The evolution of a proudly Canadian brand >>> Pg. 12
International Retail Entrants in 2024
Highlighting all of the global brands that entered Canada in 2024. pg. 16
International Luxury in Canada Set For Big Year
Despite current climate, luxury retail in Canada is poised for a landmark year. pg. 20
Future-Proofing Retail in the Digital Age Robust data privacy standards serving to secure retail systems. pg. 24
There’s something very different about retailers. They’re resilient, rolling with market shifts, economic downturns and uncertainty, global pandemics, and now the diabolical whims of a US president who seems bent on establishing a full-on trade war between America and its closest neighbours and allies. Each morning, however, despite what’s happening at home or abroad, retailers open their doors to greet their customers.
One brand that’s experienced each of these struggles, and more, is iconic Canadian apparel brand Roots. We sit down with the retailer’s President and CEO, Meghan Roach, to discuss the impacts of US-imposed tariffs on the brand and its consumers and the importance of supporting Canadians and the country’s economy during times of challenge and disruption.
We take a look at the international retail brands that entered Canada in 2024, highlighting a noticeable shift in the industry landscape. Brought about by economic uncertainties and shifting market dynamics, retailers everywhere are taking a more cautious approach resulting in fewer international brands entering the Canadian market than in previous years.
Despite the ongoing uncertainties around the economy, however, one sector that is shaping up to experience a year of tremendous growth is Canada’s luxury sector as a wave of high-profile international luxury brands are making their debuts with plans to establish a foothold in major Canadian cities.
In light of the digital retail evolution that’s occurred, which has resulted in a range of different benefits, from enhanced efficiencies and more sophisticated predictiveness to improved speed and convenience for the consumer, data privacy lawyer, Ritchie Po, warns retailers that when collecting customer data, they need to understand the limits of collection under different data privacy laws and strictly abide by them in order to safeguard their brands.
And, we also speak with Purdy’s Chocolatier President, Lawrence Eade, about some of the challenges the sweet-maker faces, including rising cocoa prices as well as ongoing trade uncertainties, and the ways in which Purdys continues to thrive, adapting to industry shifts while maintaining its dedication to quality and ethical sourcing.
We hope that you and your teams enjoy the content within this issue of Retail Insider the magazine and we look forward to any feedback you’d like to share about our coverage of the industry.
Sincerely,
Craig Patterson Publisher craig@retail-insider.com
12 // Retail Trends The Roots story: built on a love for Canada
Roots, synonymous with Canadian heritage and outdoor lifestyle, continues to reinforce its strong national identity. Meghan Roach, President and CEO, highlights the importance of supporting the Canadian economy amid tariff threats.
16 // International Entrants Canada’s evolving retail scene: 15 global brands that landed in 2024
The Canadian retail landscape experienced a noticeable shift in 2024. Economic uncertainties and shifting market dynamics prompted retailers to take a more cautious approach resulting in fewer international brands entering the Canadian market than in previous years.
20 // Retail Trends 2025 set to be landmark year for international luxury retail in Canada
Despite ongoing economic uncertainties, Canada’s luxury retail sector is poised for a strong year in 2025, with a wave of high-profile international brands making their debut with plans to establish a foothold in major Canadian cities.
24 // Data Privacy Future-proofing retail systems with robust data privacy standards
The retail environment has become increasingly more digital in recent years. This digital evolution has resulted in a range of different impacts, from enhanced efficiencies and more sophisticated predictiveness to improved speed and convenience for the consumer. However, when collecting customer data, retailers need to understand the limits of collection under different data privacy laws and strictly abide by them in order to safeguard their brands.
Despite
Craig
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Andreea Bourgeois, George Minakakis, Ritchie Po
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Retail
A new global report developed by SOTI titled Techspectations: Consumer Demand for Digital Transformation in Retail suggests that there may be disconnects in-store between the technology being offered and the staff it’s meant to support that are causing friction within the shopping experience.
92%
of Canadian consumers have used in-store technology
According to PwC’s 28th Global CEO Survey-Canadian Insights, the time for Canadian businesses to respond to the accelerated change happening all around us is now. Although many leaders report having taken action concerning the issue, the report highlights the need for organizations across the country to strengthen their businesses leveraging, among other things, generative AI.
69% plan to use AI to enhance technology platforms 66% plan to use AI to improve business processes
54% plan to use AI to enhance their organizations workforce and skills
73%
cite a lack of staff to address tech-related issues as a problem
Despite the very necessary “buy Canadian” movement that has sprung across the country as a result of the trade tensions created by President Trump, according to a recent Narrative Research survey, many Canadians are still searching for a clear definition of which products to buy and which to ignore when shopping with their favourite brands.
63% are actively seeking Canadian products
75% say they understand the term “Made in Canada”
53% are looking at labels to avoid buying American products
98% of “Product of Canada” products’ direct cost must be Canadian
37% would prefer to buy a “Made in Canada” product
51% of “Made in Canada” products direct cost must be Canadian
Hudson’s Bay Company ULC, the entity behind the 355-year-old iconic Canadian retailer Hudson’s Bay and TheBay.com, announced that it has been unable to secure the necessary financing to restructure its business, potentially leading to the full liquidation of the retailer and the 80 Hudson’s Bay stores located all across the country. It’s an announcement that marks the end of an era for the country’s last traditional department store chain. The closure will result in approximately 9,364 jobs lost and major shopping centres being left with the task of filling the large anchor spaces long occupied by Hudson’s Bay.
According to a survey conducted by Numerator, the majority of Canadian consumers plan to spend at the grocery store this Easter holiday period. The report, titled 2025 Canadian Annual Holiday Preview, examined consumer intentions as they relate to the Easter 2025 holiday, including where and how they plan to spend their money. And, as it turns out, Canadian grocery stores will be one of the main benefactors as Canadian across the country look to treat their friends, family and loved ones.
67%
plan to celebrate the Easter holiday in 2025
41%
plan to cook or bake for friends and family at home
is the amount of money the average consumer is preparing to spend
50% 63% $50-100 will gather to celebrate with friends and family 27% saving more
57% will buy their holiday goods at the grocery store 8% not sure 11% saving less 54% no change of St. Patrick’s Day shoppers planned to buy goods at the grocery store
As trade tensions brought about by US President Trump continue to escalate, many households across the country are tightening their budgets and proceeding with caution. Some are avoiding or delaying large purchases, while others are seeking more value for their dollar. And some, according to recently released Bank of Canada data, are increasing the amount of precautionary savings that they have built up.
Independent retail operations in Canada challenged by continued weak demand and limitations on growth
// By Andreea Bourgeois, Director of Economics, Canadian Federation of Independent Business
The new year began on a positive note for most retailers. In January 2025, long-term optimism among retailers grew by 6.9 points. While this is good news, it’s important to note that the current optimism level (58.5) is only around the historical average for the sector (58.0). Before the pandemic, the 10-year average confidence level was higher at 61.1.
Optimism often gets a boost early in the year, since December is the busiest month for about 25 per cent of retailers and they tend to carry over some of the year-end confidence. However, it’s still uncertain if this upward trend will continue throughout the year. Around 40 per cent of retailers experience their peak sales in the spring and summer months (May to August), while January and February are the slowest months for about 60 per cent of retail outlets.
Employment plans for most in 2025 are cautious. The expected net change in full-time jobs is negative, with only 12 per cent of retailers planning to hire more full-time staff, while 17 per cent expect layoffs. This is similar to trends seen in January 2024. With fewer businesses hiring, planned wage increases are modest, averaging 2.1per cent—close to pre-pandemic levels. For compari-
son, average wage increases were higher in recent years: 2.8 per cent in 2022, 2.6 per cent in 2023, and 2.3per cent in 2024. It’s worth noting that not all retailers will follow this average; some may offer larger raises, while others might freeze wages, especially if they made significant adjustments in recent years. Wage trends tend to follow labor shortages—fewer workers mean higher wages.
Retailers also face challenges from weak demand for products and services. The CFIB’s indicator tracking low demand is still high at 56 per cent, although it has improved since its February 2024 peak of 66 per cent. Insufficient demand directly affects revenues and makes it harder for businesses to plan ahead. Recent rate cuts by the Bank of Canada have helped boost spending slightly, but after three years of rising prices, it will take time for consumers to adjust.
Retailers plan smaller price increases in 2025, averaging 2.7 per cent, compared to previous years. However, there’s a big unknown: the potential impact of U.S. tariffs on Canadian products and
Canada’s retaliatory measures. These tariffs could increase costs for Canadian retailers, even those focused on domestic goods, as higher expenses for raw materials and equipment would affect supply chains. This could lead to higher prices for many products, disrupt distribution networks, and force some small and mid-sized businesses to change their product lines.
Limitations on business growth still abound
Other obstacles to growth include limited working capital (32% of retailers), labor shortages (30%), and lack of physical space (29%). Many businesses struggle to find the funds to invest in stock, equipment, or technology, delaying their growth plans. Labor shortages, while less severe than in the past two years, remain an issue. For
Will 2025 be better than the tough years of 2023 and 2024? It started with hope—lower interest rates, inflation under control, fewer labor shortages, and a temporary GST/HST holiday on select items. However, the final weeks of 2024 brought new challenges, like the Canada Post strike disrupting shipping, the looming threat of U.S. tariffs and retaliatory Canadian tariffs, and rising political uncertainty at the federal level. To succeed in 2025, retailers will need to stay flexible and ready to adapt to changing market conditions.
Andreea Bourgeois is the Director of Economics at the Canadian Federation of Independent Business (CFIB), Canada’s largest association of
by Peshkova
Examining the evolution of AI, what today’s consumer wants from its capabilities and the ways retailers can leverage it optimally
// By George Minakakis, Founder and CEO of Inception Retail Group, and Author of ‘TheNewBricks&MortarFutureProofingRetail‘
In 2025, consumers will be looking for increased personalization, speed, and convenience. The consumer world has become more complicated than ever before, and it is filled with uncertainty. Their primary household concerns in simple terms are to keep a roof over their head, food on the table and keep their families healthy and happy. So, the days of browsing and losing time reviewing offers is no longer convenient. Consumers have wanted personalization, speed and convenience, and today’s technological capabilities will deliver it.
Personalized, relevant and immediate
Traditional text searching and browsing are boring, and the move to ‘ask’ reflects their desire for more personalized, relevant, and immediate answers. There are shifts happening with platforms offering greater simplicity; it arrived with Generative AI and conversational searches. Amazon’s recent introduction with Rufus and Perplexity.ai comes with a subscription, and both have voice interactions and immediate answers.
All of this is revolutionary, and I’ve directly shared with executives that personal AI assistants will be game-changers and will improve even more in time. Why? Instant Gratification! Another task is done, and more free time to enjoy and manage life.
How does this impact retailers, and what’s their response?
The question is, will consumers adopt chatbot-embedded voice interactions on websites or opt for a platform that can conduct broader searches and personalize their asks? It is more likely that the latter will win the day. And wherever the consumer goes, retailers will want to be there. However, that doesn’t mean that a chatbot embedded on a website has no value, the personal AI assistant/agent can direct a human asking a question to your site.
Even mobile first behaviours had to evolve. While these consumers using mobile devices prefer fast and concise answers, typing lengthy questions has not been easy. Now voice adds a whole new element and with ear buds you can hear and get your answers on the go. And that means identifying your next stop to buy something or pick it up. Convenience and instant gratification!
Retailers need to optimize for ‘answer engine optimization’ and make their products and services
discoverable. The development of FAQ pages that answer common consumer questions helps. And because this involves natural human language, ‘asks’ are very specific questions. Such as ‘What is the best restaurant nearby?’ vs. ‘Best restaurants near me.’ Referred to as long-tail keywords, which are generally longer queries. However, research shows that there are more long questions than keyword searches. Again, with the intent to narrow the quest for solutions.
Artificial Intelligence and data are the keys to the future of retailing. The average consumer is producing, interacting, watching, or listening to about 880 kilobytes of data per second. It is an unfathomable amount of information, and in reality, they are leaving a massive digital trail of insight. Ask and voice interactive browsing and shopping will grow exponentially, and it offers more data and insights. Retailers must make investments to collect data. Without it, they will lack the ability to develop predictive insights on their customers. Aside from the obvious surface knowledge available online, retailers need real-time information on their marketplaces to meet the needs of their businesses.
Consumers can no longer afford to lose time; they will leverage personal AI assistants to avoid generic product recommendations and work with applications that personalize and cater to their needs more effectively. Yes, this is a paradigm shift, and it will require a rethinking of how we connect with consumers. Voice enabled platforms and the ability to collect data are non-negotiables going forward.
Retailers will want to evolve beyond just offering their products and services and create AI-powered profiles which can create and articulate tailored suggestions, pre-configured shopping lists and even proactive alerts on unique offers. This is a level of service that creates relationships and loyalty when developed and delivered properly.
Retailers need to prepare as consumers embrace ‘ask’ as a normative approach to find what they are looking for. They should also prepare for more powerful iterations of what is currently in the marketplace by way of personal AI assistants. They will become more sophisticated, and this personalization will turn into human AI trusted relationships where consumers work with their preferred models. Today, this is a subscription-based model for consumers that may change to a fee-based service for retailers to use and promote their products and services, making it free to consumers, which will become ubiquitous in our lives by then.
One thing I have noted over the years working for multi-national companies is that with every economic and technological shift that takes place, the organizations that adapt and evolve remain relevant. My advice is to prepare for more technological innovations.
George Minakakis is the CEO of Inception Retail Group and Author of his forthcoming book, Predictive Leadership – How Humans and AI will Transform Organizations, Innovation and Competition.
Roots CEO, Meghan Roach, discusses Canadian pride, manufacturing and growth for the country’s iconic apparel brand // By Craig Patterson
Roots, a brand synonymous with Canadian heritage and outdoor lifestyle, continues to reinforce its strong national identity as it grows. Meghan Roach, President and CEO of the company, Meghan Roach, highlights the importance of supporting the Canadian economy amid tariff threats.
“There’s been a renewed sense of patriotism, not just around Roots, but Canada as a whole,” said Roach. “It’s been amazing to see people thinking about how they can support the Canadian economy.”
Roach emphasized that Roots remains deeply entrenched in the country’s retail landscape, with its leather factory, distribution centre, and the majority of its employees based in Canada. “We are a Canadian public company, and it’s encouraging to see people recognizing the value of investing in homegrown businesses.”
The Roots Story: Built on a Love for Canada
Roots was founded in 1973 by Michael Budman and Don Green, two Detroit natives who fell in
love with the Canadian outdoors. “It’s kind of a great Canadian dream,” Roach remarked. “These two young guys came to Canada, embraced the culture and landscape, and decided to build a brand around it.”
Its dedication to Canadian identity extended beyond their products. “They were the first to really lean into the Canadian Olympic teams,” Roach said. “It wasn’t just about outfitting athletes—it was about putting Canada on a global stage.”
Today, Roots operates 115 stores worldwide and employs over 2,000 people. The brand’s co-founders have been recognized with the Order of Canada and inducted into Canada’s Walk of Fame. Roots’ founders also became proud Canadian citizens.
From Private to Public: The Evolution of Roots
Roots transitioned from a privately owned company to a publicly traded one under Searchlight Capital Partners, a firm with headquarters in Toronto, New York, and London. “When
Searchlight acquired Roots, it was driven by a passion for this great Canadian company,” Roach explained. “Now, as a public company, it’s owned by Canadians again. Our board is fully Canadian, reinforcing our deep national ties.”
Beyond ownership, Roots has built a legacy of giving back. “We launched Roots Cares, a program that has donated over $4 million in cash and in-kind goods over the last five years,” said Roach. “From supporting the Nature Conservancy of Canada to donating 20,000 pieces of clothing to schools annually, we’re committed to strengthening Canadian communities.”
Balancing Canadian Manufacturing and Global Supply Chains
Manufacturing is a key part of Roots’ strategy, with an emphasis on Canadian craftsmanship. “Our leather goods—jackets, bags, and accessories—are all made in Canada at our leather factory,” Roach said. “We also have our Canada Collection and Studio Fleece, which are made domestically.”
However, like many Canadian apparel brands, Roots also relies on international production. “If every apparel company tried to manufacture solely in Canada, we wouldn’t have the infrastructure to support it,” Roach noted. “We continue to invest in Canadian manufacturing where possible while recognizing the realities of a global supply chain.”
A key challenge is skilled labour. “Even in our leather factory, we have programs in place to train new talent,” she said. “There’s a real need to develop the next generation of skilled workers in Canada.”
With respect to shifting global trade policies, Roots is keeping a close watch on tariffs and the de minimis threshold, which affects duties on low-value imports. “It’s a constantly evolving situation,” Roach said. “While our U.S. exposure is lower than some brands, we are monitoring how tariffs impact the Canadian consumer.”
She remains optimistic about Canada’s global standing. “We’ve always had strong relationships with international markets. We believe Canadian brands can succeed both at home and globally.”
Roots has a strong track record of collaborations with Canadian brands and artists. “We don’t just focus on big-name partnerships like Barbie or Wicked—we also work with homegrown brands,” Roach said.
The company has collaborated with local brands like Alder Apparel and partnered with Canadian sports teams, including the Toronto Raptors and the newly formed Toronto Tempo of the WNBA.
“When the Raptors won their championship, we made their official jackets,” Roach added. “We’ve
Meghan Roach, President and CEO, Roots.
done similar projects with the Toronto Maple Leafs and across the hockey world.”
Roots has also supported Canadian talent beyond sports. “We’ve worked with celebrities such as Canadian Lorne Michaels, and other influential figures. It’s about bringing Canadian culture to a global stage.”
Roots is investing in major store renovations and expansions. “Our Robson Street flagship in Vancouver is undergoing a major renovation and will reopen by summer,” Roach revealed. “Having a flagship on Robson Street is crucial, given its status as a premier Canadian retail destination.”
Additional renovations are underway at Vaughan Mills and Champlain Mall. “We’re also launching a pop-up store at a unique location, which will open in the coming months,” she said. “It’s part of our strategy to test new locations and evolve our store experience.”
Economic uncertainty and an increasingly unpredictable market resulted in fewer international brands entering the Canadian retail landscape in 2024 // By Craig Patterson
The Canadian retail landscape experienced a noticeable shift in 2024, with fewer international brands entering the market compared to previous years. Over the past decade, Canada has welcomed an influx of global retailers catering to an increasingly affluent and diverse consumer base. However, last year signaled a change, as economic uncertainties and shifting market dynamics prompted retailers to take a more cautious approach toward expansion plans and future growth.
Despite this slowdown, several prominent international brands made their Canadian debut, strategically positioning themselves in key cities and retail hubs. Below, we take a closer look at the 15 brands that made their mark on the Canadian retail scene in 2024.
Rodd & Gunn: A Sophisticated Yorkville Debut
New Zealand’s premium menswear label Rodd & Gunn made a stylish entrance into Canada with
its first standalone boutique at 21 Hazelton Avenue in Toronto’s Yorkville. Launched in March 2024, the store embodies the brand’s commitment to timeless craftsmanship and impeccable quality, joining a neighbourhood already rich with global luxury brands.
The boutique offers an immersive shopping experience for customers, showcasing Rodd & Gunn’s full collection of apparel, footwear, and accessories. Jordan Karp of Savills Canada brokered the deal and represents Rodd & Gunn as it eyes further expansion in the Canadian market. The property, located at 19-21 Hazelton Avenue, is owned by Hanard Investments and managed by Greenwin.
Windsor: Bringing Affordable Glamour to Canada
The U.S.-based fashion retailer Windsor expanded north in April 2024, opening its first Canadian store at CF Lime Ridge in Hamilton. Known for its affordable yet stylish apparel, particularly for formal and special occasions, Windsor quickly ramped up its expansion plans, launching five stores across Southern Ontario within the year.
Additional locations opened at Oshawa Centre, Hillcrest Mall (Richmond Hill), Upper Canada Mall (Newmarket), and Dufferin Mall (Toronto).
According to Carm Sivers, VP/Managing Director, Canada, Windsor has ambitious growth plans. “We see the potential for 60-80 stores in Canada, but we want to ensure we meet consumer demand without oversaturating the market.”
Loewe: Luxury Expands at Yorkdale
Spanish luxury house Loewe made its long-awaited entry into Canada with a stunning boutique at Toronto’s Yorkdale Shopping Centre in April 2024. The strikingly designed space mirrors Loewe’s commitment to artistry and craftsmanship, offering its full range of leather goods, ready-to-wear collections, and accessories.
Retail Insider has learned that Loewe is already planning a second Canadian store at Vancouver’s Oakridge Park in 2025 as well as on Bloor Street in Toronto, further cementing its foothold in the luxury retail market.
Soch: Indian Fashion Finds a New Home
Indian fashion brand Soch made a bold international debut, launching its first-ever overseas store in Brampton in June 2024. Specializing in vibrant ethnic and fusion wear, Soch’s arrival caters to Canada’s large South Asian community, with plans already in motion for further expansion.
CEO Vinay Chatlani shared with Retail Insider, “We’re eyeing Vancouver and Montreal next, with hopes to open three Canadian stores in the next two years.”
SleePare: A New Take on Mattress Shopping
U.S.-based online mattress retailer SleePare introduced a fresh concept to the Canadian market in August 2024, opening a “try-and-buy” showroom
“ We see potential for 60-80 more stores in Canada, but we want to ensure we meet consumer demand without oversaturating the market.”
Carm Sivers, Windsor
in Toronto. The innovative space allows customers to test out leading online mattress brands before making a purchase, bridging the gap between e-commerce convenience and in-person shopping.
CEO Shanir Kol remains optimistic about further expansion: “We’ll assess our success by year-end, but we’re already seeing strong interest from other Canadian cities.”
Premium outdoor gear brand Yeti selected Calgary’s CF Chinook Centre for its first-ever international store which opened in August 2024. The Texas-based retailer’s choice of location was the result of its alignment with Calgary’s active outdoor culture and its proximity to the Rocky Mountains.
Real estate expert Sari Samarah of Value Insight Realty facilitated the transaction and hinted at the potential of further expansion for the brand in key Canadian markets.
Wellensteyn: Performance Outerwear Debuts in Niagara
German outerwear label Wellensteyn entered Canada with an outlet store at Niagara’s Outlet Collection in August 2024. Known for its stylish yet functional outerwear, Wellensteyn’s decision to debut in an outlet setting reflects its strategic approach to building brand recognition among value-conscious shoppers.
Broker Tony Flanz of Think Retail is leading the brand’s Canadian expansion, which includes plans to open two to three more stores in 2025, beginning with additional Ontario outlets before eventually targeting British Columbia and Alberta locations.
Selective Growth: International Retailers Entering Canada in 2024
The Canadian retail landscape in 2024 witnessed a measured yet impactful wave of international expansions, with 15 global brands making their debut in the country.
by
While this figure is lower than in past years, the nature of these entries suggests a highly strategic approach, with brands prioritizing prime urban locations and affluent consumer bases.
Toronto remained the dominant market for international retail growth, with eight of the 15 new entrants establishing a presence in the Greater Toronto Area (GTA). Notably, two of these brands selected Hazelton Avenue in Yorkville, reinforcing the neighbourhood’s ongoing transformation into a luxury retail destination.
Yorkdale Shopping Centre welcomed two new international brands, further solidifying its reputation as Canada’s premier luxury shopping centre and key entry point for high-end global retailers.
Beyond Toronto, Vancouver and Montreal each saw two new international retailers open, while Calgary, Hamilton, and Niagara-on-the-Lake each attracted one. This geographic breakdown underscores the continued concentration of retail investment in major urban centres, particularly those with affluent, cosmopolitan demographics.
Luxury brands accounted for a significant portion of the new market entrants, with four high-end retailers, including multi-brand watch retailer TimeVallée, setting up shop. Additionally, Founder Brands played a notable role in shaping the retail landscape, introducing two new international franchises to the Canadian market— further highlighting the company’s influence in bringing globally recognized names to local consumers.
Although the number of international entrants setting up shop in the country in 2024 was lower than in previous years, the focus on high-profile luxury brands and strategic locations signals a shift in market dynamics. Global economic uncertainties appear to have prompted a more selective and calculated expansion strategy, with retailers opting for destinations that offer the greatest potential for long-term success. This trend suggests that while overall numbers may fluctuate, Canada remains a key target for international retailers looking to capture the attention of a discerning and increasingly global-minded consumer base.
A wave of international luxury entrants are expected to establish their presence 2025, layering an already impressive Canadian luxury market // By
By Craig Patterson
Photo by Lee Rivet
Canada’s luxury retail sector is poised for a strong year in 2025, with a wave of high-profile international brands making their debut. Despite ongoing economic uncertainties, particularly in light of recent trade tensions with the United States, several luxury retailers have confirmed plans to establish a foothold in major Canadian cities, reinforcing the country’s appeal as a premium shopping destination.
Vancouver is set to become a focal point for luxury retail, with several prestigious brands entering the market for the first time. The highly anticipated Oakridge Park development will be home to the first Canadian stores of luxury retailers Chaumet, Jacob & Co., Maison Margiela, and Miu Miu. The upscale mixed-use development, which is scheduled to open in summer 2025, aims to establish a second major luxury hub in the city, complementing the already well-established Alberni Street ‘Luxury Zone’ downtown. Meanwhile, CF Pacific Centre in downtown Vancouver will welcome the first Marella and Max & Co. stores in Canada. Both Italian fash-
ion brands, part of the Vestis Fashion Group, are set to open in March 2025, further solidifying Vancouver’s growing status as a North American fashion capital.
Toronto’s retail scene is also set to expand with notable luxury openings. Chrome Hearts, the upscale lifestyle brand known for its edgy aesthetic, has confirmed its plans to launch its first Canadian boutique in the city in 2025. Additionally, the Yorkdale Shopping Centre, already one of Canada’s premier luxury shopping destinations, is enhancing its offerings with a 65,000-square-foot expansion dedicated to high-end retail. This new wing will house a Maison Margiela store along with flagship locations for Dior, Saint Laurent, and others.
Adding to the roster of international retail openings, New Zealand-based Fisher & Paykel launched its first Canadian showroom in Toronto in January 2025. The premium appliance brand, known for its innovative kitchen and laundry solutions, has chosen the city as its entry point into the Canadian market. The showroom offers a hands-on experience, allowing consumers and industry professionals to explore its high-end product line in an immersive environment. This move reflects the increasing demand for luxury home appliances in Canada and aligns with the trend of high-end kitchen brands establishing standalone retail spaces.
Montreal is also on the radar for international brands looking to expand. French lifestyle retailer La Maison Générale will open its first Canadian store in the city, bringing its signature blend of fashion, home decor, and accessories to the Quebec market. This expansion highlights Montreal’s ongoing appeal as a European-inspired shopping destination with a unique, culture-driven retail landscape.
These exciting developments in Canadian luxury retail come amid economic headwinds caused by escalating trade tensions between Canada and the United States. In March of 2025, U.S. President Donald Trump imposed a 25% tariff on Canadian and Mexican imports, along with an additional 10% tariff on Canadian energy exports. In response, the Canadian government has implemented its own set of retaliatory tariffs on American goods, raising concerns about potential price hikes and supply chain disruptions. Retail analysts warn that these tariffs could lead to increased operational costs for businesses and ultimately higher retail prices for consumers.
The Retail Council of Canada has cautioned that grocery bills may rise, and some retail categories could experience stock shortages as companies navigate new import duties. While the full impact of the trade dispute remains to be seen, luxury retailers with long-term investment strategies may not be deterred, given the resilience and purchasing power of Canada’s affluent consumer base.
Despite economic uncertainties, 2025 is shaping up to be a defining year for luxury retail in Canada. With at least nine international brands already confirmed to open new stores, Canada’s top shopping destinations continue to attract global retailers seeking a strong foothold in North America. While the trade war could impact consumer confidence, the commitment of these high-end brands suggests a long-term belief in Canada’s retail market stability.
Retail Insider the magazine will return in January 2026 with a full report on international luxury retail expansion in Canada, providing insights into which brands successfully entered the market and how they navigated the year’s challenges.
✅ Develop talent
✅ Scale efficiently
✅ Streamline store operations
“There is a clear correlation between Progress Retail and the positive impact on our store sales and operational metrics.”
Justin Asgarpour Chief Vision Officer
By establishing proper protocols and procedures when it comes to the collection retailers can safeguard their brands in an increasingly digital retail environment
//
By Ritchie Po
The retail environment has changed significantly in recent years, becoming increasingly more digital throughout the operation. This digital evolution has resulted in a range of different impacts, from enhanced efficiencies and more sophisticated predictiveness to improved speed and convenience for the consumer throughout their experiences with brands. It’s allowing retailers to get to know their customers at a deeper level, collecting data from them with each and every transaction and engagement. However, what might be most important for retailers to consider is the critical need for them to understand the limits of collection under different data privacy laws and strictly abide by them in order to safeguard their brands.
Retailers must understand their obligations with customer data
How many times have you bought something, and the cashier asks you for your email address or postal code? Ask them “why do you need this information?” and you’ll find that they cannot respond when challenged. This is because
retailers train staff to ask for personal information without training them about data privacy, consent, or the limits of collection. This is not the fault of the front-line staff at the retail level, but a failing at the governance level to sufficiently train their staff on data privacy.
Retailers are always looking for ways to engage with customers and build brand loyalty. This means that they must collect personal information by necessity in the form of mailing lists, advertising, social media engagement, dedicated apps, and customer feedback surveys. Brand loyalty and repeat customers means that retailers are retaining sensitive data such as payment information, shopping preferences, and a history of engagement with the brand. Retailers are now also retaining additional personal information to enhance shopping experiences, such as customer size or measurements, weight, height, or images, which are often uploaded by customers in features intended to try on clothes virtually without ever having to step into a store. Online retailers now also use AI (based on past purchasing history and self-disclosure of measurements) to suggest sizes to customers based on past purchases, to lessen the potential of customer returns based on wrong sizes.
As retailers become increasingly more global, they will have to understand the limits on collection and the data privacy rights of customers across different jurisdictions. For instance, major retailers must understand that the data subject rights for individuals in Europe under the General Data Protection Regulation (GDPR) would not apply to customers in China, Japan, or South Korea, each of whom have their own data privacy rights that differ than those rights conferred by law to Canadians or Americans. Even within the U.S., there are now two dozen state privacy laws that apply to the private sector, in the absence of any federal data privacy laws or regulations.
While these features all greatly enhance customer experience and satisfaction, this means that retailers will be subject to greater scrutiny against an expanding legislative framework. In addition
to complying with data privacy laws within the country they operate, retailers may also have to comply with laws at the provincial or state level and ensure that they comply with laws in other countries where they operate or have customers. Each law has different triggers which would apply to retailers.
Additionally, the processing of personal information may be governed by industry regulations. Every retailer works with a third-party payment processing company which means that they must comply with Payment Card Industry (PCI) standards that place additional conditions and obligations on how customer credit card data is processed. Retailers must also ensure that the collection of customer images does not run afoul of any laws governing or restricting the processing of customer biometric data, which would include facial scans, voice recognition, and other genetic data that may identify customers.
Retailers must build in compliance into their overall enterprise risk compliance.
Privacy regulators have frequently fined businesses of all sizes for egregious privacy violations and serious repeated incidents of non-compliance. While big data firms are able to absorb fines up to hundreds of millions of dollars against a multi-billion-dollar revenue stream , even a relatively smaller fine in the six figures would or could wipe out small retailers. A smaller enterprise literally cannot afford to build in legislative fines as expenditures or the cost of doing business the way a multi-national megafirm can.
The more cost-effective way to deal with privacy requirements is to understand the risks for non-compliance and building a privacy management program into the up-front cost of starting up the business. Having a privacy officer would allow retailers to have the thousand-yard stare of the data life cycle and where the accompanying privacy obligations are, and how to operationalize those. This would involve more work than cutting-and-pasting template policies found in the wild on the internet. Ideally, the business
should retain a subject matter expert to identify the points of collection of personal data, the risks of data processing, the legislative and regulatory landscape, and how to effectively operationalize and manage the program.
An additional challenge is the desire for some businesses to expand into as many territories as possible. The very nature of online businesses often means that retailers have a greater reach than before and customers come from different jurisdictions, which means they may have different privacy rights and laws. This means that the privacy management program must be robust enough to effectively comply with and manage privacy preferences across different markets.
For retailers that deal with a lot of personal data, a full-time privacy officer should be able to handle all details of the program, from managing the policy suite to reviewing and negotiating data processing and IT security service agreements. For smaller enterprises that may not process considerable personal information, hiring a fractional, virtual, or part-time data protection or privacy officer, even on a consultancy basis, would be the more optimal option.
It is always best to hire a privacy officer, professional, or lawyer to build an effective, efficient privacy management program from the ground up. This ensures that the protection of personal data is organically built into a business. Retailers must deploy AI with care.
As more and more businesses rely upon innovations in Artificial Intelligence (AI), there is also a growing need to feed more data into it to create greater efficiencies and processes. However, enterprises must ensure that the data is not personally identifiable, as that brings up a host of issues.
One of these issues is scope creep. A customer may disclose personal data to businesses for defined purposes for service delivery, compliance, and legal purposes. However, the definition of “business needs” may result in companies stretching the limits of what those purposes are.
When customers give consent to the use of their data, they are confirming the legal confines of what an enterprise may do with their data. Any use of the data that is not otherwise permitted under applicable law is considered an infringement of privacy and may lead to complaints, regulatory audits and investigations, or legal proceedings.
An additional consideration is the reliance on AI by employees. While it is not uncommon to use ChatGPT and other online content generators to produce work product, an organization will have to consider the legal risks of using these products. While personal use of an AI product would be governed by a user license agreement, there are additional considerations and protections that would arise in a formal service agreement with the AI developer. Therefore, retailers should not only formalize how to use AI, but also have governance and formal data processing agreements in place to ensure that they have legal protection against developers that would not be available than if a lone employee were to leverage the product as a single end point user.
As more businesses rely upon innovations in AI, there is also a need to feed more data into it to create greater efficiencies and processes. However, enterprises must ensure that the data is not personally identifiable, as that brings up a host of issues.
Further complicating the matter is that while there are not federal laws governing the use of AI in many parts of the global market, there are laws in other jurisdictions that may greatly effect or even limit the use of AI. For instance, the EU AI Act came into effect in 2024 and is the de facto global standard. Under this law, AI cannot be used unless several risk management and due diligence steps have been completed. These are designed to protect privacy and comply with the tenets of fundamental human rights. Additionally, in the absence of governing laws in certain jurisdictions, a number of advisory bodies have released guidelines on how to safely and ethically use AI, such as those published in early 2025 by the Digital Governance Council of Canada.
While it is not prohibited to use AI as a general rule of thumb, risks need to be identified, evaluated, and mitigated as much as possible prior to its deployment. Even in the absence of governing laws, it behooves a business to organically incorporate privacy and AI ethical use into its governance and enterprise risk model, which would shore up trust in the brand name.
Therefore, while the use of AI is a great innovation, it is not risk-free and it comes with its own set of challenges.
When leveraged properly, AI can undoubtedly enhance and elevate customer experience. It can create workflow efficiencies on the retailer’s end, drives engagement and marketing reach, and helps customers with decision-making. However, one must not disregard human interaction in developing brand loyalty.
For the consumer who consciously chooses smaller retailers to shop with, the relationship that’s created between them and those small business owners will keep them going back to the shop. It’s why locals in Paris still buy their daily croissant from the local boulangerie in their arrondissement. It’s why your (or your friend’s) Asian auntie would still buy their pre-
ferred cha-siu from the local butcher they know, whose family has owned and operated that shop for decades. And it’s why some commuters grab their morning brew from the independent corner café on the way to the office rather than waiting in line at a larger corporate coffee retailer. Most consumers fit into this category or rely on small businesses like these, that do not have an elaborate or sophisticated in-house IT infrastructure to help sell them daily needs.
For the luxury consumer, an AI chatbot is not the same experience that they would have from a private shopping event or personal appointment. While a YouTube live feed is a great democratizer in granting access to shows, nothing beats sitting in the front row of Paris Fashion Week at the personal invitation of the couture house where the collections are presented for the first time. An AI algorithm may produce the guest list of potential buyers, but that client would buy the entire winter collection only from the atelier’s elegant shop in Milan or on Avenue Montaigne while the designer personally takes their measurements, and attentive staff serve champagne and canapes. And an algorithm would not ask Madame how the children are doing.
Ultimately, the retailers and brands that are able to strike a balance between leveraging AI to create efficiencies in order to enhance operational workflow while still retaining the human touch in customer interactions are the ones that will succeed, helping to drive the future of retailing.
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a sweet take on Canadiana,
Purdys Chocolatier President Lawrence Eade discusses the brand’s Canadian heritage, tariffs, and the company’s growth strategy // By
Craig Patterson
For over a century, Purdys Chocolatier has been a staple in Canadian confectionery, bringing premium chocolate to generations of consumers. Founded in 1907 in Vancouver, the company has remained steadfast in its commitment to Canadian production, community engagement, and sustainable sourcing. Despite external challenges, including rising cocoa prices and ongoing trade uncertainties, Purdys continues to thrive, adapting to industry shifts while maintaining its dedication to quality and ethical sourcing.
“Purdys is about as Canadian as you can get,” says Lawrence Eade, President of Purdys Chocolatier. “We were founded in 1907 in Vancouver, and our factory has been in Vancouver ever since. We’ve moved and grown, but we’ve always stayed here. Now, we’re coast to coast, from Victoria to Ottawa. We sell and make everything here in Canada in our own channels.”
The company’s Canadian roots run deep, with over 1,100 employees nationwide. Purdys has
also made a name for itself through its Purple Partnerships initiative, supporting Indigenous programs, LGBTQ+ advocacy, and grassroots fundraising efforts that contribute millions of dollars annually to local communities. “It’s all through the power of chocolate,” Eade says. “We help small organizations—whether it’s a hockey team, dance program, or parent advisory council—keep doing what they love in their communities.”
Recent discussions around trade tariffs and potential changes to the de minimis threshold could impact Purdys’ ability to ship products to U.S. customers. “Many of our online orders come from expats and tourists who’ve visited Canada and fallen in love with Purdys,” says Eade. “If tariffs go up, it could affect that segment. We’re working on ways to minimize costs for our American customers.”
”We’ve been working in West Africa for almost 30 years, supporting farming communities, building schools, and improving agricultural practices. These price hikes are partly due to governments trying to ensure farmers are paid fairly, which is an important step forward.”
- Lawrence Eade, Purdys Chocolatier
However, the silver lining has been a rise in ‘Buy Canadian’ sentiment. “Consumers are focusing on supporting Canadian businesses now more than ever,” Eade says. “When people look for a Canadian chocolate alternative, there aren’t many choices outside of us. The market is dominated by U.S. and European brands. Purdys is one of the few truly Canadian chocolate brands, and we want people to remember that.”
The global cocoa market has faced unprecedented price hikes, with costs per metric ton skyrocketing from historical averages of $2,500 to over $12,000 at peak. Eade attributes this volatility to poor crop yields, climate change, and government-led initiatives to improve wages for farmers in West Africa, where 70% of the world’s cocoa originates.
“We’ve been working in West Africa for almost 30 years, supporting farming communities, building schools, and improving agricultural practices,” Eade explains. “These price hikes are partly due to governments trying to ensure farmers are paid fairly, which is an important step forward.”
For Purdys, sustainability is non-negotiable. The company has long promoted the use of 100% sustainable cocoa and has been proactive in integrating ethical sourcing into its business model. “We can make a small but meaningful impact on a global scale,” says Eade.
With cocoa prices fluctuating, businesses across the industry are reevaluating their use of chocolate. “Larger-scale companies that use chocolate in ice cream or baked goods are the first to cut back,” Eade notes. “For Purdys, which sells a premium chocolate product, demand has remained steady. Consumers are shifting toward higher-quality products, willing to pay a little more for something special.”
While this trend benefits Purdys, supply chain challenges remain a concern. The company relies on U.S. imports for key ingredients, particularly Georgian pecans for its signature Sweet Georgia Browns. “We’re not changing that,” Eade insists. “We won’t compromise the quality of our chocolates, even if costs increase. We’ll absorb the impact rather than passing it entirely onto the consumer.”
Despite economic pressures, Purdys remains focused on growth. The company has recently explored pop-up stores as a strategy to test new markets. “We started with three pop-ups two years ago, and they turned into permanent stores in Fort McMurray and Cranbrook, B.C.,” says Eade. “Last year, we launched six more. Some of those locations will also transition to permanent stores.”
Looking ahead, Purdys has its eyes set on Quebec and the Maritimes, two major Canadian markets where it has yet to establish a significant footprint. “There’s plenty of white space in Canada, and we’re being strategic about how we expand,” says Eade. Retail partnerships and store-in-store
concepts with major Canadian retailers are also under consideration as part of the company’s broader growth strategy.
As economic uncertainties loom, Purdys remains optimistic about its place in the Canadian market. “We’re a well-known brand, but sometimes people forget about us until the holidays,” Eade admits. “Christmas, Easter, and Valentine’s Day are our big seasons, but we want to remind consumers that we’re here for celebrations yearround—whether it’s Eid, Diwali, or just a small moment of indulgence.”
With a legacy spanning over 100 years, Purdys Chocolatier stands as a testament to Canadian resilience, quality, and community spirit. While global challenges persist, the company’s commitment to ethical sourcing, premium products, and Canadian values positions it for continued success in the years to come.
“Businesses adapt,” says Eade. “As Winston Churchill said, ‘Never waste a good crisis.’ We’ll keep finding ways to grow, support our communities, and deliver the best chocolate in Canada.”
• The fall of HBC
• Canadiana retail
• Impacts of American political policy
• What the Canadian federal election means for retailers
Distributing May 2025
