Advertisement
Advertisement
Home Blog Page 80

Canadian startup Typical launches stretchable towels with patent-pending technology

Photo: Typical
Photo: Typical

A startup has developed a stretchable towel product it says addresses an overlooked segment in the home goods market, signalling an expansion strategy that combines design innovation with targeted retail distribution.

Typical, co-founded by Lyndon Cormack, launched its first line of towels recently, integrating two per cent spandex into conventional cotton to improve flexibility and comfort. The company is pursuing provisional patents on the stretch technology and has begun distributing the product through a combination of online sales and select retail locations across Canada and the United States.

“Almost everything I buy these days has stretch in it,” Cormack said. “I generally speaking, love when apparel has a little stretch. It makes it more comfortable, makes it easier to use. One day in brainstorming, I said, I wonder why towels don’t stretch.”

The Typical Stretch Towel™ (CNW Group/Typical Goods Inc.)

Identifying an underdeveloped category

Cormack, who co-founded the Herschel Supply Company, said Typical originated from his interest in transforming functional but underutilized product categories. He noted that while luxury and outdoor brands offer quality towels, the broader category remains largely generic and lacks a distinctive brand presence.

The concept emerged when Cormack encountered what he described as an “underwhelming” experience shopping for towels for a personal renovation project in Whistler. Noticing a lack of brands focused on innovation in the segment, he sought to design a towel that offered functional improvement while also creating an appealing brand identity.

“There’s not a real brand associated with the space in general,” Cormack said. “When I ask people what their favourite towel brand is, most people can’t recall a brand. That could be an interesting problem to solve through design.”

Lyndon Cormack
Lyndon Cormack

Cormack enlisted Phoebe Glasfurd, a partner at the design agency Glasfurd and Walker, and Aren Fieldwalker, to refine the concept and develop a visual identity for the brand. He said the collaboration focused on creating a product that was both functional and visually distinct, while keeping the category accessible to consumers.

Product development and operational testing

Typical’s towels have undergone internal prototyping and testing, with Cormack personally testing early versions. He described the initial prototypes as simple white towels without branding, used to evaluate stretch, comfort, and usability.

Once prototypes were developed, Typical worked with a sourcing team to identify factories capable of integrating spandex into cotton fabrics. The company also subjected the towels to industry-standard hospitality testing, which involved repeated wash and bleach cycles at high temperatures to simulate long-term commercial use.

“The 15-cycle test replicates basically a year of a towel lasting in a hotel,” Cormack said. “We passed with flying colours. You wash them, you dry them. They’re approved for hospitality use. They’re approved for spas.”

Phoebe Glasfurd
Phoebe Glasfurd

Cormack said the company also conducted stretch recovery testing modelled on standards used in apparel and athletic wear, to ensure the towels retained shape and performance through repeated use. He described the results as confirming the towels perform comparably to conventional premium towels, while adding the flexibility of spandex.

“Towels are one of the most tactile objects in the home, yet they have rarely been treated as expressive or emotional,” said Glasfurd. “We wanted to create something that feels considered both visually and physically. The stretch, the patterns, the color choices all work together to turn a utility into something you connect with.”

Branding strategy and market positioning

The brand name, Typical, reflects Cormack’s strategy of taking a commodity product and differentiating it through design, functionality, and marketing. He described the name as intentionally playful, conveying familiarity while signalling subtle innovation.

“It’s kind of like calling out a commodity: ‘Ah, it’s just a typical towel.’ But there’s something special about it,” he said. “It’s a little bit sassy, a little play on words. Nice, clean branding. I like the way it’s written and pronounced. It’s a bit of playfulness that we’re trying to be anything but typical.”

Distribution and growth plans

Typical is initially targeting select retailers across Canada and the United States, alongside direct-to-consumer sales through its website, typical.net. Cormack said the company launched recently and has begun shipping products to early customers. He also indicated plans to expand into design shops and gift retailers as awareness of the brand grows.

Cormack emphasised that the company is not seeking to become a large-scale hotel towel supplier, but that rigorous testing ensures consumers can trust the towels for home use and personal care facilities.

Photo: Typical
Photo: Typical

Leadership and strategic outlook

Cormack, now 49, reflected on his experience with Herschel Supply Company, noting that Typical allows him to apply lessons from his previous ventures to a new category. He highlighted the value of observing consumer habits, identifying gaps in product design, and testing innovations rigorously before market introduction.

“It’s fun right now because, unlike Herschel, we sort of invented something interesting,” he said. “Our curiosity about how people use it and what they love about it—we haven’t had too many negative things back. Hearing questions about wash and dry ability is very common, and it helps us educate consumers better about the product.”

The company’s emphasis on design-led functionality and early-stage testing reflects a cautious approach to growth, focusing on select channels and product validation rather than rapid expansion. Cormack also emphasised that customer feedback is central to refining the product and informing future development.

Photo: Typical
Photo: Typical

Looking ahead

Cormack said Typical represents a niche entry into the home goods market, leveraging design innovation and functional differentiation to target consumers who may be dissatisfied with existing commodity products. By combining early-stage testing, limited distribution, and a playful brand identity, the company is aiming to establish a foothold while maintaining operational control and quality assurance.

Cormack said the brand’s strategy is rooted in long-term consumer engagement and iterative product development, a model he described as both “fun” and reflective of his prior entrepreneurial experience.

“We sort of invented something interesting, and our curiosity of how people use it, what they love about it—it’s guiding the brand as we grow,” he said.

More from Retail Insider:

Big Handshake Loyalty Conference to debut in Toronto amid economic squeeze

Photo: Andrea Piacquadio
Photo: Andrea Piacquadio

The Big Handshake Loyalty Conference will make its North American debut in Toronto on April 21, bringing together senior loyalty executives primarily from retail, but also from travel and financial services, as companies face mounting economic pressure and rising consumer expectations.

Organizers expect between 120 and 130 attendees for the one-day event, which has operated for four years in Europe. Lia Grimberg, one of the organizers, said the Toronto edition marks the conference’s “first toe in the water in North America.”

The event arrives as loyalty programs take on a larger financial role for consumers grappling with higher costs, even as corporate budgets for those same programs come under strain.

“We are seeing pretty significant economic pressure both on the company and on the consumer,” Grimberg, Principle and Consultant with Radicle Loyalty, said in an interview.

She said consumers are increasingly relying on loyalty programs “to help subsidize their expenses,” turning points and rewards into what she described as a financial vehicle in their day-to-day lives. At the same time, companies are cutting loyalty budgets, leaving marketers “stuck between a rock and a hard place.”

“They need to provide more value. On the other hand, they cannot afford to do so,” she said.

Lia Grimberg
Lia Grimberg

European roots, brand-side focus

The Big Handshake has built its reputation in Europe with a main conference in Amsterdam and regional editions in London, Berlin and Milan. It has been described by organizers as the “friendliest loyalty meetup,” a label Grimberg attributes to its format and audience mix.

The conference skews heavily toward brand-side executives, with roughly an 80-20 split between brands and vendors. Attendees are primarily directors and vice-presidents responsible for loyalty and personalization strategies, along with some senior managers. Most come from retail, with representation from travel and financial services as well.

“It’s a really great conversation of industry professionals speaking to each other rather than talking to vendors,” Grimberg said.

She said the agenda emphasizes keynote presentations over panel discussions and encourages speakers to go beyond surface-level case studies.

“They peel back the envelope and say, ‘This is what we’re struggling with, and this is what we considered and didn’t go down that way,’” she said. “So it’s a really honest discussion.”

The event’s name reflects its networking emphasis. The day opens with what organizers call the “big handshake,” during which participants are encouraged to greet as many people as possible in a short period of time to break the ice and set a collaborative tone.

Partnerships move to the forefront

This year’s agenda centres on partnerships as a strategic response to cost pressures.

“Partnership, partnerships,” Grimberg said when asked about key themes. “We have a number of speakers talking about that.”

She said partnerships allow companies to expand value propositions without shouldering the full cost of richer rewards.

“It allows them to say, ‘I’m going to give you X, and my partner is going to give you Y,’” she said. “So it becomes, instead of X or Y, it becomes an ‘and’ proposition.”

Grimberg pointed to examples such as Canadian Tire, WestJet and Tim Hortons, which she said are using “double-dip” models that allow customers to earn multiple currencies across partnerships rather than a single shared currency.

“So you earn this currency and that currency instead of just one common currency between the two,” she said.

She added that the financial value proposition of loyalty programs is becoming a more central part of boardroom conversations as companies weigh return on investment against customer expectations.

Photo: Angela Roma
Photo: Angela Roma

Tiered programs and high-value customers

Beyond partnerships, tiered structures and recognition of top spenders are also drawing attention.

Grimberg noted that Petro-Canada recently launched what she described as Canada’s first frequent fueler program, designed to recognize its highest-spending customers. Amanda Mitchell from Petro-Canada is scheduled to speak at the Toronto event about the initiative.

“It’s a good vehicle to recognize and reward your highest spenders,” Grimberg said of tiered models.

She said the conference will also attract brands that are considering launching loyalty programs from scratch, alongside those looking to refine or optimize existing offerings.

Some companies are reassessing program mechanics, including earning structures and tiers, as they seek to balance richer benefits with tighter budgets. Grimberg said the pressure to differentiate is growing as consumers compare value across multiple programs.

A strategic moment for loyalty leaders

While the event is positioned as informal in tone, its discussions reflect a more serious recalibration within the loyalty sector.

On the consumer front, she said loyalty is increasingly embedded in household budgeting decisions. On the corporate side, executives must justify investments while navigating internal cost controls.

That tension, Grimberg said, is shaping both the content and the candid nature of the conference discussions.

“They need to provide more value,” she said of loyalty leaders, “and at the same time, they cannot afford to do so.”

More from Retail Insider:

Canada’s Food Prices Rising Faster Than Any G7 Nation

Sobeys grocery store in Orangeville, ON. Photo: Sobeys

With Tuesday’s release of new data from Statistics Canada, the conclusion is unequivocal: for the second consecutive month, Canada is posting the highest food inflation rate among G7 countries. Food inflation now stands at 7.3%.

Beef, nuts, pork, and even chicken are between 5% and 7% more expensive than a year ago. The only relief comes from eggs and fresh fruit, which are cheaper on a year-over-year basis.

Meanwhile, the United States — despite pursuing an aggressive tariff policy affecting numerous imported goods — is reporting food inflation of 2.9%, less than half of Canada’s rate.

 

Admittedly, one year ago Canada was benefiting from a temporary GST holiday, which artificially suppressed the index. However, even after adjusting for that statistical distortion, our estimates suggest Canada’s food inflation would still have been approximately 6.3%, keeping it at the top of the G7.

Yet as recently as last week, some federal ministers attributed rising food prices primarily to climate change. That explanation is becoming overly convenient. Yes, climate conditions influence certain agricultural prices. But for several years now, they have not been the primary driver of Canada’s food inflation.

The issue is structural.

Since 2008, the food component of the Consumer Price Index has consistently grown faster than the overall CPI. This tells us that the challenge is neither cyclical nor temporary. It reflects deeper issues of productivity, competitiveness, and the structural configuration of our agri-food economy.

 

Several factors contribute to this dynamic:

  • Interprovincial trade barriers, including aspects of supply management where quota administration is provincially governed;
  • Multiple layers of taxation affecting the food chain, including industrial carbon pricing;
  • Fragile logistics systems at the port, rail, and trucking levels;
  • Aging infrastructure;
  • A generally smaller and less diversified business ecosystem compared to our global competitors, limiting sourcing flexibility;
  • A complex and costly regulatory environment, including labeling requirements and administrative compliance burdens.

Temporary measures have also played a role. Counter-tariffs and the GST holiday introduced additional distortions — whether through opportunistic price adjustments or the need for firms to absorb policy-induced costs. These effects may not be visible to consumers, but they are economically predictable.

Individually, each factor may appear marginal. Collectively, however, they systematically increase the cost of doing business in Canada — and those costs inevitably flow through to consumers.

In this context, the enhanced GST credit, valued at nearly $14 billion and already built into the federal budget, adds further demand-side pressure. Politically, it is difficult to oppose direct support for vulnerable households. Economically, however, any significant fiscal expansion not accompanied by productivity gains carries inflationary consequences.

Food inflation may decelerate in February. But a slowdown in inflation does not mean falling prices. It simply means prices are rising more slowly.

Until we acknowledge that Canada’s food affordability challenge is fundamentally a productivity and competitiveness problem, we will continue treating symptoms rather than causes — and repeating the same policy mistakes.

More from Retail Insider:

Formosa Springs Relaunches Under New Ownership

Photo Formosa Springs

Formosa Springs has announced its official return to the market following a strategic acquisition led by wellness entrepreneur Nicholas Reichenbach. The Formosa Springs relaunch marks the revival of one of North America’s oldest mineral water sources, with the brand returning to family-linked ownership and preparing for a national retail rollout beginning in May 2026.

The Ontario-based brand is positioning itself as a premium mineral water company rooted in heritage and long-term stewardship. The relaunch follows the acquisition of the historic site and a repositioning of the business as a modern wellness and hydration brand built on its original artesian spring.

 

Retail Rollout and Direct-to-Consumer Launch

Formosa Springs water is drawn from the original artesian spring beneath the historic property and bottled at the source. The product is naturally filtered through limestone and mineral-rich geological strata.

Nicholas Reichenbach

The initial assortment will include still and sparkling mineral water packaged in 750 millilitre glass bottles and 355 millilitre slim cans. The company says additional categories are in development as part of its innovation strategy.

The Formosa Springs relaunch includes a direct-to-consumer subscription platform scheduled to launch in April 2026. The platform will offer home delivery, a membership program, and early access to new product releases.

Retail expansion across Canada is expected to begin in May 2026, with distribution planned across food, drug, mass, hospitality, and on-premise channels. The company also intends to enter U.S. natural grocery and wellness retail channels in the fall of 2026.

Entering a Growing Premium Water Market

The relaunch comes as the North American bottled water market continues to grow, with estimates placing the category at more than $109 billion. Consumer demand has increasingly shifted toward premium, wellness-oriented, and purpose-driven hydration products.

Formosa Springs is positioning itself as a domestically sourced alternative in a category that often relies on imported mineral waters. The company says its long-term strategy is to build a sustained presence by combining source credibility with scalable operations.

Founder’s Family Connection to the Brand

For Nicholas Reichenbach, the Formosa Springs relaunch is tied to his family’s history with the spring. In the early 1980s, his father Joseph Reichenbach, alongside the original Heisz family, founded the Formosa Spring Water Company, bottling and distributing the water across Ontario.

“This is a personal and family homecoming,” said Nicholas Reichenbach, Founder and Chairman of Formosa Springs. “I am honoured to carry forward a 155-year legacy and reintroduce Formosa Springs as the next great premium mineral water brand for Canada and the U.S. We are building this company for the next century, with uncompromising purity and deep respect for where the story began. That is generational wellness.”

Reichenbach previously founded Flow Beverage Corp. in 2014, building it into a major premium water brand in North America. The company went public on the Toronto Stock Exchange in 2021, and Reichenbach stepped away in late 2025 following its acquisition.

 

Vertically Integrated Manufacturing Facility

Formosa Springs operates a 44,000-square-foot beverage manufacturing campus on a 10-acre site in Formosa, Ontario. The facility provides vertical integration, which the company views as a strategic advantage in the premium beverage segment.

The campus includes glass bottling capacity of more than 100 million units annually, with plans for aluminum canning capacity of up to 100 million cans per year. The site also supports co-packing and contract manufacturing for non-alcoholic and alcoholic beverage partners.

The infrastructure is intended to provide operational control, quality assurance, and scalability as the company expands across Canada and the United States.

The Formosa Springs site traces its origins to 1870, when German settlers established a brewery around the naturally occurring artesian spring. The property has passed through several ownership periods over the decades, but the spring itself has remained intact and protected.

With the Formosa Springs relaunch, the company is returning to local ownership tied to the founding lineage. The brand says it intends to build on that legacy through a long-term commitment to quality, authenticity, and stewardship.

More from Retail Insider:

Consumer prices decelerate in January: Statistics Canada

Photo: Boxed Water Is Better
Photo: Boxed Water Is Better

The Consumer Price Index (CPI) rose 2.3% on a year-over-year basis in January, following a 2.4% increase in December, according to a report released Tuesday by Statistics Canada.

The gasoline price index was the largest contributor to deceleration in headline inflation, with a larger decline in January compared with December. Excluding gasoline, the CPI rose 3.0% in January, matching the increase in December, said the federal agency.

“Indexes with year-over-year movements impacted by the temporary GST/HST break in January 2025 continued to put upward pressure on the year-over-year all-items increase in January 2026. Of the affected indexes, the CPI continued to be most impacted by acceleration in prices for restaurant meals, and to a lesser degree, prices for alcoholic beverages, toys and children’s clothing,” it said.

“Excluding food and energy, the CPI rose 2.4% year over year in January, following a 2.5% increase in December.”

Statistics Canada said the prices included in the CPI are final prices, inclusive of all excise and other taxes paid by consumers. In particular, prices include the Goods and Services Tax, provincial retail sales taxes or the Harmonized Sales Tax, as well as any environmental, liquor and tobacco taxes if applicable. This means that the CPI can change as a result of changes in any of these taxes.

The tax exemption began on December 14, 2024, and ended on February 15, 2025, affecting approximately 10% of the CPI basket, it said.

“Prices at the pump fell 16.7% year over year in January, after a 13.8% decline in December. The larger year-over-year decline was mainly due to a base-year effect. The index rose 0.5% month over month in January 2026, compared with a 4.0% increase in January 2025, when crude oil prices rose. Additionally, the partial reintroduction of the provincial gas tax in Manitoba in January 2025 is no longer impacting the 12-month movement,” explained Statistics Canada.

For food purchased from restaurants, prices were higher in January 2026 (+12.3%) compared with January 2025, when prices were lower as a result of the tax break.

Photo: Natalia Blauth
Photo: Natalia Blauth

Similarly, prices rose on a year-over-year basis for other previously tax-exempted goods in January 2026, including alcoholic beverages purchased from stores (+7.9%), alcoholic beverages served in licensed establishments (+9.0%), toys, games (excluding video games) and hobby supplies (+8.7%) and children’s clothing (+6.3%), it said.

“Prices for food purchased from stores rose 4.8% year over year in January following a 5.0% increase in December. The slower price growth was mainly driven by a decline in fresh fruit prices (-3.1%) in January, after a 4.5% increase in December. Amid generally strong or stable harvests in producer regions, the largest contributors to downward pressure on prices were berries, oranges and melons,” said Statistics Canada.

Leslie Preston
Leslie Preston

Leslie Preston, Managing Director & Senior Economist, TD Economics, said: “Even with the base year effect from last year’s GST holiday, inflation was looking softer than expected in January. Underlying inflation remains above the 2% target on a year-on-year basis, but trends in recent months are looking decidedly soft. Canadian government bond yields are off slightly on the soft report.

“Overall, January’s data is consistent with our expectation for inflation to moderate to the Bank’s target over the next year (see recent forecast), as past inflation problem areas, like rents, continue to cool.”

Douglas Porter
Douglas Porter

Douglas Porter, Chief Economist, BMO Capital Markets, said: “Overall, this is an encouraging result for the Bank of Canada, with inflation finally nearing the 2% target on a broader basis. There’s still some wood to chop on core inflation, but the shorter term metrics are moderating noticeably. Still, the Bank has made it abundantly clear that the bar to cut rates again is quite high, and it continues to stress that monetary policy cannot fix supply shocks. Even so, if inflation continues to decelerate, the Bank could be in position to support the economy should growth truly struggle as it undergoes a structural shift.”

More from Retail Insider:

HEYTEA Opens First Canadian Lab in Toronto

HEYTEA Lab at CF Toronto Eaton Centre. Photo: HEYTEA

Global tea brand HEYTEA has opened its first Canadian HEYTEA Lab location at CF Toronto Eaton Centre in Toronto, marking the debut of the company’s experimental flagship format in the country. The store also represents the brand’s second HEYTEA Lab in North America, following the launch of a flagship concept in New York’s Times Square.

The new location occupies approximately 1,800 square feet on Level 1 of the downtown Toronto shopping centre, positioned between the Garage and Steve Madden stores. 

HEYTEA Lab locations function as the brand’s top-tier flagship stores, intended to showcase research-driven beverage concepts, limited-edition items, and immersive spatial design. The format builds on HEYTEA’s reputation as a pioneer of “new-style tea,” which blends traditional tea culture with contemporary ingredients, dairy, and fruit.

The Lab concept emphasizes experimentation and storytelling, with each location designed to reflect the culture and creative energy of its host city. Internationally, HEYTEA has used Lab stores as statement locations in major urban markets, where the format can act as both a brand showcase and a testing ground for new products that may later be introduced to standard stores.

The first overseas HEYTEA Lab opened in New York’s Times Square, where it has been described as a high-profile flagship with strong early sales. The Toronto store follows this model, bringing a curated menu and distinctive design approach to a Canadian audience.

Grand opening of HEYTEA Lab at CF Toronto Eaton Centre on Monday, February 16, 2026. Photo: HEYTEA/Instagram

Premium Beverage Menu and Price Positioning

The HEYTEA Lab Toronto location offers a menu centred on premium tea-based beverages, including matcha drinks, milk teas, fruit teas, and specialty offerings. Prices for most drinks range from about about $5 to $12.90, positioning the brand in the premium segment of the bubble tea and specialty beverage market.

Matcha-based drinks play a prominent role on the menu, with offerings such as the Triple Supreme Matcha Latte, Matcha Cloud Coconut Blue, Cloud Matcha Latte, and Supreme Matcha Latte. These beverages highlight the company’s emphasis on matcha as a core part of its global identity.

HEYTEA Lab at CF Toronto Eaton Centre. Photo: HEYTEA

Classic tea and milk tea options include Jasmine Milk Tea, Black Milk Tea, Cloud Jasmine Tea, and traditional Jasmine Tea. The fruit-forward and specialty segment features drinks such as Kale Boost Tea, Coconut Mango Blue, Mango Grapefruit Boom, Coconut Mango Boom, Cloud Crisp Grape, Crisp Grape Boom, and Cloud Mango.

The menu also includes boba-based beverages such as the Supreme Brown Sugar Bobo Milk Tea and a classic version of the same drink at a slightly lower price point.

Featured drinks highlighted in promotional materials include the Triple Supreme Matcha Latte, Kale Boost Tea, Jasmine Milk Tea, Coconut Mango Boom, Supreme Brown Sugar Bobo Milk Tea, Crisp Grape Boom, and Cloud Jasmine Tea.

Grand Opening Promotions Underway

The store is celebrating its opening with a series of in-store promotions and giveaways over the first 18 days of operation, aimed at introducing customers to the brand’s menu and concept.

During the first three days, customers are offered a buy-one-get-one-free promotion on drinks, excluding tea lab items. From days one through seven, shoppers who make a purchase and complete an in-store design check-in receive a complimentary fridge magnet, with quantities limited to 900 magnets per day while supplies last.

HEYTEA Lab at CF Toronto Eaton Centre. Photo: HEYTEA

From days five through eleven, the store is offering a free canvas bag with purchase, limited to 100 bags per day. Customers can also customize the bags using exclusive in-store stamps.

The final phase of the opening celebrations will run from days twelve through eighteen, when customers can participate in a sweepstakes featuring prizes that include HEYTEA merchandise and coupons.

According to promotional materials, offers are valid for HEYTEA app members only, with each member eligible to participate once per event. Offers cannot be combined, and customers are advised to check in store for full event details.

Grand opening of HEYTEA Lab at CF Toronto Eaton Centre on Monday, February 16, 2026. Photo: HEYTEA/Instagram

Strategic Mall Location in Downtown Toronto

The choice of CF Toronto Eaton Centre as the site for the HEYTEA Lab Toronto opening reflects the brand’s strategy of placing flagship concepts in high-profile, high-traffic retail destinations. The downtown shopping centre is Canada’s busiest retail property, drawing a mix of local shoppers, office workers, students, and tourists.

HEYTEA has used its Lab format as a way to differentiate flagship stores from standard locations, combining beverage service with design, merchandise, and experimental offerings. These stores often serve as testing grounds for new drinks and concepts, which can later be rolled out to other markets.

Globally, the brand has expanded rapidly across Asia and into international markets including the United States, the United Kingdom, Australia, Singapore, Malaysia, South Korea, and Japan. Within this network, Lab-style stores are deployed selectively in major cultural or retail hubs.

More from Retail Insider:

Canada business exits outpace entries for 5th straight quarter: CFIB economist

Photo: KATRIN BOLOVTSOVA
Photo: KATRIN BOLOVTSOVA

An overlooked—but important—trend in the latest Statistics Canada releases: for the fifth quarter in a row, business exits are outpacing business entries in Canada, says Andreea Bourgeois, Director Economics at Canadian Federation of Independent Business (CFIB).

In a LinkedIn post, she said this isn’t a sudden pandemic‑style drop. 

“It’s a steady slowdown in business creation combined with higher exit numbers. In T1 2025, the latest quarter with both entry and exit data available, the entry rate was 4.7% compared to an exit rate of 5.8%,” noted Bourgeois.

“Regionally, every province is in negative territory except Quebec, where entry and exit rates are roughly balanced. The widest gaps are in NL, PEI, and Ontario.

Andreea Bourgeois
Andreea Bourgeois

“By sector, only health and education are seeing positive net business creation. Hospitality is doing “less bad” than most sectors but still negative.

“Bottom line: Canada is quietly losing businesses—quarter after quarter—and it’s not getting the attention it deserves. At this pace, by the next Winter Olympics we won’t just be short on business creation, we might be short on sponsors for Team Canada’s jackets.”

In its most recent report, Statistics Canada said that In October, the business opening rate dropped by 0.3 percentage points to 4.5%, following a slight increase of 0.1 percentage points in the previous month. The opening rate was 0.2 percentage points below its 2015-to-2019 historical average. The decrease in the opening rate was driven by the 0.2 percentage point decline in the re-opening rate (2.9%), while the entry rate (1.7%) was relatively unchanged.

The business closure rate rose by 0.2 percentage points to 4.9% in October, after declining over the previous two months. The business closure rate was 0.3 percentage points above its historical average. Business closures increased or changed little in all sectors, said the federal agency.

“The number of active businesses decreased by 0.2% (-1,740 businesses) in October, as the number of business closures was higher than that of business openings. In the same month, payroll employment increased by 0.1% and real gross domestic product decreased by 0.3%. Business insolvency filings increased by 7.3%, from 395 in September to 424,” it said.

“In October, the number of active businesses dropped or changed little in all sectors. Professional, scientific and technical services (-776 businesses; 23.4% contribution to the decrease) and construction (-668; 20.1%) led the decrease in the overall number of active businesses. This was followed by retail trade (-323; 9.7%) and health care and social assistance (-308; 9.3%).”

Photo: Pavel Danilyuk
Photo: Pavel Danilyuk

According to the CFIB’s Enterprise Pulse, Q3 2025:

  • The number of self-employed has been growing over the past two years; the latest Q4 2025 count of 1,982,800 is just 1% below the peak of 2,003,400 reached in Q4 2019.
  • The number of active businesses with employees has been rising steadily since 2021, hitting 938,790 in Q3 2025—a 4% increase over Q4 2019 levels. Growth has plateaued however, with the number remaining virtually unchanged since Q1 2024. 
  • Data on business entries and exits shows that Q1 2025 (the most recent quarter for which both entries and exits are available) marked a fifth straight quarter of negative net business creation—more businesses exited the market than entered. Even more concerning, the number of new entrants continues to fall sharply. The current entry rate of 4.9% (as a share of all active businesses) is flatlining at the lowest level outside the pandemic.
  • The Q4 2025 number of insolvencies stands at 1,110 for all sectors combined, which represents a decrease from its peak of 2,003 insolvencies reached in Q1 2024 but it is still above its historical average.

More from Retail Insider:

Montréal visitor numbers rise 7.3% in 2025 as tourism spending holds steady

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

Tourisme Montréal says the city welcomed 11.8 million visitors in 2025, a 7.3 per cent increase from the previous year, as travel rebounded in the second half of what the organization described as a turbulent year.

In a year-end report released Tuesday, Tourisme Montréal said a spring marked by uncertainty gave way to a steady recovery, underscoring what it called the city’s resilience and ability to adapt in an unpredictable global environment.

The agency said tourism spending remained stable at $5.8 billion, comparable to 2024, reinforcing the sector’s role in Montréal’s economy.

Growth driven by domestic market

Domestic travel led the gains in 2025, with the Canadian market rising 10 per cent. Growth was particularly strong in the Atlantic region, where visits increased 17 per cent.

Travel from the United States fell sharply mid-year, declining 12 per cent in July, before narrowing to a five per cent decrease by year’s end. Overseas markets posted overall growth of two per cent.

France recorded more than 470,000 visitors, up two per cent from 2024 and a new high, according to the report.

Tourisme Montréal said travel planning patterns shifted during the year. Visitors booked trips about 50 days in advance, compared with roughly 90 days in previous years, reflecting what the organization described as ongoing economic and geopolitical volatility.

Spending and hotels

Tourism expenditures totalled $5.8 billion in 2025, unchanged from the prior year. Visitors continued to direct most of their spending toward food and accommodation, which together accounted for nearly 75 per cent of total tourism revenue.

The hotel sector strengthened as the year progressed. After a slower start, occupancy improved steadily, with the fourth quarter offsetting earlier softness and bringing annual results in line with 2024.

More than 90 days during the year recorded occupancy rates above 80 per cent, a seven per cent increase over 2024. The gains came despite a four per cent rise in hotel capacity, which expanded Montréal’s room inventory.

Digital traffic increases

Tourisme Montréal said its website, mtl.org, recorded 11.8 million visits in 2025, up 14.5 per cent from the previous year.

The organization said the increase reflected sustained interest in the destination and the impact of its marketing initiatives, positioning the site as a central planning platform for prospective visitors.

Major events ahead in 2026

Looking ahead, Tourisme Montréal pointed to several large-scale events expected to shape 2026:

  • The UCI Road World Championships, scheduled for more than 10 days of competition from Sept. 20 to 27. The organization said it will be Montréal’s largest international sporting event since the 1976 Summer Olympics.
  • The Formula 1 Grand Prix, which has been moved to May this year with the aim of restoring attendance levels typically seen in June.
  • The city’s summer festival season, which the organization said will feature an expanded lineup of events.

Tourisme Montréal, a private, non-profit organization marking its 100th year, represents more than 1,000 businesses and groups involved directly or indirectly in the tourism sector. The agency works to promote Montréal as a leisure and business destination and advises on tourism-related economic, urban and cultural development.

More from Retail Insider:

Winnipeg Retail Market Sees Major Investment Wave

CF Polo Park in Winnipeg. Image: Cadillac Fairview

The Winnipeg retail market is entering a new phase of investment and redevelopment, with significant capital being deployed across major shopping centres and new retail districts. Recent activity includes the $160.5 million acquisition of St. Vital Centre, a $30 million redevelopment at Kildonan Place, new tenants at CF Polo Park, and major suburban retail developments tied to residential growth.

The combined announcements signal renewed confidence in the Winnipeg retail market, as owners reposition assets, attract national brands, and invest in long-term mixed-use strategies.

Leyad Acquires St. Vital Centre

Montreal-based real estate firm Leyad closed its acquisition of St. Vital Centre last week, marking a major transaction in the local retail sector. The $160.5 million deal transferred ownership from the Ontario Pension Board to a private investment firm with an expanding national portfolio.

The purchase was backed by a syndicated loan from six Canadian credit unions, reflecting lender confidence in the asset’s stability and long-term prospects.

St. Vital Centre comprises approximately one million square feet of gross leasable area and attracts roughly eight million visitors annually. The mall is home to more than 160 retailers, anchored by Walmart, Cineplex SilverCity, and Indigo. The property is also preparing for the arrival of Uniqlo, which is taking a substantial footprint that will fill part of the space vacated by Hudson’s Bay.

Leyad has expanded aggressively across Canada, with acquisitions including Northgate Centre in North Bay and Londonderry Mall in Edmonton. CEO Henry Zavriyev described St. Vital as “dominant in its market” and “deeply embedded in the daily lives of the community,” signaling the firm’s long-term stewardship approach.

St. Vital Centre in Winnipeg. Photo: Leyad

Kildonan Place Announces $30 Million Redevelopment

Kildonan Place has unveiled a $30 million redevelopment program designed to modernize the shopping centre and respond to rapid population growth in East Winnipeg. The project emphasizes sustainability, enhanced dining, and significant structural changes.

The centrepiece of the redevelopment is a relocated food court designed as a zero-waste facility. The new space will use advanced composting, recycling, and food-waste reduction strategies. Seating capacity will increase from 325 to 550, while the number of vendors will grow from eight to ten, featuring a mix of local and national operators. The new food court is expected to open in early 2027.

The redevelopment also includes demolition of the former Famous Players theatre space, which spans approximately 30,000 square feet. The project will introduce a new modern entrance as part of the reconfigured layout.

As an early phase of the project, Dollarama has relocated and doubled its footprint to approximately 16,000 square feet. Its former location is being converted into upgraded public washrooms.

The project is partly a response to growth along the “Kildonan Mile,” where population has increased by roughly 10 to 12 percent and the average resident age is approximately 38. Owner Primaris REIT expects the property to reach full occupancy by the time the redevelopment is completed in 2027.

During construction, the north centre entrance near the former theatre remains closed. Guest Services has been temporarily relocated, with a permanent station scheduled to open in April 2026.

Photo: Kildonan Place
Photo: Kildonan Place

CF Polo Park Adds New Retailers and Advances Master Plan

CF Polo Park, Manitoba’s largest shopping centre, has added several tenants while continuing work on its long-term redevelopment strategy. The updates reflect a focus on fashion, experiential retail, and mixed-use growth.

London Drugs opened on November 20, 2025, introducing a new anchor with a full-service pharmacy, technology, and beauty departments. Makers followed on November 26, marking the brand’s first Manitoba location with a curated marketplace for local artisans.

Rodd & Gunn opened in early 2026, bringing the New Zealand menswear brand to the former Sears redevelopment area. The store launched the brand’s “Trophy Range” concept. Uniqlo is also scheduled to open in spring 2026, representing one of the most anticipated retail debuts in the Winnipeg market.

Beyond store openings, Cadillac Fairview and Shindico are advancing a multi-phase redevelopment of the surrounding parking lots. The long-term plan envisions approximately 3,700 rental units across several six- to twelve-storey buildings, transforming the site into a complete mixed-use neighbourhood.

As of early 2026, the project is progressing through a “landscape first” approach, which includes consolidating parking into structures and introducing green spaces and pedestrian promenades.

CF Polo Park in Winnipeg. Image: Cadillac Fairview

Major Shifts in Suburban Retail

Beyond the major malls, the Winnipeg retail market has seen significant changes tied to new suburban development and large-format retail moves.

One of the most notable developments is the reorganization of Costco’s footprint in the city. A new 167,000 square foot warehouse opened on November 13, 2025, at 4077 Portage Avenue, replacing the older St. James location. The new store features one of only four fresh sushi bars in Canada and carries more than 3,200 products.

The former St. James warehouse is being converted into Winnipeg’s first Costco Business Centre, expected to open later in 2026. The format is designed to serve small business owners with a distinct assortment from traditional warehouses.

Meanwhile, Shindico Realty and Olexa Developments have confirmed plans for The Stockyards, a new retail hub within the $1 billion Water Tower District redevelopment at Marion and Archibald Streets. The project is expected to deliver up to 200,000 square feet of retail space, anchored by a grocery store and supported by a mix of national and local tenants. Construction is anticipated to begin later in 2026 following the start of residential phases.

Other retail properties have also seen incremental updates. Outlet Collection Winnipeg hosted a Lotto Sport grand opening in February 2026 and continues to attract outlet and luxury-oriented tenants.

Garden City Shopping Centre has undertaken steady interior upgrades, including improvements to food court seating and common areas, as it competes with newer developments across the market.

Taken together, the announcements across Winnipeg point to a period of relocation, redevelopment, and long-term investment. Major capital is flowing into both established shopping centres and new suburban districts, while national and international retailers continue to expand their presence.

RONA Foundation opens applications for $1M Build from the Heart campaign

RONA+ Charlemagne (Image: RONA)

The RONA Foundation is inviting Canadian non-profit organizations to apply for a share of $1 million in funding as part of its 2026 Build from the Heart campaign.

The foundation, which oversees the philanthropic activities of RONA inc., said applications will be accepted from Feb. 16 to March 13. Seven organizations will be selected to receive funding to support major construction or renovation projects.

The Foundation said the campaign is aimed at projects that improve living environments or facilitate access to housing for victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues. Submitted projects will be evaluated by a selection committee, with selected organizations to be announced in the spring.

Renaud-B. Paquin
Renaud-B. Paquin

The Foundation said $1 million will be distributed among the seven chosen organizations. Interested non-profits must submit an application form during the eligibility period.

“As we know, the current housing crisis in Canada is a pressing social issue. Housing starts are insufficient and access to adequate lodging is increasingly difficult for a growing segment of the population. That is why the Foundation provides support through the Build from the Heart campaign,” said Renaud-B. Paquin, Director of the Foundation.

The annual campaign forms part of the Foundation’s mandate to support housing-related initiatives across Canada, it said.

“Together, we can make a real difference and build stronger communities,” added Catherine Laporte, President of the RONA Foundation Board of Directors and Chief Digital and Marketing Officer at RONA inc.

Catherine Laporte
Catherine Laporte

Last year’s beneficiaries included organizations such as the Hollyburn Community Services Society.

Application forms can be found here.

RONA inc., headquartered in Boucherville, Que., operates and services more than 425 corporate and affiliated dealer stores. The company, founded in 1939, employs approximately 21,000 people across its network.

The Foundation, established in 1998, is a registered charity focused on improving living environments and access to housing for vulnerable Canadians, including victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues.

From left to right, Jones Bentley, Store Manager, RONA North Vancouver, Peter Due, District Manager, RONA inc., Peter Brent, RONA North Vancouver, Michelle Garcia, RONA North Vancouver, Joy Hayden, Mark Friesen and Steve Kirkby, during the cheque presentation to Hollyburn Community Service Society, one of the organizations who benefited from the RONA Foundation’s support for the 2025 Build from the Heart campaign. (CNW Group/RONA inc.)

More from Retail Insider: