Man was the most-circulated Juvenile and Young Adult property in Canadian public libraries during 2025, illustrating demand that extends beyond retail sales.
The combination of highly recognizable characters, frequent new releases and strong merchandising opportunities has made graphic novels one of the most important categories in children’s bookselling.
Hunger Games book series. Image: Scholastic
Hunger Games Builds New Momentum
Scholastic followed the success of Dog Man with another major franchise release. Sunrise on the Reaping, the fifth novel in Suzanne Collins’ Hunger Games series, launched simultaneously in Canada and several other English-language markets in March 2025.
The publisher said print preorders exceeded those of the previous novel by more than 65 per cent. The title later sold more than 1.5 million English-language copies during its first week and ultimately became Canada’s top-selling Juvenile and Young Adult book of 2025.
Scholastic expects the release to support demand across the broader Hunger Games catalogue, demonstrating how major launches can generate sustained sales across an entire franchise rather than a single title.
School Book Fairs Continue to Perform
Scholastic’s school-based channels also delivered solid results.
Book Fair revenue increased eight per cent to US$110.7 million during the quarter, while Book Club revenue rose 14 per cent to US$15.2 million.
Although these figures represent the company’s overall School Reading Events division rather than Canada specifically, they illustrate the importance of school-based retail channels within Scholastic’s business.
Management acknowledged that families were becoming more cautious about discretionary spending, resulting in slightly lower transaction volumes. However, larger average purchases kept revenue per fair close to record levels.
Canadian Book Fairs continue to emphasize accessible pricing, including selections promoted at $3, $5 and $10, while programs such as Share the Fair allow school communities to help students purchase books who might otherwise miss the opportunity.
Children’s Books Offset Weaker Education Sales
Company-wide revenue increased four per cent to US$335.4 million during the quarter.
Children’s Book Publishing and Distribution revenue rose five per cent to US$203.3 million, supported by Book Fairs and Book Clubs. Those gains helped offset weaker results in Education Solutions, where schools—primarily in the United States—continued delaying purchases of supplemental curriculum materials.
Scholastic also continued integrating Toronto-based 9 Story Media Group, expanding its ability to develop and distribute children’s intellectual property across streaming, digital video and traditional publishing.
For Canadian booksellers, Scholastic’s results reinforce an important trend. Families may be approaching discretionary purchases more carefully, but highly anticipated releases, recognizable characters and well-established publishing franchises continue to generate meaningful demand. As Dog Man and The Hunger Games demonstrated throughout 2025, compelling children’s content remains one of the strongest drivers of traffic and sales across Canada’s book retail sector.
Canada’s natural, organic and wellness industry has become one of the country’s fastest-evolving consumer sectors. Wellness has moved firmly into the mainstream, consumer interest continues to expand across natural health products, organic foods and wellness categories, and Canadian entrepreneurs are introducing innovative products that are finding their way onto retail shelves nationwide.
Yet strong consumer demand tells only part of the story.
Behind that momentum, many Canadian businesses are finding it increasingly difficult to expand distribution, navigate complex regulations and compete with larger international players. While consumers continue to embrace wellness products, turning that demand into sustainable business growth has become more challenging for many companies.
Those realities will take centre stage during State of the Industry: Growth, Competitiveness & the Cost of Inaction, a keynote lunch taking place at CHFA NOW Toronto 2026.
Designed as an executive briefing for retailers, brands and industry leaders, the session will bring together economic analysis, consumer insights and policy perspectives to provide a comprehensive look at where Canada’s natural, organic and wellness industry stands today—and what will be needed to strengthen its long-term competitiveness.
Demand Is Strong. Competitiveness Is the Challenge.
The sector continues to benefit from strong consumer interest across natural health products, organic foods and wellness categories, while innovation remains a defining characteristic of the industry.
The challenge, according to CHFA, is not a lack of consumer demand. Instead, many businesses face structural barriers that can limit their ability to grow at the same pace as competitors in larger international markets.
Retail concentration, commercialization challenges, regulatory complexity and rising operating costs are among the factors affecting the industry’s ability to scale. Even as market demand continues to expand, many Canadian companies face obstacles in transforming successful products into nationally recognized brands with broader market reach.
For retailers, these same forces influence assortment planning, category development and long-term merchandising strategies. Understanding how consumer trends, economic conditions and industry policy intersect has become increasingly important as the wellness marketplace continues to evolve.
Bringing Multiple Perspectives Together
The keynote brings together three complementary perspectives that are rarely presented in a single executive briefing.
MNP will examine the economic contribution of Canada’s natural, organic and wellness sector and the structural challenges affecting growth. NIQ will provide insights into consumer purchasing behaviour, emerging trends and areas where future category growth is expected, while CHFA will explore the policy and regulatory issues shaping the industry’s future. Together, the presentations are intended to provide attendees with a broader understanding of the forces influencing the sector today and what will be required to ensure Canadian businesses remain competitive.
“Canada has everything it needs to be a global leader in natural, organic and wellness products—strong consumer demand, innovative businesses and world-class entrepreneurs,” said Aaron Skelton, President and CEO of CHFA.
“The question isn’t whether the opportunity exists. It’s whether we’re creating the conditions for Canadian companies to capture it.”
Why It Matters for Retailers
Retailers are often among the first to recognize shifts in consumer behaviour, making them an important part of the industry’s continued evolution. As customer expectations change, retailers are balancing demand for innovative products with the realities of rising operating costs, evolving regulations and an increasingly competitive marketplace.
The State of the Industry keynote is designed to provide context for those decisions by bringing together data, economic analysis and policy perspectives in a single executive briefing. Rather than presenting isolated research findings, the session connects consumer behaviour, economic performance and industry leadership into one strategic conversation centred on “The Cost of Inaction.”
For retailers, suppliers and emerging brands alike, understanding the forces shaping Canada’s wellness economy is becoming increasingly important. By bringing together economic data, consumer insights and industry perspectives in one discussion, the keynote aims to give attendees a broader understanding of where the sector stands today—and what it will take for Canadian businesses to compete and grow in the years ahead.
The State of the Industry: Growth, Competitiveness & the Cost of Inaction keynote lunch will take place on Friday, September 25, during CHFA NOW Toronto 2026 at the Automotive Building at Exhibition Place. Presented by CHFA, MNP and NIQ, the session is part of the CHFA NOW conference program and is open to registered conference attendees who purchased the lunch session.
Restaurant Depot location. Photo: ADA Architects Inc.
Sysco plans to bring Restaurant Depot to Canada, potentially introducing one of the largest restaurant-focused cash-and-carry warehouse operators in North America to the Canadian foodservice market.
The Houston-based foodservice distribution giant outlined the Canadian opportunity while discussing its proposed US$29.1-billion acquisition of Jetro Restaurant Depot during its fiscal 2026 fourth-quarter earnings call. The transaction, announced in March, would give Sysco control of a large network of warehouse stores geared primarily to independent restaurants and other foodservice operators.
Sysco Chair and CEO Kevin Hourican told analysts that Canada forms part of the company’s longer-term expansion plans for Restaurant Depot. Sysco intends to use its existing supply-chain capabilities to take the format into additional markets following completion of the acquisition.
“We really believe that going to Canada is a compelling opportunity for the long term,” Hourican said, arguing that there is room in the Canadian market for a larger-scale restaurant-focused cash-and-carry operator.
No Canadian locations, opening dates or investment figures have been disclosed, and the acquisition itself remains subject to regulatory review in the United States. Sysco continues to expect the transaction to close by the third quarter of its 2027 fiscal year.
Restaurant Depot Built Around Independent Restaurants
Restaurant Depot operates a different model from the delivered foodservice business for which Sysco is best known. Customers visit large-format warehouses to purchase food, beverages, equipment, packaging and other supplies, typically in commercial quantities, giving restaurants another option alongside scheduled deliveries from conventional distributors.
The company operates 166 warehouses across 35 U.S. states and serves more than 725,000 independent restaurants and foodservice operators. Restaurant Depot generated approximately US$16 billion in revenue in calendar 2025 and about US$2.1 billion in EBITDA, according to Sysco.
Its warehouses carry fresh and frozen meat, seafood, produce, dairy products, grocery items, disposables, kitchen equipment and other products required to operate a restaurant or commercial kitchen. The model can be particularly useful to independent operators looking to compare prices, supplement regular distributor orders or obtain products immediately when an unexpected need arises.
Sysco announced March 30 that it would acquire Jetro Restaurant Depot in a transaction valued at approximately US$29.1 billion, including US$21.6 billion in cash and 91.5 million Sysco shares. Restaurant Depot is expected to continue operating as a standalone business segment following completion of the deal.
The acquisition would move Sysco into what it estimates is a US$60-billion to US$70-billion U.S. cash-and-carry market while increasing its exposure to independent restaurant customers. The company plans to take Restaurant Depot into more than 125 additional U.S. geographies over time, with Canada among the longer-term expansion opportunities management has now identified.
Photo: Restaurant Depot
Sysco Sees an Opportunity in Canada
Hourican characterized Canada as a market without a leading restaurant-focused cash-and-carry operator comparable to Restaurant Depot. There are already several national and regional companies supplying restaurants through warehouse and self-service formats, although none currently operates a restaurant-specialist cash-and-carry network nationally at anything approaching Restaurant Depot’s U.S. scale.
Sysco would also enter with an infrastructure advantage that few new international entrants could readily replicate. Sysco Canada already operates an extensive distribution network serving restaurants, hotels, healthcare facilities and other foodservice customers across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Atlantic Canada.
That existing network is central to the Canadian opportunity. Hourican said Sysco could eventually take Restaurant Depot into Canada by leveraging the company’s inbound supply chain, allowing the warehouse business to benefit from purchasing relationships and distribution infrastructure that Sysco already has in place.
A Canadian rollout could therefore look considerably different from a conventional international retail expansion. Sysco already buys, warehouses and distributes food at scale across the country and has longstanding relationships with Canadian restaurant operators. Restaurant Depot would add another way of serving some of those customers.
A Growing Canadian Warehouse Market
Restaurant Depot would arrive at a time when warehouse-style food distribution is attracting increased investment in Canada.
Costco has been expanding its Business Centre format, which offers commercial quantities of food, restaurant supplies, disposables and other products alongside delivery options. Its Canadian Business Centre network now extends across several major markets in Ontario, Quebec, Alberta, British Columbia and Manitoba.
Some of that expansion is recent. Costco opened Business Centres in Mississauga and New Westminster in late 2025, followed by East Gwillimbury in December and Winnipeg in March 2026. The stores are available to Costco members generally but carry a large assortment aimed at restaurants and other commercial customers, creating considerable overlap with foodservice purchasing needs.
Loblaw Companies Ltd. also participates in the warehouse channel through Wholesale Club, which sells bulk food along with restaurant and catering supplies. The banner has an established Canadian store network serving businesses and other customers.
Quebec has an especially developed restaurant warehouse market. Mayrand Food Group operates large-format locations in Anjou, Laval, Brossard and Saint-Jérôme serving retail and foodservice customers. Empire Company Ltd., the parent of Sobeys, agreed earlier this year to acquire Mayrand, describing the transaction as an entry into Quebec’s discount and warehouse food market. The deal has since received the required court and regulatory approvals.
Montreal-based Distribution Alimentaire Aubut is another longstanding player, supplying restaurants and other commercial customers through self-service warehouse locations.
The opportunity for Restaurant Depot is therefore more specific than filling an unserved market. Sysco would be introducing a restaurant-focused warehouse operator with considerable purchasing scale and the potential to build a national network, while competing with Costco, Wholesale Club and regional businesses that already have relationships with Canadian foodservice customers.
Taken together, the recent activity points to growing strategic interest in the commercial warehouse channel. Costco has been expanding its Business Centre network, Empire is acquiring Mayrand, and Sysco is proposing one of the largest transactions in its history partly to gain exposure to cash-and-carry foodservice distribution.
Costco Business Centre in Toronto, 2026. Photo: Terry PG/Google
Cost Pressure Changes Restaurant Purchasing
The timing is notable as Canadian restaurant operators continue to contend with difficult economics. Restaurants Canada has reported that affordability pressures and weak consumer confidence are leading some Canadians to seek lower-priced menu choices or reduce how frequently they eat out. At the same time, rising food, labour and other operating expenses continue to weigh on restaurant profitability.
More recent industry research has highlighted additional pressure from transportation costs. Restaurants Canada reported in July that 86 per cent of surveyed operators were experiencing higher food and ingredient costs related to rising gasoline prices, with the same proportion reporting supplier fuel surcharges. More than half were also seeing reduced customer traffic or lower spending per visit.
For restaurant operators with limited room to keep raising menu prices, purchasing becomes an increasingly important part of managing margins. Operators can look for savings by changing suppliers, substituting products, buying different quantities or moving some purchases toward lower-priced private-label alternatives.
Lower procurement costs do not necessarily translate directly into cheaper restaurant meals. Savings can help absorb higher wages, rent, utilities, insurance and other expenses, while giving operators more room to maintain portions, preserve accessible menu prices or rebuild margins.
Restaurant Depot’s proposition fits into that environment. An independent restaurant could use a cash-and-carry warehouse when a product is needed immediately or when warehouse pricing makes sense, while continuing to rely on conventional distributors for larger scheduled orders.
Sysco Sees a Multichannel Foodservice Model
Sysco’s longer-term strategy extends beyond operating Restaurant Depot and its existing distribution business as separate channels. Hourican described a scenario in which Restaurant Depot stores could help serve existing Sysco delivery customers when products are needed between scheduled orders. A restaurant that unexpectedly runs out of an ingredient or essential supply could potentially be served from a nearby Restaurant Depot warehouse if it is closer than a Sysco distribution centre.
That would give restaurants several ways to purchase from the combined company. Regular bulk orders could continue to arrive through Sysco’s delivery network, while supplemental purchases could be made directly at Restaurant Depot and, over time, warehouse locations could potentially support rapid local fulfilment for urgent orders.
The strategy brings some of the omnichannel thinking familiar to consumer retail into foodservice distribution, where purchasing has traditionally been divided more clearly between delivered wholesale and self-service warehouse formats.
Sysco also sees opportunities to share products between the two businesses and combine their purchasing volumes. Management expects approximately US$250 million in procurement-related cost synergies from the acquisition, while additional sales opportunities are not included in its original transaction model.
For Sysco, physical Restaurant Depot locations could help address circumstances where a scheduled delivery network is less flexible. Regular distribution works well for predictable purchasing, but a restaurant that unexpectedly runs out of cooking oil, meat, takeout containers or another essential item may need a solution within hours. A nearby warehouse could provide another way for Sysco to serve that customer.
Acquisition Faces Regulatory Review
Whether that strategy moves forward depends first on regulatory approval. Sysco said during its August earnings call that it had received a second request from the U.S. Federal Trade Commission as part of its review of the Restaurant Depot transaction. The process allows regulators to conduct a more detailed examination of the proposed acquisition and typically requires the companies to provide additional documents, data and other information.
The review comes amid concerns from some independent restaurant advocates in the United States about further concentration in foodservice distribution. Critics have questioned whether combining a major broadline distributor with a large restaurant-focused cash-and-carry operator could reduce competition for independent businesses.
Sysco rejects that argument. Hourican told analysts that Restaurant Depot and traditional foodservice delivery largely serve different purchasing needs: cash-and-carry customers choose to visit warehouses and transport their own goods, while Sysco’s delivery customers place greater value on having orders brought directly to their restaurants. He also reiterated that Sysco has no intention of raising prices at Restaurant Depot stores and argues that expanding the format would give more restaurant operators access to its low-cost model.
Sysco has faced major antitrust scrutiny before. The company abandoned its proposed acquisition of US Foods in 2015 after the FTC successfully challenged the transaction. The Restaurant Depot deal involves a different combination of businesses, but regulators are again examining a major transaction involving significant participants in the foodservice supply chain.
Sysco maintains that it expects to secure approval and complete the Restaurant Depot acquisition during fiscal 2027.
Canadian Details Still to Come
A Canadian expansion would come later. Sysco has not identified where Restaurant Depot would open its first Canadian warehouse, how many locations could eventually operate in the country or how quickly it would seek to establish a network.
The company has also not disclosed expected Canadian store sizes, capital investment or employment levels, or whether every element of Restaurant Depot’s U.S. format would be replicated in Canada.
Any expansion would take place against a Canadian competitive landscape that is already evolving. Costco is investing in its Business Centre network, Empire is moving into Quebec’s warehouse food market through Mayrand, Loblaw maintains Wholesale Club, and regional wholesalers continue to serve independent restaurant operators.
Restaurant Depot would bring another major participant into that market if Sysco completes the acquisition and follows through on its Canadian plans. Its longer-term opportunity may ultimately depend on how effectively Sysco can combine Restaurant Depot’s low-cost warehouse model with the foodservice distribution network it already operates across Canada.
The City of Calgary says there are no permit applications yet for the Downtown Bay building.
“From the Downtown Strategy side, The City doesn’t share information on applications to the downtown incentive programs, only on projects approved to receive funding. At this time, The Bay building is not approved for funding under any downtown incentive programs,” said the City in response to an inquiry by Retail Insider.
Astra has remained quiet about its plans for the iconic Bay property and have not spoken to the media about the acquisition.
CBRE said the 448,834-square-foot, six-storey property is clad in terracotta and was the model for subsequent Bay buildings in Vancouver and Victoria.
Richie Bhamra Michael Kehoe
In a report on its website, CBRE said Calgary NIT lead Richie Bhamra brokered the sale of the building and said the marketing process resulted in six bids for the asset, three of them unconditional offers. Astra, a firm that specializes in office-to-residential conversions and adaptive reuse, proved to be the successful proponent.
“This could be a great redevelopment site,” said Bhamra in the article. “There is a real opportunity to make a significant impact on the downtown core.”
The Bay building was constructed between 1911 and 1913 as Canada’s largest department store, and was expanded in 1929 and 1956, noted CBRE.
“The expanded areas can be identified by the wider column spacing on the southern half of the building, which resulted in floorplates that are quite large, at 60,000 sq. ft.,” said Bhamra.. “So it took some creative conceptualizing from the groups that were looking at buying it.”
Downtown Calgary Bay. Photo: Mario Toneguzzi
The building, which sits on 1.65 acres of prime real estate along Stephen Avenue, is “a key piece of our downtown core,” said Bhamra. “It’s a great area for tourism and business, with lots of restaurants and pedestrian traffic. So hopefully no matter what ends up happening with the property it remains an active site.
“Because no other repurposing project in the downtown core will have a bigger impact than this.”
“Calgarians are eagerly awaiting the new owner’s vision for redeveloping this landmark property, a project that will undoubtedly present significant challenges. Modernizing the building’s mechanical systems, electrical infrastructure, and structural components will require a substantial investment. Even so, the property represents a remarkable opportunity to breathe new life into one of downtown Calgary’s most recognizable buildings,” he said.
“A variety of redevelopment concepts are likely under consideration, including residential housing, a boutique hotel, and ground-floor retail and food and beverage spaces. Similar adaptive reuse projects involving former Hudson’s Bay stores are already underway or being planned in other Canadian cities, demonstrating the potential these iconic properties hold for revitalization.”
The downtown Calgary landmark is awaiting a fresh vision for its next chapter, said Kehoe.
Downtown Calgary Bay. Photo: Mario Toneguzzi
“Whatever ultimately takes shape will almost certainly become a legacy project—one that captures the city’s attention and makes a lasting statement about the future of downtown Calgary,” he said.
“Interestingly, the building is not protected by provincial or municipal heritage designation. Even so, I am optimistic that the new owner will respect its rich history while embracing an exciting future. I hope to see an adaptive reuse project that preserves the historic arcade and the beloved façade that generations of Calgarians have come to know, while thoughtfully incorporating contemporary architectural elements that celebrate the building’s next chapter.
“As someone who has long appreciated historic commercial architecture, I remain optimistic about what lies ahead. With the right vision, this iconic building can once again become a vibrant destination and an important part of Calgary’s evolving downtown story.”
As Canadians gear up for back-to-school shopping, brands are pouring marketing dollars into digital channels to capture purchase intent. But new research from Vistar Media suggests many buying decisions begin long before consumers ever open a browser.
The new national survey found that 39% of Canadians have taken action after seeing a billboard or digital out-of-home (DOOH) ad, reinforcing that out-of-home isn’t just an awareness channel, it’s helping drive real consumer behaviour.
At a time when marketers are largely focused on clicks, conversions and attribution, the findings suggest many may be overlooking one of the most effective ways to build intent before shopping begins – especially at a time when 99% of Canadian parents plan to shop in-store for at least some of their Back-to-School purchases.
“For years, marketers have optimized for what they can easily measure – clicks, conversions and attribution. But consumers don’t make decisions in a vacuum. By the time someone searches online, their consideration set has often already been shaped. Out-of-home builds that mental availability in the real world, helping create demand before digital captures it. Back-to-school is a perfect example of why marketers need to think beyond the click,” said Scott Mitchell, Managing Director, Canada at Vistar Media.
Key findings include:
39% of Canadians took at least one action after seeing a billboard or DOOH ad in the past month.
22% looked up a brand online after seeing an ad.
18% visited a company’s website.
36% say a billboard influenced or reinforced the last action they took.
Gen Z is the most responsive audience, with 52% taking action after seeing an out-of-home ad, well above Boomers (32%).
Scott MitchellVistar Media image
In an interview with Retail Insider, Mitchell discussed the report’s findings.
Question: Back-to-school is one of the biggest retail moments of the year. How has the way Canadians shop evolved?
Answer: Back-to-school has become a season rather than a shopping trip. Parents are spreading purchases over several weeks, comparing prices across retailers, researching products online, watching for promotions and, for many, ultimately buying wherever they find the best value. Even shoppers who plan to purchase in-store often arrive after seeing them
throughout their daily routines, from digital channels to the places they visit every day.
That means the customer journey is much less linear than it once was. By the time someone searches for a product or walks into a store, they’ve often already encountered brands in a variety of places. For marketers, success isn’t about showing up more often. It’s about showing up in the moments that matter, when consumers are actively planning, researching or shopping.
Q: Your new research found Canadians are taking action after seeing out-of-home advertising. What does that tell marketers?
A: Our research confirms that out-of-home is doing far more than capturing
attention. It’s influencing what consumers do next. Nearly four in 10 Canadians told us they took at least one action after seeing a billboard or digital out-of-home ad in the past month, whether that was searching for a brand online, visiting a company’s website or making a purchase.
Clicks and conversions remain important, but they only capture part of the customer journey. Before someone searches for a brand or completes a purchase, they’re building familiarity, developing trust and narrowing their choices through a series of experiences that often happen offline.That’s where out-of-home creates value. It reaches people in the real world, while they’re commuting, shopping or going about their day, when brands can
become part of the decision-making process rather than simply responding to it.
In a fragmented customer journey, the brands that influence decisions aren’t always the ones consumers search for first. They’re the ones that become familiar before the search begins.
Q: Why should marketers rethink the idea that out-of-home is simply an “upper funnel” awareness channel?
A: We’ve reached a point where the traditional marketing funnel is a much less useful way to think about consumer behaviour. People don’t move neatly from awareness to consideration to purchase. They move fluidly between physical and digital environments, with every interaction helping shape a decision.
People move naturally between physical and digital environments throughout the day. Someone might see a digital billboard during their morning commute, look up the brand later that night and finally make a purchase several days later after seeing it again.
Our research found that 22% of Canadians searched for a brand after seeing an out-of-home ad and 18% visited a company’s website. That tells us out-of-home is doing more than creating awareness. It’s building familiarity and influencing consideration before consumers ever click on
an ad or enter a store. The opportunity for marketers isn’t to optimize for a single stage of the funnel. It’s to stay present in the moments that shape decisions.
Vistar Media image
Q: How does digital out-of-home complement digital marketing during a busy retail season like back-to-school?
A: Consumers don’t experience marketing one channel at a time. They move seamlessly between physical and digital environments throughout the day, and the brands they remember are the ones that show up consistently across those experiences.
Search, retail media and social are highly effective at capturing demand when consumers are actively looking to make a purchase. Digital out-of-home helps shape that demand by building familiarity and trust while people are out living their daily lives, whether they’re commuting, shopping or spending time in their communities.
In fact, our research found that 62% of Canadians trust billboard advertising more than social media ads. That matters because trust influences the brands consumers remember and ultimately choose. When someone later encounters that same brand through search, retail media or social, it isn’t a first impression. It’s a familiar one. The strongest campaigns aren’t built around individual channels. They’re built around connected moments that work together to influence decisions.
Q: What should Canadian marketers keep in mind as they finalize their back-to-school campaigns?
A: The most effective back-to-school campaigns won’t be built around channels. They’lll be built around consumer behaviour. Consumers don’t separate their lives into online and offline experiences. Every interaction
contributes to how they perceive a brand, whether they’re researching products, commuting to work or walking through a shopping centre.
Back-to-school gives marketers an opportunity to be present throughout those moments, not just when someone is ready to buy. The brands that stand out will be the ones that create a consistent experience across every
stage of the consumer journey. When each channel builds on the next, brands become more familiar, more trusted and ultimately more likely to influence a purchase.
The brands that win won’t necessarily be the loudest. They’ll be the ones that show up consistently in the moments that matter most.
Digital wallets accounted for nearly one-third of Canadian online spending in 2025, as consumers continued to broaden the ways they pay for goods and services, according to a new report from Global Payments Inc.
Digital wallets, including Apple Pay and Google Wallet, represented 32 per cent of Canadian e-commerce transaction value last year, second only to credit cards at 46 per cent, the 11th edition of the Global Payments Report found.
The report projects that digital wallets will account for 37 per cent of Canadian e-commerce transaction value by 2030, while credit cards are expected to decline to 42 per cent.
The findings point to a shift in Canada’s traditionally card-dominated payments market as consumers use a wider range of payment methods across online and in-store purchases.
Tom Tillhub photo
Credit cards remain dominant
Global Payments, which recently completed its acquisition of Worldpay, said the annual report examines consumer payment trends and forecasts how those preferences could develop through 2030.
The report is based on a survey of more than 63,000 consumers across 42 markets and five continents.
Canada remains heavily reliant on cards for in-person purchases. Credit cards represented 51 per cent of point-of-sale transaction value in 2025, while debit cards accounted for 23 per cent, according to the report.
Digital wallets represented 13 per cent of point-of-sale transaction value. That share is forecast to exceed one-fifth of in-store spending by 2030.
The figures suggest payment preferences are becoming more varied depending on how and where consumers shop, increasing the importance for businesses of supporting multiple payment methods across online and physical sales channels.
“Consumers increasingly expect greater choice and flexibility in how they pay,” said Phil Hogg, Head of Canada Enterprise Business Development at Global Payments. “The findings not only highlight the growing role digital wallets play in everyday commerce, but they also underscore the proliferation of payment options. Businesses that adapt to consumers’ desire for a range of payment choices will be better positioned to serve their customers and support future growth.”
Phil HoggSpotOn POS photo
Canada trails global digital-wallet adoption
The growth of digital wallets in Canada comes as other markets have shifted more strongly toward mobile-based payments.
Globally, digital wallets were the leading payment method in 2025, accounting for 56 per cent of e-commerce transaction value and 33 per cent of point-of-sale transaction value, the report said.
Payment apps, a broader category that includes digital wallets, buy now, pay later services, account-to-account payments and other banking applications, are forecast to represent 46 per cent of global in-store spending by 2030. The report puts the projected transaction value at about US$15.6 trillion.
The Asia-Pacific region had the highest digital-wallet adoption in 2025. Digital wallets accounted for 77 per cent of e-commerce transaction value and 62 per cent of point-of-sale transaction value in the region.
Canada, by comparison, continues to have a credit card-led payments market, although the report indicates consumers are increasingly using alternative methods.
Buy now, pay later gains ground
The report also identifies growth in buy now, pay later services, which accounted for five per cent of Canadian e-commerce transaction value in 2025.
That share is forecast to grow at a compound annual growth rate of nine per cent through 2030, according to the report.
The figures come as consumers gain access to a broader range of ways to pay for online purchases, including digital wallets and deferred-payment services.
Global Payments said the report is intended to provide an annual assessment of trends affecting consumer payments and their expected development through 2030.
Americans are increasingly choosing destinations closer to home and cutting the length of their trips as they look to manage rising travel costs, according to travel insurance sales data from Squaremouth.
U.S. visits to Canada rose 10 per cent between 2024 and 2025, while early data suggests visits could increase another 26 per cent this year, the travel insurance marketplace says.
The shift is part of a broader move toward shorter, more accessible international trips as travellers adjust their plans amid higher costs, according to Squaremouth’s Q2 2026 Travel Trends Report.
Canada gains ground among destinations
Canada moved into third place among the most popular destinations in Squaremouth’s sales data for the second quarter, up from fourth place and ahead of France.
The Bahamas also rose in the rankings, moving from 11th to eighth and surpassing Japan and the United Kingdom.
Mexico, the Dominican Republic, Jamaica and Turks & Caicos are also seeing strong demand, with some outperforming destinations that have traditionally been popular among international travellers in Europe.
Squaremouth says the destinations are suited to shorter, more accessible trips and represent an alternative to a traditional two-week European vacation.
The company describes the emerging pattern as a trend toward what it calls the “long international weekend.”
The shift is also showing up in the amount of time travellers spend at their destinations.
Squaremouth’s sales data shows younger travellers are the most likely to shorten their itineraries. Trip costs for Gen Z travellers have remained flat year over year, while travel costs overall have increased by about 24 per cent, according to the report.
With Gen Z travel budgets remaining fixed, the data suggests those travellers are reducing the length of their trips to offset higher costs.
Trips booked by Gen Z travellers have become two to five days shorter year over year, depending on the type of travel insurance policy purchased.
For medical-only policies, the average trip length has fallen by five days, from 25 days to 20. For comprehensive policies, the average has declined by two days, from 17 days to 15.
The figures show that travellers are adjusting different aspects of their plans to accommodate budget constraints, while continuing to take international trips.
Squaremouth says its findings point to travel remaining a priority for consumers in 2026 despite those constraints.
Data based on insurance purchases
The Q2 2026 Travel Trends Report is based on Squaremouth’s travel insurance sales data and is published quarterly.
The company says the report is intended to provide a snapshot of trends observed in its own sales rather than a comprehensive assessment of the travel insurance industry.
Its data is based on finalized travel insurance policies purchased through the Squaremouth platform. The company says the data is available for media use.
Squaremouth says it has more than 4.4 million insured customers and more than 23 years of market data.
Chrissy ValdezSummer tourists in Banff, AB. Image: Banff Tourism
Chrissy Valdez, Senior Director of Operations at Squaremouth, and the Head of Customer Service and Claims at Tin Leg, said the core driver to Americans choosing short, closer-to-home trips instead of traditional long-haul vacations is that trip cost is outpacing income growth.
“Trip cost this summer is up 17.4 per cent over the previous year and 33.1 per cent over the last five years. By comparison, the average American’s annual income is only up a modest four per cent over the previous year. That gap is pushing travelers toward destinations that cut cost through distance rather than through skipping the trip altogether,” she said.
“Canada has always been a popular destination for U.S. travelers, given its proximity, abundance of vacation types (city, mountain/outdoorsy, coastal, road trips), and the flexibility it offers for shorter-getaways. As long as trip cost continues to outpace income growth, I expect Canada, Mexico, and the Caribbean to see an increase in U.S. visitation.”
Valdez said Gen Z’s more limited disposable income, relative to other generations, is likely why they shortened trips this year rather than absorb rising costs.
“Other generations, who appear to be more settled financially, chose to carry the added cost or rearrange other budget priorities rather than change the trip they’d planned,” she noted.
Valdez said markets near the border, accessible via a short drive or quick flight, like Toronto, Montreal, and Vancouver, are best positioned to capture this consumer segment.
“Should trip costs continue to remain elevated, I expect destination substitutions for closer-to-home options and trip compression to continue for the majority of Americans. Those fortunate enough not to be impacted by the rise in cost will likely keep pushing further into premium and luxury travel (safaris, expeditions), a segment already growing well ahead of the market.”
