EMERGE Commerce Ltd., a portfolio of e-commerce brands and technologies, has signed a definitive agreementdated effective February 19, through its wholly owned subsidiary, Emerge Brands Inc., to acquire substantially all assets of Viral Loops and specified liabilities from Wishpond Technologies Ltd.
Founded in 2016, Viral Loops is a highly profitable, B2B referral marketing platform that enables businesses to design and manage subscription-based referral programs that drive word-of-mouth, increase retention, and reduce customer acquisition costs, said EMERGE, adding that Viral Loops operates an asset-light, recurring revenue model with high gross margins and strong cash flow conversion. The business serves a diversified base of global B2B customers.
For the year ended December 31, 2025, Viral Loops generated CA$1.3M in revenue, with gross margins of ~86%, and Adj. EBITDA of CA$800K (~62% Adj. EBITDA margin), based on unaudited results, explained EMERGE.
EMERGE has agreed to pay cash consideration of $2.1M on closing of the transaction, subject to certain closing adjustments, and $200,000 in deferred cash consideration at the one-year anniversary. At December 31, 2025, Viral Loops had total assets of approximately $1.2 million.
EMERGE’s subscription, marketplace, and retail businesses provide its members with access to offerings across its grocery and golf verticals. truLOCAL is its flagship Canadian meat and seafood subscription service, connecting local farmers with a health-conscious audience. Its golf vertical includes its discounted tee-times/ experiences brand, UnderPar, and its discounted golf apparel and equipment brands, JustGolfStuff and Tee 2 Green.
Ghassan Halazon
“Viral Loops is precisely the type of high-margin, recurring revenue business we aim to acquire — profitable, cash-flow generative, and strategically complementary to our portfolio. At ~2.9x Adj. EBITDA, we believe this transaction reflects disciplined capital allocation with compelling immediate returns. We are impressed with the lean team running the business and their tech-forward AI roadmap that we believe has the potential to both take Viral Loops to the next level, as well as super-charge the overall EMERGE portfolio,” said Ghassan Halazon, EMERGE founder and CEO.
“The acquisition of Viral Loops is expected to substantially enhance EMERGE’s profitability and cash flow profile, strengthen the Company’s balance sheet, and potentially improve our cost of capital over time.”
Viral Loops will continue to maintain its team, brand, website and its hundreds of client relationships under EMERGE, said the company, adding
Viral Loops is EMERGE’s first acquisition under its newly formed, EMERGE B2B vertical, designed to complement and strengthen the company’s overall portfolio.
After having served as Executive Chairman since September 2023, Stephen Reitman will retire from the role effective March 6, and will continue to serve on the RCL Board of Directors as Chairman Emeritus and Board Director, said the retailer.
The Board has appointed independent director, Samuel Minzberg, to serve as Chairman of the Board, effective March 7.
Stephen F. Reitman
Reitman joined RCL more than 50 years ago and has played a pivotal role in the organization’s growth and long-term success. As Executive Chairman, he worked closely with management and the Board to support RCL through its period of strategic renewal and leadership transition with Andrea Limbardi’s appointment to President and CEO in September 2023, said the company.
“It has been a privilege to serve RCL for more than five decades and, most recently, as Executive Chairman,” said Reitman in a statement.. “I am deeply proud of the organization we have built, and I am most confident in Andrea and the leadership team in place today, as they execute the RCL transformational strategy. I look forward to continuing to support RCL as Chairman Emeritus and Board Director.
Photo: Reitmans
“Mr. Minzberg has served on the RCL Board for several years and has extensive governance experience, as well as a deep understanding of the organization’s mission and future priorities. He brings exceptional judgment, integrity, and perspective to the role of Chairman, and I have great confidence in his ability to lead the Board.”
Reitmans is one of Canada’s leading specialty apparel retailers for women and men, with retail outlets throughout the country. The company operates 388 stores under three distinct banners consisting of 218 Reitmans, 85 PENN., and 85 RW&CO.
“On behalf of the entire Board, I want to thank Stephen for his extraordinary commitment and leadership over more than 50 years,” said Minzberg. “Stephen’s stewardship has shaped RCL in enduring ways, and we are grateful that he will continue to share his wisdom as Chairman Emeritus. I am honoured to follow him as Chair and to work with the Board and management to build on the strong foundation in place.”
Andrea Limbardi
“Stephen’s impact on RCL has been immeasurable, and I am grateful for his guidance and partnership,” added Limbardi. “I look forward to continuing to work closely with Sam in his new role as Chair, and with our Board, as we execute on RCL’s strategy, and lead the organization into its next chapter.”
Reitmans also announced that on February 9 it granted an aggregate of 889,930 options to purchase Class A non-voting shares of the company to members of management pursuant to its second amended and restated share option plan dated April 19, 2021, as amended.
The options have an exercise price of $2.14 and are subject to time-based vesting terms and have an expiry date of May 9, 2030. The grant of the options is made pursuant to the company’s Long-Term Incentive Plan which is designed to incentivize members of management in the achievement of long-term financial targets, it said.
US President Donald Trump holds up a sign that lists all of the countries around the world he has imposed new tariffs on as of April 2. (Image credit: Chip Somodevilla/Getty Images)
The Supreme Court’s unsurprising decision to strike down President Trump’s emergency-based tariffs may, paradoxically, make things more complicated for Canada — not less. It didn’t take long to see the reaction. Rather than accept the Court’s limits on his authority, President Trump pivoted immediately, criticizing the ruling and announcing new tariffs under a different statute, with hints that rates could rise further. The response was entirely consistent with the brand.
Some pundits rushed to claim the decision was a humiliation. That is nonsense. If anything, the ruling handed President Trump an opportunity to inject even more uncertainty into global markets. A Supreme Court endorsement of the original tariffs would have created a predictable — if unpleasant — framework. Predictability allows businesses to adjust. What we now face instead is fluidity. And fluidity, in trade policy, is far more destabilizing.
Canada conducts roughly $100 billion a year in agri-food trade with the United States, with close to two-thirds of our food exports heading south. This is not simple trade — it is integration. Cattle cross the border for feeding and processing. Canola is crushed in the U.S. and re-enters as oil and meal. Processed foods depend on American ingredients, machinery and distribution networks. Hundreds of millions of dollars in food products move across the border every single day. When Washington experiments with tariff authority, that uncertainty moves directly from farmgate to grocery shelf.
Even before the Supreme Court’s ruling, many Canadian food businesses exporting non-CUSMA compliant products were forced to reduce their prices simply to remain competitive in the U.S. market. American buyers facing tariff costs could easily switch to domestic alternatives. To preserve contracts and shelf space, Canadian exporters absorbed part of the tariff burden themselves. Examples of non-CUSMA compliant food products can include processed snacks made with imported cocoa or specialty ingredients, frozen meals containing non-North American proteins or sauces, seafood that was harvested abroad but processed in Canada, and repackaged imported fruits that have not undergone substantial transformation.
That meant thinner margins, delayed investments, and in some cases postponed expansion plans. Tariffs do not just tax goods — they compress profitability.
Even if CUSMA-compliant goods remain exempt for now, trade risk has not disappeared. A product can be technically tariff-free and still face higher input costs, stricter border scrutiny, currency volatility, and contract renegotiations. In a deeply integrated $100-billion food corridor, uncertainty alone raises wholesale costs — and wholesale costs eventually reach consumers. Food prices in Canada can move without a single tariff being formally applied.
Looking ahead to the CUSMA review, the environment has rarely looked more delicate. President Trump could threaten to dismantle the trilateral framework and pursue bilateral deals with Canada and Mexico separately. The threat itself would be a powerful negotiating tactic. In practice, fully tearing up CUSMA would be economically disruptive and politically complex, especially given the degree of North American integration in agri-food. More likely, bilateralization would serve as leverage rather than destination. But with this week’s rapid pivot, complacency would be naïve.
In Ottawa, restraint will matter. Escalating with new counter-tariffs to “punish” the Americans would only ricochet back onto Canadian grocery bills, as we have already seen. In the current environment, discipline — not bravado — will determine whether Canadian consumers ultimately pay the price.
The grandson of the inventor of the Reese’s Peanut Butter Cup, Brad Reese, has publicly criticized The Hershey Company for allegedly changing the formulation and reducing the quality of the iconic product over time. Hershey’s has firmly denied altering its flagship cups, insisting they still contain roasted peanuts and milk chocolate, just as they always have.
Brad Reese’s concerns appear to focus less on the classic two-cup package and more on product extensions — seasonal shapes, limited editions, and newer SKUs that may use compound coatings or peanut-butter-style crème instead of traditional ingredients. In other words, the core product may be intact, but the brand ecosystem surrounding it has evolved.
From a business standpoint, these adjustments are not surprising. Cocoa prices have surged to historic highs, input volatility remains significant, and CPG companies face relentless margin pressure. Reformulation flexibility in secondary SKUs offers a way to manage costs without officially “changing” the flagship product.
But consumers are noticing.
Many have observed that portions feel smaller, textures different, flavours subtly altered. Whether real or perceived, the experience has changed for some. This is where shrinkflation (reducing size while maintaining price) and skimpflation (replacing premium ingredients with cheaper substitutes) enter the conversation. These are not new strategies — they have been used for decades across the food industry. What is new is the amplification effect of social media. Consumers now compare notes in real time, and brand loyalty is increasingly conditional.
Hershey’s may well be telling the truth about the classic Reese’s cup. However, when peripheral products evolve in ways that consumers interpret as dilution, the brand equity built over generations can erode. That appears to be what concerns Brad Reese — not merely formulation changes, but the safeguarding of a legacy.
Iconic brands rely heavily on nostalgia and trust. If consumers begin questioning whether they are paying a premium for something subtly downgraded, the value proposition weakens. In an inflationary environment where private labels are improving in quality, that becomes a real competitive risk.
Brad Reese’s message seems genuine and personal — rooted in family pride. But it also signals something broader. When even the descendants of brand founders question product integrity, it suggests that shrinkflation and skimpflation may be approaching their limits.
At some point, companies will need to find alternatives to cost-management strategies that rely on reducing quantity or quality. Because once nostalgia fades, trust becomes the only currency that matters.
Retail Insider’s most recent articles cover key moves shaping Canadian retail, including Loblaw’s AI partnership with Google to advance conversational commerce and operational efficiency. Toronto boutique Clementine’s is relocating its flagship to the upscale James development in Rosedale while maintaining presence for a new concept on Yonge Street. In Calgary, leasing at CF Market Mall and CF Chinook Centre is accelerating with high-profile brands expanding. Below is a list of our most recent set of articles, followed by News from Around the Web over the weekend.
A U.S. Supreme Court ruling on Friday striking down many of U.S. President Donald Trump’s tariffs, including some of those levied against Canada, is drawing much attention and reaction throughout the country as organizations and businesses try to determine what this all means.
But right after Trump announced a new 10 per cent global tariff ‘effective immediately.
“Today’s Supreme Court ruling against much of the recent use of U.S. tariffs is a welcome development for small businesses on both sides of the Canada/U.S. border. But while this decision weakens the administration’s justification for tariffs, it is likely that other tariff and trade tools may be used to accomplish the same end,” said Dan Kelly, President, Canadian Federation of Independent Business (CFIB), Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
“Unfortunately, this ruling will not help address the uncertainty related to Canada/U.S. trade, nor the crippling tariffs on steel and aluminum that have been imposed by both countries.
Dan Kelly
“Still, there is the potential for relief for non-CUSMA compliant goods. In a recent survey, 27% of small businesses said they were harmed by tariffs on non-CUSMA compliant goods, especially as many small firms struggle to comply with the confusing regime.
“While we should not expect the administration to end its efforts to impose tariffs, this decision may help sway other US political leaders against this harmful approach as both countries review the CUSMA agreement. While uncertainty continues, this is a good day for Canadian businesses.”
“Today’s ruling may remove one tariff risk for Canada, but it does nothing for the auto, steel, and aluminum sectors. This President can continue to move forward, securing the relocation of work for his nation and its economy by sustaining these tariffs.
“But Canada’s story isn’t just tariffs; it is uncertainty. I don’t believe CUSMA will be easy to negotiate, but this ruling may temper retaliation tactics during those negotiations. I would not rule out new tariffs as the US may test other legal paths despite this ruling.
“During CUSMA negotiations, Canada should try to have sector tariffs removed, but that will likely not change the made in America by Americans MAGA narrative. Many in the US support this policy from Washington. And also the continued push for US corporations to return home and for foreign corporations to build in America.
George Minakakis
“The problem is that while the US accounts for 4.2% of the global population, it also accounts for 25.7% of global GDP. The world needs the US economy! However, the current global shifts, from tariffs, unpredictable GDP, food inflation, and the proliferation of AI, mean that Canada is clearly not exempt from challenges ahead. There are many difficult decisions that businesses of all sizes will face over the next two years.
“Municipalities have always played a role in nation-building; today, each must reimagine the opportunities ahead and determine how to make their communities and local economies trade- and tech-ready. Tariffs are a reminder that national strength is local. When global policy shifts, the communities with strong economic ecosystems protect jobs and keep investment moving.
“We cannot afford to think for one minute that things will resolve themselves or that they will go back to how they used to be. The US is moving in a different direction; that is the 800-pound gorilla, don’t mistake it for anything else.”
Bruce Winder, a retail analyst and author, said: “Today’s Supreme Court decision could result in US importers receiving rebates from the government on duties paid since the tariffs were put in play. This could result in a one-time benefit to shareholders in the form of dividends or share buybacks.
“I don’t think that US retail prices will drop though as new higher prices have been normalized overall. Some US retailers may lower prices but that may be the exception.
Bruce Winder
“For Canadian retailers we may see some decrease of cost of goods if they buy from US distributors importing from tariffed countries. There may also be less pressure from direct to factory suppliers from subject countries who import into the U.S. as it relates to first costs retailers pay to import into Canada.
“This all assumes that the administration does not find an alternative way of keeping duties in play.”
Sylvain Charlebois, Senior Director, Agri-Food Analytics Lab, Dalhousie University, said: “The decision removes a layer of uncertainty that’s plagued cross-border supply chains. Retailers that source products from the U.S. or that compete with U.S. imports now have greater predictability in pricing and inventory planning, which is essential for managing margins in a highly competitive food retail sector.
Sylvain Charlebois
“This ruling is not just a legal rebuke — it could have tangible effects on food retail pricing, supply chains and purchasing behaviour on both sides of the border. While much depends on how U.S. trade policy evolves, Canadian grocers may welcome a shift away from broad tariff regimes that had been driving up costs.”
Scenario 1: Broad tariff rollback on CUSMA-aligned goods “If tariffs tied to emergency powers are removed, Canadian exporters regain short-term cost competitiveness and margin stability, particularly in integrated supply chains like automotive and manufacturing. This would ease pricing pressure and restore some predictability in cross-border flows. However, it is more of a reset in the short term than a resolution.”
Scenario 2: Sectoral tariffs persist or selectively expand “Steel, aluminum, and lumber remain exposed. These sectors have already absorbed structural cost increases, and continued tariffs would reinforce a two-speed economy, where some industries recover while others remain constrained. Removal here would be far more meaningful to Canada’s GDP and employment base than broader symbolic relief.”
Gary Newbury
Scenario 3: Policy workaround by Trump administration “It would be naïve to assume this is the end of tariff risk. Donald Trump’s team will likely pivot to alternative legal mechanisms to maintain trade pressure and gain advantage over international partners. The strategy has always been leverage, not legality.”
Bottom line for Canada “This ruling reduces legal overreach, but not strategic intent. Canadian businesses should not interpret this as long awaited stability returning, but as a signal to double down on trade negotiations with the US, strengthening domestic supply chains (including rapid dissolution of interprovincial barriers) and to accelerate trade diversification reducing dependency on unpredictable U.S. trade policy. The challenge for Canadian businesses is to exploit foreign markets where our shipping costs, favourable exchange rates and lower labour and energy costs provide a competitive advantage,” said Newbury.
The U.S. Supreme Court ruling to strike down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) represents a legal rebuke of presidential overreach but does nothing to resolve the ongoing trade crisis threatening Canadian jobs and key industrial sectors, said Unifor.
Lana Payne
“This ruling exposes how abusive and legally flawed the IEEPA tariffs were, but Canadian workers should not mistake this for a victory,” said Unifor National President Lana Payne. “The risk to Canadian jobs remains severe, with the potential to even increase if Trump looks for new ways to impose tariffs or target Canadian jobs and investment.”
While the Court confirmed that IEEPA does not grant President Trump authority to impose sweeping ‘economic emergency” tariffs, the ruling does not end the U.S. trade war against Canada with industry-targeted Section 232 tariffs and other punishing measures still in place, explained Unifor, which is Canada’s largest union in the private sector, representing 320,000 workers in every major area of the economy.
Although the Supreme Court decision removes specific IEEPA tariffs, U.S. officials have already signalled their intent to reinstate or replace them using alternative legal authorities.
“The most damaging tariffs Canada faces were never IEEPA tariffs in the first place, because the Trump Administration chose to exempt goods that comply with our trade agreement,” said Payne. “However, so-called ‘national security’ tariffs under Section 232, targeting auto, steel, aluminum, and wood products remain fully in force and could be expanded at any time.”
The decision also has no impact on long-running anti-dumping duties, including the softwood lumber dispute, which continues to punish Canadian workers and communities, it added.
Clementine's at 1054 Yonge Street in Toronto. Photo: Clementine's
Toronto-based boutique Clementine’s will relocate its current store to a new retail space at The James a mixed-use development rising at Scrivener Square in the Rosedale/Summerhill neighbourhood. The move is expected to take place in early Fall 2026, positioning the retailer within a curated cluster of specialty retail, dining, and wellness tenants.
While Clementine’s will relocate to The James, the retailer plans to retain its existing Yonge Street location for a new concept that has yet to be announced.
The transaction was negotiated by Toronto-based brokerage and consultancy DWSV Realty, with David Wedemire and Stan Vyriotes representing Clementine’s. The firm has worked with a number of premium and luxury brands seeking strategic retail locations in Toronto and other major markets.
A Mother-Daughter Concept Shop with a Curated Point of View
Clementine’s was founded in 2014 by Christina McDowell and her daughter Kelly McDowell as a curated, multi-brand boutique focused on contemporary luxury fashion, accessories, art, and home décor. The store’s current location at 1054 Yonge Street is notable for having been Roots’s first location in 1973.
Kelly McDowell, left, with mother Christina. Photo: Clementine’s
Christina McDowell, a luxury industry veteran, spent 15 years at Holt Renfrew as the retailer’s Image Consultant and National Spokesperson before launching Clementine’s with her daughter.
“We started this together about eleven years ago,” said Kelly McDowell. “We opened in December 2014, and we’ve been moving forward ever since. The focus has always been predominantly fashion at a contemporary and new-luxury price point.”
The business intentionally positioned itself at a mid-luxury price point, offering established and emerging labels, often sourced from design hubs such as Italy, France, Denmark, and Japan.
“We’re in that beautiful sweet spot where luxury, value, and high design come together with an edited, modern assortment.”
The boutique operates as what the founders describe as a “concept shop,” with a curated assortment reflecting their personal aesthetic rather than a broad, department-store-style mix.
“Clementine’s collections are based on our perspective, our point of view,” said Kelly McDowell. “If we love something, we bring it in, knowing our clients will too.”
Christina McDowell said the store was built around a shared creative vision between mother and daughter.
“Colette was always one of my favourites, but I had my own vision, and Kelly shared that vision with me. We love what we do and work hard on it every day,” she said.
Clementine’s at 1054 Yonge Street in Toronto. Photo: Falcon24/Google Maps
Product Mix Spans Fashion, Art, and Home
Clementine’s combines fashion with home décor, jewelry, art, and lifestyle objects, creating a multi-category retail environment. The store is known for carrying niche brands, along with limited-run or exclusive items.
The boutique also has experience with private label collections, including locally produced capsule pieces, though that part of the business is currently on hold.
“We’ve had a private label for years,” said Kelly McDowell. “We did well with it, and it’s something we want to bring back when we find the right partner.”
The concept has evolved over time, but the emphasis on curated product and personalized service has remained central.
“I think customers react to a thoughtful, intentional point of view,” said Christina McDowell. “They don’t want a mishmash of product. They want it to make sense.”
Clementine’s at 1054 Yonge Street in Toronto. Photo: Clementine’s
Moving to a New Retail Cluster at The James
Clementine’s new location will be approximately 735 square feet, about half the size of its current 1,526-square-foot space on Yonge Street. The smaller footprint will result in a more edited assortment, with a stronger focus on fashion.
“It’s an opportunity for a refresh,” said Kelly McDowell. “The Brand ethos remains, but more elevated and refined.”
The new store is expected to open around October 2026, aligning with the residential occupancy schedule for The James. The development is a 23-storey mixed-use luxury rental tower at 5 Scrivener Square, with approximately 10,500 square feet of ground-floor boutique retail.
It is being developed by Tricon Residential, and is positioned as a high-end extension of the historic “Five Thieves” retail cluster at Summerhill. The retail component is designed to complement the existing food- and specialty-focused strip on Yonge Street, creating a destination anchored by restaurants, boutiques, and wellness concepts. Within about one kilometre of the site, average household income exceeds $300,000, with a highly educated population and multiple residential projects underway nearby.
For Clementine’s, the location’s demographics and existing traffic patterns were key considerations.
“I’ve lived in the neighbourhood all my life,” said Kelly McDowell. “We know the hub that it is. That block already has great retail traffic, and we realized there was something special there.”
The James retail project in Rosdale/Scrivener Square will become home to Clementine’s, which will be located behind/to the right of the grapefruit-slice fountain in this rendering, via Tricon
Confidence in the Multi-Brand Retail Model
Despite industry discussions about the challenges facing multi-brand boutiques, the founders remain confident in their approach.
Kelly McDowell said, “We believe strongly in the physical store and in the multi-brand experience. It’s about building your community and knowing your customers. We strongly believe in the value of community and love being part of this one.”
She added that a strong point of view is essential for independent retailers to stand out.
“We represent different age groups and styles, but there’s a big crossover,” she said of the mother-daughter partnership. “That helps create a clear aesthetic.”
Christina McDowell said the goal is to create an enjoyable, confidence-building shopping experience.
“Our philosophy is to enjoy their shopping experience and leave here looking fabulous, feeling fabulous, like you haven’t bought something you don’t need or don’t want,” she said.
She also noted that the mother-daughter relationship has been a strength for the business.
“We love it. We’re very lucky.”
The James mixed-use project in Toronto. Rendering: Tricon
A New Concept Planned for the Existing Yonge Street Space
While Clementine’s will move to The James, the founders plan to retain their current Yonge Street space for a different retail concept. Details are still being finalized, and the new store will operate under a different name.
The approach effectively creates a two-store presence in the neighbourhood, with the established Clementine’s brand relocating to the new development while a new concept takes shape in the original location.
A New Chapter in an Established Neighbourhood
For the founders, the move to The James is less about leaving their existing location and more about positioning the brand within a growing retail hub.
“We didn’t need to leave where we are,” said Kelly McDowell. “We love our building, we love our space. But we saw the opportunity and just reached out to start the conversation.”
As the Rosedale/Summerhill area evolves with new luxury residential developments and curated retail, Clementine’s aims to remain part of the neighbourhood’s retail fabric while refining its concept for the next stage of growth.
Retail excellence rarely happens by accident. It is built through late nights, tough decisions, creative risks, and teams who keep pushing even when conditions are uncertain. The Excellence in Retailing Awards , hosted by Retail Council of Canada , are your chance to make that work visible and let your team’s achievements take centre stage in the industry.
With 13 award categories spanning Store Design, Environmental Leadership, Supply Chain Innovation, and new categories for Unified Commerce, AI Operations, and Consumer AI Experience & Marketing, these awards reflect the many ways excellence shows up in retail. (Explore the categories here: Excellence in Retailing Awards Categories & Submission Info – RetailCouncil.org)
Strong submissions share a simple structure: a clear challenge, a smart strategy, thoughtful execution, and meaningful results. But what truly elevates a case study is its story. This is brand storytelling at its most authentic. It’s not advertising language — it’s the narrative of how your team saw a problem, owned it, and built something better. These stories shape how your brand is understood internally and across the industry.
Recognition has real psychological power. It reinforces purpose. It deepens pride. It tells people their work matters beyond daily targets and deadlines. In demanding times, recognition becomes a form of leadership. It strengthens culture, fuels motivation, and reminds teams why they do what they do.
The work is already done — the brainstorming, the testing, the problem-solving, the collaboration, the persistence. The submission is simply the final push that turns effort into visibility and excellence into legacy.
Submissions are open now. Register your submission by March 13, 2026, and upload all your details by March 27, 2026. Winners will be announced at the Excellence in Retailing Awards Gala on June 2, 2026, which closes the first day of RCC STORE 26.
You earned this moment to shine. It’s time to show the industry what your team built.
Partner content. To work with Retail Insider, contact Craig Patterson at craig@retail-insider.com
Many Canadians say they care about ethical products. They want coffee that supports farmers, chocolate made without child labour and everyday goods that are better for the environment.
This gap between what consumers say they value and what they actually buy is often described as hypocrisy. That explanation is tempting, but it misses something important. In most shopping situations, people are not choosing between right and wrong — they are choosing between prices.
Consumer research has long documented a gap between stated preferences and actual behaviour. In surveys, people tend to express stronger ethical intentions than they act on in real shopping situations. That does not mean those values are insincere, but that values are pushed aside when everyday constraints take over.
This gap shows up most clearly in routine purchases like groceries, coffee and chocolate. These are items people buy often, and even small price differences add up quickly. In those moments, price becomes the easiest decision shortcut, especially as food costs continue to rise in Canada.
Ethical products usually cost more because they support higher wages, safer working conditions and lower environmental harm. While those benefits matter socially, they don’t directly benefit the person paying at the checkout.
As household budgets tighten, choosing the ethical option can start to feel less like a moral decision and more like a financial burden.
Rethinking the ethical premium
Much of the debate around ethical consumption assumes that supporting better practices necessarily requires paying more. Ethical products are often framed as “premium” goods, with higher prices justified by their social or environmental benefits.
In our recent research study, we asked whether the ethical premium always had to be paid in money. Instead of focusing on higher prices, we examined whether consumers would respond differently if ethical products were offered at the same price as conventional ones, but in smaller quantities.
To explore this, we ran a series of experiments with more than 2,300 participants in Canada, the United States and Europe. Participants were asked to choose between ethical options (such as Fair Trade or sustainably produced goods) and conventional alternatives for everyday products like coffee and soap.
Participants were then randomly assigned to conditions that framed the ethical premium either through price or quantity. In the price-premium condition, participants chose between a higher-priced ethical option and a conventional alternative of the same quantity. In the quantity-premium condition, the ethical option was offered at the same price as the conventional alternative, but in a smaller quantity.
Across our experiments, consumers were consistently more likely to choose ethical products when the premium was framed as giving up quantity rather than paying a higher price.
Consumers are more sensitive to price information than quantity information. (Curated Lifestyle/Unsplash+)
Choosing less instead of paying more
Across our experiments, people reacted more strongly to price increases than to size changes. Consumers are more sensitive to price information than quantity information.
When ethical products cost the same as conventional ones, consumers no longer feel financially penalized for acting on their values. Rather, paying the premium with quantity makes the ethical product feels more affordable.
Importantly, this approach is not the same as shrinkflation, where companies quietly reduce package sizes over time without informing consumers. In our studies, the smaller size was explicitly visible, and consumers knew exactly what they were choosing.
Making ethical choices affordable
With grocery prices remaining high in Canada, expecting consumers to close the ethical gap by paying more money may be unrealistic. Ethical consumption does not fail because consumers are indifferent or hypocrites.
It fails because ethical choices are often presented in ways that make them feel financially out of reach.
Rethinking how the ethical premium is paid will not solve the problem overnight. Structural issues, such as supply chains, corporate practices and regulation, still matter deeply. But our findings suggest that design choices and pricing strategies can make a meaningful difference in whether consumers are able to act on their values.
If ethical consumption is to become more than an aspiration, it may need to be integrated into everyday affordability rather than positioned as an added cost. How we ask consumers to support ethical practices matters more than we often assume.
About the Authors:
Mehak Bharti is an Assistant Professor of Marketing, Toronto Metropolitan University
Jing Wan is an Associate Professor of Marketing, University of Guelph
Mobile phone screenshots depicting the customer experience. Image: Loblaw
Loblaw Companies Limited has announced a new collaboration with Google that will allow Canadians to shop through conversational AI in Google Search and the Gemini app, marking another milestone in the company’s expanding Loblaw AI commerce strategy.
The announcement follows Loblaw’s recent integration of its PC Express platform into OpenAI’s ChatGPT, reinforcing the retailer’s ambition to become what it describes as an AI-native enterprise. Together, the moves position Loblaw at the forefront of agentic commerce in Canada, where AI tools move beyond search to actively assist in product discovery and purchasing.
Shopping Through Google Gemini and AI Mode
Under the new collaboration, Loblaw will make health, beauty and apparel products available for purchase directly through AI Mode in Google Search and through Google Gemini. Loblaw is the first large retailer in Canada to enable direct purchasing through Google’s AI-driven interfaces.
The integration will allow Canadians to discover and buy products through conversational prompts. For example, a shopper could ask for recommendations for a seasonal skincare routine or back-to-school apparel essentials and move directly from suggestion to transaction within the AI environment.
The system is powered by Google’s conversational AI platforms and supported by the introduction of a Universal Commerce Protocol, an open and standardized framework that enables commerce systems and AI agents to communicate securely. The protocol facilitates shopping, booking and payments across different channels, creating a more seamless path from discovery to checkout.
Per Bank, President and CEO of Loblaw Companies Limited, said the collaboration reflects the company’s ongoing focus on technology and artificial intelligence. “Our purpose is to help Canadians Live Life Well, and this most recent collaboration with Google is a clear demonstration of our commitment to leveraging technology and artificial intelligence to achieve that vision,” he said. “These integrations are making Loblaw an even better place to shop and work by fostering innovation.”
Per Bank
Lauren Steinberg, Chief Digital Officer at Loblaw Companies Limited, framed the move as a natural progression in how customers want to shop. “We see agentic commerce as a natural evolution of how our customers want to shop. By empowering our colleagues and making shopping simpler and more personalized for customers, we are solidifying our position as a true pioneer in Canadian AI innovation.”
Karthik Narain, Chief Product and Business Officer at Google Cloud, emphasized the broader implications for retail transformation. “We are seeing a generational shift where AI is becoming the foundational engine for business transformation. Loblaw’s commitment to scaling AI across its entire enterprise is a clear roadmap for how retailers can convert technical innovation into measurable value. By optimizing everything from merchandising to inventory management, they are proving that AI-native systems are the key to driving both operational efficiency and a superior customer experience at scale.”
Building on the ChatGPT Grocery Integration
The Google collaboration follows Loblaw’s February 2026 integration of its PC Express grocery platform into ChatGPT. That move enabled consumers to move from meal planning to checkout within a single conversational interface.
Through the ChatGPT experience, users can request meal ideas, generate ingredient lists, localize inventory by entering a postal code, and complete purchases via PC Express for pickup or delivery. The integration allows shoppers to refine preferences by dietary restrictions, budget constraints or brand choices, reducing friction in the weekly grocery planning process.
This earlier initiative marked one of the first fully integrated conversational shopping experiences offered by a major Canadian retailer within an AI platform. It also introduced the concept of Loblaw AI commerce in groceries, complementing the new Google integration that focuses on health, beauty and apparel.
Scaling Vertex AI and Enterprise Tools
Beyond customer-facing applications, Loblaw is expanding its use of Google Cloud’s Vertex AI platform across merchandising, supply chain and store operations. The retailer has leveraged Google Cloud in core retail functions for several years, and scaling Vertex AI is intended to accelerate predictive modelling and inventory optimization.
Internally, Loblaw has deployed ChatGPT Enterprise to corporate teams to assist with data analysis, coding and logistics workflows. The company also uses a proprietary AI assistant known as Robin to help store managers manage inventory, anticipate stock-outs and streamline store-floor decision making.
In collaboration with academic partners including the University of Waterloo, Loblaw has also developed Large Language Model pipelines to assess vendor price increase requests. By mapping ingredient costs to global market data, the system evaluates whether supplier price hikes align with underlying commodity trends.
AI in Healthcare and Logistics
Loblaw’s AI ambitions extend into healthcare through its PC Health app, which uses AI to personalize wellness programs and provide digital navigation tools for finding healthcare services. The system analyzes user data from wearables and other inputs to suggest tailored guidance and connect users with care providers.
On the logistics front, Loblaw has signed a five-year agreement with Gatik to deploy 50 autonomous trucks in the Greater Toronto Area. The trucks are designed to transport temperature-controlled groceries to more than 300 stores, with a long-term objective of operating freight-only routes. The rollout represents one of the largest planned autonomous trucking deployments in North America.
The company has also opened a 1.2 million square foot automated distribution centre in East Gwillimbury, Ontario. The facility uses AI-managed robotics to increase picking and packing efficiency.
Gatik autonomous delivery truck in front of a Loblaws store. Image: Loblaw
Capital Investment and Store Network Evolution
These digital initiatives coincide with a significant capital investment program. Loblaw has committed $2.2 billion in capital spending for 2025 and 2026 as part of a broader $10 billion five-year plan.
The company plans to open approximately 80 new stores over the 2025 to 2026 cycle, with roughly 50 focused on hard discount banners such as Maxi in Quebec and No Frills in the rest of Canada. Loblaw has also been converting conventional stores into discount formats to respond to consumer demand for value.
In the third quarter of 2025 alone, Loblaw opened 19 new Maxi and No Frills locations. The company is renovating more than 300 existing stores to upgrade technology, including self-checkout systems and digital shelf tags, while improving energy efficiency.
In addition, Loblaw is adding 100 new Pharmacy Care Clinics within Shoppers Drug Mart locations, deepening its role in primary healthcare services.
No Frills in Downtown Toronto. Photo: Ritchie Po.
A Strategic Push to Gain Market Share
Taken together, these initiatives illustrate a coordinated strategy that blends physical investment with digital transformation. As Loblaw upgrades its store network and emphasizes discount banners to capture value-conscious consumers, it is simultaneously embedding AI into nearly every layer of its operations.
The expansion of Loblaw AI commerce through Google Gemini, alongside the ChatGPT grocery integration, signals a broader shift in how Canadian retailers may approach customer engagement. By meeting shoppers inside the AI platforms they increasingly use for daily planning and product research, Loblaw is positioning itself to capture incremental market share in an environment defined by both economic pressure and rapid technological change.
With more than 2,800 locations across Canada and over 220,000 employees, Loblaw remains the country’s largest retailer. Its latest AI partnerships suggest that the next phase of competition in Canadian retail may be shaped as much by algorithms and conversational interfaces as by store footprints and price promotions.
