EJB Business Consulting Inc

05/29/2026

1. The Ongoing Debate Over the "Recession" Tag
Despite the headlines, several experts—BMO Chief Economist Douglas Porter among them—caution against a premature alarm. They highlight specific details within the data that complicate the narrative:

A Stagnant Quarter: Viewed through a non-annualized, quarter-over-quarter lens, growth in Q1 was essentially static at 0.0%.

Potential for Revision: Analysts suggest the 0.1% annualized decrease is marginal enough that subsequent data adjustments could flip it into positive territory.

Early Recovery Indicators: Preliminary figures from Statistics Canada indicate a 0.4% economic upswing occurred as recently as April.

2. Economic Drivers and Detractors
Canada's stalled economy is currently defined by a balance between declining investment and resilient household activity:

Downward Pressures: A persistent trade dispute has dampened corporate optimism. This is reflected in a 2.5% drop in government capital investment and a 0.7% slip in business investment—the latter marking its fifth straight quarterly decline. Elevated imports also acted as a drag on growth.

Stabilizing Factors: Conversely, consumer spending on financial services and food provided a necessary buffer. Additionally, a significant buildup of business inventories helped mitigate the broader declines.

Summary: Regardless of the "technical recession" classification, the consensus is that Canada's economy has struggled for momentum over the past year. The Bank of Canada has revised its annual growth forecast down to 1.2%, a decrease from the 1.7% recorded previously.

05/28/2026

The WWD article outlines Saks Global’s progress toward exiting Chapter 11 bankruptcy. Here is a summary of the key developments and details regarding their restructuring plan:

1. $500 Million Exit Financing Deal
The Milestone: Saks Global (the luxury parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman) reached a Restructuring Support Agreement (RSA) with an ad hoc group of senior secured bondholders.

The Funding: The bondholders committed to providing $500 million in exit financing, which will serve as critical capital when the company emerges from bankruptcy.
Timeline: Backed by this funding agreement, Saks Global expects to file its official Plan of Reorganization and successfully exit bankruptcy.

2. Stabilization and Rebound in Operations

Vendor Relationships Restored: One of the most critical milestones highlighted is that more than 650 brand partners that had previously paused shipments have resumed sending merchandise. This has unlocked roughly $1.5 billion in retail receipts, accounting for over 90% of the retailer's expected inventory for Q1.

Positive Inventory & Sales Growth: Thanks to the return of these brands, March inventory receipts increased 18% year-over-year.

Consumer Demand: The influx of new inventory boosted key metrics compared to the prior year, including a 6% increase in customer spend per store visit and an 11% increase in online conversion rates. Full-price selling has also markedly improved across its luxury banners.

3. The Strategy for the Future

Financial Health: Upon emerging from Chapter 11, the company intends to run a "right-sized capital structure" with lower debt burdens and healthy liquidity to invest back into long-term growth. Its goal is to achieve a double-digit adjusted EBITDA margin.

Footprint Optimization: Moving forward, Saks Global's operational model focuses on an optimized brick-and-mortar footprint consisting only of its best-performing stores in high-concentration luxury markets. This follows previous restructuring actions that streamlined their footprint (such as closing underperforming full-line locations and heavily scaling back off-price business like Saks Off 5th and Neiman Marcus Last Call).

Leadership Perspective: CEO Geoffroy van Raemdonck stated that this milestone reflects strong capital partner confidence and allows the company to refocus heavily on strengthening brand partnerships and delivering curated, high-end personalized services to its luxury consumer base.

05/15/2026

Based on University of Toronto and Statistics Canada data, here is a summary of the decline in travel to the U.S.:

The 42% Decline

While official figures suggested a 25% drop, cell phone data reveals a more severe trend. Between April 2025 and March 2026, Canadian trips to U.S. metros plummeted by 42% year-over-year.
Cell phone data captures a broader range of activity than border data, including day trips and business travel without overnight stays.

Primary Drivers

Analysts attribute this slump to three main factors:
* Social Boycott: Many Canadians are boycotting travel in response to U.S. political rhetoric and global tariffs.
* Economic Uncertainty: Trade tensions have disrupted business travel, particularly in tech, finance, and automotive hubs.
* Weak Currency: The Canadian dollar at 70 cents US makes travel and dining significantly more expensive.

Hardest-Hit Regions

Warm-weather destinations and major hubs saw the most dramatic drops:
* Myrtle Beach: Recorded a 65% decline.
* Florida Cities: Orlando, Miami, and others saw visitor numbers fall by 50% or more.
* Business Hubs: New York, Los Angeles, and Dallas registered significant declines.

Long-Term Impact

Unlike the pandemic recovery, this decline is driven by policy choices and political friction. Persistent tensions suggest a difficult rebound for U.S. tourism and cross-border business.

05/13/2026

The article, based on research from the University of Toronto’s School of Cities, highlights a significant and widespread decline in Canadian travel to the United States between April 2024 and March 2026.

While traditional border-crossing data has shown some decline, this study used cellphone activity to reveal a much deeper trend: a median decline of 42% in Canadian visits to major U.S. metropolitan areas.

The Three Cities Bucking the Trend
Out of 267 U.S. cities examined, only three saw an actual increase in travel from Canada during this period:
Portland, Oregon
Gainesville, Florida
Cleveland, Ohio

Key Findings & Reasons for the Drop
Widespread Declines: 50 major U.S. metropolitan areas saw travel decreases of 50% or more.

Hardest Hit Locations: Myrtle Beach, South Carolina, saw the steepest drop at 65.4%. Other heavily impacted cities include Florida vacation hubs (Orlando, Miami, Panama City, Cape Coral) and border/trade-heavy cities like Grand Rapids, Michigan.

Trade and Politics: Researchers link the decline to "Mapping Tariffs"—a project tracking the fallout of U.S. trade policies, annexation threats, and political tensions. The data suggests that it isn't just "snowbird" or tourist travel being lost, but also essential trade-related business travel (e.g., the auto industry in Michigan).

Behavioral Shifts: Canadians are not only visiting the U.S. less frequently but are also visiting fewer locations and staying for shorter durations when they do cross the border. Some travelers are reportedly opting for alternative international destinations like Portugal, Mexico, or Cuba as a form of "pocketbook protest."

The study indicates that the economic and political climate has created a significant "chilling effect" on the cross-border mobility that has historically underpinned the Canada-U.S. relationship.

05/12/2026

FYI

Dunkin' is revitalizing their presence in Canada after shuttering all locations in 2018, and retail expert Bruce Winder says other coffee chains should be co...

05/12/2026

Stop Leaving Money on the Table: Secure Optimal Lending Terms with Bank Insider Expertise

It is the season for commercial credit annual reviews, a critical—and often overlooked—opportunity to negotiate more favorable lending terms and reduce your cost of capital. A simple "as-is" renewal is a missed opportunity, often allowing the bank to increase its profit margin (the spread) without passing on savings from your improved risk profile.

To maximize your negotiation leverage, you need an expert who understands banking from the inside out.

My 25-Year Commercial Banking Advantage

I offer clients the distinct benefit of 25 years of commercial banking experience, having served at various levels within the industry. My expertise is rooted in a comprehensive understanding of the commercial lending lifecycle, specifically in:
Origination: I know how credit facilities are structured and presented internally, ensuring your proposal is framed to meet the bank's strict approval standards.
Risk: I specialize in bank risk rating methodology and understand the internal, proprietary models (often based on Moody's Analytics) that assign your Business Risk Rating (BRR). I evaluate your business using the same criteria as your lender.
Risk Mitigation: I provide strategic guidance on presenting your company's financial story to highlight positive trends in leverage and other key financial metrics, actively mitigating perceived weaknesses.

The Value of Expert Engagement

My involvement is designed to secure tangible concessions by actively building a case for your reduced risk profile, which can result in:

Maximizing Benefit from an Improved BRR: Compelling your bank to pass on the reduced internal cost of funds via lower interest rates and reduced fees.
Personal Guarantee (PG) Release/Reduction: Achieving the release or reduction of your Personal Guarantee, which requires a specialized understanding of the bank’s financial metrics and risk rating framework, knowledge often beyond a conventional accountant's expertise.

Avoiding Costly Covenant Breaches: Proactively reviewing and managing your Comfort/Negative Covenants—legally binding stipulations that restrict actions that could weaken your financial health—to ensure compliance and avoid triggers that could negatively impact your facility. Key examples of these covenants include restrictions on dividend payments, limitations on related party transactions, and the maintenance of minimum Shareholder Equity/Net Worth.

How We Leverage the Bank’s Evaluation Process

The entire annual review process, and your loan terms, are determined by your BRR, which is calculated based on the comprehensive "Four Cs" of Lending:
Character: A qualitative assessment of management’s integrity, experience, and business planning.
Capacity: A quantitative measure of your cash flow's ability to service all debt obligations, typically focusing on a Debt Service Coverage Ratio (DSCR) of 1.25x or higher.
Collateral: The secondary source of repayment, judged by key metrics like the Loan-to-Value (LTV) ratio.
Credit (or Capital): An assessment of the company’s overall financial health and the owner's commitment, typically reviewed through the Debt-to-Equity ratio.
We strategically address each of these four Cs to support an upgrade to a preferred BRR, such as moving from the Moderate Risk baseline (Rating 3) to Low Risk (Rating 2), which warrants preferred lending terms.Act Now: The Critical Review Window

For companies with a December 31st year-end, the crucial period for the annual review and proactive negotiation is typically between May and July.

My fee is structured with a base review cost and a negotiable fee based on the financial improvements achieved or the severity of the issues mitigated. Contact me today to discuss your specific needs and ensure you maximize your financial leverage this review season.

05/10/2026

The MSN article reports that hybrid vehicles have become the fastest-selling new cars in the United States, driven by a combination of surging fuel prices, a desire for improved efficiency, and a reluctance among some buyers to fully commit to electric vehicles (EVs).

Below is a summary of the key findings from the report:

# # # **Hybrid Dominance in the Market**

* **Fastest Turnover:** Hybrids are moving off dealer lots significantly faster than other vehicle types. On average, a new hybrid sells in **59 days**, compared to **75 days** for traditional gasoline-powered cars and **114 days** for battery-electric vehicles (EVs).
* **Market Share Surge:** Hybrids now account for approximately **16.3%** of the total U.S. car market. For comparison, full EVs currently hold an 8.6% share.
* **Used Market Growth:** The trend extends to the used car market, where demand for hybrids has spiked by **41.8%** year-over-year.

# # # **Factors Driving the Trend**

* **Fuel Prices:** Increased fuel costs (influenced by global conflicts and economic shifts) have made hybrids more attractive as a cost-saving alternative to gas-only vehicles.
* **"Range Anxiety" & Convenience:** Many buyers are opting for hybrids because they offer better fuel economy without the "range anxiety" or charging infrastructure requirements associated with EVs.
* **Affordability:** Hybrids are generally more affordable than comparable EVs, making them a more accessible "electrified" option for the average consumer.

# # # **Leading Brands and Models**

* **Toyota's Lead:** Toyota continues to dominate the segment, with the **RAV4 Hybrid** accounting for nearly half of all new hybrid registrations in the U.S.
* **Other Key Players:** Honda, Hyundai, and Kia are also seeing record growth. For instance, more than half of all Honda CR-V and Accord sales are now the hybrid variants.
* **Fastest-Selling Models:** Specific high-demand models include the **Lexus RX 350h**, **Honda Civic Hybrid**, **Toyota Camry Hybrid**, and **Toyota Grand Highlander Hybrid**.

# # # **The Shift Away from EVs**

The article notes a "cooling" of interest in full EVs for some segments of the population. Some current EV owners are even "jumping ship" back to hybrids, citing the familiarity of the ownership experience (no lifestyle changes like nightly plugging in) combined with the efficiency of an electric motor.

05/02/2026

Spirit Airlines is shutting down after 34 years in operation

Spirit Airlines grounds all flights and ceases operation | Spirit Airlines shuts down

04/22/2026

This article, written by Lauren Langbridge (General Manager for North America at Wise Platform) for *BetaKit*, argues that the traditional correspondent banking system is no longer sufficient for modern cross-border payment needs and that **strategic partnerships** between legacy banks and fintech specialists are the way forward.

Here is a summary of the key points:

# # # 1. The Friction in Traditional Systems
* **Rising Demand:** Canadians and small-to-medium enterprises (SMEs) are sending more money internationally than ever to pay global suppliers and manage distributed workforces.
* **Legacy Issues:** Traditional cross-border payments are often slow, expensive, and opaque. Because they move through multiple intermediary banks, they are prone to hidden fees, uncertain delivery times, and manual interventions (one in five payments requires manual step-ins).
* **Customer Expectations:** In an era of instant domestic digital payments, customers now expect the same speed and transparency for international transfers. According to Swift, 70% of loyal bank users are willing to switch providers to avoid friction.

# # # 2. The High Barrier to Entry for Innovation
* Building a modern, streamlined global payment infrastructure from scratch is "difficult, if not impossible" for most individual banks.
* It requires navigating complex multi-jurisdictional regulations, managing liquidity across dozens of currencies, and establishing direct connections to local clearing systems.

# # # 3. The Power of Partnerships
* **Speed to Market:** Collaborating with specialized global payment platforms allows banks to upgrade their services without rebuilding their entire core infrastructure.
* **Efficiency:** Partnerships help banks offload the operational complexity of managing dozens of currencies while reducing customer support queries related to "missing" funds (thanks to instant settlement and upfront pricing).
* **Regulatory Alignment:** Partnering with transparent, tech-forward platforms helps banks meet evolving Canadian regulatory standards focused on competition and consumer protection.

# # # Conclusion
The author concludes that for banks to remain competitive in Canada’s modernizing financial landscape, they must move away from the "go-it-alone" mentality. By combining the **trust and scale of established banks** with the **specialized infrastructure of fintech platforms**, financial institutions can provide the seamless, reliable cross-border experiences that modern customers demand.

02/10/2026

The article, "The Canadian Economic Outlook for Franchise Owners in 2026," published by the Canadian Franchise Association (CFA) with data from CIBC Capital Markets, outlines a cautious economic landscape for the year.

The outlook characterizes 2026 as a "transition year" defined by slow recovery and persistent uncertainty. Below is a summary of the key findings and recommendations:

1. Economic Climate & Growth
Subdued GDP Growth: The forecast for Canada's GDP growth in 2026 is a modest 1.4%, a slight increase from 2025's 1.2%. Growth is tempered by trade uncertainty and a "volatile" labor market.

Interest Rates: Following rate cuts in late 2025, the Bank of Canada has signaled that rates (at 2.25%) have likely hit the "end of the line" for cuts. Franchise owners should expect stable but not declining rates in 2026.

Inflation: While headline inflation is largely under control, there are still concerns about "cost-push" inflation stemming from potential U.S. tariffs.

2. Key Challenges for Franchisees
Trade Uncertainty: The upcoming CUSMA negotiations and potential U.S. tariffs (the "Trump fog") create significant risks, particularly for franchises that trade goods or rely on international supply chains.

Weak Domestic Demand: Because households remain cautious due to labor market volatility, demand for franchise products and services is expected to stay moderate.

Housing Market Slump: The housing sector remains a "weak spot," particularly in Ontario and B.C., which may affect consumer confidence and franchises related to home services or construction.

3. Opportunities & Silver Linings
Stable Financing: With interest rates stabilized, it is an opportune time for franchise owners to refinance debt, invest in technology, or expand their networks.

Labor Market Slack: A slight cooling in the labor market may make it easier to recruit staff, though rising wages continue to be a cost pressure.

Productivity Gains: Improved productivity is noted as a primary driver of the economy’s "speed limit," allowing for growth without immediate inflationary pressure.

4. Strategic Recommendations
The article advises franchise owners to focus on operational resilience:

Cost Management: Renegotiate supplier contracts and monitor inventory closely to mitigate tariff impacts.

Scenario Planning: Use data-driven forecasting to prepare for various trade and demand outcomes.

Technology Investment: Invest in automation and digital tools to improve long-term productivity and offset rising wage costs.