Canadian retail continues to be a mixed bag, and the differences between who’s growing and who’s struggling are becoming increasingly apparent. Value-focused retailers are finding opportunities to expand, while premium brands continue investing in stores and experiences that attract customers willing to spend. It’s a tougher environment for many retailers in the middle, particularly those struggling to give shoppers a compelling reason to visit.
We’re also seeing some interesting developments in retail real estate. Grocery-anchored shopping centres remain in demand, with limited available space and healthy leasing activity. At the same time, landlords are facing some expensive decisions about what to do with former department stores and other large retail spaces. Some of these properties present tremendous opportunities, although repositioning them can be complicated and costly.
Technology is another area worth watching. Artificial intelligence is increasingly finding its way into everyday retail operations, from inventory management and merchandising to marketing and supply chains. There’s considerable potential here, although retailers will need to determine where these investments actually deliver results.
What stands out to me is how differently retailers are responding to the same economic environment. Some are expanding aggressively, others are becoming more selective about where they invest, and some are having to rethink their businesses altogether. We’ll continue watching how these decisions play out across Canada’s retail landscape.
Here are some of the stories and developments that caught our attention this week.
Retailer News
Aritzia is expanding its North American footprint with plans for more U.S. store openings, larger retail spaces and repositioning of locations in Quebec and California, reflecting strong boutique sales and increased customer traffic. This approach confirms the continuing relevance of physical retail within its omnichannel strategy, offering insights for landlords and investors about where retail investment can succeed amid changes in consumer behaviour.
Alimentation Couche-Tard agreed to acquire retail locations, fuel supply agreements and 18 cardlock sites from Irving Oil in Quebec and Ontario, pending regulatory approval, increasing its presence in these key markets. This transaction strengthens Couche-Tard’s integration of fuel supply with convenience retailing, a relevant development for commercial real estate stakeholders tracking asset ownership and market consolidation.
Retailer Financials / Trends / Reports
Canadian retail reports for the third quarter of 2026 show a mix of growth and caution across sectors with overall investment in retail real estate, technology and operations continuing but with an eye on changing consumer behaviour and market selectivity. While grocery retailers expanded and repositioned capacity through discount format conversions and new specialty formats, underlying volume growth remained minimal, highlighting pressures on profitability and the need for strategic property usage amid evolving online fulfillment needs. Foodservice sales increased during the same quarter with chains investing in renovations, delivery partnerships and loyalty programs, but tight margins and selective consumers require careful management to ensure sustainable growth and site viability for landlords and operators.
Individual retailers reported notable financial performances, underlining the challenges and opportunities in different retail categories. Aritzia’s fiscal 2027 second quarter results showed a 44.1% increase in net revenue, reaching $1.17 billion, driven by strong comparable sales growth and digital and U.S. market expansions, reflecting effective real estate and digital channel investment. Kits Eyecare also showed significant gains, with total revenue rising 21.6% year-over-year in Q3 to about $63.7 million, boosted by the glasses segment’s 59.3% growth and a balance sheet free of debt, underscoring the value of diversified product lines in retail growth.
Retailer People News
IKEA Canada CEO Selwyn Crittendon will leave his post at the end of December to become Deputy CEO of IKEA U.S., a move that could alter the home furnishings retailer’s approach across North America especially as it pursues growth and sustainability goals. The company has yet to name his Canadian successor, leaving some uncertainty for Canadian retail landlords and suppliers who have worked with Crittendon on store expansion and community initiatives.
The fashion sector features two notable Canadian designers focusing on sustainable growth in distinct ways. George Sully stresses the challenges Canadian designers face scaling nationally amid limited industry infrastructure and the necessity of forging equitable retail partnerships to turn visibility into lasting commercial success. Joseph Tassoni exemplifies a deliberate growth strategy through his recent Natural Authority runway and Oakville showroom, emphasizing direct customer engagement and experiential retail to build brand loyalty and manage expansion cautiously.
Retailer Op-Eds
Canadian retail continues to show a clear divide between value-oriented and premium-focused retailers, pushing mid-tier operators to find sharper ways to differentiate themselves through new store formats and technology adoption. Retailers increasingly embrace AI-driven customer engagement tools alongside franchising growth to enhance operational efficiency and respond to shifting consumer behaviours. Meanwhile, the Competition Bureau’s investigation into minimum advertised pricing policies reveals a tension where pricier MAP rules limit how discount grocers promote deals, while also offering protection for independent retailers competing against bigger national chains with stronger buying power. This dual effect influences pricing strategy decisions and retailer viability, creating complex dynamics for landlords and suppliers managing space in Canada’s concentrated grocery market.
Editor’s Take
The divide in Canadian retail continues to widen. Value-focused retailers are attracting cost-conscious shoppers, while premium brands are investing in larger stores and better customer experiences. Aritzia is one example of a retailer taking a selective approach to expansion, concentrating on locations where it sees strong sales potential. For retailers caught in the middle, the pressure is mounting. Store space is expensive, inventory needs to move, and customers have plenty of alternatives. Having a recognizable brand is no guarantee of success.
Retail landlords are dealing with a very different set of circumstances depending on the properties they own. Grocery-anchored centres continue to perform well, with low vacancy and strong demand from tenants. Former department-store spaces are another matter. Redeveloping these large properties can require substantial investment, complicated construction work and years of planning. We’re seeing landlords explore combinations of grocery stores, entertainment, restaurants and smaller retail tenants to bring these spaces back into productive use. Concepts such as TM Wander and The Rec Room also show how shopping centres are incorporating more reasons for people to visit beyond traditional shopping.
Artificial intelligence is becoming a bigger part of retail operations, and I’m particularly interested in how this develops. Companies such as Canadian Tire, Loblaw and Instacart are using the technology across areas including merchandising, customer engagement and fulfilment. There’s potential for meaningful improvements, although implementation can be expensive and results will depend heavily on the quality of the underlying data. AI is also changing how consumers discover products online, creating another challenge for retailers trying to understand where their customers are coming from and which marketing investments are working.
One area that deserves more attention is the pressure on smaller independent retailers. Rising operating costs, property taxes and other expenses are making it difficult for some businesses to expand or even maintain their existing locations. These retailers contribute considerably to the character and economic activity of communities across Canada, and their challenges shouldn’t get lost in the headlines about major chains opening new stores.
Looking across this week’s developments, it’s apparent that there are still opportunities for growth in Canadian retail, although success increasingly depends on choosing the right locations, managing costs carefully and understanding what customers actually want. We’ll be watching how these trends develop in the months ahead.
This Week’s Articles
Retailer News
- Aritzia’s Stronger Store Performance Supports Continued North American Expansion — Craig Patterson — Oct 9
- Couche-Tard to acquire Irving Oil retail assets in Quebec, Ontario — Mario Toneguzzi — Oct 9
- Toronto Fashion Label Demascaré Expands Into Ready-to-Wear as Shaun Mascarenhas Eyes Retail Growth — Craig Patterson — Oct 9
- Canadians plan to spend less this holiday season but favour domestic products: PwC — Mario Toneguzzi — Oct 9
- Maybelline expands mental health campaign to focus on support networks (Video) — Mario Toneguzzi — Oct 9
- Pokémon Card Thefts Push Canadian Retailers to Rethink Store Security — Lee Rivett — Oct 9
- Canadians’ confidence in direction of food system weakens: report — Mario Toneguzzi — Oct 9
- Montreal’s Transformer Table Reaches $145 Million in Revenue as U.S. Retail Expansion Accelerates — Craig Patterson — Oct 9
- PetSmart plans free Halloween events at Canadian stores — Mario Toneguzzi — Oct 9
- Canada’s Menswear Market Is Being Rebuilt as Retailers Invest in Premium and Luxury — Craig Patterson — Oct 8
- Ralph Lauren Home Joins Maison Territo in Montréal — Craig Patterson — Oct 8
- Casavogue Launches Buy More, Save More Promotion in Montréal — Retail Insider — Oct 8
- Egg Club and Serruya Private Equity Announce Joint Venture to Fuel Global Growth — Mario Toneguzzi — Oct 8
- Canadian Shoppers Grow More Selective as Holiday Spending Intentions Weaken — Lee Rivett — Oct 8
- Scarce Retail Space Gives Canadian Landlords New Leverage — Craig Patterson — Oct 8
- Canadian Holiday Shoppers Start Early, Creating New Opportunities for Retail Advertisers — Mario Toneguzzi — Oct 8
- Canadian Holiday Shoppers Turn to Early Deals and AI as Budgets Face Pressure: Accenture — Mario Toneguzzi — Oct 8
- Tax and cost pressures holding back most small business from expanding: CFIB — Mario Toneguzzi — Oct 8
- Weston Family’s Wittington to Acquire Boots in US$8.9-Billion Deal — Craig Patterson — Oct 8
- Lululemon Overhauls Leadership, Taps Walmart Canada Executive as North American Sales Slide — Craig Patterson — Oct 8
- Entertainment Becomes a New Anchor for Canadian Shopping Centres — Craig Patterson — Oct 7
- Kidfresh Expands to More Than 300 Canadian Stores as Kids’ Frozen Meal Category Grows — Mario Toneguzzi — Oct 7
- Salvation Army Thrift Store opens second Victoria location — Mario Toneguzzi — Oct 7
- Imaginaire Targets National Expansion with 2–3 New Stores Annually — Craig Patterson — Oct 7
- Canadian Travel Brand Monos Plans Retail Expansion as Tariffs Reshape U.S. Strategy — Mario Toneguzzi — Oct 7
- Replacement Tenants Now Identified at All Former Nordstrom Stores in Canada — Craig Patterson — Oct 7
- Most Canadian Small Businesses Haven’t Felt AI’s Impact: Zensurance — Mario Toneguzzi — Oct 7
- Wayfair expands Klarna payment options to Canadian shoppers — Mario Toneguzzi — Oct 7
- Calgary Retail Investment Hits $522 Million in H1 2026, Led by $154M Northland Village Sale — Mario Toneguzzi — Oct 7
- EB Games opening North America’s first Nintendo store-within-a-store experience in Toronto — Mario Toneguzzi — Oct 7
- Canadian Consumer Spending Tracks 2.6% Growth in Q3 as FIFA World Cup Provides Modest Boost: TD — Mario Toneguzzi — Oct 7
- Costco expands on-demand delivery across Canada through DoorDash — Mario Toneguzzi — Oct 7
- Wild Fork Exits Canada, Abandoning Ambitious Ontario Expansion Plans — Craig Patterson — Oct 7
- Neighbourly Pharmacy continues to grow, 10 more pharmacies acquired — Mario Toneguzzi — Oct 6
- Crate & Barrel Holdings partners with Affirm for flexible payment options — Mario Toneguzzi — Oct 6
- Skip, Instacart partner to expand grocery, restaurant delivery options for Canadians — Mario Toneguzzi — Oct 6
- Jimmy John’s launches five new Picklewich sandwiches — Mario Toneguzzi — Oct 6
- Vaughan Mills Turns 10,000-Box Pasta Tumble Into Mall-Wide Community Activation — Craig Patterson — Oct 6
- Sleep Protein Expands Across Canada Through Loblaw Retail Rollout — Craig Patterson — Oct 6
- Tim Hortons Orange Sprinkle Donut campaign raises $979,000 for Indigenous organizations — Mario Toneguzzi — Oct 6
- Jollibee Sees Potential for Hundreds of Restaurants in Canada as Expansion Accelerates — Craig Patterson — Oct 6
- SUPER MINISO to Enter Canada as Retailer Expands Multi-Format Store Strategy — Lee Rivett — Oct 6
- Thanksgiving turkey dinner for four estimated to cost 10 per cent more in 2026: Dalhousie report — Mario Toneguzzi — Oct 6
- 77% of Canadians say buying local is how they are “standing up” for their communities in the face of US tariffs — Mario Toneguzzi — Oct 6
- Popeyes launches biscuit mix, dipping sauces in Canadian grocery stores — Mario Toneguzzi — Oct 6
- Massive social and athletic club planned for Calgary (Renderings) — Mario Toneguzzi — Oct 5
- Canadians face growing job insecurity as tariffs, AI and economic uncertainty weigh on workers: MNP — Mario Toneguzzi — Oct 5
- TM Wander Eyes Canadian Expansion as Central Walk Seeks Mall Partners — Craig Patterson — Oct 5
- Canadian Retailers Face Rising Financial Pressure as Bankruptcy Risks Mount: Alex Hennick — Mario Toneguzzi — Oct 5
- Square One Reshapes Retail Mix with New Tenants — Craig Patterson — Oct 5
- 52% of tariff-impacted small businesses are performing worse: Merchant Growth report — Mario Toneguzzi — Oct 5
- Bayview Village Unveils Major Interior Transformation as QuadReal Advances Mixed-Use Redevelopment — Craig Patterson — Oct 5
- EY Canada honours entrepreneurs with 2026 Lifetime Achievement and Family Business Awards of Excellence — Mario Toneguzzi — Oct 5
- Walmart Enters Squamish Grocery Market After 20 Years of Retail Restrictions — Lee Rivett — Oct 5
- Fitness World launches HYROX Training Club in British Columbia — Mario Toneguzzi — Oct 5
- Tipping Decline Across Canada: Actual report — Mario Toneguzzi — Oct 5
- Donations Needed to Help Meet Demand for Affordable Second-Hand Goods — Mario Toneguzzi — Oct 5
Retailer Financials / Trends / Reports
- Employment falls for 2nd straight month, 68,000 jobs lost in September: Statistics Canada — Mario Toneguzzi — Oct 9
- Aritzia reports Q2 Fiscal 2027 financial results, net revenue up 44.1% to $1.17 billion — Mario Toneguzzi — Oct 8
- Kits Eyecare report preliminary Q3 results, substantial growth in total revenue — Mario Toneguzzi — Oct 8
- Retail Insider Releases Q3 2026 Canadian Retail Reports — Craig Patterson — Oct 7
- Q3 2026 Grocery: Capacity Expands as Competition for the Basket Intensifies — Craig Patterson — Oct 6
- Q3 2026 Food Service: Restaurant Growth as Consumers Become More Selective — Craig Patterson — Oct 6
- Q3 2026 Real Estate & Leasing: Strong Leasing Faces the Test of Delivery — Craig Patterson — Oct 6
- Q3 2026 Discount & Off-Price: Transactions Rise as Value Competition Intensifies — Craig Patterson — Oct 6
- Q3 2026 Apparel & Fashion: Store Performance Ahead of Store Count — Craig Patterson — Oct 6
- Q3 2026 Consumer Behaviour / Retail Economy: Spending Holds Up as Shoppers Become More Selective — Craig Patterson — Oct 6
- Q3 2026 Luxury: Flagship Investment, Space and Service — Craig Patterson — Oct 6
- Q3 2026 Sporting Goods & Outdoor: Store Productivity as Performance Diverges — Craig Patterson — Oct 6
- Q3 2026 Jewellery & Accessories: Seeking More From Physical Stores — Craig Patterson — Oct 6
- Q3 2026 Convenience: Food Growth as Merchandise Sales Remain Soft — Craig Patterson — Oct 6
- Q3 2026 Health & Beauty: Growth Shifts Toward Services, Distribution and Trust — Craig Patterson — Oct 6
- Q3 2026 Retail Technology: AI Moves Deeper Into Retail Decisions — Craig Patterson — Oct 6
- Q3 2026 Home Furnishings: Retailers Rethink the Role of the Store — Craig Patterson — Oct 6
- Q3 2026 Books & Specialty: Expanding Physical Reach — Craig Patterson — Oct 6
- Q3 2026 Marketing & Customer Experience: Marketing Moves Closer to Commerce — Craig Patterson — Oct 6
- Q3 2026 Logistics & Supply Chain: Capacity Expands as Costs and Trade Risks Shift — Craig Patterson — Oct 6
- Q3 2026 Security & Loss Prevention: Retail Risks Become More Specialized — Craig Patterson — Oct 6
- Q3 2026 Policy & Regulation: Tariffs, Grocery Competition and Tax Changes — Craig Patterson — Oct 6
- Canadian Retail Construction Hits Decade Low as Scarcity Reshapes Expansion — Craig Patterson — Oct 5
- Retail Insider’s Canadian Retail Monitor — September 2026: Consumer Spending Becomes Selective — Craig Patterson — Oct 2
Retailer People News
- Selwyn Crittendon moving on to different role at IKEA — Mario Toneguzzi — Oct 8
- VIDEO: What consumers can do during an affordability crisis — Mario Toneguzzi — Oct 6
- George Sully Reflects on Building Canadian Fashion Brands, Retail and Resilience — Craig Patterson — Oct 6
- Joseph Tassoni Calls ‘Natural Authority’ His Best Show Yet as Canadian Brand Builds — Craig Patterson — Oct 2
Retailer Op-Eds
- Why Grocery Pricing Rules Could Help Some Retailers and Hurt Others — Lee Rivett — Oct 8
- From The Desk: Polarized retail growth, evolving formats and AI-driven customer engagement — Craig Patterson — Oct 3
