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Brands Retreat From Pride Sponsorships in Canada as Consumers Scrutinize Support

Toronto Pride Parade. Image: Pride Toronto

Canadian consumers continue to expect brands to publicly support Pride Month, even as several major corporations have reduced or withdrawn sponsorship support tied to high-profile Pride festivals, creating financial strain for organizers and intensifying discussions around corporate authenticity, retail marketing strategy, and values-based branding.

A new survey commissioned by Omnisend and conducted by Cint in March 2026 found that 56% of Canadians believe Pride Month participation from brands remains important. At the same time, 33% of respondents said they have noticed companies pulling back from Pride campaigns and sponsorship activity during the 2025 and 2026 periods.

The findings come as Pride Toronto continues dealing with the financial impact of losing several major corporate sponsors ahead of its 2025 festival season, with organizers saying the effects are still being felt as planning continues for 2026.

Consumers Looking Beyond Symbolic Pride Marketing

The Omnisend survey suggests Canadians are increasingly evaluating whether companies demonstrate consistent support for LGBTQ+ communities beyond seasonal marketing campaigns.

Among respondents, 46% said only brands that genuinely support LGBTQ+ communities should participate in Pride-related initiatives. Another 32% said they expect companies to demonstrate year-round support rather than limiting visibility to June campaigns alone.

Consumers also identified what they view as the strongest indicators of meaningful support. Donations to LGBTQ+ organizations ranked highest at 22%, followed by transparency around inclusion initiatives and public advocacy efforts, both at 20%.

“For retailers, this means that a Pride campaign isn’t being judged only on the ad itself anymore,” said Marty Bauer, Ecommerce Expert at Omnisend, in the company’s release. “People look at whether the brand shows up consistently, even outside of June.”

Younger Canadians placed greater importance on corporate Pride participation than older demographics. According to the survey, 68% of both Gen Z and Millennial respondents said brand participation in Pride Month matters to them, compared to 50% of Gen X respondents and 41% of Baby Boomers.

The findings reflect broader shifts taking place across the retail sector as brands navigate increasingly complex consumer expectations around social values, inclusion initiatives, and corporate positioning.

Toronto Pride Parade. Photo: Pride Toronto

Pride Toronto Still Facing Financial “Aftershocks”

The conversation around corporate Pride participation intensified after Pride Toronto confirmed that several major sponsors either withdrew or declined to renew sponsorship agreements ahead of the organization’s 2025 festival season.

According to reporting by various media outlets, companies including Google, Home Depot, Nissan, Adidas, and Clorox either ended or did not renew sponsorship support tied to Pride Toronto programming.

Pride Toronto Executive Director Sherwin Kojo Modeste has since said the organization continues to experience the financial “aftershocks” of those departures as it prepares for its 2026 festival season, which marks the event’s 45th anniversary under the theme “We Won’t Stop.”

Organizers have reported a funding gap estimated at approximately $700,000 to $800,000 for the 2026 season, despite retaining many existing partners and bringing in additional support.

The loss of several multinational “anchor” sponsors created challenges extending beyond direct financial contributions. Large corporate sponsors often provide substantial marketing reach, employee participation, vendor relationships, and broader credibility that can help attract additional sponsorship support.

According to previous reporting, Modeste linked the sponsorship withdrawals to broader shifts in how some U.S.-based multinational corporations approach diversity, equity, and inclusion initiatives amid growing political polarization surrounding DEI-related issues.

At the same time, Pride Toronto has pointed to broader economic pressures affecting sponsorship budgets, including inflation, tariffs, and rising operational costs.

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

Retailers Navigating a More Complex Marketing Environment

The sponsorship changes have sparked broader discussions throughout the retail and marketing sectors around how brands engage with social causes and public-facing advocacy campaigns.

Several companies that reduced or ended sponsorship support indicated the decisions were tied to broader reviews of marketing and community investment priorities.

Nissan Canada said its decision reflected a reevaluation of marketing and media initiatives, while Home Depot said it regularly reviews charitable and non-profit giving activities. Google reportedly stated that it would continue supporting employee participation in Pride-related events and community activities.

Industry observers have noted that brands increasingly face pressure from multiple directions. Some consumers have criticized corporations for treating Pride as a seasonal marketing exercise without demonstrating broader year-round support, while others have pushed back against the commercialization and politicization of Pride campaigns.

As a result, some corporations appear to be adopting more cautious approaches toward highly visible Pride sponsorships and marketing activations while continuing internal inclusion initiatives or quieter forms of support.

Vancouver Pride Parade. Photo: Vancouver Pride Society

New Sponsors Step In as Festivals Seek Additional Funding

Despite the sponsorship pullbacks, several Canadian businesses and organizations have stepped in to support Pride programming. According to previous reporting, companies including No Frills and Shoppers Drug Mart provided newer or expanded support for Pride Toronto following the withdrawal of several larger sponsors.

However, organizers say replacement sponsorships have not fully offset the loss of major multinational partners.

The sponsorship challenges have also intensified discussions around the long-term financial sustainability of major Pride festivals across Canada.

Earlier this year, Pride organizations in Toronto, Montreal, and Vancouver jointly requested approximately $9 million in emergency federal funding over three years to help offset rising security costs and declining corporate sponsorship support.

Meanwhile, some community members and organizers have argued that reduced corporate participation could create opportunities for Pride festivals to reconnect more closely with their activist origins and grassroots community focus.

Pride festivals continue generating substantial economic activity for major urban centres, driving spending across restaurants, hotels, entertainment venues, nightlife, and retail districts during some of the busiest tourism periods of the summer season.

The Omnisend survey included 1,029 Canadian respondents and used quotas based on age, gender, income, and geographic region to create a nationally representative sample. The reported margin of error was plus or minus 3 percentage points.

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EMERGE reports “strong” Q1 2026 results with increase in revenue and gross profit

EMERGE photo
EMERGE photo

EMERGE Commerce Ltd., an acquirer and operator of profitable e-commerce brands and technologies, announced Thursday its financial results for the three months ended March 31, 2026 as revenue and gross profit grew.

Q1 2026 Financial Highlights

For the first quarter of 2026, compared to the first quarter of 2025:

  • Q1 revenue grew to $5.9M vs. $5.0M, an increase of 17.5% YoY, marking the 8th consecutive quarter of YoY revenue growth 
  • Q1 Gross profit grew to $2.1M vs. $1.9M, an increase of 6.2% YoY
  • Q1 Adj. EBITDA improved to $122K vs. $32K, marking the 6th consecutive quarter of positive Adj. EBITDA
  • Cash position grew to $4.1M (March 31, 2026) vs. $2.7M (March 31, 2025), an increase of $1.4M YoY

Viral Loops was acquired on March 10, 2026 and contributed from the day of closing. Q2 is Viral Loops first full quarter under EMERGE ownership. Viral Loops achieved approximately $1.3M Revenue and $800K Adj. EBITDA in 2025 (unaudited).

Ghassan Halazon
Ghassan Halazon

“Our Q1 results marked another strong quarter of revenue growth and positive Adjusted EBITDA, despite being the most seasonal quarter for our golf business. During the quarter, we also completed the strategic acquisition of Viral Loops that we expect will be immediately accretive to earnings and cash flow.,” said Ghassan Halazon, Founder and CEO, EMERGE.

“Looking ahead, Q2 is expected to be the strongest quarter of the year in terms of revenue and Adj. EBITDA, with the 2026 golf season now in full swing, along with the inclusion of Viral Loops in its first full quarter under EMERGE.”

EMERGE Commerce is a disciplined acquirer and operator of profitable e-commerce brands and technologies across Direct-to Consumer and Business-to-Business segments. Its D2C portfolio spans its Grocery and Golf verticals. truLOCAL is its flagship Canadian meat and seafood subscription service. Its Golf vertical includes UnderPar (discounted golf experiences), JustGolfStuff and Tee 2 Green (discounted apparel and equipment). EMERGE B2B houses Viral Loops, its referral marketing platform.

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EMERGE photo
EMERGE photo

Why Physical Grocery Retail Still Drives Product Discovery

A woman shopping with her son in a grocery store. Photo: Unsplash

As Canadian grocers invest billions into e-commerce infrastructure, AI personalization, and retail media networks, new research suggests the physical grocery store remains the country’s most effective environment for turning product discovery into purchasing behaviour.

The findings arrive during a period of major transformation within Canadian grocery retail. Consumers are increasingly engaging with digital platforms, retailers are expanding omnichannel capabilities, and food inflation continues reshaping household spending habits. Yet despite that rapid evolution, the physical aisle still appears to play an outsized role in influencing what Canadians ultimately decide to try.

Research from Leger found that 47% of Canadians made an unplanned purchase of a new food or beverage product while shopping in-store during the previous three months. By comparison, only 30% reported making similar spontaneous purchases while shopping online.

The gap highlights a broader reality emerging across Canadian retail: digital channels may shape awareness and consideration, but physical grocery stores remain highly effective at converting interest into trial.

Consumers Are Becoming More Deliberate About Spending

The findings come as grocery affordability remains a growing concern for Canadian households.

Canada’s Food Price Report 2026 estimates that a family of four will spend $17,571.79 on food this year, representing an increase of nearly $1,000 over 2025. Food prices are now approximately 27% higher than they were in 2021, with categories such as beef continuing to experience significant price increases.

That environment is influencing how consumers evaluate new products. Rather than responding strongly to broad advertising campaigns or aspirational branding, Canadians appear more focused on practical value, usefulness, and perceived purchasing confidence.

Leger found that 77% of Canadians remain open to trying new food and beverage products, but the strongest trial drivers were directly connected to tangible value. Sampling and tasting influenced 46% of respondents, while promotions, coupons, and value for money each influenced 45%.

Traditional advertising demonstrated surprisingly weak influence. Only 7% of Canadians said advertising motivated them to try a new product.

The findings suggest Canadian consumers are becoming more selective about the information they trust, particularly as higher food costs force households to scrutinize discretionary spending more carefully.

“Canadians are not lacking information. They are selective about what earns their attention and what ultimately shapes their behaviour,” the report noted.

Loblaws store at Maple Leaf Gardens in downtown Toronto. Photo: Echo Chamber

Grocery Stores Continue to Function as Discovery Environments

The research reinforces the continuing strategic importance of physical merchandising within Canadian grocery retail.

While consumers increasingly encounter products through fragmented digital touchpoints, including Facebook, Instagram, TikTok, streaming platforms, and retailer apps, the in-store environment continues to exert unusually strong influence at the moment purchasing decisions are actually made.

According to the report, 32% of Canadians discover products through in-store shelves and signage, slightly ahead of Facebook at 31% and television at 30%. Family recommendations also remain highly influential at 29%.

That distinction matters because grocery shopping often operates differently than other forms of e-commerce. Many consumers enter stores with only partial shopping lists, navigate aisles while comparing prices and promotions, and remain highly susceptible to visual interruptions, endcaps, packaging, displays, and sampling opportunities.

In that environment, the grocery shelf functions as more than a fulfillment mechanism. It becomes a behavioural conversion point where curiosity, convenience, pricing, and physical visibility interact simultaneously.

The findings also help explain why Canadian grocers continue investing aggressively in store modernization and retail media infrastructure.

Retail media now captures roughly 20% of all digital advertising spending in Canada, with expenditures increasing nearly 20% year-over-year as brands shift budgets toward closed-loop retail ecosystems capable of directly measuring purchase behaviour.

Major Canadian grocery operators are rapidly expanding those capabilities.

Loblaw Companies Limited is investing approximately $2.4 billion in 2026, including plans to open 70 new stores while continuing to expand automation infrastructure designed to improve e-commerce efficiency. Walmart Canada is advancing AI-driven personalization tools and expanding in-store digital media networks, while Empire Company Limited continues building first-party data and off-site media capabilities connected to its grocery platforms.

The findings suggest those investments are tied to a broader strategic objective: monetizing consumer attention during active shopping moments.

Online Grocery Still Struggles With “Discovery”

The report also highlights one of the continuing structural challenges facing grocery e-commerce platforms.

Canada’s online grocery market is now valued at approximately $3.84 billion USD, with click-and-collect accounting for roughly 46% of all online grocery orders. Consumers continue embracing digital convenience, particularly when avoiding delivery fees, but online grocery platforms still face limitations in replicating the spontaneous experimentation that occurs naturally inside stores.

The contrast between in-store and online impulse behaviour illustrates that challenge clearly.

Nearly half of Canadians reported making spontaneous in-store purchases of new products, substantially higher than the 30% who reported similar behaviour online.

That gap points toward a growing issue within grocery e-commerce often described as a “discovery gap.” Digital grocery platforms perform efficiently when consumers are replenishing known items or shopping from predetermined lists. However, they remain less effective at recreating the sensory and behavioural conditions that encourage experimentation.

Physical grocery stores still hold major advantages in areas such as visibility, tactile engagement, impulse merchandising, sampling, and real-time comparison shopping.

The challenge is particularly important because product trial often drives higher-margin purchases and increases basket size, both of which remain strategically important for grocers operating in a highly competitive and inflation-sensitive environment.

Sobeys grocery store in Orangeville, ON. Photo: Sobeys

Utility and Trust Are Becoming More Important Than Branding

Another notable takeaway from the research is the growing shift toward utility-driven consumer engagement.

Canadians continue consuming large amounts of food-related content, but they increasingly prioritize practical information over traditional brand messaging. Leger found that 46% of consumers actively seek recipes, while 40% search for deals and savings opportunities.

At the same time, many consumers appear skeptical about the broader influence of marketing itself. Only 43% of Canadians said food information meaningfully impacts their purchasing behaviour, while 57% reported that such content has little or no influence.

Even social media influence appears more nuanced than many marketers assume.

Younger consumers remain more likely to discover products through Instagram and TikTok, yet trust in those platforms trails more traditional and interpersonal sources. Family recommendations and in-store sampling ranked significantly higher in perceived reliability.

One of the report’s more surprising findings showed that flyers continue outperforming many digital channels in trust, particularly in Quebec and Atlantic Canada.

That persistence reflects how Canadian grocery shopping behaviour continues evolving in layered and sometimes contradictory ways. Consumers may browse recipes on social media, use retailer apps, and order groceries online, yet many still rely heavily on practical value cues, trusted recommendations, and highly visible in-store merchandising when making final purchasing decisions.

“Digital channels may continue to grow in reach, but the shelf remains one of the most effective places to convert interest into trial,” the report stated.

In many ways, the findings challenge the assumption that digital commerce is replacing physical grocery retail. Instead, they suggest the industry is evolving toward a hybrid model where digital platforms generate awareness and convenience, while stores remain the critical environment where discovery, trust, and purchasing decisions ultimately converge.

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The Scented Market founder Kristy Miller recognized for entrepreneurial growth and community impact: Video

Kristy Miller
Kristy Miller

Kristy Miller says winning a regional Woman of the Year award for entrepreneurs over 40 reflects years of behind-the-scenes work building her fast-growing Canadian candle company.

Speaking with Retail Insider Co-Editor-In-Chief Mario Toneguzzi, Miller described the recognition in the Kitchener-Waterloo region as both unexpected and rewarding after previously being nominated without winning.

Miller founded The Scented Market eight years ago after researching cleaner household products while on maternity leave. She said concerns about traditional candle ingredients and their effects on families and pets inspired her to experiment with soy candles at home.

Kristy Miller
Kristy Miller

What began as a hobby quickly evolved into a business after friends and online followers showed growing interest in her products. Miller said social media became a key driver of the company’s expansion, allowing her to educate consumers, build community engagement and market products without significant advertising costs.

The entrepreneur said persistence was critical in the company’s growth. After being rejected by Dragon’s Den in 2018, Miller continued building the brand before later being invited onto the show in 2022, where she received nine offers from six investors.

Today, The Scented Market is expanding retail partnerships across Canada and the United States while continuing community-focused initiatives. Miller said the company recently launched fundraising partnerships that have returned more than $46,000 to schools, charities and organizations.

The company has also partnered with the RCMP Foundation on a candle gift set supporting mental health initiatives.

Miller said entrepreneurs should focus on resilience, celebrate small victories and maintain a strong mindset while navigating the challenges of building a business.

Youtube video

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Happy Belly Food Group signs multi-year exclusive national partnership with Uber Eats Canada

Photo: Happy Belly Food Group
Photo: Happy Belly Food Group

Happy Belly Food Group Inc., a leading consolidator of emerging restaurant brands, says it has secured a multi-year, exclusive national agreement with Uber Eats, Uber Technologies food delivery platform, to support Happy Belly’s growing portfolio of corporate and franchised restaurant locations across Canada.

This national partnership establishes Uber Eats as Happy Belly’s exclusive third-party delivery marketplace partner and is designed to drive meaningful benefits for every franchisee and corporate location through improved service levels, streamlined support, and more competitive commercial terms, said the company.

Uber Eats photo
Uber Eats photo

Key benefits of the national agreement, according to Happy Belly:

  • Dedicated national account management and an elevated level of service, including coordinated onboarding, operational support, and escalation pathways across brands and regions
  • Competitive national pricing intended to reduce delivery-related costs and push improved economics down to individual franchisees and corporate stores
  • Consistency and simplification at scale, including standardized processes, consolidated support, and stronger system-wide visibility as the company continues to grow
Sean Black
Sean Black

“Partnering with Uber Eats, a world-class delivery platform allows us to leverage national-account scale in a way that directly benefits our franchisees and corporate locations,” said Sean Black, Chief Executive Officer of Happy Belly. “This agreement strengthens service levels through dedicated national account support, improves unit economics through competitive terms, and helps us execute with greater operational discipline as our footprint expands.

“National agreements are most powerful when they impact the P&L at the store level. By consolidating our delivery marketplace relationship under one exclusive partner, we can simplify execution, standardize support, and create a more predictable operating environment for our operators while driving tangible savings and improved service for the system.”

Black said the agreement builds on Happy Belly’s track record of securing national partnerships with leading operators across food distribution and beverage, including its national distribution agreement with Sysco Corp and its exclusive supply agreement with Coca-Cola Canada Bottling Limited as part of the company’s strategy to consolidate purchasing, strengthen vendor relationships, and improve profitability across the network.

The company’s portfolio includes Heal Wellness, Rosie’s Burgers, Yolks Breakfast, Via Cibo Italian Street Food, and others.

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 43% of consumers deterred by hidden costs when shopping internationally: Landmark Global

SHVETS production photo
SHVETS production photo

Landmark Global, a leader in cross-border e-commerce delivery and international logistics solutions, has released its Cross-Border Confidence Index. 

Conducted among 2,000 U.S. and Canadian consumers, the research reveals a widening gap between North American consumers’ interest in global brands and their confidence in the cross-border e-commerce shopping experience.

North American consumers have more access than ever to international brands through marketplaces, social commerce, and direct-to-consumer expansion. However, Landmark Global’s Index shows that access does not equal conversion. Concerns around hidden costs, delivery uncertainty, and complicated returns are driving pre-purchase hesitation, causing consumers to opt out before checkout. For brands, this shifts the challenge from driving demand to removing friction, making cost transparency, delivery predictability, and returns simplicity critical levers for converting global interest into revenue, said the company.

“The challenge for brands today isn’t reaching global customers, it’s delivering an experience they can trust,” said James Edge, Chief Executive Officer, Landmark Global. “As cross-border e-commerce becomes more complex with tariffs, shifting trade lanes, and evolving regulations, companies need a more integrated approach that brings together data, customs expertise, and fulfillment strategy. The brands that solve for that complexity will be the ones that unlock the next phase of global growth.”

At the centre of consumer hesitation is a growing lack of trust in the total cost of international purchases. Landmark Global’s Index shows that 43% of North American consumers are deterred by hidden duties and taxes, making it the top barrier to cross-border e-commerce. This concern is even more pronounced in Canada, where 59% of consumers cite hidden costs as a key barrier, whereas U.S. consumers are more likely to cite delivery delays (38%) as a primary concern. An additional 32% of North Americans cite surprise delivery fees, reinforcing that the issue isn’t solely about cost but the unpredictability surrounding it, according to the report. 

James Edge
James Edge

Nearly seven in 10 (69%) of North American consumers say they would be more likely to complete a purchase if duties and taxes were prepaid at checkout, with 73% of Canadian consumers and 65% in the U.S. This highlights a clear opportunity for brands to improve conversion by eliminating ambiguity. These findings point to a fundamental shift: consumers are not rejecting cross-border e-commerce; they are rejecting experiences where the final price is unclear, added Landmark.

“Delivery delays are a concern, as observed in 32% of North American consumers. Findings suggest that speed is no longer the primary issue – it’s certainty. North American consumers are willing to wait for international orders, but only if expectations are clearly set. Simultaneously, expectations are tightening. Nearly two-thirds (64%) of North American consumers expect international orders to arrive within two weeks or less, and 21% expect delivery within one week, signaling that cross-border shipping is now being judged against domestic e-commerce standards.

For brands, the ability to provide consistent, reliable delivery timelines is becoming more important than simply offering the fastest option,” it said.

“The Index also reveals that returns are no longer a post-purchase thought; they are influencing decisions much earlier in the buying journey. In fact, 41% of North American consumers note they would be more likely to purchase if returns could be handled locally, while 24% cite complicated returns as a key concern when shopping internationally. This indicates a growing shift toward pre-purchase risk assessment, in which consumers factor in the difficulty of returning an item before committing to a purchase. Returns are evolving from an operational afterthought into a critical component of the overall customer experience.

“Cross-border e-commerce is becoming less about enabling access and more about managing complexity. As tariffs shift, trade lanes evolve, and compliance requirements tighten, the challenge for brands is no longer just reaching international customers, but doing so in a way that is consistent, compliant, and scalable across markets.”

Insights from James Edge

Question: Your data shows that unexpected duties and taxes are the biggest reason consumers abandon cross-border purchases — why are so many retailers still failing to provide landed-cost transparency at checkout?

Answer: Many retailers still underestimate how difficult landed-cost accuracy is. It’s not as simple as adding a tax line at checkout. Retailers need accurate product data, customs classification, broker input and a real-time understanding of how regulations, tariffs and duties are changing across different markets and shipping lanes.

That’s where the disconnect happens. Many retailers are still relying on fragmented systems or outdated information, while market conditions such as tariffs and duties shift in real-time, making it difficult to stay agile and accurate. The consumer lacks visibility into the operational complexity behind cross-border commerce. They just see a surprise bill at delivery or checkout, and our data shows that’s enough to make them walk away.

Q: The report suggests shoppers want local returns options. What operational or financial barriers are preventing retailers from offering seamless domestic-style returns for international orders?

A: The demand for domestic-style returns exists, but they are hard to make work economically if the retailer hasn’t built the right network to support them. Once an international order comes back, someone has to move it, clear it, inspect it, decide whether it can be resold, and either restock or dispose of it, and each step adds cost.

Retailers that solve this process friction treat returns as part of the cross-border experience from the start, with clear customs processes and enough visibility to know where that product should go next.

Q: Are Canadian and U.S. consumers behaving differently when it comes to cross-border shopping expectations, and what does that reveal about the maturity of the market?

A: Across Canadian and U.S. markets, both want more certainty, but they still face different pain points. In Canada, the issue is much more about cost transparency, with 59% of consumers citing hidden duties and taxes as a barrier and 73% saying they’d be more likely to buy if costs were prepaid at checkout.

In the U.S., delivery delays are the bigger concern at 38%, which suggests the market is maturing in two directions: Canadian shoppers are highly sensitive to total landed cost, while U.S. shoppers are increasingly judging cross-border purchases against the speed and predictability they expect from domestic e-commerce.

Vitaly Gariev photo
Vitaly Gariev photo

Q: How much of the trust gap in cross-border e-commerce is a logistics problem versus a communication problem between retailers and consumers?

A: The trust gap is rooted in logistics complexity, but consumers experience it as a communication problem. Cross-border e-commerce is evolving due to shifting duties and taxes, changing customs requirements, fluctuating shipping costs and complicated international returns. Those are real operational challenges retailers must face and coordinate behind the scenes.

However, from the customer’s perspective, trust breaks down when those complexities are not communicated up front. If a shopper encounters hidden service fees or even vague delivery timelines, confidence quickly disappears. Consumers know that cross-border shopping isn’t simple, but they do expect transparency and predictability.

Q: What practical changes should retailers prioritize over the next 12 months if they want to reduce cart abandonment and build long-term consumer confidence in international shopping?

A: Retailers should work to make the cross-border e-commerce experience seem less risky before shoppers click “buy.” The initial focus should be on refining the fundamentals behind the scenes: precise product classification, enhanced customs data, and improved lane-by-lane planning to clearly display duties, taxes, and delivery windows at checkout.

Following that, the experience should be made more local-like with prepaid landed costs, realistic delivery estimates, and straightforward returns. Customers are not against international brands; they just dislike unexpected charges and delays.

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Canadian beverage sector exceeds national calorie reduction target two years ahead of schedule

Andrea Piacquadio photo
Andrea Piacquadio photo

Canadians are choosing beverages with significantly fewer calories. This change in consumer behaviour began more than a decade ago. As a catalyst for action, the Canadian Beverage Association (CBA) launched the voluntary, industry-wide Balance Calories Initiative in 2015 as a collaborative effort to reduce the number of calories Canadians consume from non-alcoholic beverages.

A new decade-long analysis by Signal49 Research shows Canadians purchased 23 per cent fewer calories from nonalcoholic beverages in 2024 than in 2014, exceeding the Balance Calories Initiative (BCI) target of a 20 per cent reduction by 2025. The milestone was achieved in 2023, ahead of the original deadline.

The report, A Decade of Calorie Reduction, attributes most of the progress to product reformulation, the rapid expansion of no and lowsugar options, and sustained shifts in consumer preferences. Over the last decade, average calories per serving in purchased beverages fell by 20.3 per cent, while overall beverage volumes declined by just 3.3 per cent, underscoring that consumers are not abandoning the category but changing their preferences.

Krista Scaldwell
Krista Scaldwell

“This progress shows what’s possible when innovation, consumer demand, and public policy goals move in the same direction,” said Krista Scaldwell, President of the Canadian Beverage Association. “Our industry responded with reformulation and new product choice, and Canadians responded just as quickly.”

The most pronounced decline in beverage calories occurred between 2014 and 2017, as producers reformulated flagship brands, expanded diet and zero-sugar portfolios, and introduced smaller package sizes. By 2024, low and no-calorie beverages accounted for more than half of all beverage volumes sold in Canada.

“As an industry, we made a voluntary commitment, and delivered measurable results,” Scaldwell said. “Our members invested in innovation, reformulated products, and rebuilt their portfolios. That’s accountability in a competitive marketplace.”

Consumer preferences have also shifted toward convenience and functional hydration. Since 2014: Ready to drink coffee volumes increased 624 per cent, enhanced and flavoured waters grew 145 per cent, and still drinks shrunk 35 per cent.

Launched in 2015, the Balance Calories Initiative was a voluntary commitment by Canada’s major beverage producers to reduce calories consumed from nonalcoholic beverages. 

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Daily Synopsis: May 27, 2026

Welcome to the Daily Synopsis by Retail Insider. We published 7 articles today covering developments in Canadian retail and wellness sectors.

Out on the Street opened a redesigned Toronto Village store that is fully accessible and expands its merchandise, revitalizing a vacant Church Street storefront while broadening its product range to include premium fashion brands alongside core LGBTQ+ apparel. Merrithew launched a new STOTT PILATES flagship and academy at Yonge and Bloor, positioning Toronto as a hub for wellness education with quality Pilates instruction and instructor training in a destination-style setting.

 

Tim Hortons is accelerating renovations and local hiring to defend market share ahead of Dunkin’s Canadian return with 300 stores, focusing on enhancing service and menu innovation. Meanwhile, Aldila celebrated 40 years of serving women over 40 with six locations across British Columbia and Alberta, emphasizing local community engagement and slow fashion strategies for sustainability in retail.

🗞️ The Day’s Retail Insider Article List

 

🌐 Canadian Retail News From Around the Web

Why Chicken Prices in Canada Could Surge Again This Summer

Poultry department in a grocery store. Photo: Canadian Poultry

Canadians are paying record prices for chicken while importing massive quantities of foreign poultry, mostly from the United States. If that sounds contradictory, it’s because it is.

According to the latest Canadian Association of Regulated Importers (CARI) figures released May 23, Canada has already imported more than 52.2 million kilograms of chicken so far this year under WTO, CUSMA, and CPTPP commitments combined. Nearly 23.8 million kilograms came directly from the United States under CUSMA alone.

And yet, wholesale chicken prices in Canada continue to surge.

Over the past year, Canada imported roughly 200 to 215 million kilograms of chicken overall, enough for approximately 1.3 to 1.4 billion meals. About 60% came from the United States. Most Canadians likely have no idea how often they may already be consuming imported chicken in nuggets, deli meats, frozen meals, restaurant sandwiches, soups, and prepared foods.

Under supply management, Canadians were promised something very different: stable supply, mostly domestic production, and predictable prices.

Instead, Canada now faces one of the tightest chicken markets in decades.

Industry sources indicate Canada’s chicken sector has underproduced relative to allocation targets in 12 of the last 14 production periods dating back to March 2024 — something many insiders say has never happened in the modern history of supply management. Meanwhile, retailers increasingly rely on chicken to offset high beef prices, intensifying demand pressures throughout the system.

The contrast with the United States is striking. American wholesale boneless skinless chicken breast prices recently fell to roughly US$1 per pound. In Canada, comparable wholesale prices have reportedly climbed near $13/kg. The price spread has become so extreme that importers are now bringing chicken into Canada over the 249% tariff wall and still making money doing so.

That should alarm policymakers.

Historically, importing over the tariff wall only occurred during extraordinary shortages. The fact that it is happening again, barely a year after the same phenomenon emerged in 2025, suggests something deeper is wrong structurally.

The most revealing part of the current market is not the official quota imports themselves, but the explosion in supplementary permits. CARI data shows “Chicken to Compete” permits are up more than 876% year-to-date. These permits are intended to serve as a pressure valve when domestic supply cannot adequately meet market demand.

In other words, the system itself is signaling distress.

Even more revealing is where the pain is being felt. Farmers are not necessarily the biggest losers. Large integrated processors continue to perform relatively well financially, while many independent processors, restaurants, and smaller operators struggle to absorb rapidly escalating input costs. Some are reportedly considering exiting the business altogether because they lack sufficient access to product.

Consumers are next.

Retail prices typically lag wholesale spikes by four to eight weeks. What Canadians see at grocery stores today largely reflects March and April pricing conditions. The wholesale increases occurring now are likely to push retail prices even higher through the summer barbecue season.

Dark meat markets illustrate how abnormal conditions have become. Canada is now importing approximately 9 million kilograms of U.S. chicken leg quarters to support domestic retail demand — despite historically exporting dark meat at discounted prices.

That is not a market nuance. That is a warning sign.

What makes the situation more frustrating is that the policy tools to address this problem already exist. Canada has mechanisms allowing supplemental imports during shortage-driven pricing events. Competition Bureau Canada, the Farm Products Council of Canada, and Global Affairs Canada all possess some authority to intervene or facilitate temporary relief measures. Yet there appears to be little political appetite to acknowledge publicly that a supply shortage exists.

Meanwhile, consumers continue paying more.

None of this is an argument against Canadian poultry farmers. Many are highly efficient producers operating within a framework designed by policymakers decades ago. But the framework itself increasingly appears incapable of adapting quickly to population growth, shifting protein demand, international trade realities, and changing consumer purchasing behaviour.

Chicken has become Canada’s affordability protein. As beef prices remain elevated, middle-class consumers naturally trade down toward poultry. But when the system cannot respond flexibly enough to rising demand, shortages emerge, imports surge, and prices escalate simultaneously.

That is precisely what Canadians are witnessing today.

If Canada intends to maintain supply management, then policymakers and industry leaders must be willing to confront uncomfortable realities honestly and transparently. Denial is not a production strategy.

Otherwise, Canada risks drifting toward the worst possible outcome: some of the highest chicken prices in the developed world combined with growing dependence on foreign supply.

That is not food sovereignty.

That is policy failure.

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Out on the Street Opens New Toronto Village Store

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

After 34 years operating from a narrow multi-level storefront on Church Street, Toronto LGBTQ+ retailer Out on the Street has entered a new era with the opening of a redesigned and fully accessible store in the heart of the Church-Wellesley Village.

The retailer officially opened its new location at 504 Church Street on May 1, relocating from its longtime home at 551 Church Street, where founder Ian Kelly built one of Canada’s best-known LGBTQ+ retail businesses beginning in 1991. What was once spread across three floors inside a heritage building has now been transformed into a bright single-level retail environment focused on accessibility, visibility, expanded merchandising, and a more immersive shopping experience.

The Out on the Street new store also arrives at a time when many long-running independent LGBTQ+ retailers across North America have disappeared amid rising operating costs, online competition, redevelopment pressures, and changing nightlife patterns. Against that backdrop, the relocation represents both reinvention and continuity for a business that remains closely tied to Toronto’s LGBTQ+ community and the evolution of Church Street itself.

“We are seeing a whole new diverse community base coming into our store,” co-owner Michael Azzopardi said during an interview inside the new location. “We are fully accessible now, so we are welcoming customers that were never able to shop at our store before.”

The move also places the retailer more directly within the Village’s busiest pedestrian corridor south of Wellesley Street, where restaurants, nightlife, retail, and Pride activity continue to anchor one of Canada’s most historically significant LGBTQ+ neighbourhoods.

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

A Longtime Village Institution Evolves

For decades, Out on the Street operated from a distinctive but challenging three-level space that became a landmark for generations of customers. The store developed a loyal following through its eclectic mix of underwear, Pride merchandise, gifts, novelty products, adult items, apparel, and swimwear, becoming a staple of the Church-Wellesley Village retail landscape.

Over time, however, the building’s layout became increasingly difficult for both customers and staff to navigate.

Visitors regularly moved between narrow staircases and separate merchandise areas, while employees worked across disconnected floors that limited visibility and made merchandising more difficult.

The new one-level format has changed that dramatically.

“We get to see all of our customers at the same time now,” Azzopardi explained. “Customers get to see all of our merchandise in one go instead of travelling up and down stairs. Putting outfits together is much easier because people can see everything together, and our staff are better able to assist.”

The redesign has also introduced new customers to the business, particularly those who previously found the old location inaccessible.

Large walls of brightly merchandised underwear and swimwear are now visible almost immediately upon entering the store, while the open layout allows customers to browse the assortment more comfortably and naturally than before. Softer lighting around the cash area creates a warmer atmosphere that contrasts with the more compartmentalized feel of the previous location.

Although the new store occupies approximately 1,600 square feet on one level, compared to roughly 1,800 square feet spread across three floors previously, the brighter layout and improved sightlines make the space feel significantly larger.

Out on the Street’s former location at 551 Church Street will continue operating temporarily as a clearance centre until approximately Halloween while the final stages of the transition are completed.

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

Bringing New Energy to a Vacant Church Street Space

The move has also reactivated a storefront that sat vacant for approximately 13 years.

The space at 504 Church Street previously housed hospitality concepts including George’s Play and Gatsby’s before remaining dark for more than a decade. The reopening therefore carries significance beyond the retailer itself, contributing renewed retail activity to a stretch of Church Street that has experienced both revitalization and contraction in recent years.

The geography of Toronto’s Village has shifted noticeably over the past two decades, with much of the district’s nightlife and pedestrian activity concentrating south of Wellesley Street. Independent LGBTQ+-focused businesses have become increasingly rare as redevelopment pressures, rising rents, and evolving consumer habits continue reshaping the area.

Yet Church Street remains a symbolic and cultural anchor for Toronto’s LGBTQ+ community, particularly during Pride celebrations and major community events. For Out on the Street, remaining within the centre of that activity was critical.

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

A More Contemporary Store Experience

Inside the new store, the visual transformation is immediate.

Warm lighting, refreshed fixtures, expanded product walls, digital signage, and subtle rainbow integrations create a more polished and modern atmosphere while still preserving the personality longtime customers associate with the business.

“Part of our new design was to take the rainbow and integrate it into everything we do,” Azzopardi said. “Our gift card, our business card, the colours, the lighting, even the outside digital sign.”

Rather than relying heavily on overt Pride branding throughout the store, rainbow elements have been woven more subtly into displays, signage, graphics, and environmental details.

The fitting rooms have also been completely redesigned with upgraded mirrors and lighting systems that have already generated strong customer feedback.

At the rear of the store, one small but meaningful piece of the previous location remains. “The Back Room” signage from the original store was relocated into the new space as a nod to the company’s history.

“That sign was brought over just as a little nod to our old location,” Azzopardi said. “We tried to bring in one or two pieces from the old store to maintain who we are.”

The balance between modernization and familiarity appears to be resonating with customers, many of whom have followed the retailer for decades.

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

Expanded Brands Reflect Broader Retail Shifts

The redesigned layout has also allowed Out on the Street to expand portions of its assortment despite operating within a slightly smaller footprint.

“Our gift cards have increased by about 150 SKUs,” Azzopardi said. “We have been able to expand more of our Addicted and ES lines. We now carry Levi’s. We now carry Psycho Bunny. We have expanded our Alpha Charlie lines.”

The addition of brands such as Levi’s and Psycho Bunny signals a broader merchandise evolution beyond nightlife and Pride-focused apparel into more premium everyday fashion categories.

That opportunity has emerged partly because of major changes within Canada’s department store landscape. Following the closures of retailers including Sears Canada and Hudson’s Bay, shoppers now have fewer destinations carrying broad denim and casualwear assortments.

“We still need to offer that to our customers,” Azzopardi said. “We saw an opportunity, we reached out to Levi’s, and we started there.”

The retailer currently carries staple Levi’s fits including the 501, 504, 511, and 512 styles, while the Psycho Bunny assortment focuses on premium polos and elevated casual basics.

“If customers are looking for not so much club wear but more everyday wear, we are now expanding those lines as well,” Azzopardi explained.

At the same time, Out on the Street continues to lean heavily into the categories that built its reputation within the Village.

“It is the biggest in the Village,” Azzopardi said of the store’s underwear assortment. “Across Canada, besides some online retailers, nobody quite does what we do.”

The retailer has also secured a Canadian-exclusive swimwear collaboration with Spanish brand Addicted.

“We now have an exclusive with Addicted,” Azzopardi said. “We have created a Canadian-brand swimwear collection with them that is exclusive to Out on the Street.”

Out on the Street at 504 Church Street in Toronto. Photo: Craig Patterson

Expanding Reach Beyond Toronto

While the retailer remains deeply tied to the Church-Wellesley Village physically and culturally, its ambitions increasingly extend well beyond Toronto through e-commerce and social media.

Out on the Street ships products nationally and internationally, serving customers in markets where dedicated LGBTQ+ retail options may be limited or nonexistent.

“We ship all across the country and even globally,” Azzopardi said.

The company recently launched a new Instagram presence under the handle “outonthestreet.ca” as part of the broader refresh tied to the relocation.

“What we are trying to do is expand our online presence into the Prairies,” Azzopardi explained. “We want people to know that we are available.”

The approach reflects how many independent specialty retailers are increasingly pairing destination physical stores with national digital reach while relying on community connection and curated assortments to differentiate themselves from mass online marketplaces.

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