The Changing Face of Canadian Retail: Are Malls Truly Disappearing?
Walk through any suburban shopping center in Canada today, and you're likely to encounter boarded-up storefronts where once-thriving chain retailers operated. This visual transformation has sparked widespread debate about the future of traditional retail spaces across the nation.
Recent High-Profile Departures from the Retail Landscape
Last year witnessed several significant retail exits that captured national attention. Among the most prominent were the final liquidation sales of remaining Saks Fifth Avenue and Hudson's Bay department store locations throughout Canada. These closures represented more than just individual business failures—they signaled a broader shift in how Canadians approach shopping.
This year continues the trend with additional businesses facing potential collapse. Toys 'R' Us has filed for creditor protection, while Catalyst Brands, the retail operator of Eddie Bauer, is reportedly preparing to file for Chapter 11 bankruptcy protection. These developments have led many to question whether traditional retail formats can survive in today's economic climate.
Market Evolution Versus Retail Apocalypse
While some observers interpret these closures as the death knell for brick-and-mortar retail, industry experts offer a more nuanced perspective. Many analysts view these changes as part of a natural market cycle where weaker players are weeded out, making room for more agile businesses that can adapt to turbulent economic conditions.
John Mercer, head of global research at U.S. retail data firm Coresight Research, shared his insights in an interview with Forbes.com: "You have peak years and then they have a dip, up or down. And this year looks like it's going to be a down in terms of store closings, maybe an up in terms of openings."
Several retail analysts actually predict that 2026 could mark a revival for in-person shopping experiences, suggesting that reports of retail's demise may be premature.
The Mall Business: Adaptation and Resilience
Despite significant losses as department store giants like HBC, Nordstrom, and Saks Fifth Avenue closed their doors, industry players maintain a cautiously optimistic outlook for shopping centers.
Alex Avery, CEO of Primaris REIT—a company that owns and operates 27 shopping centres across Canada—challenged the narrative of mall extinction during an interview with BNN Bloomberg: "I think the rumours of the death of the mall were overstated. You had a very tough 10-year period with Target and Sears closures and the rise of e-commerce, then the pandemic. But once we got through all of that, it became clear that bricks-and-mortar retail is the anchor of a successful retail strategy."
Avery pointed to what he describes as a shortage of retail space, attributing it to "a 10-year stretch when almost no new retail space was built." His company has witnessed substantial improvement, with "about 700 to 800 basis points of occupancy improvement over the last few years."
Transformation and Opportunity in Vacant Spaces
The departure of anchor stores like HBC has undoubtedly left shopping centers in what Michael Kehoe, broker of record at Fairfield Commercial Real Estate, describes as "a period of transition." The traditional department store format may no longer dominate mall layouts, but this shift presents new opportunities.
Kehoe told Retail Insider that several top-tier Canadian malls are thriving without any anchor store presence, suggesting that "this is a positive thing. It helps shopping centres keep their offerings current and cater to evolving consumer demands."
As Avery emphasized, today's consumers want flexibility: "People want to shop where and how they choose—sometimes that's on their phone, sometimes it's online, and sometimes it's in person. Retailers understand they need a physical presence."
The Canadian retail landscape continues to evolve, with shopping centers adapting to new consumer behaviors rather than disappearing entirely. While certain legacy brands may struggle, the physical retail space appears poised for transformation rather than extinction.
