Home Blog Page 80

Canadian Tire Prepares for AI Shopping as Retail Strategy Evolves

By
Craig Patterson
-
Canadian Tire at Carlingwood Shopping Centre (Image: Strathallen)

Canadian Tire Corporation is adapting its retail strategy for a shopping environment in which artificial intelligence may play a growing role in both what consumers buy and which retailers they discover.

During the company’s second-quarter earnings call, President and CEO Greg Hicks said Canadian Tire has added shopping lists, FAQs, tips and other information to its websites so AI agents can more easily discover, understand and recommend its products when consumers search through large language models. The work is part of a broader AI strategy that is also influencing how Canadian Tire identifies merchandising opportunities, builds assortments and coordinates its retail banners.

The disclosure comes as technology companies and retailers invest heavily in new forms of AI-assisted product discovery. Retailers increasingly have to consider how their products are understood by AI systems as well as shoppers and conventional search engines. At Canadian Tire, that external shift is happening alongside an internal one: the company is using AI to identify areas where it believes it can capture more customer spending.

From Product Categories to Customer Occasions

At the centre of that effort is MOSaiC, a retail intelligence platform developed with Microsoft and built on Azure. Canadian Tire announced a broader rollout of MOSaiC in February after a 2025 pilot identified more than 1,000 customer “life occasions” where the company believed its retail system could better serve shoppers. The platform combines AI and advanced analytics with internal sales and Triangle Rewards information, as well as external inputs including seasonality, weather, holidays and local events.

Hicks told analysts that Canadian Tire has analyzed hundreds of millions of transactions, Triangle loyalty information and external insights as it shifts from primarily selling products to serving what the company calls the “occasions of life.” Rather than beginning solely with a category such as sporting goods, apparel or home products, Canadian Tire can look at the customer’s broader shopping occasion and determine which parts of the company can participate.

MOSaiC is designed to turn those insights into decisions about inventory, product assortments, promotions, digital content and services across Canadian Tire, SportChek and Mark’s. Canadian Tire said in February that its retail and digital teams were beginning to use the findings for new merchandise assortments, local store and online experiences, and personalized promotions.

Greg Hicks
Greg Hicks

Back-to-School Becomes the First Major Test

Canadian Tire describes back-to-school as its first major “customer lighthouse,” the company’s term for a shopping occasion where it believes coordinated execution across its banners can produce meaningful market-share gains.

The company estimates the Canadian back-to-school market at approximately $3.4 billion and says it currently holds a low-double-digit share. Hicks described the business as relatively small for Canadian Tire today but said the company sees considerable room to grow its position.

AI-derived insights have already prompted changes to assortment and pricing. Hicks told analysts that Canadian Tire identified gaps ranging from approximately $500 Chromebooks to small fans for university dorm rooms, products that previously were not part of its traditional back-to-school approach. The work has also led to new categories, different price points and changes to merchandising.

Canadian Tire is coordinating the initiative across Canadian Tire Retail, SportChek, Mark’s and Triangle rather than approaching back-to-school separately at each banner. For the first time, SportChek and Mark’s marketing is appearing in the Canadian Tire flyer as part of the campaign, while digital content and personalized Triangle offers are also being organized around the occasion.

Hicks used the example of a parent buying sneakers who may also need crayons and jeans, or a student moving into residence who may need a laptop, fan, furniture and hoodie. Canadian Tire already participates in many of those categories, but historically the products have been spread among different banners and departments. The new approach is intended to capture more of the overall shopping occasion.

Stifel analyst Martin Landry highlighted the strategy following the earnings call, noting that Canadian Tire’s AI tools have introduced new product categories, merchandising approaches and price points around back-to-school that could support market-share gains.

Canadian Tire’s Banners Become More Connected

The AI strategy fits with Canadian Tire’s broader effort to operate its businesses as a more integrated retail system. Canadian Tire, SportChek and Mark’s websites are increasingly connected, allowing customers to move more easily among the banners, with integrated search, carts and payments planned as the digital platform develops.

That integration gives Canadian Tire another way to act on the insights generated by MOSaiC. If the company identifies a customer occasion spanning apparel, sporting goods, household merchandise and other categories, shoppers can increasingly be directed across the banners rather than being treated solely as customers of one business.

The approach could be particularly valuable to SportChek and Mark’s, which operate smaller digital businesses than the Canadian Tire banner. Hicks said Canadian Tire’s substantial web volumes are already generating traffic for the two banners, while Stifel also highlighted the company’s improving ability to direct online traffic toward them. E-commerce sales across Canadian Tire’s banners increased 12% in the second quarter, including 14% growth at Canadian Tire Retail.

The work is part of Canadian Tire’s broader True North strategy, which is intended to capture more of the scale available across the company rather than allowing individual banners and systems to operate independently. MOSaiC adds another layer by identifying customer needs that may extend across several parts of the business.

Preparing for Product Discovery Through AI

Canadian Tire is simultaneously preparing for changes in how consumers find products online. Online shopping has traditionally relied heavily on relatively specific searches for products such as backpacks, desk fans or laptops. Generative AI allows shoppers to begin with a broader need, such as preparing a student for a university dorm room, and have an AI system research products, compare choices and make recommendations.

That changes what retailers need from their digital content. Information published online can increasingly be interpreted by AI systems deciding which products are relevant to a consumer’s request. Hicks’ comments indicate Canadian Tire is already responding by adding shopping lists, FAQs, tips and other information intended to help AI agents understand and recommend its merchandise.

Canadian Tire is not alone in preparing for AI-mediated product discovery, as major technology platforms and retailers build shopping functions around generative AI. The notable development at Canadian Tire is that this work is occurring alongside its own use of AI to identify the shopping occasions where it wants to compete.

Triangle Provides a Large Base of Customer Data

Canadian Tire enters that transition with one of its most important assets already in place. Triangle Rewards has 9.8 million active registered members, according to Stifel, representing an estimated 50% to 60% of Canadian households.

That gives Canadian Tire a substantial base of first-party purchasing information across its retail ecosystem. As the company focuses more heavily on customer occasions, it can examine how loyalty members move among Canadian Tire, SportChek and Mark’s and identify categories or shopping needs where it believes the combined business is underrepresented.

Triangle is also becoming more connected to outside partners. Management said more than two million members are now active with partners including Petro-Canada, RBC or WestJet, with the Tim Hortons partnership expected to add another everyday touchpoint.

AI-driven product discovery introduces another consideration. External AI services can provide retailers with new ways to reach shoppers, while businesses with large loyalty programs still have an incentive to maintain direct customer relationships. For Canadian Tire, making products easier for AI systems to discover can sit alongside its efforts to bring shoppers into an ecosystem built around Triangle, personalization and its different retail banners.

AI Moves Deeper Into Canadian Tire

MOSaiC is not Canadian Tire’s first use of artificial intelligence. The company has already deployed DaiVID, an AI-powered pricing and promotions platform, and is rolling out Microsoft 365 Copilot to corporate employees. Canadian Tire says DaiVID has contributed to improved customer perceptions of value, while MOSaiC represents a broader effort to use AI and data across the retail system.

The scale of the company’s AI work has also been building through 2026. During its first-quarter call, Hicks said MOSaiC had already surfaced more than 1,000 customer life occasions and 180,000 demand signals. He also said AI was informing about one-third of developers’ code and that newly constructed agents had been deployed into real-world workflows.

The difference now is how closely some of those capabilities are becoming connected to everyday retail decisions. Back-to-school shows how customer data and AI can identify an occasion where Canadian Tire believes it is underrepresented, leading to assortment and pricing changes and greater coordination across Canadian Tire, SportChek, Mark’s and Triangle.

At the same time, the company is changing its digital content so the resulting products and shopping solutions can be better understood by the AI systems consumers may increasingly use to find them.

Holiday Comes Next

Back-to-school will provide an early indication of how well the strategy works at scale. Canadian Tire intends to evaluate the results of its customer lighthouses and refine the approach as it moves through other major shopping occasions.

Holiday is next. Hicks described it as a considerably larger business with opportunities to increase both sales and market share, and Canadian Tire has already identified assortment gaps as it prepares. One example cited during the call was lower-priced wrapping paper, an area where the company determined its offering was not sufficiently competitive.

MOSaiC is now moving from pilot and development into decisions customers can see in stores and online. Back-to-school is the first large-scale demonstration of how Canadian Tire intends to apply those insights across its retail system, with holiday providing the next test.

More from Retail Insider:

Healthy Planet expands to Yonge and Eglinton with 45th Ontario location

By
Mario Toneguzzi
-
Healthy Planet photo
Healthy Planet photo

Healthy Planet is opening a two-storey retail location at Yonge Street and Eglinton Avenue on Aug. 21, expanding its Ontario store network to 45 locations.

The 2529 Yonge St. location will combine fresh food, natural groceries, health and beauty products, supplements and sports nutrition, with a Healthy Planet Kitchen offering prepared food and beverages. The opening adds a new retail location in Midtown Toronto as the company continues to expand its physical store network.

New Midtown location

The ground floor will include fresh organic produce, natural groceries and refrigerated and frozen foods. The upper level will carry vitamins and supplements, pantry staples, health and beauty products and sports nutrition.

The store’s lower level will also house the Healthy Planet Kitchen, which will offer prepared bowls, wraps, grab-and-go foods, smoothies and coffee. The company says the kitchen is intended to serve customers seeking prepared food alongside their regular shopping.

“Our goal has always been to make healthy living more accessible to communities across Ontario,” said Muhammad Mohamedy, General Manager of Healthy Planet. “We’re excited to bring Healthy Planet- including our fresh Healthy Planet Kitchen to the vibrant Yonge & Eglinton neighbourhood, providing customers with a convenient, one-stop destination for both nutritious meals and everything they need to support a healthier lifestyle.”

Muhammad Mohamedy, Healthy Planet
Muhammad Mohamedy, Healthy Planet
Healthy Planet photo
Healthy Planet photo

Healthy Planet says staff at the new location will provide guidance and personalized recommendations to customers based on their health and wellness goals.

The company plans to mark the opening with a ribbon-cutting ceremony, along with promotions, giveaways and free samples. Details of the ceremony are to be announced.

Good Food Drive returns

The opening announcement comes alongside Healthy Planet’s annual Good Food Drive, a nationwide initiative the company says is intended to support Canadians experiencing food insecurity.

The campaign is being run through the company’s retail stores and e-commerce platform until Sept. 16. Healthy Planet says last year’s inaugural campaign resulted in donations of raw ingredients equivalent to 300,000 meals for children in need.

For this year’s campaign, Healthy Planet has partnered with Food Banks Canada and Daily Bread Food Bank, as well as Prana, MadeGood, Manitoba Harvest, Peacasa, Wellness Monster, Vita Coco, Dr. Bee and its Benefits By Nature house brand.

“At Healthy Planet, we believe that access to high-quality, nutritious food is a fundamental right, not a privilege,” said Mohamedy. “With more Canadian families than ever relying on food banks, this year’s Good Food Drive is a critical step in addressing food insecurity. We are incredibly proud to partner with Food Banks Canada, Daily Bread and our outstanding brand partners to provide clean, organic meals to those who need them most. Together with our community, we can make a meaningful difference.”

Customers can participate in stores by purchasing qualifying products from participating brands. The company says participating products will be identified through shelf tags, promotional signage and in-store announcements.

Online, the campaign will feature eligible products on a dedicated page on Healthy Planet’s e-commerce platform.

Healthy Planet photo
Healthy Planet photo

Retail and online operations

Healthy Planet describes itself as a health and wellness retailer with locations across Ontario and an online store. Its product assortment includes health food, organic produce, vitamins, herbs and supplements, sports nutrition and natural beauty products, as well as products for infants, children and pets.

The company says it has grown from a kiosk in a strip mall and operates an online health store in addition to its physical locations. It also says its stores have in-house holistic nutritionists and that customers can access naturopathic doctors, free classes and seminars.

The company says its online operation includes a Health Conditions page intended to help customers find products aligned with their health objectives, along with articles and information about healthy living.

More from Retail Insider:

Skin Excellence Medspa offers 30% discount as it launches influencer partnership program

By
Mario Toneguzzi
-
Skin Excellence Medispa photo
Skin Excellence Medispa photo

Skin Excellence Medspa is offering a 30% discount on all of its services to new and returning clients as the Aurora, Ontario clinic launches an influencer partnership program aimed at local content creators.

The limited-time promotion applies to the clinic’s full range of services at its 14845 Yonge Street location. Separately, eligible influencers in the health, beauty and lifestyle sectors can apply for a complimentary Botox treatment valued at up to $400 in exchange for promotional content about their experience.

The initiatives give the clinic two approaches to attracting customers: a price reduction across its service menu and a partnership program designed to generate promotional content through local creators.

Skin Excellence Medispa photo
Skin Excellence Medspa photo

Discount applies across service menu

The 30% discount is available to both new and existing clients, with the clinic inviting customers in Aurora, York Region and the Greater Toronto Area to book consultations.

The clinic said it provides personalized, professionally administered treatments and serves clients in Aurora, Newmarket, Richmond Hill and the broader GTA.

“Our goal has always been to make advanced, results-driven skin and wellness treatments accessible to more people in our community,” said Zahra Erfan of Skin Excellence Medspa. “This promotion, paired with our new influencer program, reflects our commitment to combining clinical expertise with real, relatable results.”

Zahra Erfan
Zahra Erfan
Skin Excellence Medispa photo
Skin Excellence Medspa photo

Influencer program offers complimentary treatment

Under the new partnership program, local content creators can apply to receive a complimentary Botox treatment valued at up to $400. In return, participants are expected to share promotional content describing their experience with the clinic.

The program is open to eligible creators working in health, beauty and lifestyle content. The clinic said all partnered content will carry sponsorship disclosures in accordance with Ad Standards Canada and Competition Bureau guidelines.

The program adds an influencer-based promotional channel to the clinic’s existing customer outreach as it seeks to connect with clients across the region.

Clinic based in Aurora

Skin Excellence describes its business as providing beauty and wellness treatments that combine medical expertise with a client-centred approach.

Clients can book consultations and content creators can apply for the influencer program through the clinic’s website or by telephone.

More from Retail Insider:

Fizz expands retail presence through EB Games Canada partnership

By
Mario Toneguzzi
-
EB Games store. Image: Wikimedia Commons

Telecommunications provider Fizz is expanding its retail distribution through a partnership with EB Games Canada, with an exclusive starter pack now available at 140 of the retailer’s locations across the country.

The $25 Fizz Starter Pack is aimed at customers seeking to sign up for a Fizz wireless plan and includes credits, additional data and access to a higher tier of the company’s loyalty program. The agreement marks an expansion of Fizz’s in-store presence as the company continues to build its wireless business beyond its original Quebec market.

Partnership expands in-store distribution

Fizz said the starter pack is available at 140 EB Games Canada stores. Customers can purchase the pack in-store, then customize their mobile plan and activate their Fizz service online.

“By extending its offer to EB Games Canada’s network of stores, Fizz is reaching out to a community it knows well–one made up of curious, independent people who love to explore and get the most out of every choice. With a starter pack designed for gamers, rewards that keep growing and perks to unlock, we’re giving these customers the simplest way to take their mobile experience to the next level,” said Martin Gendron, general manager of Fizz.

The starter pack is being positioned toward video game enthusiasts, collectors and pop-culture fans who shop at EB Games Canada stores.

Martin Gendron
Martin Gendron
Stephan Tetrault
Stephan Tetrault

EB Games Canada has more than 170 stores across the country, according to a news release. The 140 participating locations will feature the Fizz Starter Pack on free-standing displays.

“Our customers are drawn to brands that do things differently. Fizz’s fresh approach and customer-first model align naturally with that mindset. By bringing a new perspective to wireless, Fizz is a natural fit for our community and a great addition to the in-store experience we provide our customers,” said Stephan Tetrault, owner of EB Games Canada.

Starter pack includes wireless benefits

The $25 package includes benefits that Fizz says are worth more than $100. The package includes:

  • A $75 credit applicable to the first bill;
  • A one-time allotment of 100 GB of additional data valid for 12 months;
  • Direct access to the second tier of the Fizz loyalty program, unlocking more generous rewards;
  • A SIM card and an eSIM; and
  • Several surprises.

Customers can complete their plan customization and service activation online after purchasing the starter pack.

Fizz continues geographic expansion

Fizz launched in Quebec in 2018 alongside Vidéotron, the traditional service provider of its parent company Québecor. The company is now expanding its operations in Ontario, Manitoba, Alberta and British Columbia, according to the release.

Fizz says its fully online service model is based on simplicity and pricing without hidden fees. The company also says it has the highest customer recommendation score, or Net Promoter Score, among telecommunications providers in Canada.

The EB Games partnership gives Fizz an additional physical retail channel while keeping plan customization and service activation online.

More from Retail Insider:

Daily Synopsis: August 19, 2026

By
Retail Insider
-

Welcome to the Daily Synopsis by Retail Insider. We hope you enjoy the 10 articles we published covering key developments in Canadian retail.

Subway Canada brought back its original artisan flatbread after customer demand, and Pandora expanded its Canadian footprint while reshaping its jewellery strategy to include platinum-plated pieces and reduce promotions to strengthen brand positioning.

Coach expanded its store investment targeting Gen Z consumers, and Shopify expanded cross-border ecommerce tools to support Canadian merchants’ international sales. Montreal-based RUDSAK is opening a flagship store in Toronto’s Manulife Centre. See below for more articles.

🗞️ The Day’s Retail Insider Article List

🌐 Canadian Retail News From Around the Web

Subway Canada brings back original artisan flatbread after customer demand

By
Mario Toneguzzi
-
Subway photo
Subway photo

Subway Canada is bringing back its original artisan flatbread at participating restaurants nationwide, citing significant demand from customers who had been asking for the menu item to return.

The company said the decision follows an outpouring of requests and social-media discussion from Canadians after the flatbread was removed from its menu. The product is now available at participating restaurants across Canada.

The return gives customers another bread option that can be customized with any sandwich combination, the company said. The company described the flatbread as a soft alternative to its signature breads.

“At Subway, bread is at the heart of what we do, and it’s been incredible to see just how much enthusiasm there is for the return of flatbread,” said Chef John Botelho, Culinary Manager at Subway Canada. “Flatbread adds another option of choice and customization to the Subway experience, and we’re thrilled to welcome it back to restaurants nationwide.”

The company said the return follows a teaser posted on its social-media channels earlier this month that prompted comments and direct messages from customers.

Subway Canada said the flatbread is available at participating locations and can be ordered in restaurants, through Subway.com or the Subway app.

Subway Canada has nearly 3,000 restaurants nationwide, which are owned and operated by franchisees.

More from Retail Insider:

How Mapping Software Helps Franchisors Decide Where to Recruit New Franchisees

By
Retail Insider
-

A promising franchise candidate can still be wrong for the next opening. The person may live far from supply coverage, field support, and the strongest customer demand. Recruiting from whichever places generate inquiries can scatter a young system across difficult markets.

The franchisor therefore has 2 decisions to connect. It must identify markets with viable demand and find owners capable of operating in those markets. Geographic evidence gives recruitment a market priority instead of an inbox order.

The Next Stage of Growth

The expansion objective determines which markets deserve attention. The company may want to fill gaps around existing units or enter one new metropolitan area. Another plan may favor greater density in a state or a multi-unit operator for a wider region.

Available support places practical limits on growth. Training capacity and field visits matter, as do supply coverage, launch assistance, and local marketing resources. A distant candidate may demand more support than the team can deliver.

A planning horizon and realistic award count keep the analysis tied to near-term execution. Without those limits, a market ranking can become an oversized wish list.

Evidence From Existing Units

Each open or closed unit needs a record, along with transferred and planned locations. Useful fields include opening date, unit format, revenue, customer count, labor cost, occupancy cost, operator background, and support history.

Market effects and operator effects require separate attention. A strong owner can outperform in an average market, but a weak operator can obscure good demand. Comparisons are strongest among units with similar age, format, and operating conditions.

Healthy units may share customer traits such as household income and daytime population. Business density and family status may also matter, together with spending patterns. Each factor needs support from actual results before it becomes part of the demand model.

The Market Profile

The strongest findings form a market scorecard. Its variables need to explain performance without making the model difficult to maintain.

Market factors may include target-customer count, competitor density, and real estate availability. Labor supply and delivery access may join seasonality and distance from support staff. Any factor that can make a unit unworkable needs a minimum requirement.

Franchise mapping software can display current units, customer characteristics, candidate leads, and priority markets together. The view helps a development team distinguish attractive open areas from places that only look empty.

Cannibalization Risk

An open area beside a successful unit may already depend on customers served by the system. An estimate of transferred demand helps distinguish new opportunity from cannibalization.

Customer origins and delivery areas show where existing demand begins. Commute patterns and physical barriers refine that view, together with typical trip distance. Several proposed trade areas are usually more informative than a fixed radius around every site.

An approved threshold can define the transfer of demand the system will tolerate. Some overlap may improve convenience and brand presence, but excessive overlap can weaken existing operators and damage trust in the development process.

Market Readiness Rankings

Separate scores for demand and economics can sit beside competition and supportability, with strategic fit included as another component. Displaying each component beside the combined rank shows executives why a market rose to the top.

Uncertain inputs such as rent and wages work better as ranges, and opening sales deserve the same treatment. A market that succeeds only under optimistic assumptions deserves less priority than one that works across several scenarios.

Demographic conditions affect customers and labor. ILO analysis describes how changing demographics influence demand and workforce availability. Material changes in these inputs warrant a new market ranking.

Candidate Traits by Market

Evidence from successful owners can shape the candidate profile. Liquid capital and operating background matter, as can people leadership, local knowledge, commitment to the system, and willingness to follow standards.

Different markets may need different strengths. A new market can require local relationships and hands-on brand building. A dense group of established units may favor an experienced multi-unit operator with management depth.

Franchisor support can be evaluated through conversations with current owners and a review of onboarding and training, including continuing assistance. Recruitment pages need enough detail about the opportunity and process for prospects to assess their fit with available markets.

Geographic Recruitment Outreach

Recruitment spending can follow the highest-priority markets. Local business publications and referral partners may reach candidates with an area connection, as may professional associations, events, and existing operator networks.

The message also depends on the market. A growing suburb may support a case based on household formation and open demand. An established city may require evidence about brand awareness and unit density, along with available development zones.

Community and stakeholder relations can build awareness and trust among people in an organization’s geographic area. Specific evidence should explain why the brand is prioritizing that area.

Candidate Scores and Brand Standards

Market priority belongs on the candidate record, but candidate quality remains an independent measure. A lead in a top market still needs the required financial capacity and values, along with operating ability.

A documented screening process can cover preferred geography and capital, together with ownership role. Timeline and relevant background provide further context, as does household support. Recorded disqualification reasons help the team improve targeting.

Available funds are only one part of candidate fit. Reporting on people starting a business after retirement shows how professional background and financial goals can shape the decision. Interviews can examine initiative alongside willingness to operate a shared system.

Support Capacity Before an Award

Each candidate-market combination creates a launch burden. Real estate search and permitting need staff attention, as do financing, construction, hiring, training, opening support, and later visits.

Award timing can prevent the support team from launching too many distant units at once. Clustered growth may allow trainers and vendors to serve several openings during one trip with field staff.

Checkpoints belong before any award of a larger development area. The first unit’s opening and staffing can inform the pace of later commitments, together with standards and early performance.

Recruitment Outcomes and Model Updates

Market-level results include leads and qualified candidates, followed by discovery meetings. Awards and openings can then be considered with launch costs and early unit results. Predicted demand should be compared with actual customer behavior.

Lost candidates also contain useful evidence. A priority area may produce few qualified leads because the message or investment level is poorly matched to local prospects. The recruitment channel may be another cause.

A fixed scorecard schedule preserves enough history to judge changed rankings. Geographic analysis supports decisions made before recruitment spending and franchise awards.

The promising candidate from the opening scene may deserve an award later, in a market the system can serve. For the next opening, recruitment belongs where demand, owner fit, and support capacity meet.

Pandora Expands Canadian Footprint While Reshaping Jewellery Strategy

By
Lee Rivett
-
NEW PANDORA FACADE IN MONTREAL EATON CENTRE. PHOTO: PANDORA

Pandora is changing how it sells, markets and makes its jewellery as the global brand enters a new phase of growth, including in Canada, where its footprint has expanded considerably over the past several years.

The Copenhagen-based company now operates 96 stores across Canada and describes the country as one of its fastest-growing markets. Canadian revenue has increased by more than 50 per cent since 2019 and surpassed DKK 1 billion in 2025, giving Pandora a substantially larger base from which to introduce changes to its merchandise, store experience and promotional strategy.

The shift comes as Pandora works through what CEO Berta de Pablos-Barbier has described as a deliberate year of change. The company reported global like-for-like sales growth of one per cent in the second quarter of 2026 and organic growth of three per cent, with newer designs and continued network expansion helping offset pressure in some established markets.

Pandora is simultaneously reducing its reliance on promotions, investing in its physical stores and broadening the materials and jewellery categories associated with the brand. One of the biggest changes involves platinum-plated jewellery, which the company is developing as an alternative to some of the sterling silver merchandise that has long been central to Pandora.

Pandora Pulls Back on Promotions

Pandora has been deliberately reducing promotional activity as part of an effort to strengthen its positioning and become less dependent on discount-driven sales. De Pablos-Barbier told analysts that the company is substantially reducing promotions and heavy discounting in its core markets, accepting some near-term pressure on sales in exchange for stronger brand positioning over time.

The effort will continue during the second half of the year, with management describing the strategy as a “promotional detox.” Pandora is particularly focused on mature markets where promotional activity increased in recent years, while also cutting back on offers outside major commercial periods such as Black Friday.

The change is having an impact online as well. Management said e-commerce historically responds more strongly to promotions than physical stores, meaning fewer discount events can weigh disproportionately on digital sales.

Pandora ultimately wants to give customers more reasons to buy based on the product itself rather than encouraging them to wait for the next promotion. That is particularly important as the company seeks to strengthen its position in accessible jewellery, where frequent discounting can influence how shoppers perceive a brand and its pricing.

Stores Remain a Growth Engine

North America recorded approximately one per cent negative like-for-like growth during the quarter, while Pandora’s U.S. business was flat. Management attributed the U.S. performance partly to weak consumer sentiment and lower store traffic, particularly among middle- and lower-income consumers, although conversion and average basket size were improving both in stores and online.

Pandora did not provide a separate Canadian comparable-sales figure during the earnings call, and its discussion of particularly weak consumer sentiment centred on the United States. The distinction is important given the growth Pandora has reported in Canada over a longer period.

Physical retail continues to play a significant role in the company’s wider growth strategy. Pandora increased its expected full-year contribution from network expansion to approximately three per cent organic growth after new stores opened somewhat earlier and generated slightly more revenue than initially assumed.

The company is also investing in existing stores through updated facades, digital screens, visual merchandising and new ways of presenting collections as coordinated looks. The changes are designed to encourage discovery and expose customers to more of Pandora’s assortment beyond the products that initially brought them into a store.

That strategy has a growing platform in Canada. Retail Insider reported in 2022 that Pandora operated 74 Canadian stores, with company executives identifying opportunities for further expansion, particularly in underpenetrated parts of the country. Its current 96-store footprint is roughly 30 per cent larger than the store count reported at the time.

Pandora had also indicated in 2022 that it wanted to build a more dedicated organization around Canada rather than simply treating the country as an extension of its larger U.S. business.

That investment has since extended beyond physical stores. In March, Pandora opened a dedicated e-commerce distribution centre in Mississauga after previously fulfilling Canadian online orders through facilities in the United States.

More than 20 per cent of Pandora’s Canadian sales are generated online. The Mississauga facility can process as many as 12,500 orders per day and was designed to reduce typical Canadian delivery times from five-to-seven days to two-to-four days while simplifying returns.

Pandora employs more than 1,400 people in Canada. Together with the 96-store network and Canadian revenue exceeding DKK 1 billion last year, the distribution investment reflects the growing scale of the company’s Canadian operations.

Image: Pandora

Pandora Prepares for a Major Material Shift

Pandora’s changing retail strategy is being accompanied by a potentially significant change to the jewellery itself. The company is introducing platinum-plated jewellery on its proprietary Evershine alloy as it works to reduce its exposure to volatile silver prices.

Sterling silver has historically been closely associated with Pandora, particularly through the charm bracelets that helped build the company into the world’s largest jewellery brand. Rising silver costs have complicated that model and increased the importance of diversifying the materials used across Pandora’s assortment.

Pandora announced the platinum-plated initiative in February after conducting a study involving 23,000 consumers in July 2025. The company said 78 per cent of participants recognized platinum as a precious metal, compared with 69 per cent for sterling silver.

An initial Northern European pilot involved a curated selection of best-selling bracelets across 30 stores and e-commerce. During the second-quarter earnings call, management said it was also testing five key products in the Netherlands — four bracelets and one necklace — as it gathered more information about consumer response and pricing.

The test is examining more than consumer acceptance of the material. In physical stores, Pandora is pricing the platinum-plated products at the same level as their silver counterparts, while online it is experimenting with different pricing approaches.

Management said the early response has been encouraging, although the tests remain at an early stage. Pandora has said the initial pilot will inform a broader global launch in the second half of 2026, including additional platinum-plated bracelets and selected charms.

The economics behind the transition are significant. Pandora said during the earnings call that its sensitivity to movements in silver prices should decline substantially as more of its assortment moves toward platinum plating, helping protect margins from sharp movements in the commodity.

Management is also making a broader argument about why consumers buy Pandora.

De Pablos-Barbier told analysts that shoppers choose the brand for its design, craftsmanship, quality and meaning across different materials, pointing to the growth of Pandora’s gold-plated jewellery as evidence that its appeal is no longer dependent on sterling silver alone.

The platinum transition will test that proposition. Pandora is asking consumers to place more of the value of a piece of jewellery in its design, brand and presentation rather than primarily in the underlying metal.

If consumers accept platinum-plated merchandise at scale alongside traditional silver pieces, Pandora would gain considerably more flexibility over its material mix while reducing exposure to silver prices. Platinum also gives the company a precious-metal proposition that can be offered within the accessible pricing structure that has supported Pandora’s global reach.

Moving Beyond the Charm Bracelet

The material shift is part of a broader effort to diversify the reasons consumers shop Pandora. The company’s core segment recorded negative one per cent like-for-like growth during the second quarter, while the business Pandora categorizes as “Fuel with More” grew three per cent. The latter includes areas where Pandora has been introducing more distinctive designs and seeking additional business in categories such as necklaces and rings.

Pandora highlighted Timeless, its Garden of Dreams collection and Pandora Essence among the stronger-performing parts of the assortment. Management said the performance shows the potential for new product design supported by more concentrated marketing.

The company is also putting greater emphasis on fashion and cultural relevance. Its Pandora Wonders creative platform launched during Paris Couture Week with stylist Harry Lambert, following other recent initiatives including its Bridgerton collaboration.

De Pablos-Barbier said recent activations have attracted proportionally more Gen Z consumers while Pandora continues to maintain a cross-generational customer base. The company is looking to broaden its relevance without abandoning the charm and personalization business that remains central to the brand.

Stores, marketing and merchandise are increasingly being developed around that broader positioning. Pandora wants customers to encounter more of its assortment in stores and to associate the brand with a wider range of jewellery rather than primarily sterling silver charms.

A Larger Platform in Canada

Pandora’s Canadian operation enters this transition from a considerably larger position than it occupied only a few years ago. Its 96-store network, rising revenue and dedicated e-commerce infrastructure give the company a sizeable platform for the next phase of its strategy. Pandora has not detailed the timing or scope of its platinum-plated expansion specifically for Canada, while its quarterly results do not separate Canadian comparable performance from the larger North American region.

The company’s Canadian expansion to date has largely been about building scale and infrastructure. The next phase will increasingly be about what Pandora sells through that network and how it presents the brand to consumers, as it relies less on promotions, broadens its jewellery assortment and reduces its dependence on the sterling silver that helped build the business.

More from Retail Insider:

Coach Expands Store Investment as Gen Z Drives Global Growth

By
Lee Rivett
-

Coach is increasing investment in stores, marketing and brand-building after another year of strong growth, with younger consumers, higher handbag prices and reduced promotional activity reshaping the Tapestry-owned brand.

The strategy has direct relevance in Canada, where Coach operates 29 locations across Ontario, British Columbia, Alberta, Quebec and Manitoba, spanning major shopping centres and outlet malls. Its network includes Yorkdale Shopping Centre and CF Toronto Eaton Centre in Toronto, CF Pacific Centre and Oakridge Park in Vancouver, CF Chinook Centre in Calgary and West Edmonton Mall.

Coach reported fourth-quarter revenue growth of 14% on a constant-currency basis, including a 10% increase for the brand in North America, which includes Canada. It attracted more than two million new customers during the quarter and nearly nine million during fiscal 2026, with Gen Z leading customer acquisition.

The growth comes as Coach deliberately reduces its reliance on promotions. Handbag average unit retail increased at a mid-teens rate during the fourth quarter while unit volumes were roughly in line with the previous year, reflecting a decision to reduce promotional days rather than pursue additional sales through discounting.

For the full year, Coach generated both mid-teens growth in handbag average unit retail and low-double-digit unit growth. Management expects both average prices and units to increase again in fiscal 2027.

Younger Consumers Drive Coach Growth

Tapestry has made reaching consumers as they begin buying within the category central to Coach’s strategy. Younger customers joining the brand are spending more per purchase than its broader customer base, according to the company, while also demonstrating strong retention.

Tapestry CEO Joanne Crevoiserat said Gen Z’s influence extends beyond purchases made by younger consumers themselves, with the generation increasingly influencing buying behaviour across age groups. Sales from existing Coach customers have also continued to grow as the brand adds new shoppers.

Product development has been an important part of that strategy. Coach has concentrated investment around recognizable handbag families that can be expanded over time, including Tabby and its New York collection, which encompasses styles such as Brooklyn, Empire and Chelsea.

Footwear is another area the company sees as underdeveloped. Coach reported high-teens footwear growth in the fourth quarter, supported by demand for sneakers including the Soho family, and management believes the category provides room for further expansion.

Coach CEO and Brand President Todd Kahn said the brand remains particularly focused on the roughly US$200-to-US$500 portion of the market. That positioning gives Coach access to consumers seeking a premium or luxury purchase without moving into the substantially higher price points associated with many European luxury houses.

Marketing spending is increasing alongside that effort. Coach raised marketing investment by approximately 20% in the fourth quarter, while Tapestry said spending on marketing and related demand creation represented about 12% of sales during fiscal 2026.

Recent initiatives include the &Coach campaign, developed with input from Gen Z consumers, as well as the brand’s ongoing WNBA partnership. The company has also been directing more marketing toward broad brand awareness as it looks to sustain customer growth over time.

More Investment Goes Into Physical Stores

Stores are becoming an increasingly important part of Coach’s strategy. Tapestry expects to spend approximately US$300 million on capital expenditures and cloud computing in fiscal 2027, with about 70% directed toward growing and improving its store fleet. Coach expects to add approximately 40 to 50 net stores globally during the year, with roughly three-quarters of those additions outside the United States.

The expansion will take Coach beyond 1,000 stores worldwide, while significant investment is also going into existing locations.

Central to that effort is what Coach calls its “expressive luxury” store concept. The company plans to expand the format so that upgraded stores ultimately account for approximately 80% of global Coach store traffic by fiscal 2030.

Management said stores incorporating the concept have generated stronger traffic and longer visits, particularly among Gen Z consumers. Physical locations are increasingly being treated as places where customers experience the brand and its products rather than simply points of sale.

Coach is also selectively opening more experiential Coach Play locations, with recent examples in Chicago, Atlanta and the Le Marais district of Paris. Ideas tested in those stores can subsequently influence the design of the broader fleet.

Tapestry did not identify Canadian locations slated to receive its expressive luxury format during the earnings call. With 29 Coach and Coach Outlet locations already operating across Canada, however, the global fleet investment could eventually have implications for a substantial domestic network.

NEW YORKDALE STOREFRONT. PHOTO: COACH

‘One Coach’ Blurs the Line Between Full-Price and Outlet Retail

Another significant change involves the traditional division between Coach’s full-price and outlet businesses. Under its “One Coach” strategy, the company is deliberately reducing some of those distinctions. Coach has introduced collection merchandise at full price into outlet stores while working toward a more consistent presentation of the brand across physical and digital channels.

Kahn said the strategy reflects the company’s view that customers see Coach as a brand rather than viewing its full-price, outlet and digital businesses as separate channels.

The approach is particularly relevant in Canada because Coach has an extensive presence in both types of retail environments. Alongside stores at major shopping centres such as Yorkdale, CF Toronto Eaton Centre, CF Pacific Centre, Oakridge Park and CF Chinook Centre, the brand operates outlets at centres including Toronto Premium Outlets, Vaughan Mills, CrossIron Mills, McArthurGlen Designer Outlet Vancouver Airport and Tsawwassen Mills.

Coach can use the channel to introduce customers to higher-priced collection merchandise while maintaining a more consistent brand position across its network.

Management has linked the One Coach approach to customer growth and higher average unit retail, although the company has not disclosed specific results for Canadian outlet stores or identified which collection products are being carried at individual Canadian locations.

For a brand with a substantial outlet presence, the shift is notable. Coach is betting that it can preserve the reach provided by outlet distribution without allowing discounting to define the broader brand.

Coach Returns to a Transformed Oakridge Park

Coach’s return to Oakridge Park in Vancouver provides a timely Canadian example of its evolving positioning.

The retailer operated at the former Oakridge Centre before departing ahead of the property’s extensive redevelopment. Coach returned when the first phase of Oakridge Park opened on May 28, placing the brand back at the property after years of construction.

The retail environment surrounding Coach is considerably different from the former shopping centre. Oakridge Park has assembled one of Canada’s largest concentrations of luxury retailers, including Louis Vuitton, Chanel, Prada, Miu Miu, Moncler, Tiffany & Co., Bvlgari and Loro Piana.

Coach’s presence within that mix illustrates the position the brand is attempting to occupy. The company is raising average selling prices, reducing promotions and elevating its physical presentation while retaining price points and a distribution network capable of reaching a broader customer base than traditional luxury houses.

The Oakridge opening also continues a longer history of investment in Coach’s Canadian fleet. Retail Insider has previously reported on renovations and relocations at major Canadian locations as the retailer has updated its store design and merchandising.

In downtown Vancouver, Coach relocated its CF Pacific Centre store in 2022 as part of changes to the shopping centre’s retail mix. Earlier investments included renovations and upgraded merchandising concepts at other prominent Canadian stores.

FORMER BLOOR STREET STORE. PHOTO: COACH

International Markets Take a Larger Role

Coach’s recent growth has extended well beyond North America.

Fourth-quarter revenue increased 30% for Coach in Greater China and 25% in Europe, compared with the 10% increase in North America. Those international markets are expected to contribute a growing portion of Coach’s expansion as the brand remains less penetrated in many countries than it is in North America.

The geographic split of planned store openings reflects that opportunity, with approximately 75% of Coach’s 40 to 50 expected net additions in fiscal 2027 planned outside the United States.

For the full fiscal year, Tapestry expects Coach revenue to increase at a high-single-digit rate. North American growth is expected to moderate as the company moves against strong previous-year comparisons, but management has emphasized that it does not intend to pursue additional sales through heavier promotions.

Kate Spade Remains in Rebuilding Mode

Coach’s performance stands in contrast to Tapestry’s Kate Spade brand, which remains in a multi-year effort to strengthen its positioning and return to sustainable growth.

Kate Spade attracted approximately two million new customers during fiscal 2026, including more than 450,000 in the fourth quarter, with younger consumers an important source of growth. Tapestry continues to invest in product, marketing, store improvements and creative leadership as part of the turnaround.

Progress has nevertheless been slower than anticipated. Tapestry expects Kate Spade revenue to decline at a high-single-digit rate in fiscal 2027 and projects a modest operating loss as investment in the brand continues.

The divergence underscores how central Coach has become to Tapestry’s performance. While both brands have access to the company’s consumer data, marketing capabilities and retail infrastructure, Coach is currently generating considerably stronger results. Kate Spade also recently closed a handful of stores in Canada, which is concerning.

Coach Targets Further Growth

Tapestry generated US$8 billion in revenue during fiscal 2026, and management believes Coach has a path to eventually become a US$10-billion brand on its own.

Getting there will require Coach to sustain a combination that worked particularly well during the past year: attracting millions of new consumers while increasing average selling prices, reducing promotional activity and continuing to grow unit volumes.

Physical retail will be a significant part of that effort. Dozens of new stores are planned globally, spending on the fleet is increasing and Coach intends to bring its newer store experience to locations representing the majority of its customer traffic over the next several years.

Canada is already a meaningful part of that physical network, encompassing major regional malls, luxury-oriented properties and outlet centres across five provinces. Coach’s return to Oakridge Park also puts the brand inside one of Canada’s most significant new concentrations of luxury retail as it pursues a broader strategy of higher prices, fewer promotions and more elevated stores.

More from Retail Insider:

Shopify Expands Cross-Border Ecommerce Tools for Canadian Retailers

By
Craig Patterson
-
IMAGE: SHOPIFY

Shopify is expanding its Managed Markets cross-border ecommerce offering to Canadian merchants, giving eligible retailers and brands access to infrastructure designed to simplify international selling as duties, taxes and customs requirements become more complex.

The Canadian expansion is being supported by Global-e Online, the cross-border ecommerce technology company behind the merchant-of-record infrastructure used by Shopify Managed Markets. Global-e executives said during the company’s second-quarter earnings call this week that opening Managed Markets to merchants in Canada and the United Kingdom is contributing to increased interest outside the United States.

Canada remains an early-access market, with Managed Markets currently available to certain eligible Shopify stores rather than the company’s entire Canadian merchant base. Global-e had already identified Canada as an early-access market in its first-quarter results in May, with the company now reporting increased adoption of the upgraded platform.

For international transactions processed through the Canadian version of Managed Markets, Global-e Canada E-Commerce Ltd. acts as the merchant of record and exporter of record. The Canadian retailer continues to operate its Shopify store, manage inventory and fulfil orders, while Global-e handles much of the infrastructure surrounding the international transaction, including duties and import taxes, international tax registration and remittance, customs requirements, localized currencies and payment methods, and elements of international shipping.

The model gives eligible Canadian merchants access to capabilities that larger retailers have traditionally had to build internally or assemble through multiple outside providers.

Managed Markets V2 Expands into Canada

Global-e said the rollout into Canada and the U.K. is part of a broader effort with Shopify to increase adoption of Managed Markets following the launch of version 2.

“We are seeing an increase in adoption following the rollout of V2,” Global-e co-founder and president Nir Debbi told analysts, adding that availability in Canada and the U.K. was increasing interest outside the U.S.

The company completed the migration of existing Managed Markets merchants from version 1 to version 2 during the second quarter and said early feedback has been positive. Management has characterized the newer version as an improvement over the original offering, which encountered friction that limited broader adoption.

One of the changes is a significantly streamlined onboarding process. Earlier versions required merchants to submit an application for review, with that process later shortened to approximately 24 hours. Global-e CEO and co-founder Amir Schlachet said the vast majority of eligible merchants can now move through onboarding within the same session.

“As soon as they click that they’re interested in Managed Markets, the process is done almost instantaneously, and they can go live within a very, very short time span,” Schlachet said.

Shopify and Global-e are also developing managed pricing and other features intended to improve conversion and provide international shoppers with a more localized purchasing experience. The companies are working to apply more of the practices Global-e has developed with larger enterprise merchants to businesses using Managed Markets.

For smaller and mid-sized Canadian brands, that can reduce the amount of specialized customs, taxation and cross-border commerce expertise required internally when entering additional markets.

U.S. Trade Changes Add Complexity

The expansion into Canada comes at a time when selling into the United States has become more complicated for cross-border ecommerce merchants.

The U.S. suspended duty-free de minimis treatment for shipments from all countries effective August 29, 2025. The change increased the importance of accurately determining duties, country of origin, Harmonized System classifications and the total landed cost of goods entering the country, including for lower-value ecommerce shipments.

Canadian goods that meet applicable rules of origin can still qualify for preferential tariff treatment under the Canada-United States-Mexico Agreement, but accurate product information and documentation are important in determining eligibility.

Managed Markets automates several parts of that process, including product classification and calculations for duties and import taxes. It can also incorporate cross-border costs into international pricing, support localized currencies and payment methods, and handle international tax registration, collection and remittance for eligible transactions.

Those functions are particularly relevant to Canadian merchants looking to the U.S. for growth while navigating a more demanding import environment.

Access Remains Limited

Managed Markets is not yet available to every Canadian Shopify merchant. Shopify’s eligibility requirements include operating a Canadian business with a qualifying Canadian location and fulfilment setup, while merchants must use Shopify Payments and a supported Shopify tax configuration.

There are also restrictions involving certain store structures and business models. International subscriptions and Shopify B2B transactions are not currently supported through Managed Markets, making the offering most directly applicable to consumer-facing merchants selling physical products internationally.

Global-e sees room for the Canadian business to grow as availability expands. Schlachet told analysts that Shopify has a large and growing population of merchants in Canada and the U.K. that could ultimately be relevant to Managed Markets. The U.S., Shopify’s largest market, was the initial focus for the offering before expansion into additional countries.

Cross-Border Sales Continue to Grow

The rollout comes alongside strong growth in Global-e’s broader international commerce business. Gross merchandise value reached US$2.09 billion during the second quarter of 2026, up 44 per cent from a year earlier and marking the first time the company surpassed US$2 billion in quarterly GMV outside the peak holiday period.

Revenue rose 39 per cent to US$299 million, while adjusted EBITDA increased 62 per cent to US$62.4 million. Global-e raised its full-year outlook and now expects 2026 GMV of between US$8.81 billion and US$9.11 billion, with revenue forecast at between US$1.305 billion and US$1.355 billion, including the expected contribution from its recently acquired Passport business.

Management said same-store sales growth across its merchants was running above historical levels during the quarter, with consumer demand remaining resilient across most destination markets. Newer merchants were also ramping more quickly than expected.

At the same time, shoppers appear to be becoming increasingly responsive to promotional periods. Schlachet said some larger merchants saw the increase in volumes generated by seasonal sales events reach more than 25 per cent above the increase produced by comparable promotions in the second quarter of 2025.

Debbi said Global-e has seen stronger reactions to promotions over the past two or three years, with some consumers increasingly planning their shopping around major sales events. The pattern points to healthy international ecommerce demand across the company’s merchant base, alongside consumers becoming more deliberate about when they make purchases.

Passport Adds Logistics Capabilities

Global-e is also extending its international logistics operations following its acquisition of Passport, a U.S.-based cross-border ecommerce logistics company. The transaction closed July 1 for approximately US$350 million upfront, split roughly equally between cash and Global-e shares, with up to an additional US$75 million tied to Passport’s 2026 financial performance.

Passport operates an asset-light, multi-carrier logistics network spanning cross-border, domestic and last-mile deliveries. Global-e said the acquisition adds capabilities including direct injection and consolidated returns while allowing it to continue offering Passport’s non-merchant-of-record logistics services to a broader range of businesses.

Passport is expected to generate more than US$100 million in revenue this year. Global-e is integrating the business into its existing carrier network and expects the combination to expand the shipping and post-purchase services it can provide alongside its existing pricing, payments, duties and compliance infrastructure.

Canadian Retailers Look Beyond the Domestic Market

Canadian retailers looking internationally still need products that resonate in other markets, effective customer acquisition, inventory and the ability to fulfil growing order volumes. Managed Markets does not address those fundamental retail challenges, but it can reduce the tax, customs, payments and trade infrastructure that a merchant needs to assemble independently.

Canada remains in the early stages of the Managed Markets rollout, making adoption among Canadian merchants worth watching as Shopify expands availability. If Global-e’s early indications translate into broader uptake, international expansion for more Canadian ecommerce businesses could increasingly begin from the same Shopify environment they already use to sell domestically.

More from Retail Insider:

1...798081...1,451Page 80 of 1,451