Jan. 7, 2026 "Canada’s retail landscape is entering a new chapter, according to some experts": Today I found this article by Dorcas Marfo on BNN Bloomberg:
Canada’s retail landscape is entering a new chapter, according to some experts.
After a year of
stubborn inflation,
shifting consumer priorities
and retail innovation,
2026 could see significant change in how Canadians shop.
Donna Smith, director of Toronto Metropolitan University’s (TMU’s) School of Retail Management, says the turbulence of 2025 reshaped both
spending habits
and business models
across the sector.
“We seen inflation on a number of fronts,” the professor said in an interview with CTVNews.ca in November.
“Food has risen about four per cent year over year,
rent is up nearly five per cent,
and apparel
– a more discretionary category – has been growing at a slower rate.”
A monthly Statistics Canada Consumer Price Index report published in the fall is one example of the uneven cost landscape.
In an October release,
food prices were among the largest contributors to inflation,
rising about 3.4 per cent year-over-year - still above the overall inflation rate that sits at 2.2 as of October 2025.
In another illustration of 2025 trends, a September release showed rent also stayed elevated, rising 4.8 per cent year-over-year and outpacing the CPI average.
Retail analyst Bruce Winder said this economic backdrop means a new kind of shopper is entering 2026, whom he describes as “a frugal consumer, a cautious consumer.”
He added in an interview with CTVNews.ca in October that business owners themselves are also holding back because of wider economic uncertainty.
He said this caution is showing up in
hiring freezes
and reduced investment,
as business owners worry that the ongoing trade dispute
may slow exports
and cut into future sales.
“We have elevated unemployment rates,
and companies are cautious because of the trade war.
When you have a cautious consumer
and a cautious business community,
that usually leads to a bit of a slowdown,”
he said. This means
slower economic activity overall,
including weaker exports,
softer domestic sales
and reduced consumer spending,
Winder said.
Affordability shapes shopping habits
With household budgets stretched, Canadians have increasingly turned to
value-driven formats,
according to TMU’s Smith.
“People aren’t buying big-ticket items,” the retail management expert explained.
“They’re turning to
discount stores,
thrift options
and Canadian-made products
because they want value
– and in some cases, they’re paying more for that peace of mind.”
For those willing to spend extra on made-in-Canada goods,
that shift also comes with a reassessment of
where they can cut back,
and what they’re purchasing in the first place.
“Apparel has a discretionary expense,” Smith listed as an example.
One of the most notable trends she expects to see is a surge in
clothing rentals,
discount shopping
and second-hand purchases.
These alternatives offer lower-risk ways for consumers to
refresh their wardrobes
without committing to traditional full-price retail.
Clothing rental, in particular, has become a popular option for Canadians
who want variety
without long-term cost,
Smith said.
She described the model as one where shoppers pay to borrow apparel for set periods —
often for events
and in some cases for everyday wear.
Smith listed Rent the Runway and TheRealReal as the “major players” in the space and said she expects a trend towards sustainability, including the use of these types of services.
Smith noted that some of the strongest performers she observed in 2025 — and expects to continue thriving in 2026 — are discount-driven retailers.
“Dollarama is going gangbusters,” she said.
“Winners, meanwhile, succeeds because of its
treasure-hunt model,
brand-name goods at lower prices,
even without an e-commerce site.”
Winder said, “People are changing channels. If you bought at Walmart, now you’re buying at Dollarama.”
This appetite for affordable finds reflects a broader shift in Canadian retail. A 2025 survey by Retail Insider found that
77 per cent of adult Canadians surveyed said they purchased at least one pre-owned item in the past year,
and the trend spanned all income levels.
“It’s not just affordability,” Smith noted.
“Seventy-three per cent of respondents said sustainability motivated them.
Even professionals and high earners are buying second-hand or renting apparel because it’s good for the planet.”
Winder said the rise of thrifting is especially pronounced among Gen Z, which is facing unique financial pressures.
“Youth unemployment is high,” he said, referring to a recent Statistics Canada labour survey that put it at 14.1 per cent, as of October 2025.
“They’re tightening their belts more than most. There’s a thrift movement, a frugal movement happening with Gen Z.”
Private label rise
Smith said private label products – once dismissed as “store brands” – are becoming a cornerstone of retail strategy.
Private label refers to items created and sold by the retailer itself under its own name,
as opposed to national brands like Tide, Kraft or L’Oreal
that are produced by large manufacturers
and sold across many chains.
“Private labels eliminate the middleman, which raises profit margin,”
Smith said.
“They’ve also gained customer trust.
Gen Z shoppers especially are skeptical of
national brands because they’re often more expensive,
and much of that price goes toward marketing
or ingredients that might be higher quality.”
“Gen Z wants transparency — they don’t want to pay extra unless they clearly understand what they’re paying for,” she added.
A Retail Insider report supports her observation, noting that 40 per cent of consumers believe improvements in traditional national brands are “just window dressing.”
In plainer terms, shoppers —especially younger ones — feel national brands are charging more simply because of
upgraded packaging
or messaging,
rather than meaningfully improving products.
That’s pushing them towards private labels, which they see as more straightforward, better priced and often just as good.
Smith highlighted Sephora as an example of a private label driving loyalty.
As she explained, the company’s in-house cosmetics line performs strongly because the
products come in simple, clean packaging
rather than costly bottles or jars,
keeping prices affordable.
It is successful in part because shoppers feel they’re getting “similar quality for a better price.”
“If consumers keep coming back, it should infer that consumers are satisfied with the products,” she added.
On the business side, she said,
“When Sephora offers 30 per cent off its private label products,
it’s still making a healthy profit.
The markup is built into the final price.
These sales are expected and factored in from the start.”
Winder also noted that this broader shift to private label fits within a cautious retail environment.
Consumers are being more careful with their spending and the economy itself feels “fragile,” he said, with retail performance still a little soft. Private label growth, he suggested, is one way retailers are trying to stabilize sales in 2026.
Winder said, “You’re changing where you’re buying and buying more private label products as well. Things are tender from a retail perspective.”
Behind the scenes: Planning, AI, inventory
As consumer behaviour evolves, so too are the tools retailers use to anticipate demand.
Smith said artificial intelligence and data analytics are increasingly central to
inventory management
and marketing.
“Large U.S. retailers have proprietary demand-forecasting systems and some Canadian firms do too,” she said.
“Even smaller retailers can now subscribe to semi-tailored forecasting programs.”
But Smith said that while she recommends these forecasting programs,
many independent, owner-operated shops struggle to adopt these tools,
not because they aren’t useful
but because they lack
time
and staffing.
“They are time-poor
and their priority is the selling floor.”
Smith said the last thing retailers want to do is become experimental in inventory planning because of the impact of 2025 tariff changes on the retail sector.
The pandemic’s supply chain chaos has also left a lasting mark.
Smith said retailers are already ordering seasonal goods earlier to avoid shortages
or late arrivals
— a trend she expects to continue into 2026.
She noted that sourcing strategies have shifted as well.
Near-shoring allows retailers to work with suppliers closer to Canada,
reducing shipping times
and giving them more flexibility,
as opposed to far-shore factories overseas,
which offer lower production costs
but longer delivery windows
and greater risk.
Winder said AI is now central to both
consumer-facing
and back-end operations.
“AI is being used to make sure retailers
have the right inventory
in the right location,
the right price
and the right channel
ready for consumers,”
he said.
“It’s slowly but surely revolutionizing retail and how we shop.”
AI-driven personalization is another frontier,
and Smith predicts companies will increasingly
push customers towards mobile apps because
apps allow retailers to collect richer data
and delivery highly tailored promotions.
“Mobile apps are data powerhouses,”
Smith said.
“When you use an app,
it tracks what you buy,
what you click on,
how long you browse.
Then it tailors promotions directly to you.
It’s all about loyalty
and making sure the customer doesn’t switch.”
Smith said apps appeal to customers who already rely on a curated set of preferred retailers and want access to
deals,
early product launches
and targeted suggestions.
Smith highlighted McDonald’s Canada’s mobile app as a prime example.
She said the app learns a user’s
ordering patterns,
pushes time-sensitive deals
and rewards repeat customers
– all designed to keep people choosing McDonald’s over competitors.
But she stressed that personalization doesn’t eliminate comparison shopping
and signing up for another retailer’s discount program as a new customer.
According to a Deloitte Canada report,
75 per cent of respondents said they’re more likely to buy from brands that can deliver personalized experiences.
Smith compared this incoming era of increased digital engagement to one-on-one service reserved for luxury shoppers.
“In the future, your app might function like a personal shopper,”
she said.
“You’ll have a digital assistant that
knows your habits,
recommends products,
even interacts with you in real time.
That’s where retail is heading.”
Winder agreed that personalization is becoming one of retail’s most powerful tools,
saying,
“Retailers are using AI to analyze your digital footprint and offer
customized,
relevant,
specific offers.
It’s being used in a multitude of ways.”
Winder and Smith both said they see changes in
consumer purchasing behaviour
and retailers changing how they serve them.
The future
For business owners struggling with the impacts of tariffs and inflation on their bottom line, Winder warned the retail environment may worsen before it improves.
He said that until Canada can
renegotiate its trade deal
or strengthen exports with other countries,
the broader economy
— in turn retailers and consumers
— will continue to feel the pressure.
“It’s sort of anemic. Not robust. Flat-ish. Maybe down in some categories, slightly up in others,” he said.
Winder pointed to the rising unemployment as the clearest sign of the 2025 “purge,” noting that weakened consumer spending is already
squeezing businesses
and forcing
closures,
bankruptcies
and liquidations.
One of the biggest indicators was Hudson’s Bay Company, the owners of which filed for creditor protection in March 2025.
By late April, it received approval to liquidate all but six of its department stores, including its flagship Bay locations.
Winder said retailers operating on thin margins or those in high-pressure sectors, like restaurants,
are most at risk,
and many are likely to be pushed out of the market as conditions tighten.
Yet pockets of strong sectors are expected to remain in 2026
– value retailers,
second-hand marketplaces,
private labels
and digitally invested brands are poised for growth,
experts predict.
Feb. 18, 2026 "Retail landscape strong despite Toys ‘R’ Us, Hudson’s Bay failures: RioCan": Today I found this article by Ian Bickis on BNN Bloomberg:
Toronto — The head of RioCan Real Estate Investment Trust says the recent financial troubles of retailers like Toys “R” Us and Hudson’s Bay are not representative of the wider retail landscape.
Chief executive Jonathan Gitlin said RioCan had only one location leased to Toys “R” Us, and that it had terminated it before the toy retailer filed for creditor protection at the start of February.
“On an overall basis, there’s no impact on RioCan, and I don’t think that Toys “R” Us serves as a leading indicator on the health of retail in general,” said Gitlin in an interview.
“I think they were a troubled brand that was purchased by, I would say an operator that didn’t have a good vision or capital to make it work, and ultimately it was not a big surprise that it failed.”
Ancaster, Ont.-based Putman Investments bought the business from Fairfax Financial Holdings Ltd. in 2021.
The company, which also owns
HMV,
Sunrise Records
and other retailers,
was also behind a short-lived home goods venture called Rooms + Spaces.
RioCan also took hundreds of millions of fair value losses last year after its joint venture with HBC collapsed as part of the retailer’s bankruptcy.
But the wider retail landscape is looking strong as grocers and others expand, especially, in discount offerings, said Gitlin.
“We’re seeing a significant shortage of good retail space even in the face of those HBC vacancies,” he said.
He said big grocers are expanding their discount brands, including by being more flexible on criteria like
size,
parking spaces
and frontage
as they grow in different ways than the past.
“Tenants are getting a lot more flexible,
and a lot more creative with the types of space they take,”
said Gitlin.
Tight vacancy levels across the retail market helped RioCan report a 37.3 per cent jump in new leasing rates.
When combined with renewal rates, the blended leasing spread was 21.1 per cent in the fourth quarter.
RioCan reported a net income of $128.2 million for the quarter ending Dec. 31, up from $125.6 million in net income in the same period a year earlier.
Profits for the year amounted to $69.3 million,
down from $473.5 million in 2024,
due largely to write downs related to the HBC collapse.
RioCan says it has largely dealt with the properties it held in a joint venture with HBC, either by selling or foreclosing, with only its Yorkdale Mall location in Toronto still in contention.
A judge earlier in February blocked RioCan’s plans to transfer the lease of the former HBC store at Yorkdale to discount department store Les Ailes de la Mode.
Oxford Properties had challenged the transfer, saying Les Ailes de la Mode was not suitable for its luxury mall.
Gitlin said the company is still considering next steps.
“You can never predict a court’s outcome,
and that’s why we were being quite prudent
and conservative
in taking these provisions in advance of that ruling.
So whatever happens, it’ll have no material impact on RioCan one way or the other.”
This report by The Canadian Press was first published Feb. 18, 2026.
Ian Bickis, The Canadian Press
My week:
Sat. Apr. 11, 2026 Leo poll:
Bruce H, Mission, BC , British Columbia, would like to know:
Do you work more than 40 hours a week?
No
79.77% (5553)
Yes
20.23% (1408)
My opinion: No.
Mon. Apr. 13, 2026:
Danielle M, Richer, Manitoba, would like to know:
What is your favourite season?
Summer
50.24% (2081)
Fall
30.40% (1259)
Spring
16.10% (667)
Winter
3.26% (135)
My opinion: Summer, and fall is a close second.
Tues. Apr. 14, 2026:
Douglas S, Cardston, Alberta, would like to know:
How many hours of sleep do you get each night?
7 to 9 hours
59.09% (2636)
4 to 6 hours
37.48% (1672)
Les than 3 hours
1.75% (78)
More than 10 hours
1.68% (75)
My opinion: 7-9 hrs.
Fri. Apr. 17, 2026:
Léna L, Ascot Corner, Quebec, would like to know:
Have you started your spring cleaning?
No
58.89% (2445)
Yes
41.11% (1707)
My opinion: No, because my place is pretty clean.
Apr. 18, 2026:
Lovepreet K, Surrey, British Columbia, would like to know:
Do you prefer working out at home or at the gym?
At home
42.80% (1600)
I’m not currently working out
41.20% (1540)
At the gym
16.00% (598)
My opinion: At home. I am mainly dancing.
Sat. Apr. 11, 2026 The Community League meeting: I went to this last week. We talked about what we're looking forward to this summer like a few of us want to sit outside on our porch and backyard, reading, on your phone or tablet, and drinking something.
I'll be sitting in my backyard with my tablet. I also look forward to K -Days.
Thurs. Apr. 16, 2026 RJ Decker: I have been watching this TV show this week. There are good mysteries. This is also set in Florida so I feel like I'm there.
https://www.imdb.com/title/tt37063558/?ref_=nv_sr_srsg_0_tt_1_nm_7_in_0_q_rj%20decker
Winter: Yesterday and today is snowing and cold.
