In a recent interview with Business Television (BTV), broadcast on the Globe and Mail, Skyline CFO Wayne Byrd discussed the current landscape of essential retail in Canada. Unlike discretionary retail, the segment includes businesses that provide everyday necessities, such as grocery stores, pharmacies, and quick-service restaurants. With approximately 80% of Skyline Retail REIT’s portfolio concentrated in consumer staples, Wayne offers an insightful perspective on the sector’s performance and resilience.
Although economic growth in Canada, measured by gross domestic product (GDP), has been lackluster compared to historical standards, essential retail stands out as a top performer. As Wayne points out, “Tier-1 grocers are reporting record profitability, which reinforces the strength of everyday, needs-based retail.” Cited are the recent earnings of Loblaw Co. Ltd., Canada’s largest national grocery chain.
In its recent Q1 2025 report, Loblaw reported a 4.1% year-over-year revenue increase and a 9.3% rise in adjusted earning per share (EPS). Similarly, Empire Co. Ltd., the parent company of important Skyline Retail REIT tenant Sobeys, reported 3.0% sales growth and an 8.8% annual increase in adjusted EPS. Both companies’ operating results highlight underlying consumer resilience, countering broader signs of weakness in discretionary consumer spending.
Wayne also commented on Skyline Retail REIT leasing spreads—a key operating performance metric. Revenue growth on expiring and renewed leases has reached historic highs. The metric compares how much the company was making from a tenant before the lease expired, versus how much they are making now after the space has been re-leased or renewed.
Watch the full interview to discover why grocery-anchored retail continues to outperform in 2025 and uncover an investment opportunity you won’t want to miss.