It’s been another interesting week in Canadian retail, with some significant developments in how shopping centres are evolving, where retailers are investing, and how businesses are responding to a consumer who is increasingly selective about where to spend.
One of the bigger stories continues to be the transformation of retail real estate. Landlords are finding new opportunities in spaces once occupied by large department stores, bringing in multiple tenants and rethinking how these properties can generate traffic and revenue. We’re also seeing international brands continue to invest in Canada, even as other retailers take a more cautious approach to expansion. It’s an interesting contrast, and one that says a lot about where the industry is heading.
Technology is another theme worth watching, particularly as retailers look for practical ways to use artificial intelligence, improve operations and connect with customers. Meanwhile, smaller businesses continue to face considerable challenges, from rising costs to changing shopping habits. There’s no shortage of innovation in the industry, but the fundamentals of running a profitable retail business remain as important as ever.
As always, there’s plenty happening across the country, from major investments and new store openings to the smaller stories that often tell us just as much about the state of retail.
Here are some of the stories and developments that caught our attention this week.
Retailer News
Primaris REIT is progressing its shopping centre transformation by increasing long-term leases to 728,000 square feet in former Hudson’s Bay spaces and aiming to raise rental income fourfold through redevelopment and selective acquisitions like Upper Canada Mall while divesting weaker assets. Cadillac Fairview’s redevelopment of the former Nordstrom premises in Vancouver will add UNIQLO’s first downtown Metro Vancouver store at CF Pacific Centre next spring, joining tenants like Aritzia and Simons and strengthening the retail draw of this central location. Vancouver also sees a new mixed-use approach with Oakridge Park debuting Wonderground, a reservation-based interactive gaming experience by Moment Factory that supports versatile brand activations and events, broadening the mall’s entertainment appeal.
In Eastern Ontario, Kastners Men’s and Ladies Wear in Cornwall will close by January 2027, reflecting the challenges traditional independent fashion retailers face in smaller cities due to evolving consumer preferences, online competition and succession issues. Italian fashion brands Intimissimi and Calzedonia are starting their Canadian rollout with first stores at Toronto’s CF Sherway Gardens, signalling rising international interest and ILT Group’s plan for 20 locations emphasizing customer engagement before expanding to e-commerce.
Retailer Financials / Trends / Reports
August retail trade rebounded 1.2% driven by motor vehicle dealers, food and beverage, and general merchandise retailers, offsetting declines from the previous month. This strength contrasts with flat overall Canadian GDP, reflecting uneven growth across sectors and raising caution for retail and real estate stakeholders on sustained demand. Payroll employment in retail decreased by 4,400 jobs in August, with sharper declines in accommodation and food services, even as job vacancies held steady at over half a million. This persistent labour market tightness creates operational challenges for retailers and pressures for landlords regarding workforce stability in retail and hospitality properties.
Restaurant Brands International reported a 6.2% year-over-year increase in system-wide sales for the third quarter, reaching nearly $13 billion and supported by growth in key brands and international markets. The restaurant sector saw an eighth consecutive monthly sales increase of 0.3% in August to $8.9 billion, despite ongoing profitability pressures affecting two-thirds of operators. Investments in supply chain capacity and retail technology highlight how Canadian retailers aim to balance higher costs with improved efficiency, making resilience in logistics and AI applications practical priorities.
Retailer People News
Meghan Roach is stepping down as President and CEO of Roots following the company’s acquisition by Marquee Brands and JM&A Design & Development, though she will remain as an advisor to support the transition. This change marks a shift for Roots as it moves from public to private ownership, setting the stage for new leadership to drive product innovation and expansion efforts under the new owners.
Rethink Retail has expanded its executive communities under Canadian CEO Marie Chevrier Schwartz, appointing Chris Parsons as VP of Audience to help lead developments in AI, retail media and supply-chain collaboration. These efforts aim to enhance collaboration among retail professionals tasked with integrating technology and improving customer experience, illustrating growing industry recognition of executive networking as a driver for operational success. Calgary-born singer Tate McRae has entered the beauty retail sector by launching TATE 01, a debut fragrance developed with Scent Beauty and sold exclusively at Sephora Canada and online internationally. Her partnership with Sephora leverages her strong fanbase to establish the brand, exemplifying how collaborations between celebrity brands and major retailers are becoming a notable trend in product exclusivity and differentiated offerings.
Retailer Op-Eds
Lululemon is using fashion collaborations and culturally relevant events to spark renewed consumer interest as it faces sales pressure. The GANNI partnership and dance-focused pop-up in Brooklyn follow a playbook similar to Gap’s recent brand revival that mixes product and lifestyle to rebuild engagement. Such experiential marketing aligns with a longer trend in retail and commercial real estate toward blending store purpose and community culture to sustain foot traffic and demand.
At the same time, Canada’s move to end daylight saving time could shift consumer routines in ways that affect grocery and restaurant traffic. Retailers and policymakers need better data to understand how permanent clocks may change when and how Canadians shop and eat, since research links daylight timing to spending patterns. This challenge sits alongside retailers’ broader efforts to improve digital marketing, upgrade store formats and balance technology with authentic human connection.
Editor’s Take
One of the more interesting developments in Canadian retail right now is how much investment is going into making existing properties work harder. Rather than simply building more retail space, landlords are rethinking what they already own, particularly former department stores that occupied enormous amounts of space without necessarily generating comparable returns. Primaris REIT’s plans to subdivide former Hudson’s Bay locations are a good example. Replacing a single large tenant with several retailers can create new leasing opportunities, bring different customers into a shopping centre and potentially generate substantially more rental income.
We’re seeing a similar emphasis on productivity among retailers themselves. Aritzia’s ambitious U.S. expansion plans and UNIQLO’s investment at Vancouver’s CF Pacific Centre suggest that strong brands still see considerable opportunity for growth. But they’re being deliberate about where they invest, with an emphasis on locations that can attract customers, strengthen brand awareness and support long-term sales. It’s also worth remembering that a larger store isn’t necessarily a riskier investment if it can generate stronger sales and operate more efficiently.
What concerns me more is the growing divide between retailers with the resources to invest and those operating with much smaller margins for error. Larger companies can spend on technology, supply chain improvements, marketing and new store concepts, while many independents are simply trying to manage rising costs and keep customers coming through the door. The closure of Kastners after more than a century is a reminder that longevity alone doesn’t guarantee survival, particularly in smaller markets where changing shopping patterns can have an outsized impact.
Artificial intelligence, loyalty programs and experiential retail will continue to attract attention, and some of these investments will undoubtedly deliver results. But technology and innovation are only valuable when they improve the business. For all the discussion about the future of retail, the fundamentals haven’t changed much: understand your customers, control costs, invest wisely and give people a compelling reason to shop with you.
The retailers and landlords that get those fundamentals right will be in a much stronger position as the industry continues to evolve.
This Week’s Articles
Retailer News
- Hyatt plans 10 Canadian hotel openings in 2027 as portfolio expansion continues — Mario Toneguzzi — Oct 30
- Canadian employers respond to economic pressures with hiring freezes, layoffs and increased automation: Littler — Mario Toneguzzi — Oct 30
- Primaris REIT Advances Hudson’s Bay Leasing as Mall Redevelopment Program Moves Forward — Craig Patterson — Oct 30
- Real Canadian Superstore to open new Buffalo Run location Nov. 26 — Mario Toneguzzi — Oct 30
- Food World Plus to open 176,000-square-foot multicultural grocery store in Mississauga — Mario Toneguzzi — Oct 30
- Retailers urged to start holiday advertising earlier as shoppers begin buying in September — Mario Toneguzzi — Oct 30
- Canadian grocers urged to expand plant-based food offerings in new retail playbook — Mario Toneguzzi — Oct 30
- Prince Street Pizza Pursues Canadian Expansion as Second Toronto Restaurant Takes Shape — Craig Patterson — Oct 30
- Canadian Tire, Sobeys, IKEA and Tim Hortons Among Winners of Inaugural Retail Sustainability Awards — Craig Patterson — Oct 30
- Oakridge Park Partners with Moment Factory to Launch Interactive Entertainment Attraction in Vancouver — Craig Patterson — Oct 30
- Walmart Canada Overhauls Great Value as Private-Label Grocery Competition Intensifies — Lee Rivett — Oct 29
- LoyauT 2026: The Restaurant Industry Tops Canada’s Loyalty Programs — Mario Toneguzzi — Oct 29
- Canadian small business sales rise for four straight months, Xero report finds — Mario Toneguzzi — Oct 29
- Doritos Canada launches limited-edition loungewear contest with 7-Eleven — Mario Toneguzzi — Oct 29
- Giftbit Data Shows Grocery Gift Card Rewards Surged 1,067% in December 2025 — Mario Toneguzzi — Oct 29
- Loblaw Pushes Back on Supplier Price Hikes as No Frills and Maxi Expansion Accelerates — Craig Patterson — Oct 29
- Canadian Tire Expands Saskatoon Store by More Than 50% to 104,000 Square Feet — Mario Toneguzzi — Oct 28
- Retail Real Estate Outlook Brightens for 2027 Despite Consumer Economic Concerns: PwC — Mario Toneguzzi — Oct 28
- adidas Canada signs multi-year deal with Maple Leafs rookie Gavin McKenna — Mario Toneguzzi — Oct 28
- Pür & Simple concept celebrates 10 years with first downtown Toronto location — Mario Toneguzzi — Oct 28
- President’s Choice Expands Greenhouse-Grown Produce as Canadian Demand Grows — Mario Toneguzzi — Oct 28
- Apple Launches M6 MacBook Pro in Canada at $2,799 — Lee Rivett — Oct 28
- Apple Holds Canadian iMac Price at $2,099 as M6 Adds AI, Connectivity Upgrades — Lee Rivett — Oct 28
- Kastners to Close After More Than a Century as Independent Fashion Retail Faces Pressure in Smaller Canadian Cities — Craig Patterson — Oct 28
- Toronto’s Distillery Winter Village Expands Retail Offerings as Quince Takes Title Sponsorship — Craig Patterson — Oct 28
- lululemon Adds Shopify’s Shop Pay to Canadian and U.S. Online Stores — Lee Rivett — Oct 28
- The One Statement Piece That Transforms a Room This Season — Craig Patterson — Oct 28
- Casavogue Prepares Montréal Homeowners for a Season of Holiday Gatherings — Retail Insider — Oct 28
- How Retailers Are Reducing Store Rollout Costs Without Compromising Their Customer Experience — Craig Patterson — Oct 28
- Aritzia Targets $10 Billion as Canadian Store Strategy Shifts Toward Stronger Boutiques — Craig Patterson — Oct 27
- LEGO Opens Store at CF Toronto Eaton Centre, Expanding Downtown Toronto Retail Presence — Craig Patterson — Oct 27
- Jollibee marks 10 years in Canada with holiday promotions, plans expansion — Mario Toneguzzi — Oct 27
- 67% of restaurant operators report declining profitability: Restaurants Canada — Mario Toneguzzi — Oct 27
- Canadians encounter scams despite confidence in spotting fraud: Equifax — Mario Toneguzzi — Oct 27
- Nextdoor’s Halloween Treat Map returns as Canadians keep spending below $100 — Mario Toneguzzi — Oct 27
- Holiday Shoppers Prioritize Discounts Over Brand Reputation, Rithum Executive Says — Mario Toneguzzi — Oct 27
- A&W Canada Taps Hot Honey Trend With New Teen Burger in BULL’S-EYE Collaboration — Mario Toneguzzi — Oct 27
- Retail Demand Drives Vancouver Suburban Vacancy Below 1%: REMAX Report — Mario Toneguzzi — Oct 27
- Behind Oakridge Park’s Ambitious Fashion Show: Luxury Retail, John Legend and a New Vancouver Tradition — Craig Patterson — Oct 27
- Bath & Body Works launches holiday campaign featuring Zooey Deschanel — Mario Toneguzzi — Oct 27
- ROYALMOUNT to add outdoor padel courts in Montreal in 2027 — Mario Toneguzzi — Oct 27
- High Liner Foods to be acquired by Umios in $1.25-billion deal — Mario Toneguzzi — Oct 26
- Guac Mexi Grill plans 95 U.S. restaurants in 10-year expansion — Mario Toneguzzi — Oct 26
- UNIQLO to Open Flagship at Vancouver’s CF Pacific Centre — Craig Patterson — Oct 26
- adidas Canada partners with Montreal Canadiens, Cole Caufield — Mario Toneguzzi — Oct 26
- The Shops at Buffalo Run Retail Centre Near Calgary Listed for Sale — Mario Toneguzzi — Oct 26
- Intimissimi and Calzedonia Open First Canadian Stores at CF Sherway Gardens — Craig Patterson — Oct 26
- Sweat and Tonic to open third Toronto location in Yorkville — Mario Toneguzzi — Oct 26
- Ottawa introduces two-for-one rule to reduce regulatory burden on businesses — Mario Toneguzzi — Oct 26
Retailer Financials / Trends / Reports
- Retail trade rebounds in August on widespread strengths across most subsectors: Statistics Canada — Mario Toneguzzi — Oct 30
- Statistics Canada Reports August Job Losses in Retail and Food Services — Mario Toneguzzi — Oct 29
- Statistics Canada Reports Eighth Consecutive Monthly Increase in Restaurant Sales — Mario Toneguzzi — Oct 29
- Retail Insider “Q3 2026 Logistics & Supply Chain Report”: Resilience Has to Earn Its Cost — Lee Rivett — Oct 29
- Restaurant Brands International sees net revenue jump to $2.53 billion in Q3, with system-wide sales near $13 billion — Mario Toneguzzi — Oct 29
- Retail Insider “Q3 2026 Retail Technology Report”: AI Faces an Operating Results Test — Lee Rivett — Oct 28
- Retail Insider “Q3 2026 Marketing & Customer Experience Report”: Measure the Job, Not Just the Audience — Lee Rivett — Oct 27
- American Express Wants to Influence Where Consumers Shop, Not Just How They Pay — Lee Rivett — Oct 26
- Lithia Warns Chinese Automakers Face Costly Canadian Dealership Expansion — Lee Rivett — Oct 26
- Statistics Canada: Canada’s retail workforce is aging as AI adoption grows — Mario Toneguzzi — Oct 26
- Retail Insider “Q3 2026 Luxury Report”: Flagship Investment Changes the Store Economics — Lee Rivett — Oct 26
- Retail Insider’s Canadian Retail Monitor: October 2026 — Retail Spending Rebounds, but Growth Remains Uneven — Craig Patterson — Oct 24
Retailer People News
- Tate McRae launches fragrance brand with exclusive Canadian Sephora deal — Mario Toneguzzi — Oct 29
- Meghan Roach announces she’s stepping down as President/CEO of Roots — Mario Toneguzzi — Oct 26
- Rethink Retail Expands Executive Communities Under Canadian Leadership — Craig Patterson — Oct 24
Retailer Op-Eds
- Is lululemon Taking a Page from Gap’s Comeback Playbook? — Retail Insider — Oct 28
- Could Ending Daylight Saving Time Change How Canadians Shop and Eat? — Sylvain Charlebois — Oct 28
- From The Desk: Social Media Growth, Store Modernization and AI’s Impact on Retail Marketing — Craig Patterson — Oct 24
