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CANADA 110 • SHOPPING CENTER BUSINESS • December 2017 ada weathered the recession very well — actually, much better than the United States. During that time, a number of U.S. retailers (unsurprisingly) ramped up their expansion activities north of the border. Canada remained on much more se- cure economic footing for several years relative to the United States, reinforcing the perception of Canada as a strong, low- risk market and keeping U.S. retailer activ- ity at a high level. As the U.S. has regained its momentum over the past eight years or so, Canada, though still very strong, has not been a primary expansion target for most U.S brands. While plenty of U.S. brands are still capitalizing on opportunities in Canada, the Canadian market does pose some very real issues for U.S. retailers. A language barrier presents a surprisingly thorny logistical challenge. For brands that are accustomed to only operating in English, expanding into a bilingual country — and modifying all labels, advertising and sig- nage to include both English and French — is a very real challenge. Canada's dispersed population spells another obstacle for some U.S. brands. Canada's 36 million people are spread out over 10 provinces and three territories. In other words, what amounts to one-tenth of the U.S. pop- ulation resides in a geographic area that is roughly equivalent in size. In that context, it is a challenge to achieve critical mass — because truly vi- able market opportunities are limited. Canada's dispirit consumer base (part of which is located in geographically isolated urban centers) can also present challenges for things like marketing and distribution/logistics. As an example, for restaurants, certain food items are significantly more expen- sive to source locally in Canada. And pos- sibly most significant, a Canadian retailer entering the United States does not face the same currency differential as a U.S. retailer coming into Canada. Canadian companies pay most of their expenses in Canadian dollars, while U.S. retailers operating in Canada pay most of their ex- penses in U.S. dollars but receive revenues in Canadian dollars. For all their idiosyncrasies and distinc- tive characteristics, the U.S. and Canadi- an retail markets share a core mercantile and cultural DNA that is far more alike than different. Opportunities abound in both countries for retailers that take the time to educate themselves about national and market differences — and adjust their strategies accordingly. SCB Jason Schouten is a principal of Avison Young. Based in the firm's Vancouver office, he works closely with national and international retailers and their development partners on site selection, market and demographic analysis, leasing strategies, lease negotiation, strategic expansion planning and roll- out services in Canada and the United States. He can be reached at jason. schouten@avisonyoung.com.