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From The Desk: Retail Real Estate Tightens as Brands Expand with Purpose and Precision

By
Craig Patterson
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Canada’s retail market is showing a mix of strong growth and limited space. In major cities like Toronto, demand for retail locations is rising, while available space remains tight. At the same time, brands are expanding with more focused strategies, prioritizing community connection, product quality, and digital integration. With vacancies shrinking and rents increasing, both retailers and landlords are working within a market that offers opportunity, but also clear constraints.

This week also highlights how retailers are evolving the way they connect with customers. Many are introducing more immersive store concepts, forming new partnerships, and refining how their businesses operate. These shifts reflect a broader focus on experience, wellness, and lifestyle alignment. At the same time, the shortage of retail space adds pressure to these strategies, shaping how companies plan for growth and long-term investment.

 

Retailer News

The spotlight on Canadian-origin brands growing with intention continues, notably with Joseph Ribkoff’s global expansion under new leadership. CEO Stephen Belfer is accelerating the brand’s accessible luxury positioning by modernizing its omnichannel retail footprint, combining e-commerce with strategic physical and wholesale touchpoints in Europe and North America, all while reinforcing its Canadian manufacturing heritage through proprietary fabric innovation.

Similarly, Ottawa-based Juice Dudez’s unique franchising model prioritizes owner-operator character, enabling steady growth rooted in community and real fruit ingredients rather than capital alone. This approach, detailed in its growth plans, highlights the value mission-driven concepts bring to competitive foodservice and real estate markets by fostering authentic customer connections.

Winnipeg’s Freed & Freed is expanding its vegan outerwear distribution to North American and international retailers, leveraging strong U.S. demand and its century-old legacy to boost its luxury positioning. Their distribution expansion underscores how heritage domestic production and sustainability commitments can create differentiated retail propositions that resonate broadly.

Within urban retail environments, the declining Toronto retail vacancy rate, confirmed by reports of a record-low availability, is echoed on the micro-level with neighbourhoods like Ossington and Leslieville now reaching zero streetfront vacancies. This scarcity intensifies competition for prime local retail locations that food, beverage, and experiential tenants increasingly covet. Concept-driven developments such as Toronto’s Elm-Ledbury The Mews retail arcade demonstrate how curated leasing fosters vibrant community-centric retail in multi-family residential settings, leveraging boutique and experiential formats to set new standards in urban placemaking.

Canada’s retail sales continue a modest upward trajectory, as noted by Statistics Canada’s January 2026 report showing a 1.1% increase driven by motor vehicles, general merchandise, and specialty segments. While this signals underlying consumer resilience, appetite for discretionary spending remains cautious, as detailed in TD’s analysis of an increasingly battle-worn but steady consumer sector.

Retailers like Dollarama reflect this duality of resilience and operational pressure in their financials. The company surpassed $7 billion in sales for fiscal 2026 through aggressive store openings and international ventures, yet disclosed a tempered outlook due to transformative costs in Australia. Such results, emphasized in Dollarama’s sales report, underscore the critical balance between domestic stability and growth risk in global expansion efforts.

In apparel, Groupe Dynamite is poised for a strong earnings surge, powered by strategic premium store placements and UK entry. This performance is discussed in earnings coverage and confirms that focused repositioning and international diversification remain viable levers even as the apparel landscape remains challenging, making it an important case study for those tracking retail real estate optimization and tenant mix strategies.

Opening of SUKOSHI at Bellevue Collection in Bellevue, Washington. Photo: SUKOSHI

Retailer People News

Among notable leadership stories, Linda Dang’s growth of SUKOSHI as a beauty retail powerhouse highlights the efficacy of experience-driven stores combining discovery, education, and curated Asian beauty to meet evolving consumer expectations. Her approach, detailed in the profile on SUKOSHI’s success, illustrates how deep specialization and immersive environments can differentiate retail in a digital-driven marketplace.

Similarly, the rapid expansion plans of brands such as Toronto-based Egg Club, targeting growth from nine to potentially 20 stores this year in the breakfast QSR sector, exemplify how leadership vision drives market innovation and footprint scaling. These moves, noted in the Egg Club coverage, speak to rising competition in fast-casual dining that will impact retail leasing and consumer traffic patterns.

Retailer Op-Eds

Analyses of grocery pricing and retail dynamics remain front and centre, with Dr. Sylvain Charlebois emphasizing the profound impact of rising food costs on consumer behaviour in rising grocery prices, including shifts toward cheaper brands and credit reliance. His insights raise questions about systemic supply chain issues that transcend retail pricing strategies, urging a holistic policy perspective that stakeholders across retail and real estate must consider.

Meanwhile, reflections on discount grocery competition dismiss the likelihood of Aldi and Lidl’s imminent entry into Canada due to entrenched market and logistical barriers, explored in the Aldi and Lidl analysis. This perspective clarifies that Canadian grocery competition will continue evolving through internal consolidation and retailer expansion rather than foreign discount disruption, informing real estate expectations for grocery-anchored developments.

On the luxury front, the concept of ‘desire’ remains a subtle but powerful marketing strategy, as articulated in luxury marketing op-ed. The discussion around luxury branding as an aspirational and mythological exercise rather than a price or promotion game offers valuable lessons for Canadian retailers aiming to build long-term prestige and cultural relevance in a global context.

 

Editor’s Take

This week’s coverage points to a retail real estate market that is under pressure, but still full of opportunity. In Toronto neighbourhoods such as Ossington and Leslieville, extremely low availability highlights a mismatch between supply and demand. As a result, retailers are being forced to make more precise and strategic decisions about where they open stores. At the same time, landlords and developers are responding by rethinking how spaces are leased and curated. Concepts like The Mews show how retail environments can be designed to better reflect local demographics and lifestyle trends.

Meanwhile, a range of brand expansions demonstrates that thoughtful, well-defined growth strategies continue to succeed despite real estate challenges. Companies such as Joseph Ribkoff, Juice Dudez, and Freed & Freed are growing by staying true to their brand identity and building strong customer connections. They are also blending physical stores with digital and experiential elements in a deliberate way, offering a useful model for others as consumer expectations continue to evolve.

Finally, retail sales remain relatively strong even as consumer sentiment becomes more cautious. This suggests that long-term success will depend on a balance between operational discipline and creating meaningful customer experiences. The leadership perspectives and opinion pieces this week reinforce that navigating economic and policy pressures requires both flexibility and clear direction, particularly in sectors like grocery and luxury, where pricing, supply chains, and brand storytelling play a critical role in shaping consumer engagement and real estate value.

This Week’s Articles

Retailer News

Retailer People News

Retailer Op-Eds

News From Around the Web

KEEN launches “future-forward” styles with PHILEO

By
Mario Toneguzzi
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KEEN photo
KEEN photo

KEEN, Inc., maker of original hybrid footwear, and Philéo Landowski, founder of the Paris-based label PHILEO, have formed a new multi-season partnership, bridging KEEN’s outdoor heritage with Philéo’s bold, progressive vision, the companies announced in a news release.

Since launching in 2019, Philéo has gained attention for his conceptual, conscious-driven footwear that blends innovation, curiosity, and craftsmanship, they said.

“KEEN and PHILEO share a boundary-pushing design ethos and a commitment to Consciously Created innovation,” said Nicks Ericsson, KEEN Chief Marketing Officer. “This collaboration reimagines outdoor functionality through a fashion lens—bridging outdoor DNA and elevated street style.”

Nicks Ericsson
Nicks Ericsson

A Parisian designer shaped by skate lifestyle, punk ethos, and curiosity, Philéo fuses organic forms with futuristic design, earning recognition for pushing boundaries while remaining grounded in thoughtful execution. As part of the Dover Street Market (DSM) roster, Philéo is positioned among fashion’s most innovative voices, endorsed for his philosophical depth and progressive perspective, said the release.

The first shoe born from this collaboration, Targher PHILEO, is a mash-up of two KEEN icons—the Targhee hiking boot and Jasper sneaker—with the u-throat/lacing inspired by the Jasper, and the rest built from the Targhee. Philéo brought them together in an inventive way with inside-out detailing throughout: an exposed heel counter, visible backside of leather on the tongue, and an inside-out approach to the stitching. He says making the construction visible is not just for effect, it’s also to celebrate the functional side of footwear, it noted.

“The inside-out approach came from the functional origins of the Targhee and all the structural elements that we’re used to playing with as footwear designers that the consumer is not used to seeing,” said Landowski.

PHILEO was founded in 2019.

“The label presents an architectured vision of footwear where movement shapes form, and engineering becomes emotion. Defined by the concept of “Persistence of Vision,” PHILEO creates sculptural silhouettes that merge functionality with transcendence,” explained the company.

Landowski has a background and experiences at Céline, Salomon Sportstyle and as a collaborator of Comme des Garçons. PHILEO has received the Grand Prix de la Création de la Ville de Paris (2024) and was a finalist for the ANDAM Fashion Award (2025). He was also named Footwear News’ Emerging Talent of the Year in 2024. The brand is carried by Dover Street Market and leading concept stores worldwide.

More from Retail Insider:

Casavogue Highlights Canadian Craftsmanship with “Made in Canada” Collections

By
Retail Insider
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As interest in locally made products continues to grow, Canadian furniture brands are gaining renewed attention for their craftsmanship, durability, and design sensibility. At Casavogue, this shift is reflected in a curated selection of Canadian-made furniture that highlights the strength of domestic manufacturing alongside the store’s broader international offering.

The Montréal showroom is placing a renewed focus on its “Made in Canada” collections, bringing together brands that reflect a range of styles and specialties. From solid wood case goods to upholstered seating and dining collections, these brands demonstrate the depth and diversity of Canadian furniture design.

A Growing Appreciation for Canadian Craftsmanship

Canadian furniture manufacturing has long been recognized for its emphasis on quality materials and skilled craftsmanship. More recently, there has been a noticeable shift in consumer behaviour, with renewed interest in locally made products and a growing preference for supporting Canadian businesses.

At Casavogue, this perspective aligns with a broader appreciation for the depth of talent across the country. Canadian manufacturers continue to demonstrate a high level of expertise, combining traditional craftsmanship with contemporary design to produce furniture that is both durable and thoughtfully designed.

The brands highlighted here represent a selection of Canadian-made collections available at Casavogue, offering insight into the quality and diversity of domestic production while forming part of a wider assortment carried in the showroom.

Canadel dining Sante table

Introducing Canadel to the Casavogue Collection

Among the newest additions to Casavogue’s assortment is Canadel, a Québec-based manufacturer known for its customizable dining furniture. The brand specializes in solid wood dining tables, chairs, and storage pieces, offering a wide range of finishes, sizes, and configurations.

Canadel’s approach allows customers to tailor dining sets to their specific needs, whether for everyday meals or larger gatherings. The brand’s focus on flexibility and craftsmanship makes it a strong complement to Casavogue’s existing dining room offerings.

West Bros Serra bedroom set

Established Canadian Brands with Distinct Design Perspectives

In addition to a broader range of Canadian brands available in-store, Casavogue carries several well-established names, each bringing a unique perspective to furniture design.

Verbois is known for its contemporary wood furniture, characterized by clean lines and a focus on solid wood construction. The brand offers dining and living room collections that emphasize both durability and modern aesthetics.

Jaymar, based in Québec, specializes in upholstered furniture, including sofas, recliners, and motion seating. The brand combines comfort with tailored design, offering a range of customization options in fabrics and finishes.

West Bros Furniture brings a West Coast influence, producing solid wood furniture with a contemporary edge. Known for its attention to detail and craftsmanship, the brand creates pieces that balance natural materials with modern design.

Together, these brands illustrate the diversity of Canadian furniture manufacturing, from upholstery and case goods to customizable dining solutions.

Hamburg Leather sofa by Jaymar

Supporting Local Craftsmanship in a Global Context

While Casavogue is recognized for its international brand mix, the inclusion of Canadian manufacturers reflects a broader commitment to offering a balanced and thoughtful assortment. Local brands provide an additional layer of relevance for customers who value craftsmanship, quality, and proximity of production.

By integrating Canadian-made furniture into its showroom, Casavogue offers customers the ability to explore both global and domestic design perspectives within a single destination.

Visit Casavogue to Explore Canadian Collections

Customers interested in Canadian-made furniture are encouraged to explore Casavogue’s showroom and discover the full range of brands available. Explore Casavogue’s selection of Canadian brands: casavogue.ca/en/collections/our-canadian-manufacturers

Casavogue website: casavogue.ca/en

Opening hours:
Monday to Friday: 9:30 a.m. to 6:00 p.m.
Saturday to Sunday: 9:30 a.m. to 5:00 p.m.

Casavogue is located at 8260 boulevard Saint-Michel, Montréal, QC H1Z 3E2.

For more information, call +1 514-360-3565 or book an appointment to receive personalized advice.

After more than a decade of fan demand, Taco Bell finally brings Diablo sauce to Canada

By
Mario Toneguzzi
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Taco Bell image
Taco Bell image

After more than a decade of waiting, Canadian Taco Bell fans are finally getting their wish. Starting this spring, Taco Bell Canada is making its iconic Diablo sauce available at restaurants for the first time, for a limited time at participating locations.

Since Diablo first launched in the U.S in 2015, Canadian fans have repeatedly asked Taco Bell to bring the sauce north – on the brand’s own social channels and across online communities. That anticipation has even spilled into Reddit threads with Canadians asking how to get Diablo and fellow Taco Bell fans offering to mail care packages across the border, said the company.

Meera Patel
Meera Patel

“Canadian fans have been asking us to bring Diablo north for years. We’ve seen it in our comments, across social and in online threads from Canadians trying to figure out how to get their hands on it,” said Meera Patel, Director of Marketing, Taco Bell Canada.

“When the demand is that clear, the answer is simple: listen. Bringing Diablo sauce to Canadian restaurants is the moment fans have been waiting for, and Diablo Buffalo lets us make that moment uniquely ours in Canada.”

To mark the launch, Taco Bell Canada said it is also introducing the new Diablo Buffalo Crispy Chicken menu, a limited time lineup that brings Diablo-inspired heat to the brand’s crispy chicken offerings – including tacos, burritos, tenders and a Canadian-exclusive Diablo Buffalo Crispy Chicken Crunchwrap.

Diablo and Diablo Buffalo sauce were first unveiled at Canada’s second annual Live Mas Live, the company’s innovation showcase that gives fans an inside look at the bold ideas, menu items and cultural moments shaping what’s next for the brand.

Diablo sauce will also be available on its own at participating Taco Bell Canada restaurants for a limited time this spring.

Taco Bell image

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Tourism sector sees growth in Q4 2025: Statistics Canada

By
Mario Toneguzzi
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Statistics Canada
Statistics Canada

Real tourism gross domestic product (GDP) grew 1.2% in the fourth quarter of 2025, following a 0.9% increase in the third quarter. By comparison, economy-wide real GDP by industry contracted 0.1% in the fourth quarter, following a 0.6% increase in the third quarter. Tourism GDP accounted for 1.74% of nominal GDP in the fourth quarter, according to a report released Friday by Statistics Canada.

Tourism spending in Canada grew 1.2%, as outlays by both international visitors and Canadians travelling at home increased in the fourth quarter, said the federal agency.

In the fourth quarter, growth in real tourism GDP was mainly driven by increased activity in the transportation (+3.5%) and accommodation (+1.0%) industries. The only decline was among non-tourism industries (-0.4%). Annually, real tourism GDP grew 2.2% in 2025. By comparison, economy-wide real GDP by industry grew 1.6%, noted Statistics Canada.

“Spending by international visitors grew 3.6% in the fourth quarter, the fastest pace in two years. Tourism spending on all products increased, with passenger air transport (+5.3%) and accommodation services (+2.8%) contributing most to the overall growth,” it said.

Gustavo Fring photo
Gustavo Fring photo

“Overnight travel to Canada from abroad increased 3.7% in the fourth quarter. This was the largest quarterly increase of 2025, as travel from the United States in the first half of the year was lower amid continued Canada-US trade tensions. This weaker start contributed to a 0.7% annual decline in spending by international visitors in 2025 despite growth in the latter half of the year.

“Spending by international visitors accounted for 24.0% of all tourism spending in Canada in the fourth quarter, up from 23.5% in the third quarter.”

Domestic tourism spending by Canadian residents was up 0.5% in the fourth quarter, after edging down 0.2% in the third quarter. Growth was mostly driven by increased outlays on passenger air transport (+3.2%), which offset declines in travel services (-4.7%), pre-trip expenditures (-2.2%) such as luggage and camping equipment, and non-tourism products (-1.2%). An increase in the number of Canadians returning to Canada by air likely contributed to the rise in spending on passenger air transport. Annually, tourism spending in Canada by Canadian residents increased 2.5% in 2025, following similar growth in 2024 (+2.4%), said the report.

Statistics Canada said the number of jobs attributable to tourism increased 0.4% in the fourth quarter of 2025, following an increase of 0.6% in the third quarter. By comparison, the economy-wide number of jobs was up 0.8% in the fourth quarter.

“The food and beverage (+0.5%), air transportation (+1.5%) and recreation and entertainment (+1.1%) industries contributed the most to the growth in the fourth quarter. Tourism’s share of economy-wide jobs was 3.33% in the fourth quarter, virtually unchanged from the previous quarter. Annually, tourism jobs increased 1.3% in 2025, after increasing 1.5% in 2024,” it added.

More from Retail Insider:

JD Sports Expands in Canada with Eaton Centre Flagship 

By
Craig Patterson
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JD Sports at CF Toronto Eaton Centre. Photo: Craig Patterson

UK-based sports fashion retailer JD Sports is continuing its rapid Canadian expansion with the opening of a high-profile flagship store at CF Toronto Eaton Centre, reinforcing its ambitions to scale across the country and deepen its connection with urban consumers.

The new 10,000 square foot store on Level 1 positions the brand in one of the country’s busiest and most competitive retail environments. A JD representative confirmed that the Eaton Centre store brings the company’s Canadian network to 42 locations, reflecting a pace of expansion that has exceeded early expectations.

Rapid Growth Since Canadian Entry

JD Sports entered Canada in late 2021, launching its first locations in Toronto and Surrey, British Columbia. Since then, the company has moved quickly to establish a national footprint, focusing on major shopping centres and key urban markets.

The retailer has positioned itself within the premium athleisure and sports fashion segment, targeting younger consumers and leveraging brand partnerships to deliver exclusive product assortments. According to company statements, Canadian consumers have responded strongly to JD’s positioning, with the retailer citing strong foot traffic and growing brand recognition across markets.

This momentum reflects broader trends in the Canadian retail landscape, where global brands are increasingly targeting urban centres with high-visibility flagship stores that function as both retail spaces and brand showcases.

JD Sports at CF Toronto Eaton Centre. Photo: Craig Patterson

Eaton Centre Flagship Anchors Downtown Strategy

The CF Toronto Eaton Centre location marks JD Sports’ fifth flagship store in Canada, underscoring a strategic shift toward larger, more immersive retail environments.

Located in North America’s highest-traffic shopping centre, the store is designed to maximize visibility and engagement. With more than 50 million annual visitors to the CF Toronto Eaton Centre, the location offers access to a broad mix of consumers, including local shoppers, office workers, students, and international tourists.

The store features a bold storefront defined by an illuminated yellow façade and a triple-portal entrance, creating a highly visible and distinctive presence within the mall. Inside, the design emphasizes an open, industrial layout with integrated digital screens and a strong focus on visual merchandising.

This flagship approach aligns with JD Sports’ broader global strategy of creating high-energy retail environments that blend sport, fashion, and youth culture.

Experiential Retail and Brand Partnerships

A key element of JD Sports’ model is its collaboration with major global brands such as Nike, Adidas, and New Balance. These partnerships enable the retailer to deliver exclusive product drops and curated assortments that differentiate its offering from competitors.

The CF Toronto Eaton Centre opening is tied to a broader strategy of creating retail moments that resonate culturally, including product launches and activations linked to major sporting events. JD has emphasized that these collaborations are central to its goal of “propelling youth culture forward,” with stores serving as platforms for storytelling and engagement.

This approach reflects a wider industry shift toward experiential retail, where physical stores are designed to offer more than transactional value and instead function as destinations.

JD Sports at CF Toronto Eaton Centre. Photo: Craig Patterson

Greater Toronto Area as a Strategic Priority

The Greater Toronto Area continues to play a central role in JD Sports’ Canadian strategy. The company views the region as a key market due to its diverse and influential consumer base, which often shapes broader retail trends across the country.

JD has indicated that it will continue to evaluate opportunities across Toronto neighbourhoods, with a focus on locations that align with its target demographic and brand positioning. The CF Toronto Eaton Centre store strengthens its presence in the downtown core and complements existing locations across the region.

Jordan Karp of Savills Canada represents JD Sports in Canada and has been negotiating its lease deals.

National Expansion Strategy Extends Beyond Toronto

JD Sports is actively building a network of flagship and mall-based locations across multiple regions. The retailer has been strategically targeting high-profile urban corridors alongside dominant regional shopping centres, creating a balanced national footprint.

A key milestone came in June 2025 with the opening of JD Sports’ first Canadian street-front flagship on Robson Street in Vancouver. The approximately 16,000-square-foot, two-level store marked a shift toward more immersive retail environments, featuring prominent digital elements and experiential design intended to elevate the in-store experience.

Future JD Sports at 777 Ste-Catherine St. W. in downtown Montreal. Photo: Victor DiLallo Balsis

In Quebec, JD Sports is preparing another major flagship at 777 Ste-Catherine Street West in Montreal. The planned three-level store, totaling roughly 26,000 square feet, will represent one of the brand’s largest locations in the country and further signal its commitment to high-profile urban retail in key markets.

Beyond these flagship projects, JD Sports has established a growing presence in major shopping centres nationwide. Locations span key markets including Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montreal, and Winnipeg, with stores in centres such as CF Chinook Centre, West Edmonton Mall, CF Rideau Centre, and CF Carrefour Laval.

The company’s expansion strategy combines scale with selectivity, focusing on locations that align with its target demographic and brand positioning. While flagship stores serve as high-visibility anchors, smaller-format mall stores continue to play an important role in building market penetration and accessibility.

Looking ahead, JD Sports has indicated it will continue expanding into new regions, including Atlantic Canada, as it works toward establishing a truly coast-to-coast presence.

JD Sports flagship store at 1042 Robson Street in downtown Vancouver. Photo: JD Sports

Positioning Within a Competitive Market

JD Sports’ expansion comes at a time when Canada’s sportswear and athleisure sector remains highly competitive, with established players and global entrants vying for market share.

However, JD’s focus on exclusive product, premium store environments, and youth-driven branding has helped differentiate it within the category. The retailer’s ability to combine fashion and sport, while maintaining strong relationships with key brand partners, has been central to its growth trajectory.

As the company continues to scale, its success in Canada will likely depend on its ability to sustain this differentiation while expanding into new markets and formats.

More from Retail Insider:

Duty-Free Sector Urges Federal Action Amid Slump

By
Lee Rivett
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Photo: Peace Bridge Duty Free

The Canadian duty-free sector crisis took centre stage on Parliament Hill this week as the Frontier Duty Free Association (FDFA) called on the federal government to implement urgent regulatory reforms. During a high-profile press conference held in Ottawa on March 25, 2026, and continuing into March 26, industry leaders warned that land border duty-free stores are facing a prolonged downturn that could lead to widespread closures.

Speaking at the event, Barbara Barrett, Executive Director of the FDFA, emphasized that the sector is experiencing a sustained slump in cross-border travel, which is directly impacting sales and long-term viability. The association framed the issue as a matter of fairness, arguing that Canadian operators face structural disadvantages compared to competitors just across the border in the United States.

Data presented at the conference highlighted the severity of the downturn. According to Statistics Canada figures cited by the FDFA, return trips from the United States fell by 22% year-over-year in January 2026, marking the thirteenth consecutive month of decline.

This drop in traffic has translated into significant financial strain. Some duty-free operators have reported revenue declines ranging from 60% to 80% since the onset of recent trade tensions and shifting travel patterns. The FDFA warned that approximately one-third of its 32 member stores could face permanent closure if conditions do not improve through 2026.

Industry Calls for Regulatory Reform and Financial Relief

At the core of the Canadian duty-free sector crisis is what the FDFA describes as an uneven regulatory environment. The association is advocating for several targeted changes, including tax adjustments to better align with U.S. competitors, recognition of duty-free sales as exports, and a reduction in administrative burdens such as complex labelling requirements.

“Land border duty-free stores have given the Department of Finance small regulatory changes that would allow the stores to survive. We are simply asking for action and for fairness with our only competitor, the United States,” said Barbara Barrett, Executive Director of the FDFA.

In addition, the association is seeking limited financial support measures, including repayable loans or a modest relief fund to help businesses navigate the current downturn. The industry has also raised concerns about rent structures, noting that many operators lease space from government entities or bridge authorities and are advocating for rent relief tied to sales performance.

Image: Peace Arch Duty Free

Trade Tensions and Declining Discretionary Travel

The broader economic backdrop has compounded the sector’s challenges. Ongoing Canada–U.S. trade friction has reduced discretionary travel, which is a key driver of duty-free sales. While commercial trucking volumes remain relatively stable, leisure travel has declined sharply as consumers respond to tariff uncertainty and heightened border scrutiny.

This shift has had a disproportionate impact on duty-free stores, which rely almost entirely on non-essential travel. The FDFA also pointed to what it described as mixed messaging from policymakers, noting that discouraging cross-border trips undermines a retail sector that is fundamentally export-oriented.

The press conference drew support from a coalition of mayors representing border municipalities, including Windsor, Sarnia, and Niagara Falls. These local leaders emphasized that duty-free stores serve as economic anchors in smaller communities where alternative employment opportunities may be limited.

“It’s not a ‘fat cat’ industry… if the industry fails across this country, some future government in the next five to ten years is going to have to reinvent it,” said Mike Bradley, Mayor of Sarnia.

Municipal leaders stressed that the decline in discretionary travel has removed a key customer base. Windsor Mayor Drew Dilkens noted that casual cross-border visitors, once a reliable source of demand, have largely disappeared.

Family-Owned Businesses Face Uncertain Future

Beyond the economic data, the Canadian duty-free sector crisis carries a significant human dimension. Many duty-free stores are family-owned businesses that have operated for multiple generations. The FDFA highlighted examples such as the Butler family, operators of the 1000 Islands Duty Free store, to underscore the potential loss of longstanding Canadian enterprises.

In several rural border communities, duty-free shops represent one of the largest local employers. Their closure would have ripple effects, reducing employment, tax revenue, and overall economic activity.

Export Classification Debate Gains Attention

A central issue raised during the conference is what the FDFA describes as an “export paradox.” While all duty-free goods are technically exports, since they must leave the country, various federal departments continue to treat these businesses as domestic retailers for certain regulatory purposes.

The association is calling for a ministerial directive to formally recognize duty-free operations as 100% export businesses across all relevant government agencies. Such recognition, they argue, would streamline compliance requirements and improve price competitiveness.

Sector Still Recovering from Pandemic Disruptions

The current downturn follows years of instability linked to pandemic-era border closures. Many duty-free operators entered 2026 still carrying debt from the 2020 to 2022 period, with some reporting sales levels remaining significantly below pre-pandemic benchmarks.

The closure of the Woodstock Duty Free Shop in late 2025 has become a focal point for the industry, illustrating the tangible risks facing long-established operators.

As the Canadian duty-free sector crisis deepens, industry leaders are positioning their requests as pragmatic economic measures rather than subsidies. The FDFA argues that targeted regulatory adjustments would represent a low-cost intervention with the potential to preserve jobs, sustain rural economies, and support export activity.

With mounting pressure from both industry stakeholders and municipal leaders, the federal government’s response in the coming months will be critical in determining the future of Canada’s land border duty-free sector.

More from Retail Insider:

Peace Arch Duty Free Risks Closure as Border Traffic Plummets

Soul Smash Burgers Debuts in Mississauga

By
Craig Patterson
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Photo: Soul Smash Burgers

A new burger concept has opened in Mississauga with a deliberately simple approach and ambitions that extend well beyond its first location. Soul Smash Burgers Mississauga is the latest venture from Shakir Al-Qanbar, founder and CEO of East Tea Can.

Located at 3115 Winston Churchill Blvd., Unit 2, beside the original East Tea Can, the fast-casual restaurant represents a more streamlined culinary expression for Al-Qanbar. While East Tea Can built its reputation on elaborate Middle Eastern mezze and tea culture, this new concept embraces restraint.

The first location officially opened in December, following strong anticipation in the community.

“We had a great launch in December,” said Al-Qanbar. “There’s always pressure with a new opening, but the response has been very encouraging. What’s especially rewarding is seeing customers come back.”

Photo: Soul Smash Burgers

A Deliberate Shift Toward Simplicity

In an era where many fast-casual restaurants expand menus to capture incremental sales, Soul Smash Burgers Mississauga takes the opposite approach. The menu is intentionally tight, anchored by two core burgers and one rotating feature.

“It’s different from a lot of competitors, but it’s also very straightforward,” Al-Qanbar explained. “Customers don’t have to overthink it. They walk in knowing exactly what they want.”

The Standard and The Core form the backbone of the menu, while the rotating “No. 1” burger introduces seasonal experimentation. The current feature, an Oklahoma-style smash burger with thinly sliced onions pressed into the beef, will be replaced in late March with a new creation.

“The first two burgers will always stay,” he said. “The third option gives us room to explore and introduce new ideas without overcomplicating the menu.”

The disciplined structure allows the kitchen to operate with just over 10 core ingredients, reinforcing quality control and freshness. The restaurant shares infrastructure with East Tea Can, leveraging an established central kitchen to support efficiency.

Photo: Soul Smash Burgers

Fresh AAA Beef, Ground In-House

Quality sourcing sits at the center of the brand’s positioning. The restaurant uses a minimum of AAA Canadian beef, ground fresh in-store twice daily.

“We use AAA beef at minimum, sometimes higher,” said Al-Qanbar. “Everything is ground in-house, and we grind fresh twice a day. That’s non-negotiable for us.”

While the team initially worked with a single supplier, sourcing has become more flexible to accommodate seasonal availability and market conditions, while maintaining grade standards.

“In Ontario, supply isn’t an issue,” he noted. “Pricing can fluctuate, but so far it’s been within a normal range. We’ve been fortunate.”

The streamlined ingredient list also enables closer oversight of product quality.

“We keep our inventory intentionally short,” he said. “When you’re only managing about 10 core ingredients, it’s much easier to maintain freshness and consistency.”

Even the bun required rigorous testing.

“We tested 18 different brioche buns before choosing this one,” Al-Qanbar said. “We wanted something authentic and balanced. It had to complement the beef, not overpower it.”

Customer feedback has been equally meticulous. Guests have commented on everything from pickle texture to small design details.

“It surprised me how much people notice,” he admitted. “But I actually appreciate that. When customers care about the details, it pushes us to improve.”

In response to demand, the restaurant recently introduced a gluten-free brioche option, and plant-based patties are available as substitutions.

Early Traction and Weekend Lineups

Seasonality has played a role in early performance. January and February were predictably softer months, yet overall momentum remains strong. Dinner service, particularly on weekends, has emerged as a clear driver.

“Friday and Saturday nights are very busy,” said Al-Qanbar. “Dinner service is where we really see the energy. We still get lineups, and that’s always encouraging.”

Lunch business has been steady, with expectations that warmer weather will drive additional traffic as the community becomes more active.

The concept’s atmosphere also contributes to its positioning. Music is carefully curated, and the space is designed to keep focus on the food and overall experience.

Measured Expansion Ahead

Although Soul Smash Burgers Mississauga was conceived as a scalable, multi-unit concept, Al-Qanbar is taking a disciplined approach to growth.

“Expansion is definitely in the plan,” he said. “But it’s too early to move quickly. We want to give this location time to prove itself. By the end of summer, we’ll have a much clearer understanding of the concept’s strengths and where we can improve.”

Operational consistency is the priority.

“Opening stores is easier than running them properly,” he said. “Consistency matters more than the number of locations.”

That philosophy reflects experience gained from building East Tea Can into a recognized destination in Mississauga. Al-Qanbar is also preparing to launch a separate fast-casual Middle Eastern concept positioned as a more express version of East Tea Can, slated for late this year or early next.

“It will be very different from burgers,” he said. “Think of it as a faster, more accessible format.”

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RONA expands partnership with AutoShack, launching shop in shop concept across 12 Ontario stores

By
Mario Toneguzzi
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RONA inc., one of Canada’s leading home improvement retailers, operating and servicing over 425 corporate and affiliated stores, says it is pursuing its partnership with AutoShack to introduce Shop in Shop locations in 12 stores across the Greater Toronto and Ottawa regions by this summer.

Following a successful pilot program, this expansion marks the next phase of collaboration between the two companies, bringing AutoShack’s automotive parts into a significantly expanded retail footprint. Previously available primarily online and at its flagship retail location in Kanata, AutoShack products will now be accessible in-store to a wider audience. Each location will be operated by AutoShack staff and will provide support to help shoppers identify the right parts for their vehicles, said RONA.

Each Shop in Shop will feature a curated assortment of AutoShack’s most in-demand products, with access to a broader extended assortment available for in-store ordering and pickup. This model reflects AutoShack’s continued evolution into an omnichannel retailer, improving accessibility for both online and in-store purchasing, said the retailer.

Doug Young
Doug Young

“We are thrilled to launch the AutoShack Shop in Shop in our stores. Our partnership with AutoShack is another example of RONA’s commitment to delivering greater value to both our PRO and DIY customers. Given the strong alignment between our customer bases, the results of our pilot, and our dedication to providing better value, this partnership is a natural fit,” said Doug Young, Chief Merchandising Officer at RONA inc.

“This partnership represents a major milestone in AutoShack’s evolution into a true omnichannel retailer,” said Gary Calagoure, President at AutoShack. “By bringing our products into RONA stores, we’re making it even easier for customers to access the quality, value, and convenience they expect from us.”

Gary Calagoure
Gary Calagoure

RONA said the rollout will begin with the grand opening at RONA+ Golden Mile, followed by additional locations opening progressively across Ontario in the coming months, including locations in Maple, Whitby, Hamilton, London, Windsor, and the Ottawa region.

RONA inc. is one of Canada’s leading home improvement retailers, headquartered in Boucherville, Quebec with 425 corporate and affiliated dealer stores under the RONA+ and RONA banners.

AutoShack is a Canadian-based automotive parts retailer with a strong foundation in direct-to-consumer e-commerce, serving customers across North America. It has a 250,000-square-foot distribution centre and access to over one million parts.

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RCC Honours Browns Shoes CEO with Lifetime Achievement

By
Craig Patterson
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Michael Brownstein Recipient of the Excellence in Retailing Lifetime Achievement Award (CNW Group/Retail Council of Canada)

The Retail Council of Canada has named Michael Brownstein, CEO of Browns Shoes, as the recipient of the Lifetime Achievement Award at the 2026 Excellence in Retailing Awards. The recognition highlights Brownstein’s more than five decades of leadership in Canadian retail and his long-standing contributions to both business and community.

The award is presented annually to a senior executive who has demonstrated sustained business success and community service over at least 25 consecutive years in retail. According to the announcement, Brownstein’s career reflects a combination of commercial achievement and industry leadership that has helped shape the Canadian retail landscape.

Five Decades of Growth and Leadership

Brownstein joined Browns in 1973 after graduating from McGill University and later became President in 1998. Over the following 25 years, he led the transformation of the Montreal-based company into a national retailer with more than 70 locations across Canada.

Under his leadership, Browns expanded beyond its regional roots to become one of North America’s largest independent footwear retailers. The company also launched its sister banner B2, which now operates nine locations nationwide.

The business has positioned itself as a destination for footwear, with a focus on customer service, store design, and a curated assortment aligned with global fashion trends. The press release notes that Brownstein has built strong partnerships with international brands, contributing to the company’s reputation within the global footwear industry.

Browns Shoes at Yorkdale Shopping Centre (Image: Browns)

Industry Recognition and Global Impact

Brownstein’s influence extends beyond Canada. In 1998, he became the first person outside of Italy to receive the MICAM Award, one of the footwear industry’s highest honours.

His contributions also include mentorship and education. Brownstein has remained actively involved with the McGill Desautels Faculty of Management, where he regularly shares insights with students pursuing careers in business and retail.

Kim Furlong, President and CEO of the Retail Council of Canada, stated in the release that Brownstein’s career reflects “more than five decades of retail excellence” built on integrity, mentorship, and community commitment.

B2 Shoes at Montreal Eaton Centre (Image: Browns Shoes)

Recognition at RCCSTORE26

The award will be presented during the Excellence in Retailing Awards Gala, which takes place as part of RCCSTORE26, scheduled for June 2 to 3, 2026. The conference is expected to feature more than 75 speakers and attract retail leaders from across North America.

The Lifetime Achievement Award remains one of the highest honours in Canadian retail. Previous recipients include François Roberge of la Vie en Rose, Walter Lamothe of Bentley, and Roots co-founders Michael Budman and Don Green.

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