It was another busy week for Canadian retail, with expansion, investment and changing consumer behaviour showing up across several of the stories we covered.
Retailers continue to open stores and invest in their physical networks, even as consumers remain cautious about spending. Technology is becoming a bigger part of the conversation as well, including the growing use of AI, while partnerships and new business models are creating opportunities for established brands and newer players.
We are also heading into an important stretch of the retail calendar. Back-to-school shopping is underway, bringing price and value into sharper focus, and the fall season is approaching quickly. At the same time, retail real estate continues to shift as landlords reposition properties and retailers reconsider where and how they want to operate.
What stands out is that the industry isn’t standing still. Companies are making decisions now about stores, technology, partnerships and growth that could shape their businesses well beyond this fall. Some longstanding Canadian brands are entering particularly interesting new chapters, while others are finding opportunities to expand in a market that remains challenging.
Here are some of the stories and developments that caught our attention this week.
Retailer News
The retail environment in Canada is witnessing both reinvention and expansion. TJX’s strong performance in Canada, where Winners, Marshalls, and HomeSense are gaining major market share, illustrates how off-price retailers continue to capitalize on the void left by Hudson’s Bay closures, expanding aggressively into malls and urban centres. Similarly, Canadian Tire is driving growth through its Destination Sport store format, repurposing large-format retail spaces and tapping into the sporting goods market’s momentum.
In parallel, Shopify’s extension of cross-border ecommerce tools for Canadian merchants signals recognition of growing international sales complexities, especially with evolving U.S. import regulations. This infrastructure upgrade will be critical for Canadian retailers striving to broaden their global footprint amid an increasingly competitive landscape.
The departure of Roots from public markets, entering a privatised phase under Joe Mimran’s guidance as outlined in Roots to Go Private as Joe Mimran Takes Key Operating Role, highlights a strategic pivot toward long-term product innovation and international growth outside quarterly earnings pressures. This move is emblematic of legacy brands seeking greater operational agility and renewed brand vitality.
Physical retail expansion continues with DAVIDsTEA advancing its store openings, exemplified by the new flagship at Square One, which supports e-commerce growth in surrounding markets as presented in DAVIDsTEA Opens Square One Flagship. Meanwhile, Shake Shack’s strategic openings, including its first Ontario drive-thru locations, demonstrate adaptive multi-format growth targeting suburban consumers, signaling broadening retail footprints beyond urban cores.
Complementing these retail developments is Primaris REIT’s $19 million investment to transform the former Hudson’s Bay space at Galeries de la Capitale into a multi-tenant complex with new retail and dining anchors, reflecting a trend toward repurposing ageing department store real estate into diversified experiential destinations, detailed in Primaris Invests $19M to Transform Former Hudson’s Bay.
Retailer Financials / Trends / Reports
Recent data confirm Canadian retail’s cautious but steady positive momentum despite inflationary pressures. Statistics Canada reports that retail sales surpassed $74 billion in June, buoyed by strength in general merchandise and clothing, while e-commerce sales increased nearly 10%, indicating digital channels remain a key growth lever.
Home improvement retailer Home Depot Canada continues to outperform with accelerated sales growth, as noted in Home Depot Canada Sales Accelerate, driven by robust demand for smaller projects and professional customers. The company’s strong Q2 fiscal results, posting $47.9 billion in sales, reinforce the sector’s resilience amid a challenging housing market.
On the inflation front, Statistics Canada’s report of a 3.0% year-over-year Consumer Price Index increase, led by gasoline and travel costs, continues to shape retailer pricing strategies. Food price inflation remains sticky, further adding pressure on grocery and restaurant sectors to balance margins and customer affordability. These macroeconomic factors frame the backdrop for constrained consumer purchasing power heading into fall.
Retailer People News
The industry further signals its digital evolution with Groupe Dynamite appointing Henry Spear as Chief Customer Officer to spearhead personalised and seamless omni-channel customer experiences across its brands, GARAGE and DYNAMITE, reflecting heightened focus on integrating e-commerce and physical retail, as detailed in Groupe Dynamite appoints new digital leader.
Retailer Op-Eds
Insightful perspectives from the sector highlight the delicate balance retailers must maintain. Sylvain Charlebois’ article on Canada’s supply management system underscores the urgency for reform to enhance competitiveness and innovation, a necessary evolution that impacts supply chains and pricing structures crucial to retail and grocery operations.
Another op-ed draws attention to the structural challenges within the Canadian restaurant industry, with forecasts suggesting the potential loss of thousands of eateries in 2026, predominantly independent full-service operators, as discussed in Canada Could Lose 2,500 Restaurants. This trend echoes broader concerns over sector viability, impacting retail landlords with significant exposure to foodservice spaces.
A recent strategic overview of the retail landscape stresses the importance of cautious expansions and resilient mixed-use developments blending residential, wellness, and experiential retail offerings. This approach responds well to consumer segmentation and cost management imperatives, reinforcing fundamentals for sustainable growth in a transforming retail market, as detailed in From The Desk: Strategic Expansions and Resilience.
Editor’s Take
There is an interesting contradiction emerging in Canadian retail. Consumers remain cautious and value matters enormously, yet some of the country’s largest retailers are continuing to invest in stores, technology and expansion.
TJX is a good example. The company continues to grow Winners, Marshalls and HomeSense in Canada, including in prominent shopping centres where space has become available following the departure or downsizing of other retailers. Canadian Tire is also finding new uses for major retail spaces. These moves suggest that good real estate still has considerable value, particularly for retailers with the scale and economics to take advantage of opportunities as they emerge.
The consumer side of the equation is harder. Back-to-school spending is putting price sensitivity back into focus, resale continues to gain attention, and restaurants remain under considerable pressure. Retail sales may be growing in parts of the market, but that does not mean every category or operator is benefiting equally.
Roots adds another dimension. Its move into private ownership, with Joe Mimran returning to play a significant operating role, could give the company greater freedom to invest in product, stores and international growth over a longer time horizon. It will be worth watching what happens when an established Canadian brand with considerable recognition is given a new ownership structure and a renewed growth mandate.
Technology is running through many of these stories as well. Shopify, Groupe Dynamite and other Canadian companies are investing in AI and digital capabilities, but the important question will be what those investments actually accomplish. The retailers that use technology to improve merchandising, inventory, customer experience and profitability will have an advantage over those adopting it because it has become the latest corporate priority.
Heading into fall, Canadian retail looks increasingly divided. Strong operators with capital, desirable formats and room to invest are finding opportunities, including some created by the retreat of other retailers. Businesses facing weaker economics and a price-conscious consumer have considerably less room for error. That divide may become one of the most important retail stories to watch over the coming months.
This Week’s Articles
Retailer News
- Shoppa.ca launches online marketplace for Canadian-owned businesses — Mario Toneguzzi — Aug 21
- Good Earth Coffeehouse opens new location at Indigo Metrotown in Burnaby — Mario Toneguzzi — Aug 21
- TJX Says Winners, Marshalls and HomeSense Are Gaining Major Market Share in Canada — Craig Patterson — Aug 21
- Home Depot Canada Sales Accelerate Despite Challenging Housing Market — Lee Rivett — Aug 21
- AutoCanada Sees Canadian Auto Market Remaining Challenging — Craig Patterson — Aug 21
- Canadian sponsorship spending reaches $4.7B as industry study marks 20 years — Mario Toneguzzi — Aug 21
- Roots to Go Private as Joe Mimran Takes Key Operating Role — Craig Patterson — Aug 20
- Cargojet Sees E-Commerce Growth as Retail Shifts in Smaller Canadian Markets — Lee Rivett — Aug 20
- Boston Pizza Accelerates Canadian Restaurant Renovations, Adds New Locations — Craig Patterson — Aug 20
- HelloFresh Expands Factor Across Canada as Ready-to-Eat Strategy Grows — Craig Patterson — Aug 20
- Public safety and construction deal heavy blows to Edmonton downtown businesses — Mario Toneguzzi — Aug 20
- Empire to acquire nine Morelli’s pharmacies in Ontario — Mario Toneguzzi — Aug 20
- Canadian Tire Prepares for AI Shopping as Retail Strategy Evolves — Craig Patterson — Aug 20
- Healthy Planet expands to Yonge and Eglinton with 45th Ontario location — Mario Toneguzzi — Aug 20
- Skin Excellence Medspa offers 30% discount as it launches influencer partnership program — Mario Toneguzzi — Aug 20
- Fizz expands retail presence through EB Games Canada partnership — Mario Toneguzzi — Aug 20
- Subway Canada brings back original artisan flatbread after customer demand — Mario Toneguzzi — Aug 19
- Pandora Expands Canadian Footprint While Reshaping Jewellery Strategy — Lee Rivett — Aug 19
- Coach Expands Store Investment as Gen Z Drives Global Growth — Lee Rivett — Aug 19
- Shopify Expands Cross-Border Ecommerce Tools for Canadian Retailers — Craig Patterson — Aug 19
- RUDSAK Opening Bloor Street Store at Toronto’s Manulife Centre — Craig Patterson — Aug 19
- 25% of New Businesses in Canada Are Started by New Canadians: CFA — Mario Toneguzzi — Aug 19
- Why Major Retailers Are Turning Employees Into Content Creators: Billo — Mario Toneguzzi — Aug 19
- GoodLeaf Farms says all three Canadian vertical farms have reached profitability — Mario Toneguzzi — Aug 19
- Small business confidence hits three-year low as costs rise and cash reserves shrink: Zensurance — Mario Toneguzzi — Aug 19
- SportChek Plans More Destination Sport Stores as HBC Spaces Create Opportunities — Craig Patterson — Aug 18
- DAVIDsTEA Opens Square One Flagship as Canadian Store Expansion Advances — Craig Patterson — Aug 18
- Shake Shack Expands Canadian Footprint With New Ontario Restaurants — Lee Rivett — Aug 18
- Squishy toy craze spilling beyond toy aisle: Faire — Mario Toneguzzi — Aug 18
- Brasa Peruvian Kitchen prepares to open at Toronto Pearson Airport — Mario Toneguzzi — Aug 18
- Why CPG Brands Should Take a Page From Fashion’s Playbook and Embrace Mystery — Mario Toneguzzi — Aug 18
- Canadian Consumer Spending Accelerates in Q2 Despite Higher Energy Costs: RBC — Mario Toneguzzi — Aug 18
- Dr. Oetker Takes Suprema Frozen Pizza Opera on Tour in Quebec to Drive Sampling — Mario Toneguzzi — Aug 18
- Primaris Invests $19M to Transform Former Hudson’s Bay at Galeries de la Capitale — Craig Patterson — Aug 17
- Higher Back-to-School Spending Masks Budget Pressure for Canadian Families — Craig Patterson — Aug 17
- lululemon Like New Resale Program Expands to Canada — Mario Toneguzzi — Aug 17
- 63% of Canadians have bought refurbished, open box or traded in technology in the past year: Best Buy report — Mario Toneguzzi — Aug 17
- Ford Canada Launches ‘There’s No Can’t in Canada’ Campaign, Highlights $5B Oakville Investment — Mario Toneguzzi — Aug 17
- Inside Leon’s $1.17 Billion Canadian Real Estate Portfolio — Craig Patterson — Aug 17
- 43% of Canadians Less Likely to Trust AI-Generated Ads, Vistar Media Finds — Mario Toneguzzi — Aug 17
- AI Isn’t Expected to Cut Canadian Retail Jobs by 2031, but the Skills Needed Are Changing: ServiceNow — Mario Toneguzzi — Aug 17
- CBRE seeks grocery store for Saskatoon’s downtown redevelopment — Mario Toneguzzi — Aug 17
- Canadian consumer insolvencies hit highest quarterly level since 2009: CAIRP — Mario Toneguzzi — Aug 17
- Squishmallows fragrances expand into Canada through Sephora — Mario Toneguzzi — Aug 14
- Tre Stelle targets grocery-shopping habits with cream cheese campaign — Mario Toneguzzi — Aug 14
- Rexall launches weekly 20% discount for eligible health-care workers — Mario Toneguzzi — Aug 14
Retailer Financials / Trends / Reports
- Canadian retail sales surpass $74 billion in June: Statistics Canada — Mario Toneguzzi — Aug 21
- The Home Depot sees Q2 fiscal sales reach $47.9 billion — Mario Toneguzzi — Aug 18
- Consumer prices continue to climb: Statistics Canada — Mario Toneguzzi — Aug 17
Retailer People News
- Groupe Dynamite appoints new digital leader as Chief Customer Officer — Mario Toneguzzi — Aug 19
Retailer Op-Eds
- Canada Could Lose 2,500 Restaurants in 2026 as Industry Pressures Mount — Sylvain Charlebois — Aug 18
- Canada’s Supply Management System Must Evolve: 10 Myths That Need Rethinking — Sylvain Charlebois — Aug 17
- From The Desk: Strategic Expansions and Resilience Shape Canadian Retail Landscape — Craig Patterson — Aug 16
