The retail sector is bracing for upcoming U.S. tariffs on Canadian goods, with the RCC actively working to mitigate supply chain disruptions. Meanwhile, the White House has extended a tariff pause under USMCA until April, offering temporary relief. As cost pressures mount, retailers are adjusting strategies. Hudson’s Bay undergoes restructuring amid financial challenges, while Canadian Tire unveils a four-year growth plan to drive long-term expansion.
RCC Pushes for Retailer Support as U.S. Tariffs Take Effect
With U.S. tariffs on Canadian goods pushed back to April, the Retail Council of Canada (RCC) is pushing to minimize supply chain disruptions and pricing challenges. President Diane J. Brisebois highlights concerns over the de minimis exemption and interprovincial trade barriers. The RCC is working with government officials to secure exemptions and support retailers in adapting to shifting market conditions.
Source: Retail Insider
U.S. Extends Tariff Pause on Canadian and Mexican Imports
The White House has extended a tariff pause under the USMCA until April 2, recognizing North America’s integrated supply chains. This decision builds on previous exemptions for car imports. President Trump cited trade relations and cooperation on migration and fentanyl as key factors. A universal reciprocal tariff policy is expected once the pause ends.
Source: Retail Dive
Retailers Weigh Strategies as Tariffs Drive Up Costs
With tariffs driving up costs, retailers are exploring strategies to stay competitive. Best Buy expects price hikes as vendors pass on costs, while off-price chains like TJX Companies leverage flexible sourcing to manage expenses. Ross Stores anticipates an increase in closeout inventory as disruptions create new buying opportunities.
Source: Retail Brew
Hudson’s Bay Faces Uncertain Future Amid Restructuring
After filing for creditor protection, Hudson’s Bay is undergoing major restructuring, likely leading to store closures and operational shifts. Analysts point to outdated store formats and vendor challenges as key factors in its decline. While some hope for a buyer to revive the brand, doubts remain about its long-term viability.
Source: BNN Bloomberg
Canadian Tire Unveils $2B ‘True North’ Plan for Growth
Canadian Tire has unveiled its four-year True North strategy, focusing on retail expansion, a stronger loyalty program, and streamlined operations. The plan includes $2 billion in investments, restructuring efforts, and the closure of 17 standalone Atmosphere stores, with 14 relocating to SportChek. Cost-cutting measures aim to save $100 million annually by 2026. The company will provide updates during its Q1 earnings report on May 8.
Source: Inside Logistics
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