Brands leaving Canada; Kleenex Blowing the Way For More Companies to Leave?

Things have really been going downhill in Canada ever since Tim Hortons was bought out by Burger King in 2014. Now, not only do we have to cry about possibly the most mediocre coffee in existence tied to our country, but now we will also have no Kleenex to dry our eyes with! Yes, that’s right folks Kleenex is now exiting the Canadian market. Nestlé, Kleenex’s parent company, pulled more of its products from Canadian shelves earlier this year. In February, Nestlé released a statement saying they would be pulling their products from the frozen food section. Canadians have since said goodbye to Delissio, Stouffer’s, Lean Cuisine, and Life Cuisine.

Many renowned brands are gradually bidding farewell to Canada, leaving us Canadians scratching our heads wondering why? Several brands that ventured across the border into Canada during the early 2010s, such as Nordstrom, Target, and J Crew, quickly realized that the Canadian market posed stiff competition and had an economic landscape distinct from that of America.

Over the past decade, rent has nearly doubled, whilst minimum wage has barely seen an annual increase of a dollar. It comes as no surprise that the gap between income and expenses has widened significantly. Many companies attribute this shift to the COVID-19 pandemic in 2020, as it accelerated the transition to online shopping over in-person retail.

The COVID-19 pandemic stands out as one of the most formidable challenges that businesses have had to confront, and many did not survive. The isolation, social distancing measures, and other pandemic-related hardships made it incredibly tough for numerous businesses and companies to maintain operations.

With all these American companies departing from Canada, and more are predicted to follow suit (such as Starbucks, Victoria’s Secret, and David’s Tea), it underscores how much our economic identity is tied to America. How many Canadian-based businesses can you name? For many Canadians, it is a challenge to list more than a handful of companies that not only originated in Canada but have also thrived over the years. The most referenced ones that evoke a sense of Canadian pride include Dollarama, Roots, Canadian Tire, Lululemon, and, of course, The Hudson Bay Company – the oldest corporation in Canada. This serves as a stark reminder that Canada’s contribution to its own retail landscape is but a drop in the bucket.

So, while some if not most Canadian citizens will see these American brands departing as a terrible loss, we can instead look at it as a new beginning. We can start by investing in our local communities and businesses whenever possible. Support your creative friends and Canadian businesses, and let’s help give Canada back its retail identity that it’s been lacking for so many years!