Economic Uncertainty and High Prices Keep Canadian Consumers Pulling Back, Bank of Canada Survey Finds

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January 20, 2026

Concerns over high prices and economic uncertainty related to the trade conflict continue to have a negative impact on consumers, according to the Bank of Canada’s latest Canadian Survey of Consumer Expectations.

 The survey was conducted through an online panel from October 30 to November 18, 2025. Follow‑up phone interviews took place from November 21 to 27, 2025.

Overview

In this quarter’s survey, consumers perceived a higher likelihood of missing a debt payment and a slightly greater chance of losing their job. In this context, consumers reported weaker spending plans. Still, they perceive a greater chance than last quarter of finding a job or voluntarily leaving their job.
Expectations for near‑term inflation remain higher than they were before the pandemic, while those for long‑term inflation eased below pre‑pandemic levels. Tariffs are still the most frequently cited driver of inflation, although a little less so than last quarter.
Overall, the Canadian Survey of Consumer Expectations (CSCE) indicator declined slightly and remains subdued in the fourth quarter. A modest deterioration in financial health and household spending intentions contributed to this drop, while labour market conditions improved slightly from low levels.

“The Canadian Survey of Consumer Expectations (CSCE) indicator remains weak this quarter. It has stayed well below its pre-pandemic average since late 2021, coinciding with ongoing perceptions that the cost of living is high. In recent quarters, the indicator and its components also remained below levels observed before the start of the trade conflict with the United States,” said the Bank.

“Consumers remain pessimistic about their financial health in the fourth quarter. Respondents reported a higher likelihood of missing a debt payment, and more than last quarter believe their financial situation has deteriorated. In follow-up interviews, one person who said their financial health had worsened added, “Almost everybody’s living on credit…. It’s something that’s going to be detrimental for households.”

“This heightened concern about missing a debt payment appears to be tied to consumers’ perceptions of a higher risk of losing their job.

“Consumers’ expectations for their financial situation vary according to their views on the impacts of the trade conflict. Half of consumers think the worst effects on the economy or inflation are still to come, and those consumers have the lowest expectations for their financial health. In follow‑up interviews, one of these respondents said, “The worst thing about the tariffs is the uncertainty.… Big businesses aren’t going to invest in anything big now because of uncertainty, and that affects jobs.”

Consistent with low expectations for their financial health and elevated concerns about the labour market, consumers’ spending plans continue to be weak, said the Bank.

The CSCE consumer spending index fell slightly, though it remains close to the levels observed since the trade conflict began. One respondent said, “It’s definitely tough for my family, and we have to budget more appropriately. We look for a discount and have to be more strategic—I purchase less wants and more needs.”

The top reported barriers to spending remain the same as in previous quarters:

high prices of many goods and services
economic uncertainty
elevated housing costs

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Canadian Retail News From Around The Web For January 20, 2026

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Retail Insider

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January 19, 2026

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Les Ailes de la Mode prepares for Quebec openings at ex-HBC stores this year: docs (The Canadian Press)

Hole left by Hudson’s Bay’s demise will be hard to fill (Financial Post)

Canadians still worried about economy, remain cautious about spending (CBC)

Market Outlook: Canada inflation rises but core pressures keep rate cuts off table (BNN)

Walmart Connect Canada launches ad certification program (Grocery Business)

The top CRE transactions of 2025 in Greater Vancouver and B.C. (RENX)

Taylor Swift may have caused a drop in B.C.’s inflation rate (Daily Hive)

Oakridge Park Mall Is Set To Open This Spring And Here’s What You Need To Know (604 Now)

Winnipeg gold store gets creative as prices soar (CBC)

New East Van boutique Rosemere is already pivoting, and that’s kind of the point (The Georgia Straight)

Calgary Co-op closing two of its food stores

By

Mario Toneguzzi

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January 19, 2026

Calgary Co-op Hamptons store in Calgary. Photo: Wheree

“Due to evolving economic and market conditions”, Calgary Co-op says it has made “the difficult decision” to close its food stores in Hamptons and Sage Hill on March 28 as well as its Hamptons Wine Spirits Beer and Cannabis locations.

“We truly appreciate the Hamptons and Sage Hill team’s efforts to improve sales, serve our members and revitalize these stores. We are working closely with the union and our team members to ensure affected employees are supported,” said in an emailed statement to Retail Insider.

“While we never want to close a food store location, we do need to meet our members where they are at, and where Calgary Co-op’s unique suite of products and services will be most meaningful and profitable.

“These closures will also allow for the re-deployment of capital to other more sustainable stores and projects including our newly re-developed North Hill food store opening in the first quarter of 2026 as well as a planned food store for Marda Loop in 2027.”

In a letter to Co-op members, Executive Chair Ken White said: “While we never want to close a location, we do need to make decisions that are in the best interest of our members. I can assure you we remain committed to our long-term strategy of delivering exceptional customer experiences while creating value for our members, inspiring our team members and serving our local communities.”

Michael Kehoe, Broker of Record for Fairfield Commercial Real Estate in Calgary, said: “It is extremely rare for a retailer of this stature to close two stores on the same date in what you could say are relatively normal economic times in the greater Calgary regional trade area.

“Calgary Co-op are the local heroes on the local retail scene with their clustered grocery stores, gas bars, Wine Spirits Beer and Cannabis stores that will surely be missed by residents in Sage Hill and the Hamptons. These are ‘pocket’ markets in North Central Calgary that have likely not met the firm’s expectations on sales growth in the recent past. North Central Calgary is a battleground on the grocery retailing front, think gorilla-sized competitors like Costco, Superstore and Walmart, a ‘Darwinian’ struggle for a regional player at the best of times. Development of new stores is a capital intensive venture and with new projects like Marda Loop and the North Hill these store closures are a part of a larger corporate strategy.”

Calgary Co-op’s Evolution into a Regional Multi‑Format Retailer

Calgary Co-op is one of North America’s largest retail co-operatives, with its operations concentrated in Calgary and surrounding communities including Airdrie, Cochrane, High River, Okotoks and Strathmore. The organization serves more than 400,000 members and has been built out as a diversified retail platform that moves well beyond a traditional grocery co-op model. Under the Calgary Co-op banner are full-line food centres, many with in-store pharmacies, alongside stand-alone pharmacies, gas bars with convenience stores and touchless car washes, Home Health Care centres, Wine Spirits Beer locations and co-branded cannabis stores. Calgary Co-op also owns Community Natural Foods, Willow Park Wines & Spirits, Beacon Pharmacies and The Organic Box, adding further depth in natural and organic foods, specialty liquor and health offerings.

Calgary Co-op Sage Hill store. Photo: Calgary Co-op

Over the past several years, Calgary Co-op has continued to expand and modernize its network while cementing its role as a regionally focused but multi-format retailer. The co-operative has added new mixed-use sites such as the Greystone development in Cochrane, where it opened a food centre, pharmacy, gas station with propane and car wash, and a Wine Spirits Beer store in 2025.

It has also broadened its reach well beyond the Calgary region through a majority stake in Care Pharmacies, a group of 56 independently operated pharmacies across five provinces, giving Calgary Co-op a national pharmacy footprint even as most locations continue to trade under the Care banner.

Founded to serve local members and return value to the communities where it operates, Calgary Co-op has leveraged the co-operative model to reinvest in store upgrades, new-format development and enhanced services. Its expansion into liquor, health, fuel, natural foods and cannabis reflects a strategy of clustering complementary uses around key sites, driving member convenience and trip frequency while anchoring neighbourhood retail nodes across the Calgary region.

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Kit and Ace to Open Store in Downtown Victoria

By

Craig Patterson

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January 19, 2026

image - 2026-01-19T153038.623 — Rendering of the new Kit and Ace store to open in Downtown Victoria. Photo: Kit and Ace

Kit and Ace is continuing its national retail expansion with the opening of a new store in downtown Victoria, British Columbia. The brand is scheduled to open a 2,200 square foot location in March 2026, at 1221 Government Street, occupying a prominent corner at the intersection of Government Street and Trounce Alley. The opening marks another step in the company’s carefully paced return to physical retail under its current ownership, following several years of contraction and restructuring.

The Victoria store will feature the brand’s full assortment of men’s and women’s apparel and is designed to serve both local shoppers and the steady flow of tourists that move through one of the city’s most established retail corridors. Government Street remains a focal point for downtown retail in Victoria, known for its mix of heritage storefronts, national brands, and independent operators.

The new Kit and Ace location occupies approximately half of a larger retail space that was previously home to W&J Wilson, a long-running multi-brand fashion retailer that closed its Government Street store in May 2021. The building at 1221 Government Street sits directly beside Trounce Alley, a narrow pedestrian passage that links Government Street with the Old Town area and continues to attract strong foot traffic throughout the year.

By taking over part of this space, Kit and Ace is reactivating a site long associated with apparel retail in Victoria. The store’s footprint aligns with the brand’s current store strategy, offering enough space to present a complete assortment while maintaining operational efficiency in a high-rent, high-traffic downtown environment.

The Legacy of W&J Wilson at 1221 Government Street

W&J Wilson was one of Victoria’s most historically significant retailers, with origins dating back to the 1860s. Founded by William Wilson, the son of a London silk merchant, the business began after Wilson arrived in Victoria in 1862 carrying trunks of clothing intended for miners heading to the Cariboo gold rush. Rather than continuing north, Wilson established a permanent retail operation after acquiring a local merchant’s business through bankruptcy.

The store operated at 1221 Government Street for more than 150 years and was widely described as Victoria’s oldest continuously operating business in its original location. Over generations, W&J Wilson built a reputation for high-quality menswear and womenswear, sourcing tailored clothing, outerwear, and accessories directly from European manufacturers. Its positioning emphasized craftsmanship and longevity over trend-driven fashion, serving a loyal local clientele as well as visitors to the city.

At its peak under the Thompson family, W&J Wilson expanded well beyond its original downtown location, operating as many as seven stores. These included additional locations in Oak Bay and Sidney, along with shops in high-end hotels as far away as Lake Louise. Over time, the business consolidated back to the core Victoria market before ultimately closing its flagship store in 2021. The arrival of Kit and Ace introduces a new chapter for a space long tied to premium apparel retail in the city.

Former W&J Wilson store in Victoria. Photo: Victoria Online Sights

Store Design and Product Assortment

The Victoria location will present the full Kit and Ace assortment across men’s and women’s apparel, with women’s continuing to account for a larger share of in-store product than in the brand’s earlier years. The shift reflects how the line has evolved under new ownership, with broader seasonal depth and expanded categories now supporting a more balanced business mix.

Consistent with other recently opened stores, the Victoria location will prioritize clarity of presentation and ease of navigation, allowing customers to engage directly with the garments. The layout is intended to support longer dwell times while maintaining a streamlined footprint suited to a high-traffic downtown environment.

A More Disciplined National Store Expansion

The Victoria opening comes amid a renewed phase of national expansion for Kit and Ace that has unfolded steadily over the past two years. Under its current ownership with Unity Brands, Kit and Ace has focused on rebuilding its physical retail presence through a more disciplined, Canada-first approach, prioritizing high-visibility urban locations, strong regional shopping centres, and select pop-up formats used to test demand before committing to permanent stores.

Recent openings have included new locations in Toronto, Calgary, and multiple markets across British Columbia, with stores positioned in both downtown settings and major enclosed shopping centres. In several instances, Kit and Ace has chosen to relocate or resize stores rather than pursue aggressive square-footage growth, reflecting a strategy centred on store productivity and long-term sustainability.

Pop-up locations have also played a role in the rollout, allowing the brand to reintroduce itself in key cities while gathering real-time insights into consumer demand. The most recent opening prior to Victoria was a pop-up store in Ottawa at CF Rideau Centre, marking the brand’s return to the national capital and signaling continued interest in underpenetrated urban markets.

Collectively, the recent openings point to a more measured retail strategy than the one that defined the brand’s early years. Rather than pursuing rapid global expansion, Kit and Ace is rebuilding its footprint market by market, with an emphasis on operational discipline, consistent brand presentation, and locations that align closely with its target customer.

Kit and Ace at Park Royal in West Vancouver. Image: Kit and Ace

From Founding to Unity Brands Ownership

Kit and Ace was founded in Vancouver in 2014 by Shannon Wilson and J.J. Wilson, positioning itself around technical performance fabrics and elevated everyday apparel. The brand expanded rapidly in its early years, opening dozens of stores across Canada and internationally in a short period of time. While the strategy helped build awareness, the pace of growth proved difficult to sustain as market conditions shifted and operating costs increased.

After a period of contraction and store closures, Kit and Ace entered a new phase in July 2023, when the brand was acquired by Unity Brands. The acquisition marked a strategic reset for the business, with a renewed focus on Canada, operational discipline, and a more deliberate approach to physical retail expansion.

Under Unity Brands’ ownership, Kit and Ace has moved away from rapid scale in favour of selective growth, using a combination of permanent stores and pop-up locations to evaluate markets before making long-term commitments. This recalibrated strategy has shaped the brand’s recent store openings and provides the framework for new locations such as the Victoria store, which reflects a focus on sustainability, productivity, and alignment between product, place, and customer.

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Bridging Generations: BetterHelp’s Innovative Path to Mental Health Empowerment in 2025

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Retail Insider

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January 19, 2026

The mental health landscape underwent a revolutionary shift in 2025, with BetterHelp emerging as a transformative force that challenged deeply ingrained societal perceptions. Through meticulous research and strategic partnerships, the platform illuminated the complex psychological terrain that prevents millions from accessing critical mental health support.

BetterHelp’s groundbreaking State of Stigma report provided unprecedented insights into global attitudes toward mental health. Surveying over 16,000 individuals across 23 countries, the research revealed a profound contradiction: while nearly 75% of respondents acknowledged the importance of mental health support, approximately 60% felt societal pressures still discouraged seeking help.

The most compelling finding centered on generational dynamics. Generation Z stood out as a paradoxical demographic – the most vocal about mental health discussions, yet simultaneously the most conflicted. Thirty-seven percent of young people believed those seeking counseling were “mentally weak,” a stark contrast to the 27% held by older generations like millennials, Gen X, and Baby Boomers.

BetterHelp’s community engagement efforts demonstrated a nuanced approach to addressing these generational barriers. The platform donated over 2,700 months of free therapy through partnerships with organizations like Six Degrees.org, Shout UK, and Be Strong. These collaborations specifically targeted frontline mental health workers and Gen Z students navigating contemporary challenges.

The platform’s podcast, “Mind if We Talk?”, became a critical tool in extending mental health conversations. Featuring discussions on topics like coping with grief, redefining masculinity, and overcoming imposter syndrome, the series transformed mental health dialogue from isolated campaigns into sustained, meaningful conversations.

In the sporting world, BetterHelp addressed unique psychological pressures facing athletes. Their “Stop the Madness” campaign revealed that one in three high-profile collegiate athletes receives abusive online messages, with female athletes experiencing three times more threats than their male counterparts. Partnerships with college basketball stars like Kiki Rice brought these challenges into the spotlight.

The platform’s commitment to accessibility was evident in its comprehensive network of over 30,000 licensed therapists operating across more than 100 countries. Their 2024 data demonstrated remarkable therapeutic outcomes: 72% of clients experienced symptom reduction within 12 weeks, with 69% achieving reliable improvement and 62% reaching symptom remission.

Most notably, 40% of new members in 2024 were first-time therapy participants – a significant milestone in reaching individuals traditionally excluded from mental health care. By offering multiple communication methods and achieving a 93% success rate in therapist matching, BetterHelp dismantled traditional barriers to support.

Strategic partnerships extended beyond individual sectors. The platform became the headline sponsor for Alcohol Change UK’s Dry January Challenge, highlighting the intricate connection between mental health and substance use. With 15.5 million Britons planning to go alcohol-free, this collaboration emphasized holistic approaches to wellness.

The Sound Mind Music Festival for Mental Health represented another innovative approach, featuring performances, wellness workshops, and panels from leading mental health organizations. BetterHelp’s involvement underscored its commitment to breaking down stigma through diverse, engaging platforms.

Fernando Madeira, CEO of BetterHelp, articulated the platform’s mission succinctly: “We exist to champion the well-being of all of us, and we envision a world where nothing stands between people and the support they need.”

As mental health awareness continues building momentum, BetterHelp’s approach offers a powerful template for meaningful advocacy. By combining data-driven research, authentic storytelling, and accessible resources, they’re transforming mental wellness from a whispered conversation to a powerful statement of collective strength and healing.

The message remains clear: seeking help is not a sign of weakness, but an act of profound personal courage.

The Best Ecommerce Agencies in Canada

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Retail Insider

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January 19, 2026

Building a successful eCommerce website is far more complex than launching a standard website. High-performing online stores must balance user experience, product discovery, conversion optimization, payment flows, inventory management, platform performance, and scalability… all while driving sales. Choosing the right ecommerce agency is key to your success. The right partner can be the difference between a digital storefront that simply looks good and one that consistently converts and brings in scalable revenue.

Canada is home to many agencies with expertise in designing, building, and optimizing ecommerce websites at scale. Whether you’re launching a brand-new online store or evolving your existing ecommerce operation, here are 5 incredible Canadian ecommerce agencies to consider.

1. NP Digital
The SEO and performance mavericks

NP Digital is a global performance marketing agency with several notable ecommerce clients on their roster. When it comes to optimizing large, product-driven websites for search and AI, NP Digital is an undisputed leader. The company, which has Canadian offices in both Toronto and Montreal, is known for their practical, growth-focused approach to SEO and ecommerce marketing. NP Digital leads brands through the complexities of site optimization, product discovery, and technical site architecture, while developing scalable content strategies.

NP Digital pairs advanced ecommerce SEO and performance marketing strategies with strong creative execution through their partnership with REBL House, a design and branding studio known for building visually stunning digital experiences. This partnership allows NP Digital to deliver award-winning creative experiences while supporting the technical backbone of ecommerce sites.

Why they’re top-tier:

Advanced eCommerce SEO across product, category, and faceted navigation pages
Proven paid media and conversion optimization frameworks built to support online retail growth
Strategic alignment between performance marketing (through NP Digital) and creative through REBL House

They’re best for ecommerce sites focused on growth and ROI who want access to all the perks a full-service agency has to offer.

2. Kinex
The full-service developer

Kinex is one of Canada’s most respected full-service ecommerce agencies, offering everything from custom store builds to UX optimization and digital marketing. With expertise in Magento, Shopify, WooCommerce, and Adobe Commerce development, Kinex has been helping brands grow since 2008.

What makes them stand out:

End-to-end development (design, build, launch)
Data-driven marketing and CRO
Strong client satisfaction and long-term partnerships

Great choice for brands that want a holistic ecommerce solution, from platform setup to growth strategies.

3. Northern Commerce
The onmichannel scaling experts

Northern Commerce blends deep technology expertise with strategy and design to create high-performing ecommerce solutions. They specialize in building experiences that combine retail and data analytics to help brands stay competitive and scalable.

Key strengths:

Enterprise-level ecommerce strategy
Custom development and integrations (Shopify, Magento, BigCommerce)
Data-driven marketing and personalization

Northern Commerce is a great fit for complex ecommerce businesses that need integrated solutions and advanced growth tactics.

4. MageMontreal
The custom solution builders

Based in Quebec, MageMontreal is a specialized ecommerce agency focused on custom development and optimization, especially Magento, Adobe Commerce, and other major platforms.

What they excel at:

Tailored ecommerce web development
Platform migrations and rescue projects
Conversion optimization and SEO for online stores

This agency shines for brands needing highly customized ecommerce builds and ongoing support from a dedicated technical team.

5. Noise Digital
The data and analytics specialists

Noise Digital offers a slightly different but highly valuable take on ecommerce success — focusing on data strategy, analytics, and performance marketing. They help brands unlock insights, optimize campaigns, and improve ROI based on real audience signals.

Why you’ll love them:

Expert data consultancy and measurement frameworks
Performance media and attribution
Analytics-driven strategy for growth

Perfect for businesses that want to turn data into decisions and boost performance across channels.

Tips for Choosing the Right Ecommerce Agency

Selling products online is far more complex than building a standard marketing website. A successful eCommerce site must support product discovery, conversions, payments, inventory, performance, and scalability—all while driving revenue. Choosing the right eCommerce agency means finding a partner that understands the full mechanics of online selling.

Business Fit & Growth Readiness

Look for an agency whose experience matches your business size, product complexity, and growth plans. Whether you’re managing a small catalog or thousands of SKUs, expanding into new markets, or supporting B2C, B2B, or hybrid sales models, your agency should be able to scale with you.

Platform & Technical Expertise

Strong eCommerce agencies bring deep platform expertise across Shopify, Magento, Adobe Commerce, BigCommerce, and other common ecommerce platforms. Beyond setup, they should understand product architecture, checkout optimization, system integrations, site performance, and security, elements that directly impact conversions and reliability.

Conversion & Ongoing Optimization

An eCommerce website is never ‘finished.’ The right agency supports continuous improvement through UX refinement, CRO, SEO for product and category pages, analytics, and performance marketing alignment to increase sales, reduce friction, and grow lifetime value.

Long-Term Partnership

The best eCommerce agencies think beyond launch. They help future-proof your site with ongoing support, platform upgrades, and strategic guidance as customer expectations, technology, and your business evolve.

Final Thoughts

Canada offers a strong ecosystem of ecommerce expertise across development, design, analytics, and growth marketing. Whether you’re looking for a full-service agency focused on strategy and growth (NP Digital), full-stack development (Kinex), integrated solutions (Northern Commerce), custom Magento excellence (MageMontreal), or data-powered performance (Noise Digital), there’s a Canadian agency ready to take your ecommerce business to the next level.

Canada’s Food Inflation Problem Is Getting Worse

By

Sylvain Charlebois

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January 19, 2026

image - 2026-01-19T112301.285 — Loblaws store. Photo: Loblaw Companies

Food prices in Canada rose 6.2% year over year in December, with grocery store prices up 5.0% and restaurant prices jumping 8.5%. That alone would be troubling. What makes it more alarming is that inflation came in well above expectations, pushing Canada to its highest food inflation rate since August 2023.

According to the latest internationally comparable data, Canada now sits at the top of the G7 for food inflation. The numbers speak for themselves: Canada at 6.2%, Japan close behind at 6.1%, followed by the United Kingdom at 4.2% and the United States at just 3.1%. Italy, France, and Germany are all hovering below 3%.

This should stop policymakers in their tracks.

It makes little sense that food inflation in Canada is roughly double that of the United States, especially given that Washington has embraced tariffs and trade confrontation far more aggressively than Ottawa. If tariffs were the main driver, the U.S. should be leading this unfortunate ranking. It isn’t.

Part of December’s spike can be explained by the GST holiday, which applied for 17 days of the month. Temporary tax relief often feels good in the moment, but it comes with a cost: pricing volatility. When taxes are suspended and then reintroduced, price signals become distorted. Retailers and suppliers adjust — sometimes conservatively, sometimes opportunistically. Only now can we properly measure those effects, and the results are not encouraging.

At the grocery level, December’s inflation was driven primarily by meat, fish, vegetables, and pantry staples such as coffee. This occurred during the second month of the so-called “blackout period” — the time when retailers ask suppliers not to raise prices. That prices rose anyway tells us something important: cost pressures are real, persistent, and increasingly difficult to contain.

And the outlook is worse. January 2026 food inflation is very likely to come in even higher. That should deeply concern anyone who cares about household affordability, food security, or economic competitiveness.

Yes, some of Canada’s food inflation reflects global factors — climate volatility, energy costs, and supply disruptions. But most of it is now policy-induced. Regulatory drag, interprovincial trade barriers, poor logistics, rising compliance costs, carbon pricing embedded throughout the supply chain, and a sluggish macroeconomic environment all compound one another. These are not temporary shocks; they are structural weaknesses.

The first step in solving a problem is acknowledging that it exists.

This is not about blaming one grocer or one executive. If food inflation were driven by profiteering, we would see it clearly in financial statements — in sustained increases in gross margins. Bay Street analysts and accountants would have flagged it long ago. They haven’t, because the data don’t support that narrative.

That said, grocers are not entirely blameless. The fact that prices climbed during a blackout period raises legitimate questions about transparency, bargaining dynamics, and how costs are passed through the system. Retailers are not “as white as snow” here, and scrutiny is warranted. But scapegoating them distracts from the real issue.

Canada has a policy-driven food inflation problem, and until we are willing to say that out loud, nothing meaningful will change. Temporary tax holidays, populist rhetoric, and finger-pointing may win headlines, but they will not bring prices down.

Food inflation is no longer a passing storm. It is a warning signal — and Canada is choosing, so far, to ignore.

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Consumer prices on the rise in December: Statistics Canada

By

Mario Toneguzzi

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January 19, 2026

The Consumer Price Index (CPI) rose 2.4% on a year-over-year basis in December, following a 2.2% increase in November, reported Statistics Canada on Monday.

The year-over-year acceleration in the all-items CPI was driven by the temporary Goods and Services Tax (GST)/Harmonized Sales Tax (HST) break that began on December 14, 2024. This resulted in monthly declines for the exempt goods and services, which have now fallen out of the year-over-year movement, putting upward pressure on headline CPI growth, noted the federal agency.

Moderating the acceleration in the headline CPI was a year-over-year decline in prices for gasoline in December. Excluding gasoline, the CPI rose 3.0% in December, following a 2.6% increase in November. It fell 0.2% month over month in December. On a seasonally adjusted monthly basis, the CPI increased 0.3%, said Statistics Canada.

“Year over year, higher restaurant prices were the largest contributor to faster growth in the all-items CPI in December 2025. Prices for food purchased from restaurants rose 8.5% in December, compared with a 3.3% increase in November. Prices for alcoholic beverages served in licensed establishments (+6.5%) and alcoholic beverages purchased from stores (+5.6%) also grew at a faster pace in December,” explained Statistics Canada.

“Prices for toys, games (excluding video games) and hobby supplies rose 7.5% in December, after a 0.5% decline in November. Additionally, prices for children’s clothing accelerated in December (+4.8%) compared with November (+2.4%). Year-over-year price growth also picked up for potato chips and other snack products (+7.9%) and confectionery (+14.2%).”

Despite being unchanged month over month, prices for food purchased from stores rose 5.0% year over year in December. Coffee (+30.8%) and fresh or frozen beef (+16.8%) remained the largest contributors to the increase, it added.

“On a year-over-year basis, prices for gasoline fell 13.8% in December after a 7.8% decline in November. The larger decline was due to prices falling 7.1% month over month in December, following a price increase in November which coincided with various refinery and pipeline disruptions. Crude oil prices have declined to their lowest point in over four years, amid a continued oversupply in global markets, among other factors,” said Statistics Canada.

On Monday the federal agency in another report said CPI rose 2.1% on an annual average basis in 2025, following an increase of 2.4% in 2024. Although this was the smallest annual average increase since 2020, prices remained elevated in 2025, rising 19.9% over the past five years. Excluding energy, the annual average CPI rose 2.6% in 2025, matching the increase in 2024, it said, adding that prices for groceries increased at a faster pace in 2025 (+3.5%) than in 2024 (+2.2%) on an annual average basis.

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HelloFresh survey highlights role of home cooking in combating winter blues

By

Mario Toneguzzi

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January 19, 2026

A national survey commissioned by HelloFresh suggests that home-cooked meals made with fresh ingredients can play a role in improving mood and energy during the winter months.

The research, conducted by The Harris Poll Canada, found that 66 per cent of Canadians say eating more home-cooked meals with fresh ingredients significantly improves mood and energy. It also found that 60 per cent say they experience the winter blues, pointing to what the company describes as a demand for practical, everyday approaches to wellness during winter.

Research points to food and mood connection

The findings form the basis of HelloFresh’s Blue Monday activities and broader messaging around food and well-being. The company says the research shows that small, consistent choices around meals can be more realistic for many people than major lifestyle changes during winter.

According to the survey, 35 per cent of Canadians say they skip or delay a meal at least once a week because they cannot face cooking or deciding what to eat. The research describes this pattern as “Fridge Fatigue,” linking low energy, decision overload, and poorly stocked or disorganized fridges to reduced motivation to cook.

HelloFresh says the findings underscore the importance of accessible meal solutions that reduce decision-making and preparation effort, particularly during periods when energy levels are low.

Blue Monday pop-up planned at Union Station

To mark Blue Monday, HelloFresh plans to host a walk-through pop-up installation at Toronto’s Union Station. The event is scheduled for Jan. 19, 2026, from 4 p.m. to 8 p.m. EST.

The installation will be centred on what the company calls a “Feel-Good Fridge,” intended to highlight the idea that keeping a fridge stocked with ready-to-cook meals made from specific ingredients can help support mood and energy. The pop-up is designed as a commuter-facing activation during the evening rush.

Attendees will be offered a free HelloFresh meal kit to take home. The kits will feature chef-designed meals described as simple and comforting, built around fresh ingredients. Dishes include a fattoush-inspired salad with vegetables, salmon with gremolata butter served with broccoli, and a Moroccan-style chicken bowl designed to be prepared in about 15 minutes.

Company frames meal kits as practical support

HelloFresh says its approach is based on the idea that food is one of the most immediate and practical tools available to people during winter, particularly when motivation is low.

“Food is one of the most practical ways to support yourself in winter because it’s something you can do today, even when motivation is low,” said James Griesser, head recipe developer at HelloFresh. “Fresh ingredients, simple routines, and meals built around foods like omega-3-rich fish, leafy greens, and lean proteins can help support mood and energy. Using a meal kit can also take some of the thinking out of dinner, which makes it easier to follow through when you’re tired.”

The company says meal kits with pre-portioned ingredients and step-by-step recipe cards are intended to reduce barriers associated with planning and decision-making, which the survey suggests can contribute to skipped meals during winter.

Wellness goals shape consumer intentions

The survey also examined Canadians’ intentions around food and well-being. It found that 70 per cent of respondents say supporting mental or emotional well-being through better eating habits is a goal this year, with interest strongest among adults under 55.

HelloFresh says those findings indicate that many Canadians are looking to integrate food into broader self-care routines, particularly during winter evenings when energy and motivation may be lower.

The company positions its winter offerings as aligned with those stated goals, emphasizing meals that are designed to be quick to prepare while using fresh ingredients.

Company background

HelloFresh Canada was founded in February 2016. The company delivers meal kits with pre-portioned ingredients and recipe cards to customers across Canada. It offers several box options, including Quick and Easy, Family Friendly, and Veggie plans, and sources ingredients locally where possible.

The Blue Monday activation and survey findings are part of HelloFresh’s efforts to connect its meal kit service to seasonal consumer challenges identified in its research.

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Toronto-founded HB Face frames beauty brand around resilience and mental health on Blue Monday (Photos/Video)

Post-Holiday Returns Spike Sharply Across Canada: Omnisend

By

Mario Toneguzzi

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January 19, 2026

New data from ecommerce marketing company Omnisend shows that order returns in the post-Christmas week in Canada jump 39% above the average week. The surge isn’t evenly distributed: it’s concentrated in high-gifting categories where fit, specs, and personal preferences are easiest to miss.

Biggest Post-Christmas Return Spikes by Category

Biggest post-Christmas return spikes by category (vs. average week in 2025):

Apparel: +39%
Games: +19%
Pets & animals: +19%
Beauty & fitness: +15%

Why Gifting Categories Drive Returns

Marty Bauer, ecommerce expert at Omnisend, said: “Gifting clothes is always a gamble. Even when shoppers know someone well, fit, cut, and comfort are hard to predict, which naturally leads to exchanges after the holidays. “The same goes for beauty and fitness, where shade and skin compatibility matter just as much as brand loyalty to familiar, go-to makeup brands.”

“Pet products often come down to fit and preference (think harness sizing, dietary restrictions, age appropriateness, or duplicates), whereas games are usually returned due to duplicates or platform compatibility in the case of video games.”

Turning Returns Into a Customer Loyalty Opportunity

“Although returns can be logistically problematic for retailers, they can also present an opportunity to strengthen relationships with customers. Brands that make returns painless and steer shoppers toward exchanges can turn the busiest return week of the year into long-term loyalty.”

Apparel Remains the Highest-Risk Category

Bauer said apparel always has high return rates due to several factors, such as bracketing, improper sizing, in-style trends, and quality.

“While many of these things remain true year-round, the holidays add personal preference to the list. Apparel is a common gift, but too often recipients don’t like the item or suffer from one of the other issues, such as improper sizing,” he said.

Why Games Are Frequently Returned

“With games, we don’t really know 100%. It may be a combination of several things, the first being whether recipients actually want the game. It’s not uncommon for someone outside of the immediate household to purchase a game that does not align with the recipients’ interests. Second, video and board games are often duplicated, requiring recipients to return the item. Third, it may be a matter of receiving the wrong product. They may want controller X but receive controller Z instead.”

Value-Conscious Consumers Are Driving Higher Returns

Bauer said returns, especially post-holiday, are not a new phenomenon.

“The increase we see this year may have more to do with the fact that people are being more diligent about their wants and needs as they prepare for belt-tightening in the new year. Maybe in years past someone may have kept or regifted the unwanted sweater, but they are less willing to lose the value of that gift, instead choosing to return the item for something they want or need,” he said.

The Rising Cost of Returns for Retailers

“The added cost of original and return postage (especially for cross-border shipments), warehousing, logistics, and personnel all add up and affect the bottom line. Many items are not resellable once returned, meaning it can add even further costs to dispose of those products.”

How Retailers Are Using Data and AI to Reduce Returns

Bauer said for years retailers have been using data or AI tools more effectively to reduce preventable returns in high-risk categories such as apparel and beauty and continue to improve upon their capabilities, recognizing returns will always be present.

“It’s a part of retail. The tools retailers are using include more accurate size charts, consistent measurement guidelines from their manufacturers, model descriptions in the product details, 3D product images, and virtual try-ons, to name a few,” he said.

“The goal with these features is to consistently reduce return rates, not eliminate them.”

Looking Ahead to the 2026 Holiday Season

Looking ahead to the 2026 holiday season, what practical steps should Canadian retailers take now to balance generous return policies with profitability and sustainability?

“One option is to offer a small discount in exchange for the consumer waiving their free return option. Another is to charge a slight restocking fee for returns, although this is increasingly turning off shoppers from stores, so tread carefully,” explained Bauer.

“Brands should also implement post-purchase emails to customers, not to sell products, but to earnestly ask how their order was. This provides an opportunity for customer service to head off potential issues before they result in returns. Of course, work on making product detail pages as accurate and helpful as possible. This is one area where AI can analyze return patterns based on factors such as sizing, which can inform the type of data to include on product pages.”

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