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The Silent Brand Ambassador: Why the Modern Retail Experience Doesn’t End at the Sales Floor

Retailers spend an incredible amount of time and money on the “first impression.” We obsess over window displays, the perfect lighting in the main aisle, and how products are curated on the shelves. This is the theater of retail. Every year, millions are invested in interior design and visual merchandising to lure customers in and lead them toward a purchase.

But as any experienced shop owner knows, a customer’s journey is a long chain of events. And that chain is only as strong as its weakest link. Honestly, if a customer has a beautiful experience in the showroom but encounters neglected facilities, the brand promise is broken.

The physical space of a retail store is a silent communicator. It tells a story about how much the business cares about its clientele. In an era where e-commerce offers ultimate convenience, physical retail must offer something more: a sense of hospitality. Hospitality isn’t just about a friendly greeting at the door. It’s about the comfort, safety, and cleanliness of the entire environment. Why do we so often forget the spaces that aren’t for sale? I guess it’s easy to overlook what isn’t on the immediate balance sheet.

The Psychology of the “Non-Sales” Space

We often think of the sales floor as the only place where the brand lives. However, environmental psychology tells us that customers form their deepest opinions in the transition zones. These are the fitting rooms, the lounges, and the restrooms.

When these spaces are well-designed, they act as a “reset” for the customer. They provide a moment of privacy and comfort on a busy shopping day. You know, a place where you can just put down your bags for a second and breathe. If that space is cramped, outdated, or poorly maintained, the customer feels a sense of “exit urgency.” They want to leave the building as soon as possible.

When a retail space feels cohesive, it builds trust. If the design language of the front of the store carries through to the back of the house, it shows a level of intentionality that customers subconsciously respect. Neglecting these areas sends the opposite message. It suggests that the brand’s interest in the customer ends the moment they step away from the cash wrap. So, what message is your building sending? Is it a “welcome” or a “just passing through”?

The Logistics of an Upgrade

For many retail managers, the idea of an upgrade is daunting. The retail world moves fast, and downtime is expensive. Believe me, I know the feeling of trying to coordinate a project while keeping the doors open. However, staying relevant in a competitive market requires constant evolution. This often means looking at the infrastructure that’s been ignored for a decade.

If you notice that your foot traffic is high but your “dwell time” is low, it might be time to look at your facilities. A major part of refreshing a brand involves the complexities of commercial restroom remodeling to meet modern expectations of touchless technology and high-end materials.

Navigating these types of structural changes requires a clear roadmap. Without a guide, a simple remodel can quickly turn into a source of immense stress. Think of plumbing delays and unhappy shoppers. When these utility-focused areas are treated with the same design rigor as the storefront, the entire customer experience is elevated. It’s about more than just aesthetics; it’s about respect and basic human dignity.

The Future-Proofing Shift: Tech and Touchless

In the post-pandemic retail landscape, “clean” is no longer a checklist item. It’s a core brand value. Modern consumers are more sensitive than ever to a space’s physical safety. This is where technology intersects with interior design. We are seeing a massive shift toward touchless systems—automatic doors, sensor-activated fixtures, and smart ventilation.

Investing in these technologies during a renovation isn’t just about following a trend. It’s about future-proofing. A store that feels “high-tech” in its utility areas gives the customer a sense of security. It reduces the physical friction of using a public space. When a customer doesn’t have to touch a handle or a manual lever, they feel a level of care that translates into positive brand sentiment.

Materiality and Brand Longevity

The choice of materials in a retail environment is a financial decision as much as an aesthetic one. Retail spaces take a lot of abuse. Between strollers, shopping carts, and high foot traffic, floors and walls need to be resilient.

But permanence builds a sense of stability.

When a retailer chooses durable, high-quality finishes, they’re investing in the long-term health of the brand. Using materials like quartz, heavy-duty laminates, and stainless steel suggests that the store is a local institution. Conversely, cheap materials that show wear and tear within a year make the brand feel disposable. Have you ever walked into a store and just felt like it was built to last? You can almost feel the solidity in the air. That solidness creates an environment where customers feel comfortable spending their money.

The Human Element of Hospitality

At the heart of every retail success story is a human connection. People want to shop where they feel comfortable. For families, for older people, and for people with disabilities, the quality of a store’s facilities can be the deciding factor in whether they visit at all.

Inclusive design is good business.

It means ensuring that every part of the store is accessible and well-maintained. When a customer feels that their needs have been anticipated, they’re more likely to stay longer and return more often. This is the “silent ROI” of facility management. It’s not as flashy as a new marketing campaign, but it’s far more effective at building long-term loyalty. It’s that feeling of “they’ve thought of everything.”

A Strategic Facility Audit

For the retailer ready to take the next step, a facility audit is essential. You need to walk through your store as a customer would. Start at the front door and move through the entire footprint. 

Pay attention to the transitions. Does the quality dip when you turn a corner? Is the lighting consistent?

Look for signs of “micro-wear.” Small cracks in a partition or a flickering light in a fitting room might seem minor to a manager who sees them every day, but to a new customer, they are red flags. They suggest a lack of oversight. By identifying these issues before they become major failures, you can plan strategic upgrades that keep the store feeling fresh without a total shutdown.

Conclusion

The modern retail landscape is more than just a place to buy goods. It is a place where brands live and breathe. By focusing on the entire footprint of the store, from the entrance to the most functional corners, retailers can create a seamless experience that resonates with customers on a deep level.

True excellence in retail is found in the details that no one notices until they’re gone. It’s in the solid partitions, the clean lines, and the quiet comfort of a space designed for the human being. 

When you invest in the “invisible” parts of your store, you’re not just spending money on maintenance. You’re building a foundation for customer loyalty that will outlast any seasonal sale.

Atlantic Gift + Home Market Expands in Halifax

Photo: Halifax Convention Centre

The Canadian Gift Association is expanding its footprint in Atlantic Canada with the Atlantic Gift + Home Market 2026, a trade-only event that marks both growth and transformation for the region’s wholesale gift industry.

Taking place March 8 to 10, 2026, at the Halifax Convention Centre, the show builds on the association’s inaugural Atlantic market launched in March 2025 at the Moncton Coliseum. While 2026 represents the second year of CanGift’s presence in the region, it introduces several significant firsts that elevate the scale and ambition of the event.

Most notably, CanGift has partnered with the Craft East Buyers’ Expo to create a unified buying platform that brings commercial giftware and authentically Atlantic-made craft together under one roof.

A Landmark Partnership in the Maritimes

The co-location of the Atlantic Gift + Home Market 2026 with the Craft East Buyers’ Expo creates what organizers describe as one of the largest gift and craft trade shows ever held in the Maritimes. Nearly 200 Canadian exhibitors are expected to participate, presenting a broad and curated mix of product categories.

“This partnership represents an exciting step forward for the gift and craft industries in Atlantic Canada,” said Dwayne McKillop, President and CEO of the Canadian Gift Association. “We’re thrilled to work with Craft Alliance Atlantic to spotlight the extraordinary creativity and entrepreneurial spirit found in this region.”

Bernard Burton, Executive Director of Craft Alliance Atlantic, highlighted the opportunity for regional makers. “The Atlantic region is home to a vibrant community of skilled craftspeople and artisans,” he said. “By collaborating with CanGift, we are creating a national platform in Halifax that connects these makers with retailers looking for distinct, high-quality products.”

For retailers, the result is a single destination to source both established commercial brands and handmade products rooted in Atlantic Canada’s creative economy.

Photo: Canadian Gift Association / CanGift

A New Venue in the Heart of Halifax

The move from Moncton to Halifax signals the event’s growth trajectory. Hosting the Atlantic Gift + Home Market 2026 at the Halifax Convention Centre places the show in a modern downtown venue with increased accessibility, hospitality infrastructure, and expanded exhibition capacity.

The central location also reinforces Halifax’s role as a commercial hub for the region, making it easier for retailers from Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, and beyond to attend.

As part of CanGift’s 50th-anniversary year, the Halifax event underscores the association’s national strategy of delivering regionally accessible markets while maintaining a cohesive coast-to-coast wholesale platform.

A Curated Marketplace for Qualified Buyers

The Atlantic Gift + Home Market 2026 is a wholesale, trade-only event designed exclusively for qualified retail buyers. Attendees will have the opportunity to evaluate products firsthand, place orders directly with makers and manufacturers, and establish long-term supplier relationships.

Exhibitors will span categories including giftware, home décor, lifestyle merchandise, souvenirs, food, fashion, fine craft, art, textiles, wellness, and more. The combination of commercial product lines and Atlantic-made craft reflects how retailers today curate assortments that balance national brands with regionally distinctive offerings.

By bringing nearly 200 Canadian exhibitors together, the show aims to provide a professional marketplace that supports both immediate buying decisions and longer-term business development.

Event Details and Schedule

The Atlantic Gift + Home Market 2026 will be held at the Halifax Convention Centre, located at 1650 Argyle Street in Halifax, Nova Scotia.

Show hours are as follows:

Sunday, March 8 from 10 a.m. to 6 p.m.
Monday, March 9 from 10 a.m. to 6 p.m.
Tuesday, March 10 from 10 a.m. to 3 p.m.

Admission is reserved for qualified retail buyers and industry professionals.

Part of a National 50th-Anniversary Celebration

The Halifax show follows CanGift’s winter Toronto Gift + Home Market and its Alberta Gift + Home Market in Edmonton, forming part of a 2026 calendar that celebrates five decades of supporting Canada’s gift, home, and lifestyle industries.

While 2025 established CanGift’s Atlantic presence, the Atlantic Gift + Home Market 2026 represents a new chapter defined by scale, partnership, and regional collaboration. By aligning with Craft East and relocating to Halifax, the association is reinforcing its commitment to strengthening retail supply chains across every region of the country.

Interested in Exhibiting?

Exhibitors interested in participating in the Atlantic Gift + Home Market 2026 are encouraged to contact Tanya Brennan at 416.642.1035 or via email at tbrennan@cangift.org for further information on registration and booth opportunities.

For more information on CanGift’s Atlantic Gift + Home Market 2026, visit the website

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

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Daily Synopsis: Feb 27, 2026

Friday’s Retail Insider articles are listed below, followed by the latest Canadian Retail News From Around the Web. Highlights include Mercatto’s significant move into Port Credit with a large suburban location featuring brunch, reflecting shifting consumer demand in mixed-use waterfront areas. Meanwhile, Statistics Canada reports increased business optimism despite ongoing inflation and labour challenges, offering important insights for retail stakeholders. In addition, Skip’s focus on emotional connection and brand meaning demonstrates how winning brands are reshaping loyalty in 2026.

 

🗞️ The Day’s Retail Insider Article List

 

🌐 Canadian Retail News From Around the Web

How Young Shoppers Are Currently Revolutionizing The Home Décor Marketplace

There’s absolutely no denying how there’s an ongoing major shift occurring within the home décor industry, and this has a lot to do with the changes that are currently being driven by young shoppers. 

Gen Z and Millennial consumers have recently become the largest group entering the rental and housing markets, and we’re beginning to see how their buying habits look starkly different in comparison to previous generations. 

From what they value in branding to how they discover new products, young shoppers are revolutionizing the ways in which home décor products are marketed, designed and sold—and for retailers, this means it’s absolutely essential to create new priorities!

The New Normal Is Digital-First Décor Shopping 

It’s rare for younger shoppers to start a home décor shopping journey in a physical store, because they’re instead browsing trends on social media platforms via their mobile devices. 

Instagram, TikTok and Pinterest have become the newest digital showrooms featuring viral posts that can turn specific décor styles into overnight sensations. 

This digital-first shift has forced countless home décor brands into heavy digital content investments, e-commerce platforms and influencer marketing partnerships. It’s also no secret how young décor buyers fully expect seamless shopping experiences online, clear product information and fast shipping.

Décor Style Over Matching Sets 

Unlike previous generations that fell in love with furniture collections, today’s younger generations are more likely to be interested in mix-and-match, curated spaces. Today’s young décor shoppers want their homes to feel 100% personal, and nothing like a perfect showroom.  

This growing transition has subsequently led to a boosted demand in statement pieces, as well as a reduced demand in full room packages. 

Shoppers are now investing in vintage side tables, bold sofas, and striking area rugs to anchor rooms—because the goal now is to develop spaces that offer a storytelling element for guests.

Softened Household Spaces & Round Rugs 

Another big trend that directly reflects the youth’s mindset is the growing popularity of round area rugs. Younger décor shoppers are utilizing round rugs to break away from boxy, rigid layouts and ultimately soften modern interiors.

And what’s great for budget-conscious younger shoppers is that shopping online for high-quality round rugs has never been easier thanks to countless outlets offering affordable selections.

Round rugs are known for providing a sense of warmth and flow to any space, and they work especially well in reading corners, under coffee tables, and in smaller living rooms where square or rectangular rugs feel a bit too heavy. 

On social media platforms, round rugs are known for photographing beautifully—which has helped exponentially increase their overall appeal. And from a retailer’s standpoint, this has led to many companies offering much larger varieties of round rugs in terms of sizes, shapes and textures. 

Young Décor Shoppers Emphasize Value Just As Much As Design 

Today’s younger shoppers also generally want to know where a décor piece comes from and how it’s specifically made. This is often connected to an added emphasis on ethical sourcing, sustainability, and consumer transparency that are now widespread concerns and deciding buying factors. 

This is why countless décor brands are now conducting more responsible manufacturing practices, utilizing eco-friendly materials and prioritizing recyclable packaging.

Young shoppers want to genuinely feel good about their purchases, and this applies to both aesthetics and ethics. 

Quality-Focused, Yet Budget-Conscious 

The majority of young décor consumers are very price-aware, but this doesn’t necessarily mean they’re constantly looking for their cheapest options. 

A lot of them are more than willing to spend more money on products they know are versatile, durable and timeless. 

This is why there’s been a growing interest in artisanal area rugs, furniture, and various décor pieces that can easily move from one home to the next. 

Fast furniture is also quickly losing its appeal among young shoppers, whereas long-lasting pieces are inversely gaining ground. 

Millennials & Gen Z Are Ushering In A New Era For Home Décor Retail 

Younger shoppers are heavily influencing the home décor market today in 2026 toward improved brand flexibility, creativity and responsibility. 

This is why we’re now seeing retailers offer things like digital conveniences, unique designs, and an ethical branding in order to position themselves for future success.

From eco-conscious materials to social-friendly styles like round rugs, the new future of home décor is being shaped by the generations that truly want their homes to be equally as meaningful as they are strikingly beautiful!

Mercatto Expands with New Location in Port Credit

Image: Mercatto

Toronto-born Italian dining brand Mercatto is expanding beyond the city core with the opening of Mercatto Centrale in Port Credit. The new restaurant opens March 13, 2026, at 230 Missinnihe Way in Mississauga’s Brightwater community.

Founded in 1998, Mercatto has built a reputation for warm hospitality, all-day energy and a modern approach to Italian cuisine. The brand has operated four downtown Toronto locations under the Alter Ego Group. The Port Credit opening marks the first Mercatto location outside Toronto, bringing the concept into the broader GTA.

The launch of Mercatto Centrale Port Credit reflects continued restaurant investment in emerging mixed-use communities across the GTA, particularly those anchored by residential density and waterfront appeal.

 

Brightwater Location Targets Growing Waterfront Community

Mercatto Centrale is located within Brightwater, a growing waterfront community in Port Credit known for walkability and proximity to Lake Ontario. The neighbourhood has developed a strong dining culture, attracting both local residents and visitors.

The restaurant is positioned to serve residents, nearby businesses and destination diners. According to company materials, Mercatto Centrale is designed to function as a go-to destination for casual dining, group gatherings and special occasions.

As suburban nodes such as Port Credit continue to intensify, full-service restaurant operators are increasingly viewing these areas as viable alternatives to traditional downtown locations.

8,500 Square Foot Restaurant with 290+ Seats

The scale of the new restaurant signals a significant investment in the west end. Mercatto Centrale occupies approximately 8,500 square feet, with roughly 5,000 square feet dedicated to dining, bar and private dining spaces.

Total seating capacity exceeds 290 seats, including more than 200 indoor seats and over 90 patio seats. The large patio component aligns with the waterfront setting and supports seasonal traffic.

This footprint positions Mercatto Centrale Port Credit as one of the larger full-service restaurant offerings in the immediate area, particularly within a newly developed community.

Image: Mercatto

Alter Ego Group Brings Established Culinary Philosophy

Mercatto Centrale is operated by the Alter Ego Group, which oversees the brand’s Toronto locations. Executive Chef Doug Neigel leads the kitchen, balancing Italian classics with reimagined dishes.

The expansion maintains continuity in culinary and service philosophy while introducing new programming tailored specifically to the Port Credit market.

Brunch Debuts Exclusively at Mercatto Centrale

One of the most notable distinctions for Mercatto Centrale Port Credit is the introduction of brunch. The Port Credit location will be the only Mercatto restaurant to offer brunch, with a curated menu developed specifically for this site.

Brunch highlights include Eggs Benedict with peameal bacon, hollandaise and crispy potatoes, as well as French Toast served with strawberry preserve, whipped cream and maple syrup.

The broader menu spans antipasti, chilled seafood, pizza, pasta, piatti and dolci. Offerings include Fritto Misto with calamari, shrimp and zucchini; fresh oysters such as Belle Du Jour from New Brunswick and Sweet Island Kiss from PEI; and pizzas including Diavola and Prosciutto.

Pasta dishes include Orecchiette Pugliese with fennel sausage and rapini, Chitarra Alla Carbonara made with Conestoga Farms egg, and Pan-Seared Lasagna with ragù Bolognese. Larger plates range from Pollo Alla Diavola to a 12oz Prime New York Striploin.

Dessert options include Nonna’s Affogato, featuring a choice of Dillon’s Coffee Liqueur or Frangelico paired with gelato and espresso.

The breadth of the menu supports Mercatto’s positioning as an all-day Italian dining destination while introducing incremental daypart revenue through brunch.

Design Inspired by The Birth of Venus

The design of Mercatto Centrale draws inspiration from The Birth of Venus, interpreted through subtle and modern details. Rather than literal references, the design incorporates linear yet fluid patterns that reflect the waterfront setting and architectural lines of the building.

Sculptural vaulted ceilings create a sense of movement and openness, contributing to an elegant, coastal feel rooted in Italian sensibility.

Materiality plays a central role. Soft limewashed walls introduce warmth and a timeless quality, while refined detailing at the bar highlights artisanal craftsmanship.

The result is a contemporary space designed to align with both the waterfront environment and Mercatto’s established brand identity.

Private Dining and Event Strategy

In addition to everyday dining, Mercatto Centrale is designed to accommodate private and group events. The restaurant includes a dedicated private dining room that accommodates approximately 16 to 20 guests for seated or standing events. The space is equipped with AV capabilities, making it suitable for both social and corporate gatherings.

Beyond the private room, the restaurant can host large group bookings within the main dining room and lounge areas. Event menus draw from the restaurant’s existing food and beverage offerings, ensuring consistency with the core dining experience.

This event capacity positions Mercatto Centrale Port Credit to capture corporate functions, celebrations and community gatherings within a growing residential catchment.

Strategic GTA Growth for Established Toronto Brand

The opening of Mercatto Centrale represents a strategic step for a brand that has operated exclusively in downtown Toronto for more than two decades. By expanding into Port Credit, Mercatto is extending its reach while maintaining brand continuity under the Alter Ego Group.

As mixed-use waterfront developments continue to reshape suburban markets across the GTA, restaurant operators are evaluating opportunities outside the urban core. Mercatto Centrale Port Credit reflects that broader shift, combining scale, design investment and differentiated programming in a community-driven setting.

With its March 13 opening, the restaurant introduces a new Italian dining option to Mississauga while marking a milestone in Mercatto’s long-term growth trajectory.

 

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Giant Tiger and the Canadian Women’s Foundation partner on International Women’s Day Shirt 

Image: Giant Tiger

Designed to celebrate and spark meaningful conversations and support women, girls and gender-diverse people in communities across Canada, Giant Tiger Stores Limited has launched its fourth-year exclusive shirt in advance of International Women’s Day, in partnership with the Canadian Women’s Foundation

Available now in select Giant Tiger stores and online at gianttiger.com, 100% of profits from the sale of the shirt will be donated to the Canadian Women’s Foundation to support programs in communities across Canada.

Information about the artist collaboration, the impact of Giant Tiger’s partnership with the Canadian Women’s Foundation and the SPAO Photographic Arts Centre can be found here.

International Women’s Day is March 8.

Created in collaboration with the SPAO Photographic Arts Centre, one of Canada’s foremost photographic arts centres, the shirt features original artwork by Ottawa-based visual artist Linh VH Nguyen. (CNW Group/Giant Tiger Stores Limited)

Created in collaboration with the SPAO Photographic Arts Centre, one of Canada’s foremost photographic arts centres, the shirt features original artwork by Ottawa-based visual artist Linh VH Nguyen, a queer Vietnamese Canadian artist selected as part of Giant Tiger’s annual commitment to spotlight a new Canadian artist. Working across analog and digital photography, Nguyen’s work explores memory, transformation and diasporic identity.

Linh VH Nguyen
Linh VH Nguyen

“This is the first time my work is reaching people outside of galleries, and I’m thrilled that it’s accessible to a wider audience,” said artist Linh VH Nguyen. “This partnership, bringing together Giant Tiger, the Canadian Women’s Foundation and photo-based artists, shows real commitment, especially knowing that 100% of the profits support the Foundation. Buying something you love can be powerful, and I hope this campaign sparks conversation and reminds people to support one another and find moments of joy.”

Through its International Women’s Day shirt campaign, Giant Tiger has raised more than $120,000 to date, with funds going directly to grassroots programs that provide critical support, build skills, belonging and confidence, and help make safety, opportunity and hope possible.

“At Giant Tiger, supporting our communities also means creating space for women and gender-diverse artists to be seen, heard and celebrated,” said Alison Scarlett, Head of Public Relations, Communications and Corporate Social Responsibility, Giant Tiger Stores Limited

Alison Scarlett
Alison Scarlett

“Through this campaign, we’re proud to spotlight Canadian artists like Linh VH Nguyen, while directing 100% of profits to the Canadian Women’s Foundation to support community-based programs that advance gender equity. With more than 260 locally owned stores across the country, we can help turn creative expression into meaningful impact. As a Canadian retailer dedicated to doing what’s right, it’s incredibly rewarding to partner with organizations that are making a real difference in the lives of our customers and the communities we proudly serve, while giving talented artists a national platform to share their work.”

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DESIGNME launches Rooting for All Women campaign

DESIGNME Launches Rooting for All Women, a Campaign Celebrating Transformation, Strength, and Collective Impact (CNW Group/DESIGNME)

DESIGNME, the professional, vegan Canadian haircare brand, has unveiled Rooting for All Women, a limited-edition campaign honouring women, their evolution, and the power of transformation at every stage of life.

From artists behind the stylist chair to creators, salon owners, and consumers, women help bring DESIGNME to life every day. Rooting for All Women builds on the brand’s long-standing commitment to confidence, creativity, and self-expression – values that have been at the heart of DESIGNME since its inception in 2016, said the company.

Rooting for All Women is about honouring the many transformations women experience – personally, professionally, and creatively,” said Cynthia Desrochers, VP Global Marketing and Digital at DESIGNME. “It’s a celebration of resilience and reinvention, while also creating meaningful impact for women who need support most.”

Cynthia Desrochers
Cynthia Desrochers

Inspired by the idea of metamorphosis, the campaign reflects moments of growth, renewal, and empowerment, mirroring the transformations women navigate throughout their lives, said the company

As part of the initiative, DESIGNME will donate a portion of proceeds from the limited-edition collection, up to a maximum total donation of $10,000, to women’s support organizations in North America. The brand will also continue its commitment beyond the campaign, with additional initiatives planned throughout the year in support of charities, it said.

A portion of the Canadian proceeds will benefit Chez Doris in Montréal, an organization dedicated to providing safety, resources, and opportunity to women in vulnerable situations.

Diane Pilote
Diane Pilote

“This partnership reflects our mission in a meaningful way: transforming corporate commitment into concrete action,” said Diane Pilote, Executive Director of Chez Doris. “Access to essential hygiene and hair care products plays a vital role in restoring confidence and self-worth. DESIGNME’s support directly helps preserve the dignity and autonomy of the more than 1,700 women we serve each year.”

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Businesses anticipate obstacles ahead: Statistics Canada

Andrea Piacquadio photo
Andrea Piacquadio photo

Businesses continue to anticipate a variety of obstacles over the next three months. While pressures of both cost- and labour-related obstacles continued into the first quarter of 2026, the proportion of businesses with a positive outlook has increased compared with previous quarters, according to a report released by Statistics Canada on Friday.

Real gross domestic product was essentially unchanged in November 2025, following a 0.3% decline in October. Meanwhile, consumer inflation rose 2.3% on a year-over-year basis in January 2026, following a 2.4% increase in December 2025. Furthermore, in January 2026, overall employment edged down (-25,000; -0.1%) and the employment rate decreased 0.1 percentage points to 60.8%, said the federal agency.

In the first quarter of 2026, 59.2% of businesses across Canada expect cost-related obstacles over the next three months, down from 61.2% in the fourth quarter of 2025. For the Canadian Survey on Business Conditions, cost-related obstacles consist of inflation; cost of inputs; interest rates and debt costs; cost of insurance; cost of real estate, leasing or property taxes; and transportation costs. In January 2026, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index, increased by 7.7% month over month and rose 8.0% year over year. Additionally, average hourly wages among employees were up 3.3% on a year-over-year basis in January, following growth of 3.4% in December 2025, explained Statistics Canada.

“Within this environment, in the first quarter of 2026, just over two-fifths (40.8%) of businesses expect inflation to be an obstacle over the next three months, marking it as the most commonly expected obstacle among businesses. Businesses expecting inflation to be an obstacle were most frequently found in accommodation and food services (60.7%); agriculture, forestry, fishing and hunting (50.1%); and wholesale trade (48.2%),” it said.

“Recruiting skilled employees is the second most commonly expected obstacle, anticipated by one-quarter (25.3%) of businesses, led by those in administrative and support, waste management and remediation services (39.0%); construction (37.5%); and accommodation and food services (34.2%).

“When asked to identify the most challenging expected obstacle over the next three months, 10.7% of businesses expected it to be recruiting skilled employees, 10.5% indicated inflation and 6.8% reported the cost of inputs.”

Nearly one-third (32.0%) of all businesses, whether they engaged in trade or not, reported that the imposition of tariffs by the United States on imports from Canada had a negative impact on their business over the 12 months prior to the survey. Businesses in manufacturing (51.2%); agriculture, forestry, fishing and hunting (47.1%); and wholesale trade (45.7%) were most likely to indicate this. In contrast, 1.4% of businesses reported that these tariffs had a positive impact on their business over the 12 months prior to the survey. Meanwhile, over half (51.2%) indicated that the imposition of tariffs by the United States on imports from Canada had no impact on their business over the 12 months prior to the survey. A further 15.4% of businesses were unsure what impact tariffs imposed by the United States had on their business, noted Statistics Canada.

“In the first quarter of 2026, all businesses were asked whether they had passed cost increases due to tariffs onto their customers over the 12 months prior to the survey, whether they engaged in trade or not. Over one-quarter (26.8%) of businesses reported having done so, while over one-third (34.5%) had not passed any cost increases onto their customers. Meanwhile, nearly two-fifths (38.6%) of businesses had not experienced any cost increases due to tariffs,” it said.

“At the same time, over one-third (34.1%) of businesses reported that they were either very likely or somewhat likely to pass cost increases due to tariffs onto their customers over the next 12 months. In contrast, 14.4% were either very unlikely or somewhat unlikely to do the same, and 15.0% were unsure. Over one-third (36.5%) of businesses did not expect any cost increases due to tariffs over the next 12 months.”

Andrea Piacquadio photo
Andrea Piacquadio photo

In the first quarter of 2026, 16.1% of businesses indicated they had changed their marketing practices over the 12 months prior to the survey to promote Canadian products, led by those in retail trade (41.3%), accommodation and food services (30.2%) and wholesale trade (28.1%), according to the report.

“Over the 12 months prior to the survey, 12.7% of businesses experienced an increase in sales of their Canadian products, with businesses in retail trade (27.2%), manufacturing (23.0%) and wholesale trade (21.7%) being most likely to see an increase in sales. In contrast, 7 in 10 (70.5%) businesses did not experience an increase in sales of their Canadian products over the 12 months prior to the survey, and a further 16.9% were unsure,” it said.

“In the first quarter of 2026, nearly three-quarters (73.1%) of businesses are either very or somewhat optimistic about their outlook over the next 12 months, higher than the proportions of businesses that reported the same in the third (66.7%) and fourth (66.3%) quarters of 2025,” concluded Statistics Canada.

“Meanwhile, in the first quarter of 2026, nearly one-fifth (18.1%) of businesses expect their sales of goods or services to increase over the next three months, a slight increase from 16.3% in the fourth quarter of 2025. In the first quarter of 2026, 14.8% of businesses expect sales of their goods or services to decrease, while 23.2% of businesses anticipate the selling price of their goods or services to increase. Businesses most likely to expect their selling prices to increase over the next three months are those in accommodation and food services (35.1%), retail trade (29.7%) and manufacturing (29.5%).”

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High Liner Foods reports financial results for Q4 and 2025

High Liner Foods photo
High Liner Foods photo

High Liner Foods Incorporated, a leading North American value-added frozen seafood company, recently announced financial results for the 14 and 53 weeks ended January 3, 2026.

“We delivered sales and volume growth in the fourth quarter and made progress across our business towards improved profitability in what remains a challenging environment,” said Paul Jewer, President and Chief Executive Officer of High Liner Foods

“While margins remained constrained in our fourth quarter results, we advanced margin improvement initiatives and saw underlying momentum improve as we exited the quarter. As we head into the important Lenten period, we are well positioned to drive profitable sales growth, supported by our ongoing focus on continuous improvement, including plant efficiencies, and disciplined execution.”

Key financial results, reported in USD, for Q4: 

  • Adjusted EBITDA decreased by $4.5 million, or 18.9%, to $19.3 million compared to $23.8 million, and Adjusted EBITDA as a percentage of sales decreased to 7.1% compared to 10.1%;
  • Sales volume increased by 0.9 million pounds, or 1.5%, to 61.3 million pounds compared to 60.4 million pounds, while sales increased by $35.2 million, or 15.0%, to $270.2 million compared to $235.0 million;
  • Net income increased by $2.1 million, or 35.6%, to $8.0 million compared to $5.9 million, and diluted earnings per share (“EPS”) increased to $0.27 per share compared to $0.20 per share;
  • Adjusted Net income decreased by $9.8 million, or 78.4%, to $2.7 million compared to $12.5 million and Adjusted Diluted EPS decreased to $0.09 per share from $0.41 in 2024;
  • Gross profit decreased by $1.3 million, or 2.5%, to $49.7 million compared to $51.0 million, and gross profit as a percentage of sales decreased to 18.4% compared to 21.7%; and
  • Net Debt to Rolling fifty-two weeks Adjusted EBITDA was 3.5x at January 3, 2026 compared to 2.3x at the end of Fiscal 2024 and 2.6x at end of Fiscal 2023.

Key financial results, reported in U.S. dollars, for the year:

  • Adjusted EBITDA decreased by $11.6 million, or 11.2%, to $91.7 million compared to $103.3 million, and Adjusted EBITDA as a percentage of sales decreased to 8.9% compared to 10.8%;
  • Sales volume increased by 2.1 million pounds, or 0.9%, to 237.9 million pounds compared to 235.8 million pounds and sales increased by $67.7 million, or 7.1%, to $1,026.9 million compared to $959.2 million;
  • Net income decreased by $23.6 million, or 39.2%, to $36.6 million compared to $60.2 million and diluted earnings per share (“EPS”) decreased to $1.22 per share compared to $1.89 per share;
  • Adjusted Net income decreased by $13.2 million, or 27.5%, to $34.8 million compared to $48.0 million and Adjusted Diluted EPS decreased to $1.17 per share compared to $1.51 per share; and
  • Gross profit decreased by $4.5 million, or 2.1%, to $212.8 million compared to $217.3 million, while gross profit as a percentage of sales decreased to 20.7% compared to 22.7%.
Paul Jewer
Paul Jewer

“As we look ahead to 2026, we remain focused on driving sustainable margin improvement and leveraging the investments we have made in new product innovation and brands to support profitable growth,” said Jewer.

“With disciplined margin management, cost reductions, and targeted supply chain efficiency initiatives, we are confident in our ability to offset higher raw material costs and tariffs. We are seeing profitability improve and expect that to continue over the course of the year. Overall, despite continued pressures on our business from macro headwinds, we remain confident in our ability to deliver year over year adjusted EBITDA growth, starting in the first quarter of 2026.

“My conviction in the strong underlying fundamentals of our business and outlook is supported by our steady execution and the continuous innovation, which includes our newly launched fully cooked seafood line that provides customers with responsibly sourced, easy to execute, delicious mealtime solutions.  These products, as well as the exciting new innovation offerings we have in the pipeline, present opportunities to expand the category and encourage greater North American seafood consumption. Our balanced approach to capital allocation, along with the recently oversubscribed incremental addition to our term loan and the extension of our ABL (asset based lending), further strengthens our financial flexibility and demonstrates strong confidence in our overall strategy.”

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GDP in decline in Q4: Statistics Canada

freestocks.org photo
freestocks.org photo

Real gross domestic product GDP declined 0.2% in the fourth quarter of 2025, after rising 0.6% in the third quarter. The fourth quarter decrease was due to withdrawals of business inventories following inventory accumulations in the third quarter. Offsetting some of the decline was higher exports, household spending and government capital investment. On a per capita basis,GDP was unchanged in the fourth quarter after increasing 0.5% in the previous quarter, according to a report released Friday by Statistics Canada.

Real GDP increased 1.7% in 2025, the slowest pace of annual growth since the decline in 2020. Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025, explained the federal agency.

“Businesses withdrew from non-farm inventories in the fourth quarter, after adding to their stock in the previous two quarters. The largest withdrawals in the fourth quarter occurred in the manufacturing sector, followed by the wholesale trade sector. In the retail sector, motor vehicle inventories declined,” said Statistics Canada.

“On an annual basis, businesses withdrew from non-farm inventories in 2025, marking the first annual decline of inventory stock since 2020, during the COVID-19 pandemic. In contrast, the stock of farm inventories rose for the first time in three years, given strong crop production in 2025.

“Exports rose 1.5% in the fourth quarter, after increasing 0.9% in the third quarter. The growth in the fourth quarter was led by higher exports of unwrought gold and of unwrought aluminum and aluminum alloys. Despite the increases in the latter half of the year, exports fell 1.7% in 2025, as shipments to the United States did not fully recover following the drop in the second quarter.

“Imports edged up 0.3% in the fourth quarter, as higher imports of computers, clothing and footwear, and metal ores were largely offset by lower imports of pharmaceutical and medicinal products. For the year, imports were down 0.4% in 2025 due to the 2.9% decline in the third quarter.”

Household spending rose 0.4% in the fourth quarter after declining 0.2% in the third quarter. Higher expenditures on rent and financial services in the fourth quarter were partially offset by lower spending on new passenger vehicles and alcoholic beverages, as overall expenditures on goods declined for a second consecutive quarter, said Statistics Canada.

On an annual basis, household final consumption expenditure was up 2.3% in 2025, keeping pace with the 2.2% growth in each of the previous two years. The rise in 2025 was led by increased household spending on financial services and rent, it said.

Andrea Piacquadio photo
Andrea Piacquadio photo

“The household saving rate was 4.4% in the fourth quarter, down from 5.2% in the previous quarter, as growth in disposable income (+0.6%) lagged that in spending (+1.2% in nominal dollars). Despite lower net saving in the fourth quarter, the household saving rate was 4.9% in 2025, about the same as in 2024,” added Statistics Canada.

“Household disposable income grew at a slower pace in the fourth quarter of 2025, as did wages and salaries and self-employment income (termed mixed income). Net property income declined 1.7% in the fourth quarter due to a reduction in investment earnings that outweighed lower interest payments. Household investment earnings (termed property income received) declined 1.7% in the fourth quarter, due mainly to lower returns on interest-bearing deposits. Household property income paid, comprised of mortgage and non-mortgage interest expenses, declined by 1.6% in the fourth quarter.”

Andrew Grantham
Andrew Grantham

Andrew Grantham, Senior Economist, CIBC Capital Markets, said: “While consumer spending rose in Q4, that came despite an easing in disposable income growth and therefore was the result of a drop in the household savings rate. Real personal disposable incomes fell for the first time since Q1 2023. Because of this there is some concern regarding how sustainable the pick-up in consumer spending will be.”

Maria Solovieva, Economist, TD, said: “Canada ended the year on a weaker footing as businesses drew down inventories, weighing on headline growth. For 2025 as a whole, the economy slowed to a 1.7%, primarily due to lower exports to the United States. That said, domestic demand grew at a better 2.3% pace, supported by stronger government spending. The rebound in consumption and the return of non-residential investment in the fourth quarter provide some reassurance that underlying demand is stabilizing.

Maria Solovieva
Maria Solovieva

“Still, today’s report is weaker than the Bank of Canada’s January projections for a flat reading, reinforcing their view that momentum remains limited. There is still evidence of labour market slack and inflation gradually moderating. Taken together, these dynamics suggest that the Bank of Canada will remain on the sidelines, and the policy rate at 2.25%.”

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