Canada Retail Market: Supply Surge & Consumer Shifts

0:00Canada's retail market is going through a big reset, with 17 million square feet of space flooding back onto the market. That's mostly from Hudson's Bay Company shutting down stores and brands, creating one of the largest availability spikes in years. But here's the key consumer demanding, Slippin. Retail sales climb 4.4% year over year through November 2025. This supply surge is sparking a fresh wave of leason, backfillin, and reposition in place. Customers at Cushman and Wakefield say it's a supply-led shift, making leason trickier as performance splits by spot and store-type. Food and beverage is leading the charge, pulling traffic, and new deals in major cities. Folks are still spending, but their chasing experiences, quick hits, and value deals. That's boost in quick service and premium casual spots, while full service joins squeeze under risen costs, like 6.2% food inflation. At 8.5% jumps in restaurant prices, last December.

1:00Looking at 2026, expected normalization vibe, not a shrink. Slower population growth and a cool-in-job market mean more cautious expansion. Toronto's hold in strong as the national anchor, cranking out $11.5 billion in monthly sales, with food and bev dominate new. Openings and mixed-use hoods. Vancouver stays fierce too, with dining and premium retail, clustering in high-traffic urban strips, and walkable spots. Landlords got a hustle to flip that old space into which shoppers crave now, setting up a smarter, more balanced retail game ahead. That's your update from Canada News Today, powered by AI.