The retail landscape for franchisees across Canada has shifted dramatically post-pandemic. What made a location successful in 2019 doesn’t necessarily hold up today. It’s no longer just about foot traffic. In this new era, businesses and franchisees must consider how a retail space fits into the way people shop, live, and interact with their brands.
Success in retail today is all about integration. Consumers don’t just walk into stores to buy things anymore; they seek out experiences. Whether through interactive retail spaces, in-store events, or hybrid models blending shopping with entertainment, the brands that offer customers a reason to visit beyond the transaction are the ones thriving. Meanwhile, e-commerce isn’t going anywhere, so brick-and-mortar retailers that seamlessly integrate online shopping—offering click-and-collect, easy returns, and micro-fulfillment—are setting themselves apart. If a retailer isn’t thinking about omnichannel convenience, they run the risk of falling behind.
Foot traffic still matters, but it looks different now. The return-to-office trend has been inconsistent, with many companies adopting hybrid models rather than full-time office mandates. As a result, areas that once depended heavily on office workers—such as financial districts and downtown core areas—haven’t fully bounced back. Instead, mixed-use developments, transit-friendly locations, and neighbourhoods with a strong residential presence are now driving retail success.
In Toronto, destinations like The Well, Union Station, and Yorkville—where people live, work, and spend their leisure time—are proving to be prime retail hubs. These areas provide a built-in customer base by combining residential, office, and entertainment spaces, ensuring foot traffic throughout the entire day, not just during business hours. That’s why new developments that integrate lifestyle with retail opportunities are attracting so much attention. They offer retailers a chance to secure space in locations built for the future of shopping.
Community still matters
Beyond just selecting the right location, successful retailers understand that community engagement and customer experience matter more than ever. Consumers expect a seamless, consistent brand experience both online and in-store, and exceptional customer service has become a make-or-break factor.
Businesses that actively engage with their communities—by joining the local chamber of commerce, sponsoring sports teams, or reinvesting in the neighborhood—are earning long-term loyalty. Shoppers are drawn to brands that show they care about where they operate, and that connection translates to repeat business. Retailers who show up at local events, emphasize sustainability, and build genuine relationships with their customers are positioning themselves for long-term success.
Landlords are also adapting to this shift. Those offering flexible lease terms, pop-up opportunities, and adaptable spaces are attracting the best brands. Economic uncertainty remains a factor, so short-term leasing, shared retail spaces, and percentage-based rent agreements are becoming more common, allowing retailers to test new markets before making long-term commitments.
Delivery demands
Retail success isn’t just about what happens inside the store—it’s also about how easily products get in and out. The pandemic accelerated demand for delivery and takeout, and that shift isn’t slowing down.
For quick-service restaurants (QSRs), delivery now accounts for a growing portion of sales across the entire market. Retail locations that don’t accommodate efficient deliveries risk leaving money on the table. This is especially evident in places like underground mall food courts, where logistical challenges make it difficult to capitalize on the growing delivery market. Meanwhile, office lunch traffic—once a steady source of revenue—is still operating at reduced levels. Downtown Toronto’s PATH, for example, now functions more like a three-days-a-week economy, with peak foot traffic from Tuesday to Thursday, while Mondays and Fridays remain relatively quiet. While return-to-office trends are improving, commercial retail firm Colliers predicts a full return to office won’t happen until late 2025 or early 2026.
Another major shift? Spending habits. Inflation has forced many consumers to rethink their shopping priorities, leading to a polarized market. Some shoppers are willing to splurge on premium products, while others are hunting for value-driven options. As a result, luxury brands are thriving, and discount retailers like Winners and Dollarama continue expanding. The retailers caught in the middle—neither high-end nor budget-friendly—are struggling to maintain their market position.
At the same time, food and beverage has emerged as a major driver of foot traffic. Retail locations near high-end grocery stores, trendy cafés, or experiential dining spots enjoy a built-in customer base. Dining is now an essential part of the retail experience, whether through standalone restaurants, food halls, or integrated café concepts inside larger retail spaces. The best retail locations recognize this trend and embrace the synergy between shopping and dining.
The old rules of commercial real estate no longer apply. A successful retail location today isn’t just about securing space in a high-traffic area—it’s about being part of an ecosystem that reflects how people actually shop, live, and spend their time. Retailers need to do their homework and find out exactly where they fit within that ecosystem.
But finding the right space is only half the battle. Lease terms must still be sustainable, and tenants need to negotiate provisions that protect against potential risks. Anchor tenants can come and go, and when a major retailer or department store exits, it can send shockwaves through an entire shopping center. Smart retailers and landlords are building contingencies into their agreements to safeguard against these disruptions.
Today’s retail landscape is all about adaptation. It’s about recognizing that consumer behavior has changed, foot traffic has evolved, and shopping is now a hybrid experience that requires flexibility, community engagement, and logistical efficiency. Businesses that understand this, adapt quickly, and build resilience into their strategy will continue to thrive in Canada’s ever-evolving retail markets. The future belongs to those who recognize that retail is an ecosystem, and like any ecosystem, it only works when every part of it is functioning at its best.
Shawn Saraga
Founder
The Franchise Academy
shawn.saraga@gmail.com