There’s a changing tide in Canadian retail, and Johnston & Murphy’s exit from the market is a symbol of shifting consumer currents and economic headwinds. Founded in 1850 and renowned for outfitting U.S. presidents, this iconic American brand announced at the beginning of the year that all six Canadian stores and its Canadian e-commerce platform would permanently close as of January 18, 2025.
The Closure Details
Johnston & Murphy’s decision to shutter its Canadian operations is more than a story of retail contraction: it marks the end of a legacy for loyal customers at Toronto’s TD Centre, Pearson Airport, Sherway Gardens, Vaughan Mills, Burlington’s Mapleview Centre, and Calgary’s CrossIron Mills. Citing economic challenges—rising inflation, high interest rates, and tightened consumer wallets—the brand is consolidating inventory and operations back to the U.S. There will be no in-store clearance sales, and all sales since November 20, 2024 are final.
Why Now? Economic and Competitive Pressures
The Canadian retail landscape is not for the faint of heart. Johnston & Murphy found themselves squeezed between luxury and budget options. Their core customer—professionals seeking craftsmanship and style—has been especially hard hit by economic uncertainty, shifting their spending towards essentials or, in some cases, trading up to luxury as an investment in longevity.
On top of this, competitors such as Cole Haan, Ecco, and Clarks have keenly adapted to the casualization trend, with broader sneaker selections, comfort technology, and more versatile footwear. In contrast, Johnston & Murphy’s traditional offerings seemed less aligned with consumers’ changing lifestyles, even as the brand tried to catch up by expanding into casual and athletic styles—which now account for more than 50% of its sales.
What’s Next for Canadian Shoppers?
Although standalone stores and the Canadian website are disappearing, Johnston & Murphy’s products will still have a presence through authorized Canadian retailers—including Becker Shoes, Caron Chaussures, Canadian Footwear, and others. It’s a classic play for brands seeking efficiency: leverage third-party retail partners and focus resources on core (U.S.) markets.
An Era Fades on the PATH
Zoom out, and Johnston & Murphy’s departure is just the latest blow for Toronto’s downtown core and retail concourses such as the PATH. Long gone are the crowded days when Reitmans, Danier, Laura, and even banks’ tellers filled the underground with shoppers and workers. Cleo’s has also closed, and others—Flight Centre, Toy Shop—are memories. The decline in foot traffic and rising rents have made survival increasingly tough, even for legacy players.
What’s Left?
Stores like Shoppers Drug Mart, Purdy’s, Tim Hortons, and Stitches soldier on, but the overall vibe in the banking district is quieter, less bustling, more uncertain. While empty storefronts and fading brands create nostalgia (and sometimes frustration), others see opportunity for innovation and new business models. As shoppers’ preferences evolve, so must the retail landscape.
Johnston & Murphy’s Canadian exit is both a sign of the times and a reminder: retail—once stable and familiar—is in flux. As traditional brands depart, room opens up for the next wave of retail innovation, ready to reshape shopping in Canada’s cities.
