Canada’s luxury retail market has seen a significant increase in interest over the past 24 months from international retailers, many of which had already established roots in this country, says Casdin Parr, Vice-President of Retail Advisory Services for commercial real estate firm JLL.
Casdin Parr
“They’re looking to reinforce and expand. We also have a number of new entrants into the marketplace at the same that may have been considering Canada over the years but have finally been ready to take the jump into the Canadian marketplace,” he said.
“I think what’s been interesting for retailers amongst many things is that Canada is a relatively new luxury market by the global luxury sphere. I think they still feel there’s untapped potential, primarily in the three major markets being Toronto, Vancouver and Montreal. And obviously there’s some mix in there like West Edmonton Mall and in Calgary Chinook Centre as well.”
Bloor Street in Toronto (Image: Dustin Fuhs)
In today’s consumer world, spending has been impacted with elevated inflation and rising costs to live in the country. That’s affecting retailers across Canada.
The trend also touches on the high end of the retail market.
“The definition of luxury has changed quite a bit over the last number of years,” said Parr. “Luxury can be defined in many different ways. For some groups of core customers, a pair of unique Nike shoes for instance could be a luxury purchase and for others a designer handbag is a luxury purchase.
“The luxury consumer is no longer defined as a household earning over a certain level of income. Now we have younger consumers, students, who are playing in the luxury sphere. So the customer profile of luxury has changed substantially.
“The level of impact due to the cost of living is impacting different sectors of the luxury consumer in different ways.”
Royalmount (Rendering: Carbonleo)Gucci at Fairmont Hotel Vancouver (Image: Lee Rivett)
Parr said Toronto and Vancouver remain the first choices for international luxury retailers when they are entering the Canadian market.
“Toronto and Vancouver have proven over the last number of years to be strong international luxury markets,” he said. “Some of the other markets in the country are developing luxury markets. Montreal probably being the largest developing one with the Royalmount development and the collection of luxury that’s set to arrive there in 2024 and beyond.”
Parr said tourism has always been an important part of the luxury spend whether it’s in the Canadian marketplace, the U.S. or otherwise.
“I would suggest that pre-pandemic the retail community or the broader retail community thought maybe tourism over-represented the spend in the Canadian marketplace, particularly international tourism into Canada,” he said.
“Through the pandemic and where we sit today, Canada has proven to have an extremely robust local and national, Canadian, luxury consumer that has candidly grown the top line revenue of many of these groups without the same level of international tourism as we’ve historically seen within the marketplace.”
Qeelin and Hublot at Yorkdale Shopping Centre (Image: Dustin Fuhs)Yorkdale Shopping Centre (Image: Dustin Fuhs)
Parr said the luxury retail market has been on an incredible run over the last number of years. The high street nodes in the country in Toronto and Vancouver have more demand than supply right now.
“That’s in significant contrast to what that was as little as 18 months ago. We have seen a very steep acceleration in terms of deal making and stores getting open, particularly in these high street nodes and the strength of some of the enclosed luxury with Yorkdale leading the way. And Yorkdale really finding its place not only on the Canadian or North American luxury map but Yorkdale now being recognized as an international global spot for luxury retail,” he said.
“It’s been an incredible couple of years and there’s still momentum in the marketplace. Like we’re seeing with other trends across North America and globally, I think we all anticipate there will be a softening of demand but still demand that outpaces right now at least available supply.”
After twelve years of operations, Black Sheep Mattress Company, a premium mattress brand based in Calgary, opened its second location in Toronto this past summer and is looking to expand to four or more stores in Canada within the next five years.
The brand is passionate about creating sustainable mattresses to Canadians as all products are made with high quality materials, have zero chemicals, and are also handcrafted in Calgary.
Christian Schmidt
“We are passionate and pursue the idea of natural materials more than others as we have wool springs, natural latex from the rubber tree, our mattresses are non-toxic, and handcrafted. We have been in business for twelve years and have only been in Calgary – and Toronto was the next step for us as it is our second biggest market,” says Christian Schmidt, the owner of Black Sheep Mattress Company.
At both locations, shoppers can find a variety of mattresses, toppers, headboards, bedding such as organic cotton sheets, and bedding accessories. The brand provides options for adults, but also options for kids and babies. All products are available for shipping across Canada.
Shoppers can find the Black Sheep Mattress Company at 601 Manitou Road in Calgary and the second showroom which opened this past July is located at 287 Davenport Road in Toronto and is 1700 square feet.
Same Mattress, Different Needs
Image: Black Sheep Mattress CompanyImage: Black Sheep Mattress Company
One way Schmidt says the company is different from other mattress brands is its level of customization.
The Black Sheep Mattress Company offers consumers the opportunity to customize their mattress to their likings – even if it is only their half: “We can customize each half of the mattress quite a bit in order to accommodate different partners, different needs, and different levels of support and comfort.”
In addition to mattresses, headboards also have the option for customization – giving your bedroom a more personalized look and feel.
In the past couple of years, Schmidt says because of the lockdowns during the pandemic – they were quite busy.
“It has been different. During Covid, we were actually quite busy and I think a lot of the home furnishing places were seeing more interest from people as they were home a lot. Then last year, we noticed it has toned down a little bit and it has been more back to normal, which is okay. Along with that, we are definitely able to get supplies back on a normal schedule and timeline.”
Sustainability
Image: Black Sheep Mattress Company
One of the main focuses for the brand is to continue and evolve its sustainability measures and this includes its programs of recycling, tree planting, and reducing its carbon footprint.
While making mattresses the brand uses any leftover material to make other products such as wool dryer balls, decorative sheep, raw natural materials, and sells sheep toys for kids. Consumers can find these products in-store or online under Upcycled Products.
When the lifespan of a mattress is over, consumers have the option to use the brand’s mattress recycling program which is free of service. Currently this program is only an option for consumers who use the local delivery service. When a mattress is recycled, the company will “break it down into raw materials” and will be recycled or reused for different uses such as moving pads. In 2021, the company was able to save 170 mattresses from ending up in landfills.
Black Sheep Mattress Company also partners with Wearth Farms, a local Alberta company, for its tree planting program. For each mattress ordered, the brand will plant a tree with Wearth Farms, helping the environment with one mattress at a time. Black Sheep Mattress Company also looks at reducing its carbon footprint by using BullFrog Power which uses “a blend of wind, solar, and low-impact hydro power.”
Expansion Plans – Where To Next?
Image: Black Sheep Mattress Company
Although Schmidt says he is focused on the Toronto location currently and wants to see how well it does before expanding further – he would like to expand the brand with possible locations being Edmonton as it is close to Calgary, or Vancouver.
“Toronto is the first step and we will look at a bit of a balance between East And West and then once this location gets its legs – we will start to look for the next location. I think probably Edmonton or Vancouver even perhaps for next year as it depends on how well Toronto does – it is something we are considering.”
Within the next five years or so, Schmidt says he would like to expand the brand by opening around four or five locations and might even look at expanding internationally in the United States, “but that is a whole other challenge that will be looked at later.”
Image: Black Sheep Mattress Company
As it looks to continue to expand in Canada, Schmidt says the number one thing he is after is awareness and product expansion.
“The big thing is just getting awareness out there, making connections in the community for Toronto and continuing to evolve both the existing product, but also add new products. Such as products that complement the bedroom such as headboards, bases, dog beds, and accessories – just expanding the lineup a little bit. We are excited for the Toronto space and we continue to focus on Calgary of course as that is our home base and now we are just getting the word out.”
Yellowknife (Image via Lenora Barrett / Northwest Territories Tourism)
Canadian retail sales experienced another month of minimal growth in August 2023 with All Stores up 2.5% YOY and All stores Less Automotive, Food, Pharmacies up only 0.8% YOY. Whereas sales were still up slightly, the regional differences continue to play a large factor with the price of housing, and in August, migration due to wildfires.
The regional differences in Canadian retail spending are continuing to polarize. The more expensive a location is to live (primarily Ontario and British Columbia) are getting the hardest hit for retail, and those who experienced terrible wildfires through August (mainly British Columbia and the Northwest Territories) declined similarly:
Vancouver retail sales were down -1.82% YOY in August. Considering people were fleeing the Okanagan in August and heading to the lower mainland, this decline is even more significant.
Toronto retail sales, though up 3.5% YOY in August, are still down -0.3% YTD.
Though it makes up a relatively small percentage of overall Canadian retail sales, Northwest Territories experienced a decline of -20.2% YOY in August due primarily to wildfire evacuations, higher than the trend of -2.9% YTD.
Though the Okanagan and the Northwest Territories were most affected by the wildfires in August, they continued well into September. With many people waiting at their homes as long as possible, we are expecting to see an even larger drop in retail sales in these two areas in September Canadian Retail Sales.
Housing remains top of mind for many Canadians as the availability decreases and prices increase. There are many categories being affected by this, but most directly affected are:
Furniture Stores, down -6.6% YOY,
Home Furnishings Stores, down -8.44% YOY, and
Building Material and Garden Equipment, down -7.2% YOY.
As consumers spend more on their housing, they are forced to spend less on furnishing them or repairing them. In addition, recent laws in B.C. cracking down on short-term rentals could have a lasting effect on these categories. With people looking to get out of investment properties, this could flood the secondary market with the furniture that used to fill their Air BNBs. These regulations are undoubtedly going to come to Toronto and the rest of Ontario very soon, so it is just a matter of time until another large market experiences the same secondary market increase.
Health and wellness related categories continue to outperform most other categories in September 2023, Health and Personal Care Stores were up 9.1% YOY. In addition, Cannabis Stores continue to grow in Canada with retail sales up 19.1% YOY. This is a direct effect, it appears, of the decrease in alcohol sales, as Beer, Wine, and Liquor Stores are down -4.0% YOY. Interestingly, the difference between cannabis and alcohol seem to be nearly identical. Cannabis Stores experienced a growth of $74.4 million, and Beer, Wine, and Liquor Stores experienced a decline of just over $100 million. This “redistribution” of funds will be very interesting to watch closing out 2023 and into 2024.
Holiday Shopping at The Spirit of Hockey / Hockey Hall of Fame (Image: Dustin Fuhs)
Canadian Retail Sales by Product Category, Same Month ComparisonCanadian Retail Sales by Store Category, Year to Date ComparisonRetail Trade, Canada, All Stores, by Geographic RegionsCanadian Ecommerce Sales
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 several days.
Tesla Construction Hoarding at CF Lime Ridge (Image: pittbul88 / Instagram)
A huge Tesla dealership and service centre is scheduled to open next year at the CF Lime Ridge shopping centre in Hamilton.
Andy Traynor, General Manager of the mall, confirmed construction has begun on the location and the mall is “going to be home to Tesla’s largest Canadian retail and service location.”
“It’s about 60,000 square feet. It is massive,” said Traynor. “We’ve been negotiating this deal with Tesla for over a year and we’re thrilled that they will be part of our assortment here at Lime Ridge.”
CF Lime Ridge (Image: Cadillac Fairview)
He said Tesla will open in the fall of 2024. It’s both a showroom and a service location. The showroom entrance will be within the mall. The service centre will be behind it with an entrance on the outside of the mall for customers to drop off their vehicles to have them serviced.
“Who would have thought you could buy a vehicle in a mall?,” said Traynor. “It works. Just the curiosity factor alone will draw traffic down that wing. So it will act as an anchor whether you can afford a Tesla or not. People want to go see the latest and greatest Elon Musk model and it attracts a lot of traffic.
“On the flip side, if you’re there to get your car serviced, what a perfect marriage to have the customer tied to the retail experience where they can run an errand, do some shopping, grab a bite to eat, go to the restaurant, go to the food court, grab a coffee, as opposed to sitting in a service centre where you’re in the middle of an industrial area.
“This really acts as a southwestern Ontario hub for Tesla where they will draw traffic from as far west as London, the Niagara area, possibly the west end of Toronto to come to Hamilton to get their car serviced and at the same time enjoy some great shopping here at Lime Ridge.”
The space used to be occupied by Home Outfitters and The Bay.
Lime Ridge, which opened in 1981, is about 790,000 square feet with about 175 stores. Occupancy is back to pre-pandemic levels of about 94-95 per cent.
The Tesla store in Hamilton will act as a true dealership and the mall has also allocated some parking stalls for its inventory.
“We do have some plans for densification (of the mall) once we get everything approved. Some very exciting plans for Lime Ridge,” said Traynor. More news to come on that.
JD Sports at CF Lime Ridge (Image: Cadillac Fairview)
“Other things, noting some of the biggest changes we’ve made recently, JD Sports opened up with a 7,100-square-foot location. Our Bath and Body Works has doubled in size with a complete new renovation with a White Barn (Candles) shop in shop. That’s doing extremely well.
“We opened up the first Mary Brown’s Chicken in any CF property. That’s done extremely well for us as an outward facing food unit that gives onto the main street. It’s an outside access only. And then we have Moda Cafe coming in. Moda Cafe is more of a Turkish cuisine. They’ve opened at Square One, Shops at Don Mills. They’re opening up next spring here at Lime Ridge. So we’ve got a lot of activity going on.”
Craig and the Passen leadership team discuss their innovative digital measurement platform that is poised to revolutionize the fashion industry. Passen’s digital solution is designed to help consumers find clothing that fits both online and in-store, addressing a long-standing challenge in the retail world. Their commitment to improving shopper satisfaction, boosting online sales, and reducing the environmental impact of fashion consumption sets Passen apart as a trailblazer in this field.
The platform has undergone a remarkable transformation, evolving from the initial concept of a virtual change room in malls to a more accessible and convenient handheld mobile device. This shift allows users to scan their bodies from the comfort of their homes, providing accurate measurements that can be directly compared to specific garments. The company’s three-phase approach includes capturing measurements, comparing them to the chosen clothing items, and offering a seamless and user-friendly customer experience. With plans to integrate their technology into Shopify and collaborate with iconic retailers, Passen aims to decrease the number of returns and ultimately contribute to reducing waste and carbon footprints in the industry.
As a Canadian company, Passen takes pride in its Canadian heritage and its ability to collaborate with well-known retailers, like Harry Rosen. The calibration process with retailers is in full swing, and Passen plans to implement its technology on various Shopify sites in the near future. Their vision extends beyond simple growth; they aim to transform the fashion industry, reduce the stress and waste associated with clothing returns, and offer a personalized shopping experience that caters to individual preferences. With an experienced team and unwavering commitment, Passen is ready to make its mark and redefine the way consumers shop for clothing.
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Seasonal Halloween Candy Display at Walmart Gerard Square in Toronto (Image: Dustin Fuhs)
Halloween has been at the forefront of children’s thoughts for weeks now, but for most parents, the preparations for the big night and the purchase of candies for eager trick-or-treaters are just commencing. The average household is poised to allocate anywhere from $25 to $40 for Halloween candies. However, with the escalating cost of living and the holiday landing on a Tuesday this year, the total expenditure remains uncertain. Regardless of the final tally, it’s clear that this money won’t stretch as far as it once did.
Enter “shrinkflation,” a silent and subtle disruptor that has infiltrated the Halloween candy aisle this year, affecting the purchasing power of Halloween enthusiasts. This phenomenon often escapes notice until you unwrap the package. For instance, Reese’s, a perennial favourite, now comes in bite-sized portions that might appease toddlers but leave the rest yearning for more. The ever-popular “Rockets” have been reduced to incredibly diminutive sizes, and some Halloween M&M packages contain just two pieces. Given that Halloween is a once-a-year celebration and candies grace the shelves for only a brief period, these shrinkflation strategies are more conspicuous and startling to consumers this year.
Halloween Candy at No Frills (Image: Dustin Fuhs)
It’s customary to disregard minor reductions in product sizes as they happen gradually over time. Manufacturers frequently diminish quantities while maintaining steady prices, driven by the mounting cost of production. For instance, cocoa futures have reached a 44-year high, primarily due to production issues in Western Africa and other global regions. Consequently, major buyers have had to renegotiate contracts and pay more, impacting the cost of Halloween chocolate. It is anticipated that cocoa futures will continue to influence chocolate prices in the months ahead, solidifying shrinkflation as an ongoing concern.
Another hurdle facing Halloween candy is the surge in sugar prices, reaching their highest levels since 2011. Additionally, a labour dispute has disrupted a Vancouver-based plant owned by Lantic-Robers since September 28. Reports of shortages are already surfacing, and commercial bakers are being encouraged to curtail their purchases. If this labour dispute persists, consumers may soon find themselves asked to limit their purchases as well. Such a situation should discourage stockpiling, especially during a period of significant food inflation.
Now, when it comes to chocolate and sugar, both are considered non-essential commodities. While the impact on Halloween candy is undeniable, there’s no need for alarm. Many food businesses, bakeries, and manufacturers regularly rely on these ingredients. Price adjustments are expected in the months ahead, affecting not only Halloween but also upcoming holidays such as Thanksgiving, St. Valentine’s Day, Easter, and more.
In a peculiar turn of events, even though the costs of Halloween candy are rising, a substantial portion of people’s budgets is expected to be directed toward costumes this year, more so than in previous years. In fact, experts predict that many Canadians will increase their overall Halloween spending, with Barbie-themed costumes gaining popularity. The Barbie craze has captivated both children and adults, inspiring extravagant costumes that contribute to the uptick in Halloween expenses.
Ultimately, Halloween is all about enjoyment and indulgence, and the smaller candies may just encourage children to knock on more doors this year in pursuit of their favourite treats. While it’s essential to remain mindful of shrinking portions and rising prices, the joy of Halloween remains undiminished. After all, when it comes to candy, a little extra effort to collect it may not be such a bad thing. So, let the spooky season commence, and savour the thrill of Halloween with a grin as big as any candy bar!
Holt Renfrew Men at 100 Bloor St. W. in Toronto. Photo: Craig Patterson
Luxury multi-brand retailer Holt Renfrew is expanding its menswear offerings as competition grows in the Canadian market. The company is seeing success with some newer and edgier brands as consumer tastes continue to shift to more casual comfort. The retailer is also heavily investing in its brick-and-mortar operations as competition grows in Canada.
In Vancouver, Holt Renfrew recently hosted its Men’s Edit Event which showcased a range of fashions, accessories, and grooming with personal appearances, exclusive previews, made-to-order and made-to-measure events. A new brand launch included AGOLDE’s men’s Fall ‘23 collection featuring graphics by renowned Los Angeles tattoo artist, Dr. Woo, who also made a personal appearance in the store.
Other brands were showcased during the event, ranging from the pricy Thom Browne to Rains, a much less costly Danish brand focused on waterproof items that will no doubt be useful for Vancouver’s damp weather.
Bringing experiential elements into the store are part of Holt Renfrew’s push in the menswear category according to Carolyn Wright, VP of Product and Planning at the retailer. A considerable amount of effort went into the menswear events held in Vancouver as Holt Renfrew aims to secure market share in the competitive Canadian market.
Holt Renfrew is something of an ‘ecosystem’ according to Wright, with Holts carrying a range of brands and price points. She said that men are mixing and matching some brands, while seeking looks that are balanced between being refined and feeling comfortable.
‘Stealth wealth’ is a trend seen with some Holt Renfrew customers, she said, as shoppers seek out quality goods that lack the logo-mania seen with some brands. Geographically, Wright said that there are some “slight nuances” to fashion geographically in Canadian cities, depending on financial centres, music scenes and sports teams. At the same time, Wright said that the “fundamentals are consistent” across the chain’s stores in BC, Alberta, Ontario and Quebec, with some brands doing gangbuster sales.
One of those brands is Los Angeles-based Amiri, which has become one of the top selling menswear brands at Holt Renfrew. The brand is known for its edgy streetwear styles and is flying off the racks at Holts – and a handful of other retailers carrying the brand. Sources have told Retail Insider that Amiri is looking to open a standalone store at Toronto’s Yorkdale Shopping Centre, being part of a trend where brands open their own stores.
Holt Renfrew, on its part, is investing in its brick-and-mortar retail business in a big way. Construction will soon start on a new men’s department that will be located on the third floor of Holt Renfrew’s flagship store at 50 Bloor Street West. The department is expected to open in the fourth quarter of 2024, according to Wright. Moving the men’s department back into the flagship makes sense, as some women also shop for the men in their life. Having things in the same building is just more convenient.
Holt Renfrew’s flagship store at 50 Bloor Street West in Toronto. Photo: Craig Patterson
The new men’s department will replace a standalone Holt Renfrew men’s store that opened in the fall of 2014 at 100 Bloor Street West (corner of Bellair Street). The two-level store has a leased area of about 16,500 square feet (rent said to be $4 million annually), and is the only standalone store of its kind in the chain. The relatively small men’s store lacks the boutique concessions found at Holts in Vancouver and Montreal.
Wright noted another recent major investment made by Holts in Montreal, with the building of the beautiful 250,000 square foot Holt Renfrew Ogilvy store that occupies six floors on Ste-Catherine Street West. The 40,000 square foot men’s floor on the fourth floor is by far the largest men’s department in the Holts chain in terms of size, and features an impressive roster of luxury brand concessions and boutique spaces.
Holt Renfrew relocated its Vancouver menswear space to a new concourse level space several years ago. Sales are robust at the store, which is said to be the top-selling location in the chain. That includes an impressive menswear selection that includes a mix of luxury brand concessions (such as Louis Vuitton, Celine, Burberry, Dior, and Louboutin) and other brand presentations. The men’s store can be accessed via its own entrance onto Howe Street, making it convenient.
Holt Renfrew Ogilvy men’s floor in Montreal. Photo: Holt Renfrew
Calgary’s Holt Renfrew store includes a dramatic looking menswear floor featuring soaring ceilings and a range of upscale and luxury designers. Holt Renfrew recently renewed its lease for its downtown space that spans about 150,000 square feet over four levels. Three of those levels are retail space and it’s said that there’s room to expand retail space in the building if needed.
Mississauga has an architecturally unique Holt Renfrew store at Square One that opened in 2017. It includes a men’s store with its own entrance. The menswear selection is more casual at the Mississauga store, catering to demographics in the area.
The Yorkdale Holt Renfrew men’s offerings are spread across the store, including in concessions and a dedicated menswear area. Five of the concessions are ‘world of’ in terms of selection, thus carrying menswear along with other categories for women. A renovation to part of the store, expected to be completed in 2025, will see some changes to the Yorkdale Holt Renfrew that will include some of its menswear offerings.
Men’s store entrance at Holt Renfrew, Square One, Mississauga. Photo: Holt Renfrew
Holt Renfrew is uniquely positioned in the Canadian market. For years it has dominated luxury retailing in Canada, and it continues to do so with its mix of retail and concessions for the world’s top luxury brands. Despite competitors coming into the market, Holt Renfrew has maintained its dominance as a place for shoppers to obtain luxury brands.
Holt Renfrew has less competition in the menswear sector as of late, with Nordstrom exiting the country in the spring while shutting its six standalone stores here. Nordstrom’s fashion offerings for the most part were of a lower price-point compared to what’s at Holt Renfrew, although there was crossover in terms of brands and shoppers. Saks Fifth Avenue has also substantially reduced its designer men’s offerings in Canada, particularly in Calgary where the store’s men’s department has recently been downsized to the point of being almost non-existent. Saks also downsized its CF Sherway Gardens store in Toronto during the pandemic, relocating its lower-level men’s store to a smaller area upstairs with womenswear.
Brands opening their own stores, not to mention online sales, are all potential headwinds for retailers such as Holt Renfrew. International luxury brands are targeting Canada by opening stores like never before, and this will continue into the future as demand dictates and the market matures. When some brands enter a market by opening retail stores, they may pull the brand from multi-brand retailers — a trend reported on in Retail Insider more and more in recent years. Some brands operating concessions in larger retailers may also decide to eventually open standalone stores. And to add to the competition, luxury brands entering Canada also often open local e-commerce sites, if they don’t have one already.
Entrance to the men’s store at Holt Renfrew in downtown Calgary. Photo: Holt Renfrew
Online multi-brand retailers such as Montreal-based SSENSE, as well, are taking market share in the menswear space. SSENSE carries a wide range of luxury brands and manages to secure some exclusives through relationships with brands. SSENSE is marking 20 years in business and is marking it with a big celebration this month.
Some men are even turning to the resale market for some luxury goods, ranging from hoodies to sneakers to jewellery. That includes some popular e-commerce sites as well as a growing number of brick-and-mortar retailers. The younger generation, in particular, is becoming more focused on the circular economy and used goods are usually cheaper than new ones, which is a bonus (we won’t get into the world of sneakers, where prices are sometimes based more on demand).
Toronto-based menswear retailer Harry Rosen is looking to take some market share from Holt Renfrew with the recent introduction of some more casual brands at luxury price points. Newly introduced brands to Harry Rosen, carried at the Bloor, Yorkdale and Vancouver locations, include Balmain, Marni, Jil Sander, Kenzo and Maison Margiela. Retail Insider recently interviewed President Ian Rosen, who said that the retailer was buying all categories for these brands and that other Harry Rosen locations would stock some of these brands in future seasons. All five of the new brands mentioned above that are carried at Harry Rosen are also carried at Holt Renfrew, including on its website.
Produce at Eataly Bloor Street (Image: Dustin Fuhs)
Food inflation in Canada has dropped to 5.9 percent, a nearly 1 percent decline since August. On the surface, this may seem like a reason to celebrate, with grocery trips becoming somewhat less burdensome on our wallets. However, the pressing question remains: do Canadians genuinely believe the data released by Statistics Canada?
A quick glance at social media commentary reveals the skepticism that Canadians harbour toward the numbers churned out by Ottawa. Trust seems to be at an all-time low, and many rely on their gut feelings rather than official statistics. Even though the data indicates that food inflation is at its lowest since January 2022, the gap between general inflation and food inflation has shrunk to 2.1 percent, and several food items have become more affordable, Canadians remain unconvinced.
Interestingly, Canada boasts the second-lowest food inflation rate among G7 countries, trailing only the United States at 3.7 percent. But it appears that no matter how reassuring these statistics might be, Canadians want none of it.
Skepticism and cynicism now dominate public sentiment toward the food industry, and it’s not hard to see why. Recent events, such as the legal disputes between major grocery chains, Metro, Loblaw, and Weston, only serve to exacerbate the public’s distrust. Metro has taken legal action against Loblaw and Weston, claiming they “falsely implicated” it in a price-fixing conspiracy regarding bread. This scandal, infamously known as the “bread cartel,” allegedly persisted for 14 years between 2011 and 2015, yet the Competition Bureau’s investigation, which began in 2015, is still ongoing. While one company, Canada Bread, admitted guilt and paid a substantial fine this summer, the infighting between grocers continues. This ongoing turmoil harms the industry’s image and further erodes consumer trust.
Against this backdrop, the Canadian Centre for Food Integrity released its annual public trust report, a survey designed to gauge Canadians’ trust in the Canadian food industry. While the report addresses critical issues like inflation, food affordability, and sustainable industry practices, it overlooks pressing concerns affecting public trust today. Notably, it says nothing about perceived profiteering, persistent farm waste especially in dairy, trust in data provided by Statistics Canada, or potential collusion within the industry. This omission is unfortunate, as these issues are central to rebuilding public trust.
There is currently no concrete evidence of grocers, manufacturers, or other industry players profiteering. Nevertheless, 82 percent of Canadians believe that profiteering is somehow associated with rising food prices, according to a recent survey. This perception poses a significant challenge that the industry must address promptly.
The legal disputes between grocers, coupled with a public trust report largely funded by the industry, only add to Canadians’ skepticism about the food industry. Trust in the sector is fragile, and it is essential that every stakeholder, from government bodies to industry leaders, work diligently to rebuild it.
Ottawa’s efforts to stabilize food prices by encouraging grocers to lower prices are commendable, but the real issue at hand is trust. The food industry can no longer take Canadians’ trust for granted. Rebuilding trust will require transparent communication, greater accountability, and a commitment to addressing the public’s concerns, whether they relate to perceived profiteering, farm waste, trust in data sources, or potential industry collusion.
It’s time for the food industry to not only deliver quality products but also to prove that it deserves the trust of Canadian consumers. Food inflation might be on the decline, but restoring faith in the industry is the true measure of success.
A majority (78 per cent) of small retailers say they’re losing revenue and customers to big businesses, according to a new report by the Canadian Federation of Independent Business (CFIB), which reminds consumers to challenge the way they think about shopping local.
The report, created in partnership with Scotiabank, is entitled Small Business, Big Impact: Small Retailers’ Local Contributions and reveals that over nine in 10 Canadians (92 per cent) said they love having small businesses in their community, but only 13 per cent do most of their shopping at small businesses.
Emily Boston
Instead, most people (87 per cent) reported doing the bulk of their shopping at large multinational retailers, either in-store or online.
“Even a small change in spending habits will have a positive impact on local economies. Small businesses are the cornerstones of our communities. They hire and train the next generation of leaders, offer unique products and personalized services, and foster a strong sense of community,” said Emily Boston, a Policy Analyst at CFIB and the co-author of the report. “We encourage everyone to prioritize shopping local not just during Small Business Week, but throughout the whole year as well.”
“Despite the many contributions that small businesses make to their communities, most consumers don’t support them on a daily basis even though they recognize the importance of shopping local. There are many misconceptions among consumers, including that small retailers and multinational businesses contribute to local economies equally. In fact, when you shop at a small, independent retailer, six times more of that money stays in your local economy than when you shop at a large multinational retailer,” said Taylor Matchett, CFIB’s senior research analyst and co-author of the report. “Small businesses are also more price competitive than you think. Changing your current habits does not have to come with a higher price tag or less convenience.”
Taylor Matchett
The report found that nearly all small retailers (97 per cent) said they contribute to their community or province in at least one way— the top ways they do so include donating to charities and causes (74 per cent), sponsoring local events and teams (56 per cent) and providing job opportunities for youth (55 per cent).
In this video interview, Boston discusses the report and its impact on the small business community in Canada.
https://www.youtube.com/watch?v=ehVxoJdwizQ
The Video Interview Series by Retail Insider is available on YouTube.
Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.
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