Carmen Miranda (Joana Vasconcelos, Artist) at Holt Renfrew Bloor Street Women's Luxury Designer Floor (Image: Craig Patterson)
The past three years have been a truly unprecedented period for luxury apparel retailing in Canada resulting in Canada being recognized as a major world wide market for luxury brands.
During the period, while the size of the Canadian luxury apparel market decreased because of COVID, the competitive intensity within the market increased significantly along with an unprecedented luxury retailing construction related boom, says a new report by Trendex North America, a marketing research and consulting firm.
“There is no doubt that the increase in the number of luxury apparel retailers, regardless of what country they came from, have served to offer Canadian consumers more luxury apparel choices. During both 2019 and 2020 two new luxury apparel retailers entered Canada. In 2021 the number increased to five and in 2022 nine luxury apparel retailers entered Canada,” says the 2023 Canadian Luxury Apparel Market report.
“In 2022 luxury apparel e-commerce sales increased by 9.8 per cent to C$236 million. The increase was driven by a number of factors: Holt Renfrew selling apparel on its website; Growth of omni-channel retailing and BOPIS; Increased millennial and Gen Z purchasing; and Growth in the number and importance of online luxury retailers including Essence.
“While e-commerce luxury store sales accounted for an estimated 9.4 per cent of 2022 Canadian luxury apparel sales, the channel had been, pre-COVID, growing at a significantly faster rate than the entire luxury apparel market.”
“Luxury creep” at the western end of the future luxury corridor at Yorkdale. Photo: Craig Patterson
Randy Harris, president and owner of Trendex North America, said the luxury apparel market last year grew by 7.4 per cent to C$2.5 billion.
Randy Harris
“The problem was that the market grew by 21.1 per cent, that is all apparel,” said Harris. “Luxury underperformed the total market last year and part of that reason was tourism was down, although it was up from the previous year. It was still way, way down. I think people were spending money on housing and that was taking money away. I think people were worried about inflation so they were holding back their cards.
“I would have thought the market would have grown more because of pent-up demand and stores being open but it just didn’t seem like that happened. I think the other thing is everybody knows there’s been this tremendous growth in luxury apparel retailing in the sense of companies have upgraded their stores and other companies have opened new stores like what’s going on in the mall at Yorkdale.
“So if you look at the big picture out in the street you think luxury is booming. It didn’t boom last year but we predict it will boom this year. We think there’s this delay in what’s happening.”
Yorkdale’s first luxury wing leads to the main entrance of Holt Renfrew. Photo: Dustin Fuhs.
Harris said there is no doubt from a market development standpoint there is increased competitive activity. Whether that expands the pie or all it does is it chops up everybody’s share in a smaller piece nobody knows at this point.
“I’m worried about that because I think competitive activity in a sense is growing at a much faster rate than is demand,” he said. “These companies that are doing all of this development or new stores have a planning cycle that is two or three years in advance.
“I think a lot of these people got ahead of themselves maybe because of COVID where they thought that things were really going to take off and then COVID hits and things slow down. Well, they’re committed. So they go and open all these new doors and I’m not sure if that was a mistake in retrospect but I understand exactly why it happened.
“So the question is really in the long term with more competitive activity can we tolerate it in Canada so that retailers can money. Because right now, except for a very few, I cannot see how they’re making any money.”
The Trendex report said several factors to varying degrees contributed to the growth in 2022 of luxury apparel sales in Canada:
The upgrading of luxury retailer stores. The expansion of luxury zones coupled with relatively low “High Street” rents has resulted in some luxury retailers either upgrading their existing stores or opening new flagship stores;
The expansion of the luxury zones specifically in both Toronto and Vancouver. In both Vancouver and Toronto the apparel luxury zones have continued to expand outward from their traditional boundaries in order to accommodate both the ever growing number of new luxury foreign retailers and facilitate those retailers wanting to open flagships stores. Additionally in Toronto Yorkdale Mall has become a luxury zone;
The upgrading/expansion of key A malls resulting in increased space for luxury apparel retailers. In an attempt to attract more luxury customers, some of Canada’s A malls have, or are in the process of, adding luxury wings (e.g. Yorkdale, West Edmonton Mall). Additionally, they have replaced, when possible, traditional tenants with luxury retailers and have encouraged luxury retailers to add flagship stores (e.g. Balenciaga);
The increase of luxury retailers in Premium Outlet Malls. Over the past three years, there has been an increase in both the number of premium outlet malls (e.g. McArthur Glen Vancouver, Toronto Premium Outlets mall) and the luxury apparel retailers who have been drawn to the malls (e.g. Ted Baker, Armani, Hugo Boss, Gucci, etc.);
The increase in Simons luxury apparel/accessories sales. While historically not known as a luxury apparel retailer, Simons has continued to add a number of lesser known luxury apparel brands in its Edito departments and tailor the offering of the luxury apparel brands to each store’s trade area;
The increasing importance of Millennials. While millennials account proportionally for a small part of the total population, their interest in luxury apparel has made them the fastest growing segment for luxury apparel purchasing. Bain reported that in 2021 Generation Z and Millennials accounted for the majority of Global luxury apparel sales;
Less cross-border luxury apparel shopping by Canadians. The ever expanding number of luxury apparel retailers in Canada has resulted in Canadians buying less luxury apparel from retailers outside of Canada.
Harry Rosen Bloor Street (Image: Craig Patterson)
Harris said both Holt Renfrew and Harry Rosen gained market share in the luxury market. He added that Holt Renfrew has picked up market share with the departure of Nordstrom.
“I find that Holt Renfrew today is the most outstanding luxury retailer probably had one of the best years last year,” he said, adding that Harry Rosen benefited with people going back to the office.
“I think those two are pulling away from the rest of the market if you will because of what they’re doing and everybody is fighting among the rest. If you look at the big four as we call it – Saks, Nordstrom, Harry Rosen and Holt Renfrew – they control 47 per cent of the market. So all of these other boutiques and everything else are fighting over the other 53 per cent. And that’s the competitive framework that I don’t think people understand.”
Harris said he expects the market this year to grow by 11.1 per cent which is almost triple what the total market will grow which is 4.1 per cent.
“Long term if you at from 2022 to 2026 the growth of luxury apparel should be about 42 per cent over that period. That is one year compared to the other. Whereas the total market will only grow 15.4 per cent over that same five-year period,” he said.
“So the bottom line is last year the luxury market underperformed but long term its future is very bright.”
McArthurGlen Designer Outlet in July 2023. Photo: Lee Rivett.
The Trendex report said tourism has historically been an important contributor to the growth of Canadian luxury apparel retailing. However in 2021 the number of non-U.S. tourists visiting Canada declined by eight per cent following an 86 per cent decline the previous year.
“As COVID travel restrictions began to be lifted during 2022, non-U.S. tourism increased from around the world. In 2022, 3,957,570 non-U.S. tourists visited Canada, a 301.3 per cent increase from the previous year. During last year, tourism from Europe, which accounted for 53.4 per cent of non-U.S. tourism, increased by 354.2 per cent, while tourism from Asia increased 184.5 per cent. Tourism from a number of Asian countries including China (+77.6 per cent), Hong Kong (+269.3 per cent), and Japan (+363.6 per cent) increased significantly. The United Kingdom (16.0 per cent), France (12.0 per cent) and Mexico (9.4 per cent) accounted for almost 40 per cent of all non U.S. tourists in 2022.
Harris said there are a couple of things that could affect the Trendex forecast both short and long term. One is the growth of resale luxury apparel. To the degree that people buy used clothes, it’s going to have a detrimental effect on the total luxury market. Also in Canada there is more of a concern about inflation than there is in the U.S.
Loblaw Lower Jarvis in Toronto (Image: Dustin Fuhs)
The food inflation data for July is interesting and offers insights into the complex interplay of factors shaping our grocery bills. While some Canadians may be hesitant to acknowledge it, there is a gradual improvement taking place. The decrease in our food inflation rate from 8.3 percent to 7.8 percent, along with the narrowing gap between food inflation and overall inflation to 4.5 percent, provides a measure of reassurance. In simpler terms, while food prices remain elevated, the rate of food inflation is slowing down.
Consequently, we anticipate a potential decrease in prices for essential unprocessed food items like sugar, flour, and coffee in the coming months. However, the latest figures from Statistics Canada reveal a nuanced depiction of the myriad elements influencing the costs of our food. The impact of factors such as droughts and excessive rainfall, particularly in the eastern part of the country, has already affected food prices this summer. Yet, the broader effects of significant events like the multi-year pandemic and Ukraine’s unauthorized invasion are now clearly behind us.
The current monthly report presents Canadian consumers with a diverse range of price fluctuations across various food categories. For instance, meat prices have experienced a modest uptick of 1.3% from June to July. This could be attributed to a combination of factors affecting beef prices, including shifts in consumer preferences, disruptions in livestock production in Canada and the United States, and fluctuations in international trade dynamics. Similarly, the 1.2% rise in vegetable prices may indicate local and global supply uncertainties, exacerbated by potential weather-related disruptions impacting harvests in certain regions.
Notably, bakery and dairy products have seen slight increases of 0.8% and 0.6% respectively. These subtle increments reflect the intricate processes of production, transportation, and the numerous factors converging to deliver these staples to our tables. Meanwhile, the 1.0% decline in fish prices may highlight evolving consumer behaviours or shifts in the availability of imports.
A significant drop of 3.4% in fruit prices warrants closer examination. While this reduction could be welcome news for consumers, it also underscores the vulnerabilities that can disrupt the intricate journey from orchards to grocery stores during the peak of summer. Transportation bottlenecks, trade imbalances, and shifts in global demand are all contributing factors to such fluctuations.
Even in the broader context of the G7 nations, Canada’s food inflation data presents a unique narrative. Despite the fluctuations, Canada maintains the second lowest food inflation rate within the G7, underscoring a level of economic resilience in the face of global challenges. Only the United States currently boasts a lower food inflation rate, at 4.9 percent.
Quebec and Ontario, the country’s most populous provinces, demonstrate varying rates of food inflation. Quebec, with the highest rate among the provinces at 9.4%, reflects distinctive regional dynamics. In contrast, Ontario’s rate of 7.2% highlights a potentially different balance of supply and demand factors. While Ontario’s weather has been favourable for harvests, Quebec has experienced excessive rainfall that has damaged a significant portion of crops.
The discussion surrounding the carbon tax is also noteworthy. Amidst this intricate landscape, the impact of clean fuel and carbon taxes on food prices warrants consideration. While these policies aim to promote environmental sustainability, their direct influence on July’s food inflation remains uncertain. The complex interplay of market dynamics and government interventions makes it difficult to pinpoint the exact effect of these measures.
In the broader context, the increasing cost of lodging is becoming a significant concern for many Canadians. Rising shelter expenses are likely to place additional strain on Canadian households’ food budgets. The latest quarterly results from grocers reveal a growing preference for store brands and discount stores within a more cost-conscious consumer market, a trend likely to persist into the upcoming fall season.
Ultimately, the food inflation data for July encompasses more than mere numbers; it reflects the resilience of our agricultural systems when compared to other countries worldwide, whether or not Canadians fully recognize it. Having weathered the 18-month food inflation storm that is coming to an end, we should all acknowledge the delicate balance between fragility and resilience within our food supply. This realization should foster a collective commitment to ensure affordable and nutritious sustenance for all Canadians.
Market Price, a new concept store in Halifax, has opened its first location in Bishop’s Landing and has plans to expand throughout Canada and internationally.
The new location opened July 1st and will have an official grand opening on August 19th where there will be new releases, DJs, promotions, and giveaways. The founders, Lauren Ferguson and Matthew Smith, say the concept behind Market Price is to create a unique sneaker store in Canada that takes inspiration from the seafood industry and the East Coast culture.
“We decided to enter a really underrepresented market and create Market Price, the most unique sneaker store in Canada. In terms of the name, we really saw a parallel between the seafood industry and the sneaker industry when it comes to pricing. The seafood industry is always fluctuating and typically on menus you will see it labeled as market price and right now in the sneaker industry, we are sort of seeing the same thing with the resale of high end sneakers,” says Smith.
Founders Matthew Smith & Lauren Ferguson (Image: Market Price)
Ferguson and Smith decided on Halifax as the first location as the city currently has nothing to offer that is similar. Unlike larger cities such as Toronto or Vancouver, Halifax does not have a good representation of sneakers.
“Nova Scotia is really lacking in that really unique experience in shopping. We have so many students coming from big cities in Canada and internationally as Halifax has a lot of universities, but these students have nowhere to shop. We really saw the opportunity with the demographic here to be able to hone in and open up something really special and unique,” says Ferguson.
The storefront is located at Bishop’s Landing, a mixed use building of residential, shopping, and restaurants on the Halifax waterfront. Ferguson and Smith decided on this location as it was perfect under their seafood concept as it is along the waterfront. The boardwalk also attracts a lot of tourists, is within walking distance from the universities, and Smith says Bishop’s Landing ended up to be the perfect location for the brand.
Brand Partnerships And In-house Collections
Image: Market Price
Consumers can find a variety of products in apparel, footwear, and accessories. Ferguson and Smith say a lot of people think they are a resale store, but are wrong as Market Price works directly with brands under partnerships.
“We have brand partnerships we work with. So on the sneaker side, we have New Balance, Reebok, Puma, Saucony, and a few other brands as well. And then on the apparel side, we really want to focus on Canadian streetwear brands. When we were in New York City, you would walk into a store like Macy’s or Nordstrom and you would see Canadian brands on the shelves, but in stores in Halifax – you are not seeing a representation of Canadian brands,” says Smith.
Market Price also has its own in-house offerings that will be released seasonally. The current collection is Launch 23 and will be offering a limited edition collection at the grand opening.
In terms of shopping online, Market Price is available throughout Canada and for certain products, Smith says they ship internationally.
Coast to Coast Expansion Plans
Image: Market Price
“We would love to keep the same story behind seafood and the East Coast is not the only place where you see that – it is coast to coast. There are lots of people who move from the West Coast from the East Coast and to cities such as Toronto, Calgary, and Edmonton that want to feel the sense of home,” says Smith.
Within the next ten years, Smith says they would like to expand Market Price by adding three or four locations and then in about ten years expand internationally.
Smith and Ferguson see potential opportunities to take Market Price into the international market. Keeping the original connection with seafood, Smith says they would be looking to expand in Asia and in Europe as those places also have a strong seafood culture.
“Our consumers have really thought it is something totally different, something they have never seen before – but they are embracing it and willing to understand what we are trying to do and I think it really does resonate with the East Coast consumer. The seafood culture here is something that is home to people, so it feels comfortable when they come into the store. It takes a really interesting spin on what they are used to and it is really becoming a destination location,” says Ferguson.
Future Kith Toronto Yorkville (Image: Dustin Fuhs)
Craig and Lee discuss the exciting arrival of Kith, an international fashion brand known for its trendy streetwear, in the upscale Yorkville area of Toronto. The 10,000 square foot store will feature a unique ice cream bar concept called Kith Treats. This move is expected to attract a younger, affluent demographic and enhance Yorkville’s reputation as a high-end shopping destination. Other retail developments in Bloor-Yorkville are also covered in this episode.
The Weekly podcast part of theThe Retail Insider Podcast Network by Retail Insider Canada and is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players.
Announcer 0:00 This is a Retail Insider Podcast. You’re listening to “The Weekly”.
Lee Rivett 0:08 Welcome to this week’s episode of “The Weekly” by Retail Insider. I’m Lee Rivett and I’m joined with the owner and publisher of Retail Insider Media, Craig Patterson, to discuss this week’s most read articles on retail-insider.com. So thanks for joining me, Craig.
Craig Patterson 0:22 Hello, everyone.
Lee Rivett 0:23 And for this week, we have a new retailer coming to downtown Toronto in the Yorkville area called Kith. So where do you want to start, Craig?
Craig Patterson 0:30 Well, this is a really interesting one. We’ve been sitting on this information for a while. It’s a international brand – well its based in the United States, called Kith. A youthful, retail brand and has a few stores around the world. Really hugely popular amongst younger people. I found this out a few months ago when I started talking to people about it asking some questions because I was familiar with the name, but it wasn’t as familiar with the brand – because I’m too old and not cool enough. But learning that Kith was coming into Yorkville was something that ended up being an exciting announcement. Especially when I mentioned it to a couple of the 20-somethings that work with us or associated with us at Retail Insider. They were very, very excited when this announcement was made. And they started explaining to me more what the concept was about and really what it is Ronnie Fieg – who’s been iconic apparently according to Darryl on our team – has founded this brand called Kith. It’s mainly a fashion brand known for its streetwear I guess you would say. Quite casual clothing and the prices are not cheap. It’s not you know, fully a luxury price point but it’s not certainly inexpensive either. T shirts might be $100. A lot of stuff is over $100. Coming coming into Yorkville and creating some excitement.
Lee Rivett 1:49 Well as it comes into Yorkville, do we know what the store is going to look like or what’s going to be in it?
Craig Patterson 1:54 So what we know so far – we don’t have all the details but – the store is gonna be about 10,000 square feet, roughly. It’s going to be in a retail space that was vacated a couple years ago by a retailer called Anthropology. It’s located at 78 Yorkville Avenue. So it’s kind of at the foot of Bellair Street if you go north on Bellair street (where I live) right on Yorkville Avenue. That’s where this new Kith store is going to be. And what do we know about what’s going to be inside? Well, we know it’s going to be two floors. I’ve seen some renderings just fairly rough. I think that there’s some blue that’s involved in the interior in terms of the design, I saw some curved walls that looked really quite interesting. It looks like it’s going to be a really neat space, it’s going to have windows that are open on Yorkville Avenue that shouldn’t be a surprise for those who know the building. And it’s going to have something inside called Kith Treats, which is basically an ice cream bar concept or I think it involves an element of a cereal bar as well. These are located in these Kith stores and in the larger ones anyways, I should say which this definitely will be and will be a I think an extra element of fun as well as something to draw people there. I’ll probably go for the kith Treats. I may not be buying the clothing because I’m not cool and cool enough and I’m too old, but I will maybe I’ll buy a couple things but I nevertheless, I think it’s going to be an exciting addition to the neighborhood for a variety of reasons.
Future Kith Toronto Yorkville (Image: Dustin Fuhs)
Lee Rivett 3:22 And I know that in downtown Toronto, there’s always a lot of hype for the Yorkville area – the shopping district that has a lot of the high end shopping and so on – but why do you think that this would be a good thing for the neighborhood of Yorkville?
Craig Patterson 3:36 I think for a few reasons it’s going to bring a young demographic into the neighborhood not that we don’t necessarily have that but Bloor Yorkville as as a neighborhood certainly has a bit of an older shopping demographic. Or at least until recently we started getting these really cool stores in the neighborhood. And again the customer that is gonna be shopping at Kith is going to have to have some money, there’s no question there. Whether or not they’re saving up their allowance or whether or not they just have money. I mean, there’s lots of youth that seems like in Toronto for one reason or another that have have a lot of money to spend. So this will bring that demographic into the Yorkville area. It’s going to be better for the neighborhood. It’s going to increase foot traffic. It’s going to give Yorkville that ‘cool factor’ that it may not have had before with this new type of retailer and I think it’s going to be good for some of the other retailers that are in the neighborhood as well. Another US based brand that’s quite youthful is John Elliott was just opened at the beginning of July across the street on Yorkville Avenue. Again another exciting announcement, interesting looking store. The Webster opened its first and currently only Canadian location in Yorkville just on Scollard Street right around the corner. Much more expensive I think in terms of its price point, but it does have that edgy kind of fashion. I think that the Webster actually does complement Kith quite well as being another US based high end multi brand retailer that is coming to the area. One thing I should say about Kith as well as Kith does have not only its own Kith brand within the stores, but it does carry some other brands as well. So, it is a bit of a multi brand retailer but a lot of people I think will know Kith for the actual Kith brand which I think I haven’t been into the Kith at Selfridges in London but I think that’s probably what that one would have. I can ask buddy of mine that was just there on the weekend visiting the UK. It’s a smaller concession within Selfridges. So But nevertheless, the big store here is probably going to have a few other brands as well that would be in the streetwear space and would be quite expensive, I think. So exciting retailer to have coming into the neighborhood.
Lee Rivett 5:50 And I know that Yorkville is a very established neighborhood – with retailers that are coming and going – but it’s a neighborhood as opposed to a mall. Now is there any retailer that you would think that may not be happy that Kith is coming to the neighborhood?
Craig Patterson 6:05 Well, there’s one retailer that could either benefit from this or could lose a little bit of a market share, I guess depending on how you look at it. CNTRBND has been in the Yorkville area for at least I think a decade now. It’s primarily Menswear. It’s a multi brand retailer with really really edgy unique stuff in it. My thought would hopefully be that these are going to be complementary brands and that people will shop both at Kith as well as a CNTRBND which again is a very trendy, youthful retailer. CNTRBND has two locations in Yorkville. It’s got its main store at 135 Yorkville Avenue, which is over towards Avenue Road, as well as I think it’s still called Archives by CNTRBND. It’s located on Bellair Street, really, really close to Kith. Actually, if you have a good throwing arm, you could throw a rock between one and the other. With my shoulder injury, I won’t try it but nevertheless probably could otherwise.
Lee Rivett 6:59 It seems to be a clustering of the youthful brands that are coming into the Yorkville area, right?
Craig Patterson 7:05 I think it’s really good news for Yorkville. And also I think it’s good given what we’re seeing with Yorkdale being definitely a destination for high end retail right now.
Lee Rivett 7:15 When I kind of see Yorkville as more of a high end retailer “Mecca”, right. And then if I was to go to “streetwear” I would kind of think of more “mall”, in my opinion, but does Yorkdale actually have any streetwear at all?
Craig Patterson 7:30 Yorkdale doesn’t necessarily have as much in the way say streetwear brands other than maybe what’s carried in retailers like Holt Renfrew which really does have a lot of expensive streetwear, very top brands whether or not that’s Givenchi, Balenciaga, Imiri – again Palm Angels. I was just talking about those brands being at the Webster but they’re also up at the Yorkdale’s Holt Renfrew Store as well as Holt’s Toronto on Bloor Street.
Yorkdale Shopping Centre (Image: Craig Patterson)
Lee Rivett 7:41 While we’re on the topic of Yorkdale like what luxury is happening up in that neck of the woods?
Craig Patterson 7:57 Yorkdale is certainly getting a lot of luxury stores – it’s about to get a lot more – it’s just like it never ends. So anything that can be done in the Bloor Yorkville area to bring in shoppers that can afford to buy things I think is really, really important. Just given that we have these two nodes that are playing off of each other in the Toronto market for high end retail. They’re really the primary two nodes now, I would say is we’re seeing the city continued to develop. And again, I think just having Kith in the Yorkville area is is a really wonderful addition to the neighborhood. It’s going to bring youthful shoppers down with some money and it’s going to, I think, hopefully maintain the neighborhood as a destination as opposed to perhaps some shoppers going up to Yorkdale. Not that I’m saying people shouldn’t go to Yorkdale but just we want to see Yorkville continues to succeed as well just because it hasn’t lost its luster but it certainly has lost some shoppers to Yorkdale. There’s no question just because Yorkdale has some stores that Yorkville doesn’t have and that may change in the future and is beginning to but nevertheless – it is what it is. I think things are going to continue to progress.
Lee Rivett 9:07 Now do you think that Kith will bring more streetwear brands to the Yorkville area?
Craig Patterson 9:11 Quite possibly, I’m not aware of any names yet specifically. I wouldn’t I wouldn’t doubt it at this point. We had a trendy sneaker store – was it called “Capsule”. I don’t know if it’s still there.
Lee Rivett 9:25 Oh, no, no, it’s still there. 69 Yorkville Avenue. It’s down in the lower level.
John Elliott Toronto Yorkville (Image: Dustin Fuhs)
Craig Patterson 9:29 Oh, yeah. Yeah. And I think more youthful streetwear brands could look at Yorkville after the opening of Kith and with John Elliott being in the neighborhood with CTRBND having its presence. This could become another node for for street wear. Particularly I think being expensive. Just given the demographic we would be seeing coming into the neighborhood, the demographic that lives in the Yorkville area, that demographic that’s coming up because there’s a few thousand residential units that are proposed are under construction right now in the area. Quite some of the are very expensive depending you got some smaller units but you also have quite a few units priced at over $5 million. Maybe some younger people might be in there I don’t know a lot of retirees will probably be moving in as well. But I think on top of that, again the rents just being a little bit higher in Yorkville are going to bring in higher end retailers that can afford to pay the rents versus those that can’t.
Lee Rivett 10:20 Well, moving away from Kith, what else is happening in Yorkville?
Craig Patterson 10:23 What we’re seeing a few other retailers opening. I think pretty soon we’re going to see that luxury resale retailer “Mine and Yours” based out of Vancouver opening its first store in Toronto. Courtney has been posting on social media that it’s coming – it was her birthday recently too. That’ll compete and probably compliment Oliver’s or Oliver’s Jewelers (I don’t know if it’s called jewelers because it’s mainly luxury bags. I think it’s got some jewelry). But Russell the Cash Man has his store which has been operating for a couple of years across the street on Yorkville Avenue. Again, Reformation opened just at the end of 2022 – Los Angeles based sort of eco friendly bohemian women’s fashion brand – is not super expensive. It’s not cheap, but it’s not a luxury brand. We reported recently on it was at the hand cut diamond concept VRAI opening at 111 Yorkville Avenue upstairs. Which on the main floor is a retailer called Veronica Beard, which also just opened quite recently. It’s the first one in Canada. It’s a New York City based women’s fashion brand. So Yorkville Avenue is hopping I mean in terms of getting retailers on the street. Diptyque, the French fragrance and candle branded lots people know it for its candles, recently opened a shop. It’s there for a period of time, it’s kind of a pop up only because the building at some point will be demolished. I’m not sure exactly how long it’ll be there for but it’s it’s a cute looking store. It looks great. I popped in last week to look around and I think it’s a terrific addition to the neighborhood. So Yorkville Avenue is coming together. I’ve been watching this progression, I think from the beginning, when Christian Louboutin opened on Yorkville Avenue in 2016. That was kind of the beginning of what we were seeing with this new luxury push. So the street already had a few fancy stores it had Kiton, which is part of the V Hazleton store. But when Christian Louboutin came in with its corporate store, that was 2016 I think, really the beginning of things and then from there and 2017 Chanel came in and I was just like, oh my god, you know when Chanel comes into the neighborhood. That’s when all the other brands really really take notice because it’s one of those super brands that exactly that really establishes something I mean, if if Chanel went into the downtown East side of Vancouver and if zoning permitted it, you will start seeing other brands like that probably moving in. Maybe I’m being really optimistic, but that would be my guess if it ever happened, which it wouldn’t but you know, anyways, that’s sort of how luxury retail works. So with Yorkville Avenue, that was the progression that we saw with Christian Louboutin, we saw Chanel come in and the First Capital REIT formerly Realty really has been instrumental in this movement along with its related consultants that we know having brought in brands like Versace, and Brunello cucinelli, which apparently is doing very well with it store in Yorkville Avenue, Stone Island, a contemporary brand with pretty pricey stuff. So again, the whole neighborhood is coming together which I think is terrific. And then on top of that, too, we’re seeing a bit of a movement along Bloor Street which is two blocks south of Yorkville Avenue.
Bloor Yorkville (Image: Dustin Fuhs)
Lee Rivett 13:20 Speaking of Bloor Street. Anything new going on there from the retailer front as well?
Craig Patterson 13:26 So Bloor Street, formerly “The Mink Mile”. There is a really exciting stuff happening on Bloor Street as well. So again, I’m just I’m so happy to see things coming together. This fall alone, Bloor street along that luxury run – which is kind of between St. Thomas and Bellair on the east side and Avenue Road on the west side just to keep it simple – we’re seeing stores for Rolex opening. Van Cleef and Arpels is doing a corporate store. Saint Laurent is gonna hop over from Holt Renfrew as a concession and do this 10,000 square foot flagship store at 110 Bloor Street West which is going to probably look like it’s about 20,000 square feet from the outside because I think it’s going to have a two level facade. So it’s going to be have this really significant presence on the street. Other new retailers coming in September or October (probably September), Alexander Wang, a New York City based fashion designer, Paris Baguette which Dustin and I actually toured the construction site a few weeks ago. I think Anne Fontaine is probably still coming I’m not sure I think so. And Bonpoint, which is a children’s retailer is gonna be opening at 151 Bloor Street West I should probably do an article on that. But that’s and then further towards Young Street on Bloor Street. There’s some interesting retailers coming. Hopefully that Apple Store is still coming of course. I mean, that was some news for a while but Arc’teryx, there’s a really big store under construction. It’s almost 10,000 square feet. I think it’s gonna have a double height facade as well, just looking at the way the building is during construction. Bloor Street is getting a new Browns shoe store, which is exciting. We need more footwear in the neighborhood, I think. And then eventually the Nordstrom Rack store there’s going to be an announcement made for the former Nordstrom Rack space for a new tenant there as well. So nearby there’s going to be Bowling Lanes at The Ballroom, which will have a food and beverage component to it. This is One Bloor Street East and more things are to come to the neighborhood. So Bloor-Yorkville I think is going to be a really, really interesting place to shop and to visit and to live over the next few years. And I mean, it’s a great place to visit and live. So I encourage people to come down visit, spend some money, there’s great restaurants, there’s all kinds of services, beauty services, if you want nail salons, hair, everything else. So it’s really this clustering of businesses as well as residents that have made Bloor Yorkville a very unique neighborhood. There aren’t many neighborhoods like this in North America. Very, very few actually. You do see around the world, a few global cities that have these types of neighborhoods like say Mayfair in London, or the Eighth District in Paris. Salamanca, I can’t pronounce that in Madrid. But anyways, you think of these different cities and these different higher end neighborhoods in the inner core. Well, this is one of them. So I’m excited to continue to report on Bloor Yorkville here is things continue to progress here with Retail Insider.
Former Dolce & Gabbana on Bloor Street (Image: Dustin Fuhs)
Lee Rivett 16:35 Absolutely. And again, thanks for going through Kith with me because that was a brand that I wasn’t as familiar with, as well as giving us a little bit of an update on Bloor as well as Yorkville, generally. So, again, thanks, and chat with you next week.
Craig Patterson 16:49 Absolutely. We’ll be reporting on Kith. We’ll be reporting on the opening. I’m excited to be there. And thank you so much everyone for listening. Take care and bye for now.
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University District has already become a smash hit as one of the latest mixed-use communities in Calgary and there’s still much more to come for both residential and commercial real estate in the popular community.
University District is a 200-acre community being spearheaded by the University of Calgary Properties Group.
Gregg Callander, Interim President and CEO, said the project is about 45 per cent committed with either completed deals or deals in process in relation to overall land development.
“We’ve got a lot happening,” he said.
“It’s been very well received. Growth in demand is still there. Look at our builders. Avi is three buildings in and pushing on their fourth. Brookfield is the same. Truman has three sites being built here. We’ve got two more builders coming into play that I can’t announce yet.”
Image: University District
Callander said full buildout for the massive project will be another eight to nine years. At full buildout, there will be 6,500 to 6,700 residential units from townhouses to condo units.
“The one thing that’s being questioned is the amount of office. We originally planned for about 1.5 million square feet that would encompass the (Alberta) Children’s Hospital, the surrounding part of it but given the office market and looking at the recent study we just had done we may have to convert some of that office into more either mixed-use or just residential,” he said.
“We’re just in the midst of doing that for next year’s business plan, deciding whether we need to cut back on our office and re-look at what we can offer.”
There’s also about 300,000 square feet of retail expected to be developed. More than 30 retail stores and restaurants are currently open with more to come in the near future.
Recently the Alt Hotel opened at University District and under construction right now is The Forge, a purpose built residential rental building, Block 15, another purpose built residential rental building, Autumn by Homes by Avi (condos) and Dean’s Landing by Rohit Communities (condos/stacked townhomes).
Alt Hotel Calgary University District (Image: Germain Hotels)Image: University District
Coming soon to the development are UNA Pizza, Native Tongues, Easy Blink Optometry, Lagree YYC.
“We knew we had to get amenities in here first. Get the parks in place. Our first piece of retail had to have the amenities – the grocery store, the liquor store, the coffee shop, some quick fitness, quick food access. That was all built into our first phase of retail,” said Callander. “And then parking. Making sure our retail has sufficient parking. And given our land component we were able to put surface parking as well as underground parking in place to alleviate that issue. In retail people are used to the big malls, lots of parking.”
He said another key to the project’s success is how accessible it is just west of the main University of Calgary campus with major streets along the development. CF Market Mall is located kitty corner to it and the Brentwood shopping centre is nearby. Also the Alberta Children’s Hospital is on the site and the Tom Baker Cancer Centre and the Foothills Hospital are in close proximity.
Recently, University District announced there are limited leasing opportunities in Central Block, located above Retail Main Street and overlooking Central Commons Park, a three-acre oasis often activated with events and activities as the heart of the community.
Image: University District
Three new businesses have recently confirmed they will be joining University District: Foothills Primary Care, Omega 365 and Aspire Medical Group (Aspire Medical).
Foothills Primary Care is now open in Block 23 and is a locally owned and operated family medicine clinic. Both Omega 365 and Aspire Medical are anticipated to open in fall 2023 and will be located in the coveted Central Block.
Aspire Medical will offer healthcare services with specialty trained physicians enhancing the medical field.
Omega 365 is a software company that caters to clients in the oil, gas, energy, renewables, mining, utilities, healthcare, and infrastructure sectors throughout Canada, providing both new implementation and ongoing project support for their project management tools.
Image: University DistrictImage: University District
Office space in University District is completely customizable and can be designed in partnership with University District to perfectly fit the needs of any leasing business.
“We’ve seen tremendous activity since Retail Main Street launched in 2020 with a growing list of more than 30 retail shops, restaurants, and services and look forward to welcoming more as the community continues to develop,” said Callander.
Many businesses have opened office space in University District in recent months and are currently operating in their new space. Clara Optometry, Cloudbreak and Staples Studio coworking space have all opened their doors in University District and are making use of their fully customized offices.
Callander said also planned for University District is a self-storage facility.
Oxford Properties is launching the most ambitious luxury retail expansion to date at Toronto’s Yorkdale Shopping Centre. The landlord is re-tenanting about 100,000 square feet of the mall’s centre run for luxury retailers, creating one of the world’s leading clusterings of luxury stores in one single location.
The unprecedented transformation will see one of Yorkdale’s original corridors, one which recently housed a large venue for pop-up entertainment, into a row of the world’s leading luxury brands which will operate stores as large as 15,000 square feet. Curious visitors to the mall may have recently noticed hundreds of feet of construction hoarding as well as the relocation of almost all of the previous tenants that once occupied the expanse.
Yorkdale’s Director, William Correia, said in an interview that there’s now over 900 linear feet of construction hoarding along the central corridor, with a significant re-merchandising taking place that involves relocating most of the corridor’s previous tenants to other parts of the mall. The process began months ago with retailers such as Browns Shoes and Ecco relocating stores within Yorkdale. A handful of non-luxury tenants remain for now and they’ll be relocating as well — Untuckit will soon have a new smaller format store in another part of Yorkdale, and long-time tenant Michel’s Bakery will also be finding a new home as part of the central corridor’s complete overhaul.
Click image for interactive Yorkdale mall map.The western end of the future luxury wing at Yorkdale. Photo: Craig PattersonAlmost empty: The central corridor of Yorkdale in preparation for its luxury retail debut. Photo: Craig Patterson
Correia said that the luxury square footage at Yorkdale will expand significantly with the re-tenanting of the mall’s centre run. Currently about 13% of Yorkdale’s space is dedicated to luxury retailers, and Correia estimated that when the luxury expansion at Yorkdale is completed in 2025, about 18% of the mall’s space will be for luxury brand stores. That number could be as high as 20% according to another estimate provided by someone at Oxford Properties to Retail Insider.
The expanded roster of stores at Yorkdale will create the single most significant clustering of luxury brands in Canada according to Correia. No other shopping centre in Canada, or luxury retail node for that matter, comes close to matching the sheer number of luxury stores found at Yorkdale, not to mention what’s to come.
Correia said that Yorkdale could even become the leading centre in North America in terms of luxury offerings, while the new tenants are expected to help increase the mall’s sales per square foot. Already, annual per square foot sales at Yorkdale are in excess of $2,000, with overall sales at the mall exceeding $2 billion annually for the first time last year. A recent ICSC report said that Yorkdale’s productivity per square foot is fourth in North America in terms of shopping centres, and more high-selling luxury brands could boost Yorkdale’s productivity to be closer to that of the luxurious Bal Harbour Shops near Miami, currently ranking number one for sales.
Untuckit and Michel’s Bakery will both be relocating from the centre run for new luxury brands. Photo: Craig PattersonValet lounge near Holt Renfrew, Yorkdale. Photo: Craig Patterson
In an effort to cater to even more affluent consumers coming through its doors, Yorkdale will be making some upgrades including a renovation of its valet lounge, according to Correia, as well as a new VIP program that could not yet be discussed. The mall already offers valet parking which was recently expanded due to demand. Food and beverage has also been added to Yorkdale to keep affluent shoppers there, with examples including the attractive restaurant in the mall’s RH store and a new upscale two-level Chinese restaurant across from it.
Correia said that Yorkdale’s newest luxury wing should be finished either in late 2024 or early 2025, with luxury brands opening their stores for spring or fall 2025, depending on timing.
Initial luxury expansion at the western end of the future luxury corridor at Yorkdale. Photo: Craig Patterson
Luxury was already beginning to open on the edges of Yorkdale’s central corridor where the new luxury wing is now being built. In the summer of 2017, jeweller European Boutique unveiled Canada’s first standalone Breitling store in the corridor, located at the western end towards the mall’s Sporting Life and RH stores. Since then, locations for brands including Tudor have opened on the western end of the corridor via Raffi Jewellers, which has a Rolex store on the corner. At the eastern end of the corridor (closer to other luxury stores), brands such as Hublot, Oliver Peoples, TAG Heuer and Jaeger LeCoultre have opened and this fall, the first North American storefront for luxury jeweller Queelin will join them. In a way, the addition of these luxury brands to the formerly mid-range retail corridor was something of a foreshadowing of what was to come.
Yorkdale has had some upscale stores and stores carrying luxury brands since its opening nearly 60 years ago. Holt Renfrew has had a presence at Yorkdale for decades, albeit in smaller spaces (until 1998 it operated a 27,000 square foot store where Aritzia is now, before relocating to its current space which had been a grocery store). Yorkdale’s standalone luxury store openings began in 2009 when Tiffany & Co. unveiled a store in the mall, across from the Holt Renfrew store (which in 2012 saw a substantial expansion including the addition of mall-facing luxury brand concessions). In 2013, just a decade ago, things really began to pick up when Ferragamo, Cartier, David Yurman, and Mulberry opened stores at Yorkdale, while in 2014 other luxury names joined them included Bulgari, Moncler, Jimmy Choo, Montblanc, and Versace.
The ‘original’ luxury wing at Yorkdale, directly north of Holt Renfrew. Photo: Craig PattersonTiffany & Co. was the first mono-brand luxury retailer to open at Yorkdale in 2009. The store has since been renovated and a ‘new concept’ Tiffany store is said to be in the works. Photo: Craig PattersonNew Dolce & Gabbana and Emporio Armani stores in Yorkdale’s 2012 expansion wing. Photo: Craig Patterson Inside the new Dolce & Gabbana Yorkdale. Photo: Craig Patterson Opening soon in the 2012 expansion wing: Canada’s first ‘World of Ralph Lauren’ store, which is expected to also open in Montreal and Vancouver. Photo: Craig Patterson
Those first luxury stores were located in a corridor directly north of the main entrance to Holt Renfrew, and in 2016 Saint Laurent opened in what would be the beginning of another set of luxury brand corridors that have since been built in the mall. Yorkdale’s 2012 expansion wing beside Holt Renfrew has also been for the most part re-tenanted with luxury stores, with the most recent opening being Dolce & Gabbana last week. Ralph Lauren will soon open its first ‘World of Ralph Lauren’ store in Canada in the new wing as well.
2012 expansion wing becomes coveted luxury retail address: configuration of Holt Renfrew’s main floor concessions as well as new brand stores such as Dolce & Gabbana that have opened nearby.
New tenants for Yorkdale’s newest luxury wing have yet to be announced, with non-disclosure agreements requiring tight lips. Some chatter in the industry includes a few brands that some say will be opening in the new luxury corridor. One of those brands is Fendi, which in the fall of 2022 opened a standalone store at Yorkdale which was said to be on a two-year lease in anticipation of a flagship in the new wing. Only three years before, Fendi opened a mall-facing concession at Holt Renfrew, and in June of 2021 Holts announced that by the end of that year the sale of fur was banned from its stores (including in leased concessions). Fendi, which was founded as a house of fur, began to plan its exit almost immediately.
Fendi isn’t the only brand with a concession at Holts that is said to be moving into Yorkdale’s new luxury wing. There are whispers that other brands are seeking more space, despite the unusually large concession spaces that Holt Renfrew has been able to offer (Gucci’s is about 6,000 square feet for example). Italian luxury brand Brunello Cucinelli, which has a concession at Holts, is said to be eventually moving to a larger space in the new luxury wing. Chanel, which operates a large and highly productive concession at Yorkdale’s Holts, is said to be annexing the adjacent Brunello concession space as well as a substantial amount of space on Holts’ second floor for an expansion of its own.
Chanel’s concession at Holt Renfrew is said to be annexing the adjacent Brunello Cucinelli concession, as well as space upstairs, for a very large expanded Chanel concession that could become the largest of its kind in the world for the brand. Photo: Craig PattersonMall-facing concessions at Holt Renfrew for Dior, Fendi and Gucci — this space is expected to be repurposed amid a major shift at Yorkdale. Photo: Craig Patterson
Holt Renfrew will be renovating part of its store into 2025 according to the company, signalling a shift in its retail space as Yorkdale continues to transform. The concession model was seen as necessary for Holt Renfrew to maintain its roster of exclusive luxury brands not found elsewhere in Canada. Holts boasts a clustering of brands not found at Saks or at the former Nordstrom locations in Canada, and the clustering of brands at Holts has resulted in almost all of its stores selling in excess of nine figures annually.
Some brands have successfully negotiated the opening of ‘world of’ concessions within Holt Renfrew stores, carrying a brand’s entire line of men’s and women’s ready-to-wear as well as bags, accessories and footwear. Examples include Balenciaga at Holts in Vancouver and Bloor Street, Loro Piana in Vancouver, Burberry and Dior at Holts Yorkdale and Gucci Yorkdale and, soon, Calgary. Other brands such as Chanel operate large concession spaces at Holts, carrying the brand’s entire offerings in one area. At some point, some concessions may look to jump ship and open standalone stores, as Louis Vuitton did before the pandemic when it exited two Holt Renfrew stores in Alberta and relocated into major suburban shopping centres.
CONCEPT no more: Vancouver-based Arc’teryx will open a 3,600 sq ft store where a pop-up space for brands once stood. CONCEPT opened in 2017 and was ultimately abandoned, becoming a temp space for brands to operate while renovating elsewhere in the mall. Photo: Craig Patterson. The entrance to the former Nordstrom store has been turned into a temporary lounge area. Rumours in the industry say that a large format retailer could take much of the former Nordstrom space at Yorkdale. Photo: Craig PattersonOpening soon: Canada’s first location for popular women’s fashion brand Anine Bing. Photo: Craig Patterson
Yorkdale is unlike any shopping centre in Canada, both in terms of its offerings as well as its importance for international retail entrants. More brands open first-in-Canada stores at Yorkdale than any single place in the country, including many first-to-market luxury brands. Yorkdale for the past decade has seen a fascinating transformation that will continue for years to come. Nordstrom recently vacated its 190,000 square foot space in the mall, and it has not yet announced what will replace it. Yorkdale’s future also includes mixed-use buildings on the site, including multiple residential towers where there are currently surface parking lots.
Oxford Properties has invested millions into Yorkdale, including a recent $10 million investment to renovate its third floor food court. The expanded food court now provides seating for 1,200 diners and it recently added nine new restaurant concepts, bringing the number to 23.
An Earls restaurant opened this spring, with “a design, menu, and a wine list inspired by the Yorkdale customer”, according to Oxford Properties. In total, Yorkdale has 35 quick-service restaurants and 12 traditional restaurants.
We’ll continue to report on the new luxury wing at Yorkdale, including new tenant announcements when permitted.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past three days.
Shuttered Business on Yonge Street (Image: Dustin Fuhs)
Industry associations representing thousands of Canadian businesses are urging Deputy Prime Minister Chrystia Freeland to extend the Canada Emergency Business Account (CEBA) repayment deadline.
Not doing so could put thousands of Canadian businesses at risk of closure.
With the CEBA repayment deadline on Dec. 31, 2023, if the loan is not repaid by then, small business owners will lose the up to $20,000 forgivable portion and pay the entire amount at a five per cent interest rate.
John Kiru
“It was a great support mechanism when it was needed the most. The government did the right thing in supporting people and then making money available to them. Adding the forgivable portion was a very important element in doing this and encouraging people to do it,” said John Kiru, Executive Director, Toronto Association of Business Improvement Areas (TABIA).
“The reality is that the recovery from COVID has not happened as quickly as people would have expected or at least as the government is expecting. Anybody on the streets of Toronto, anywhere across the country, the reality is that the recovery is nowhere near happening. The recovery is going to take many years and certain business types, certain sectors, will take even longer.
“So the reality is the initial deadline a year ago was too soon. It’s proving to be that even this year’s deadline is too soon because again nobody expected the cost of money to be where it is – five per cent overnight lending rate or five and a quarter per cent overnight lending rate, the carrying costs of money, etc., is incredibly, incredibly expensive. So add that to the cost increases of labour, product and everything else in the business sector and it’s the ultimate perfect storm if you can refer to it that way, which has not allowed the local small businesses to build up the revenue that they need, the savings that they needed, to pay off (the loan).”
Shuttered King Street Business (Image: Dustin Fuhs)
Kiru said the majority of the businesses are not in the position to repay that loan at the moment. This will lead to either more business closures or businesses getting into more debt to pay off the loan.
“People will close their doors. We haven’t seen the end of this thing,” he said.
“This country, this sector, the small businesses, the main street, the communities, cities, towns, all these elements can’t afford more closures. The vacancies that are out there. How main street goes so goes the rest of the neighbourhood. So some of these social issues that we’re experiencing on our main streets are simply going to be compounded by having more vacancies, more derelict-looking stores with newspapers and brown paper hanging in their windows, because vacancies are an indicator of how the neighbourhood goes and that has an impact. There’s a perception of lack of safety. And that will affect the value of the properties that abut these neighbourhoods, these commercial areas, right across the country.
“Main street across Canada will be impacted if we don’t help to nurture and support local small businesses. It’s a perfect storm.”
At the end of July, more than 30,000 business owners have signed a petition by the Canadian Federation of Independent Business (CFIB), calling for an extension to the current CEBA repayment deadline.
Corinne Pohlmann
“Businesses can’t wait any longer. They need a clear answer from Ottawa now,” said Corinne Pohlmann, Executive Vice-President at CFIB. “We’re not asking for total loan forgiveness—just more time. If businesses are forced to close because of their pandemic debt, government will not be able to recoup that money. It’s a win-win situation if businesses are allowed more time to repay.”
This summer, a joint letter was sent to Deputy Prime Minister Chrystia Freeland calling for more time to repay CEBA loans while keeping the forgivable portion. More than 250 business associations from coast to coast and across all sectors signed on. CFIB’s research shows that one-fifth of all businesses in Canada—nearly 250,000 small businesses—could be at risk of closing their doors next year unless the federal government changes the deadline.
CFIB is pushing the federal government to extend the repayment deadline for the CEBA loan to the end of December 2025 or at least 2024.
“Small businesses have to deal with high interest rates, inflation and shortages of labour. Most recently, many were hit by the supply chain disruptions caused by the strike at BC ports. They’re suffering one blow after another. How much more do they need to endure before Ottawa realizes it needs to extend the CEBA loan repayment deadline to provide some reprieve?” said Christina Santini, Director of National Affairs at CFIB.
“The message from small businesses is loud and clear: they need more time to repay their CEBA loan. With only half of small businesses back to normal sales, most businesses — particularly in the arts, recreation, hospitality and the service sectors — will need extra runway,” said Dan Kelly, CFIB president. “Financial institutions still have time to delay repayment processes if the government extends the CEBA deadline, but that window is closing. Ottawa needs to act now.”
Of the nine in 10 small businesses who used CEBA, three quarters accessed loans between $40,001 and $60,000, while one quarter received loans of up to $40,000.
Only 10 per cent of CEBA users have repaid their loans.
A total of 43 per cent of CEBA users risk missing the current repayment deadline by end of 2023. Small businesses in the arts, recreation, and information (62 per cent), hospitality (61 per cent) and social services sectors (46 per cent) are most likely to miss the current CEBA deadline.
The smallest businesses with 0-4 employees are the most likely to miss the repayment deadline (49 per cent)
Even among the 47 per cent of small business owners who indicate they will meet the 2023 deadline, half say they will struggle to do so, and two-thirds would like to see an extension of the repayment deadline.
Here is the full letter to Freeland.
Dear Minister Freeland:
Industry associations representing hundreds of thousands of businesses across Canada are urging you to extend the current Canada Emergency Business Account (CEBA) repayment deadline by two years to the end of 2025, or at least by one year, while maintaining access to the forgivable portion.
Almost 900,000 CEBA loans were approved across Canada. Many businesses had no choice but to take on this loan due to circumstances beyond their control. This includes businesses in some of the hardest hit industries such as the retail industry and tourism sector. Mandatory business closures and other government health restrictions left businesses with severe income losses and cash flow issues.
Despite their best efforts, high interest rates, inflation and increased labour costs are making it difficult for small-and-medium size businesses to keep their heads above water, let alone make any dent in the debt many had to take on to survive pandemic restrictions. A recent analysis of over 15,000 Canadian businesses found that inflation, input costs, and interest/debt costs are the three most acute obstacles faced by business (at 56%, 40% and 38%, respectively), and the smaller the firm, the more constrained they are by debt.
Moreover, recent surveys focussed on CEBA loan-holder companies reveal that:
49% of small businesses are still making below normal revenues;
50% of Canadian foodservice operators are currently operating at a loss or breaking even compared to 12% pre-pandemic; and,
45% of Canada’s tourism businesses are likely or somewhat likely to close within the next three years without government intervention into their mounting debt load.
Unless the federal government acts quickly to postpone the CEBA repayment deadline, businesses that are unable to repay their CEBA loan in time will lose access to the forgivable portion of up to $20,000, thus further increasing their debt load. Extending the repayment timeline for the CEBA loan without losing access to the forgivable portion would give many small-and-medium size businesses the stability and certainty they need to get back on their feet on a path to prosperity.
We urge you to quickly address this important matter.
Cheez Whiz at City Market (Image: Craig Patterson)
Amid the escalating tide of food prices, the practice of coining novel terms to elucidate the surge in these costs has become widespread. In addition to contending with the dual challenges of escalating expenses and diminishing product sizes—commonly known as “shrinkflation”—consumers have also found themselves grappling with the concept of “shelflation.” This pertains to the reduction in the shelf life of grocery products due to disruptions in the supply chain, particularly affecting perishables like produce. If you’ve noticed a decline in product quality, this phenomenon can be attributed to “shelflation.”
However, it is imperative for consumers to remain vigilant about the emergence of yet another term, “skimpflation,” which signifies a subtle alteration in the nutritional composition of certain products. While the term may be unfamiliar to many, the practice itself has a decades-long history.
Food manufacturers have quietly adjusted the formulations of various food items, often resulting in discernible disparities in taste and texture. Indeed, numerous food products have undergone discreet modifications. For instance, a recent CBC report highlighted changes in E.D. Smith’s pumpkin pie filling recipe, with vegetable oil shifting from its previous third position to sixth place, and water taking on a more prominent role as the third primary ingredient. Even familiar items like Cheez Whiz spread have undergone transformations over the years, wherein cheese has been overtaken as the primary component by an entity known as “modified dairy substances.” This trend extends across a spectrum of products, including granola bars, chips, chocolate, pasta, and crackers.
Cheez Whiz at City Market (Image: Craig Patterson)
The motivations driving these adjustments are multifaceted. While the term “skimpflation” might insinuate a deliberate downgrade in quality and nutritional value to cut costs—partially accurate—there is a more intricate narrative at play. As the costs of food ingredients surge, companies often reformulate and rigorously test new recipes to ensure that consumers remain unaware of any changes. Many research and development initiatives are centered on providing the market with competitively priced food items, resulting in subtle modifications. Admittedly, the nutritional integrity of products can be compromised in the process. Nevertheless, the pursuit of cost savings is merely one facet of a broader tale.
Companies undertake reformulation efforts to render products more appealing to specific demographics. This might involve intentional alterations in flavours, calorie counts, sodium levels, fat content, or even sugar content. Some changes are driven by strategic considerations, while others are motivated by regulatory factors. For example, the impending front-of-packaging labeling regulations set to take effect in January 2026 will mandate the inclusion of a new symbol on packages containing elevated levels of saturated fat, sugars, and/or sodium. To avert having such an indicator on their products, manufacturers are already engaged in reformulation, resulting in revised ingredient lists for numerous food items.
In essence, “skimpflation” transcends mere cost-saving measures. It is equally a response to regulatory requirements. While these practices are entirely legal, consumers can gauge the implications of “skimpflation” by consistently monitoring food labels, even scrutinizing a few products each week. Regrettably, there is a limited scope for consumer action in this regard.
However, the impact of “skimpflation” on our food economy extends beyond products to encompass customer service. Over the past year, a report from Field Agent Canada has illuminated a host of unsatisfactory service-related experiences in grocery stores, indicative of a shift in service quality and labour issues. As a collective, 79 percent of Canadians have observed instances of product unavailability, 55 percent have encountered longer queues, 48 percent have noted a shortage of checkout clerks, 47 percent have struggled to locate store employees, and 39 percent have identified an insufficient number of checkout lanes. The proliferation of self-checkout lanes in recent years has further exacerbated consumer dissatisfaction. All these instances underscore a trend of cutbacks and cost-saving measures.
The landscape of grocery shopping has undergone a transformation. Not only have products evolved, but the service provided has also undergone alterations. It is imperative for consumers to remain vigilant, adapting to these changes as they navigate the evolving food economy.
Retailers in the Greater Toronto Area must proactively adapt to the evolving dynamics of the real estate market. This entails closely monitoring areas experiencing growth and staying informed about new real estate projects that might present expansion opportunities, says a new retail report by commercial real estate firm JLL.
“Retailers should actively monitor the expansion of real estate projects and the growing demand for retail space. As these projects evolve and scale up, retailers should be prepared to seize opportunities for expansion,” said the report.
“Retailers should closely consider transit-oriented projects that have the potential to significantly expand their trading area. These projects provide access to a broader customer base and allow retailers to enter new markets.”
Greater Toronto Area (GTA) retail insights and opportunities
The report said driving factors for retail space growth in the GTA include:
Population growth. The outlook for population growth certainly makes the GTA an area of interest for retail. As the top destination for newcomers, its population is expected to exceed 10 million by 2046 – up from only 6.2 million in 2021;
Economic growth. As the country’s hub for finance, technology, and health care, the GTA should continue to be one of the earliest (or the first) landing places for international retailers and retail innovation;
Housing development. The focus on high-density, mixed-use projects in growth areas and along transit corridors is bringing easy access to retail, services, amenities, and employment. Far higher housing demand than supply – which is currently creating affordability challenges – should continue to fuel further housing and retail construction; and
Transit and infrastructure development. Despite proceeding more slowly than desired, the construction of new subway lines and the expansion of GO Transit opens opportunities for increased accessibility and foot traffic, increasing retail demand.
Paul Ferreira, Senior Vice President, Retail Brokerage, JLL Canada, said the dynamics in place in the GTA are similar to what many other major markets in Canada, such as Vancouver, are facing.
Paul Ferreira
“We have a race to bring more residential supply to help with our housing crisis. They’re all going to face a lot of these same kinds of pressures,” he said.
“We are continuing to see consistent residential growth in the GTA and all of southern Ontario quite frankly. All of our secondary markets are growing. What we used to consider non-growing secondary tertiary markets, we’re seeing a lot of growth in those markets now.
“Our message to retailers is they really need to be keeping track of where residential growth is because we’re seeing growth everywhere now. Where we used to have markets that were flat to declining, we’re seeing growth everywhere. So what does that mean for their current store networks? Does that mean they need to adjust to see where that growth is coming and make sure that they’re well-positioned to service it? And make decisions on their store network.”
Image: JLL
Ferreira said in the GTA there’s a particular sensitivity to understanding where this growth is. While there is still some greenfield growth taking place around the GTA, there are also a lot of proposals for more density than “we’re used to ever seeing.”
“We have nodes that as time has gone on developers have gone back and gotten more density and the proposals have gotten even denser,” he said. “That’s bringing even more people in.
“When you have a large master-planned (project) or redevelopment that’s a lot easier to deal with the retail component. You can plan for it. You’ve got one developer making decisions. When you have some of these nodes that have multiple developer proponents, in many ways the retail is what makes these areas vibrant, what makes these areas communities, providing services, providing places for people to gather. But when you have individual properties that are brought forth sometimes as much as municipalities master plan and do secondary plans on these areas, sometimes the retail is not as cohesive as it should be.
“And that’s when you start to get retail that may not be as great as it could be when it doesn’t have the proper infrastructure, the proper access, the proper exposure where the spaces aren’t designed to be able to accommodate not just the tenant for today but the kind of tenants we need for the future.”
Ferreira said the power centres that were built in the late 1990s and early 2000s, many of them are still successful and 100 per cent leased and could add more space if the developers wanted to, but these are now redevelopment targets.
“So we have a lot of retailers that are going to be displaced over the next decade as their leases come up and these power centres enter their phase of redevelopment into mixed-use projects. That’s something to be aware of, making sure that we can re-accommodate these retailers and thriving retail because a lot of those shopping centres are fulfilling regional shopping needs not just local. A lot of the retail that’s coming back that we have seen in proposals is more local in nature – providing a grocery store, a drug store, some service uses. But not necessarily a place for those regional retailers to come back into,” he said.
Image: JLL
The report said developers need to prioritize the development of infrastructure that supports the success and growth of retailers. This includes ensuring business exposure, easy access for customers, ample parking, efficient logistics for receiving goods, availability of outdoor restaurant patios, and sufficient retail space with desirable features like high ceilings and minimal obstructions such as columns. Developers may need support from municipalities in this regard.
“Developers and retailers are successful if they prioritize and elevate the overall shopping experience, ensuring that retail spaces are not downgraded or compromised − especially when redeveloping shopping centres. Thoughtfully designed retail spaces foster thriving retail environments and have the power to attract both local shoppers and visitors from neighbouring areas,” said the report.
JLL said municipalities should take a more holistic approach to planning growth areas, giving equal weight to commercial and residential aspects. This includes master planning commercial areas, protecting them from displacement by residential expansion, and incentivizing developers to meet the diverse needs of retailers.
“Municipalities should offer incentives to developers to foster the inclusion of a range of retailers. They should also pay attention to the challenges faced by smaller retailers who might lack bargaining power, ensuring that their needs are met,” added the report.
“Municipalities must find a harmonious equilibrium between the economic forces driving residential expansion and the preservation of retail areas. Safeguarding established retail nodes and nurturing a vibrant retail sector within the community are critical.”
JLL said almost two-thirds of population growth in the next five years will come from outside the city of Toronto. Milton is expected to be the fastest- growing municipality, with 25 per cent population growth from 2022 to 2027. Brampton’s population should grow by more than 100,000 from 2022 to 2027. Halton is the fastest- growing region, with 12 per cent population growth from 2022 to 2027.
