The Distillery District in Toronto, a popular hub for boutique retailers, restaurants, and artisanal businesses, is anticipating a strong spring and summer season despite ongoing economic uncertainty.
John Berman, principal and owner of the Distillery District, highlighted the district’s resilience, noting that local tourists are expected to make up a larger portion of the visitor base this year. The area, which spans 14 acres and houses approximately 100 businesses, has already seen a boost in traffic from both international and Canadian visitors, setting the stage for a promising season ahead.
With many visitors opting for domestic travel this year, local businesses like those in the Distillery District stand to benefit. Paula DiRenzo, owner of Blackbird Vintage Finds, an antique and giftware shop in the district, noted a shift in consumer behaviour due to recent tariff concerns, particularly from U.S.-made products. This has prompted many local businesses to pivot and increase their stock of Canadian-made goods, which DiRenzo believes will better align with the growing trend of supporting local brands.
Though challenges remain, both Berman and DiRenzo are optimistic about the future, pointing to the district’s unique blend of history, creativity, and artisanal offerings.
With the shift in Canadians’ shopping habits, there’s never been a better time to rediscover the Distillery District. Among its 72 shops, restaurants, and art galleries, nearly 92% are Canadian-owned, and around 30% of goods are made on-site—from jewelry and apparel to vodka and chocolate. Originally the largest whiskey distillery in North America, the Distillery’s commitment to supporting local has been part of its DNA since 1832.
There are 88 retail / restaurant / café / education / art gallery tenants, plus 18 B2B office tenants.
For more than 20 years, the Distillery District has championed independent boutiques, artisans, talent, cultural experiences and chefs – fostering a destination where people can live, shop, dine, and experience the arts while effortlessly supporting local. Unlike traditional retail environments and other Toronto shopping malls, the Distillery’s Canadian ownership team (Cityscape) made a promise to the city of Toronto in their proposal to redevelop the site in 2001, and have stayed true to their support local commitment to this day.
As Canadian consumers become increasingly conscious of where their products are sourced, businesses in the Distillery District are leaning into this wave of patriotism. Berman and DiRenzo both expressed confidence that this shift in consumer preferences will help local retailers navigate current economic challenges. The focus on Canadian-made goods is not only a response to market demands but also an opportunity to further enrich the cultural and economic fabric of the Distillery District, making it an even more attractive destination for both local and international tourists.
Berman said the owners purchased the property in the winter of 2001 and opening date was May 22, 2003.
“We have approximately 400,000 square feet of area within the Distillery. About a third of that is retail. Within the Distillery, we have boutique retail, restaurants, theaters, galleries, and a quasi-retail space, such as showrooms like the Light Gallery and Artemide. The Distillery is spread across approximately 47 buildings over 14 acres.”
Berman said there’s no question there have been challenges over the last several months. There’s uncertainty with respect to the economy. However, the District had a very strong winter, with lots of tourists in Toronto up until the end of December.
“Now, we’re getting ready for the spring season, which is when the traffic and tourists return. We’re waiting to see what the impact will be from everything we’re reading about in the news,” he explained.
“I think the local tourist is going to be more likely to visit the Distillery this year. I think that will be very strong. We’ll still get tourists from abroad, including the U.S., but I think we’ll see more Canadian tourists, particularly from other provinces and outside Toronto.”
Berman said most of the businesses are locally owned. There are some that have been acquired by larger companies. For example, Mill Street Brewery started in the Distillery District, grew exponentially, and was eventually purchased by Labatts, which is owned by Anheuser-Busch. So, while the ownership is no longer local, their production is still in Ontario. But for the most part, the businesses in the Distillery are locally owned.
“It’s amazing to see this wave of patriotism and support for local businesses. They will definitely benefit from this,” he said.
“We have a very strong focus on the artisanal and creative industries. We have all sorts of tenants here that make products either in the Distillery or locally. We hope that everyone will come out to support them. With this wave of patriotism, it seems that our retailers will benefit from this. We’re hoping to see lots of local visitors this spring and summer.”
DiRenzo has been in the Distillery District for the past 14 years, selling vintage antiques and also a wide range of cool and interesting giftware.
“I wanted somewhere that had a gorgeous brick and mortar, but that attracted people from everywhere,” she said.
She said in mid-January clients would begin coming in and really starting to inspect the products and asking more questions about where things were made and making decisions on the spot. Some didn’t want to have anything to do with it, just simply from where it was from the States.
DiRenzo has long-standing repeat orders from suppliers in places like New York and California.
“Great people, small makers, women-owned businesses, all of a sudden they didn’t want that stuff anymore,” said the business owner.
“It’s not a huge portion of the business because actually since COVID I have made it a mission to have more Canadian-made products in my shop because I’ve found by listening to people who visit from internationally, they are always intent on finding Canadian-made. So I thought, really, we need to fine-tune, I need to fine-tune my focus and start switching out and putting in more Canadian makers because that’s what people want, especially in a tourist area.”
But with the trade war DiRenzo all of a sudden found herself with a collection of products that nobody wanted.
“We’re not going burn it,” adding about 20 per cent of the products were from the U.S.
“I’ve been phasing it out over the last few years because I felt that it would be better if I did that and I wanted to. I thought it was only right to do so. You know, especially now.
“Now I have to figure out, number one, how to move this product because we’re invested and then replace it with something else quickly, which is not always possible.
“I don’t know what’s going to happen. People are always asking me, “Are you worried? Are you worried about the tariffs? Are you worried about your business?” Like during the pandemic, when serious things happen, people may make decisions not to buy cars and go on big, elaborate, globe-trotting trips, but they’re always going to spend money to feel good.”
“Whether it’s like a candle, a piece of nostalgia they’ll still keep coming for those small luxuries. Because it makes them feel good about their life. They cut down on the big stuff. But for me anyway, I’ve always found that tough times we can weather through.”
Related Retail Insider stories:
