In an interview with 6ix Retail, Ward 12 Councillor Josh Matlow outlined the retail strategy that positions the Toronto Transit Commission as both revenue generator and cultural destination, moving far beyond basic merchandise sales toward comprehensive brand monetization that could generate millions in new revenue while addressing what he calls “the most poorly funded transit system in the entire world.”
The conversation, conducted days after Matlow’s motion passed unanimously at the June 23 TTC Board meeting, revealed extensive planning for retail formats and integration with broader cultural initiatives that could transform how Toronto approaches municipal revenue generation and community engagement.
A Transit System in Financial Crisis
Matlow’s retail initiative stems from what he characterizes as a fundamental funding crisis that distinguishes Toronto from global transit systems and directly impacts service quality across Canada’s largest public transportation network.
“We are most likely the most poorly funded transit system in the entire world with regard to just not getting adequate support from higher levels of government,” Matlow said. “Big cities around the world have state, provincial or federal governments that give ongoing capital support, but also ongoing and predictable operating funds because they recognize that their big cities are not just a city, they’re also an economic driver for the region and for the country.”
Toronto’s funding model places disproportionate burden on riders and property taxpayers, creating an unsustainable financial structure. “In Toronto, the vast majority of funds come through the fare box. In other words, transit riders alone are paying. And then we are asking for subsidies from property taxpayers from Toronto Council. That’s not sustainable,” Matlow explained.
The financial constraints create cascading impacts across the system. “What does that mean? It means that we are experiencing poor maintenance, poor state of good repair, which leads to awful delays far too often, a transit network that isn’t as safe as we want it to be. And we also want to make it more affordable. So we just can’t be reliant forever on just the fare box or just property taxes,” he said.
During the same June 23 meeting where the merchandise store motion passed, the Board debated platform edge doors—standard safety technology that prevents both suicides and trespassing incidents. “Every time somebody trespasses onto the tracks, it means that everyone who’s trying to get to school, get to work, get home is impacted,” Matlow said. “And those of us who use the TTC know that that happens virtually daily.”
The urgency drives Matlow’s approach to revenue generation. “We need to get ahead of that, but they’re expensive to do. And that’s why we need to bring in money. So a TTC store is not going to solve all of our problems. I actually said that tongue in cheek to my colleagues. If anyone told you that this is gonna bring in billions of dollars and solve all of our problems, they’re lying to you. That’s not what I’m actually suggesting. But this, along with many other ways to start incrementally bringing in as many dollars as possible into a system that’s starved for them, is a good idea,” he said.
From Walk-and-Talk to Board Policy
The merchandise store concept emerged from our informal discussion during a walk-and-talk session last month, demonstrating how collaborative policy development can translate industry expertise into municipal action.
“We’re actually talking about an idea that I was inspired by, frankly, going for a walk with you where we discussed this idea,” Matlow acknowledged. Our conversation examined successful global transit retail models, from London’s Transport for London to New York’s MTA, focusing on how major systems have monetized their brand equity.
“There are cities around the world, transit networks around the world, where we have iconic branding where we see on t-shirts, hats, all sorts of paraphernalia,” Matlow said. “When we think of the London Underground, we all know what that looks like, whether it be the MTA in New York, Paris Metro and beyond. Toronto does have an iconic brand. It’s just that we’re not happy with the service and we need to do better. And therefore, why don’t we be creative, be innovative, find ways to bring in money beyond the fare box so that we can move forward with our priorities?”
“Much of the idea of moving forward with a TTC store came out of a conversation that I had with you and I want to acknowledge that,” Matlow emphasized during the interview.
Beyond Basic Transit Shops: The Experiential Vision
Matlow’s retail vision extends far beyond typical transit gift shops, incorporating insights from our discussion about creating premium retail experiences rather than basic souvenir operations.
“I love the idea of bringing back those kinds of retro slogans, the iconic 1950s emblem and really put it on things,” Matlow said. “Many of the big city transit shops are actually with their museums. So you can do that in parallel with telling the story.”
The approach would leverage multiple locations and formats. “I could see an opportunity where it be some sort of flagship TTC store, like a big Spacing store, along with even doing like pop-up ones in the stations, like next to the gateways, right? So you can have fun with it,” Matlow explained.
Location strategy extends beyond the Davisville Station mentioned in his original motion. “My motion didn’t prescribe the model because I’m not gonna make it up. I want staff to look at what are the best models,” Matlow said.
Strategic Location Opportunities Throughout the Network
The TTC system presents numerous underutilized spaces that could accommodate retail operations without disrupting passenger flow. Many stations currently house retail spaces or information centres which get bypassed, particularly as digital information systems have reduced demand for in-person assistance. These spaces could be reimagined as retail-information hybrid locations.
The concept isn’t without precedent in Toronto’s transit infrastructure. Union Station’s Ontario Tourism and City of Toronto partnership location, established for the 2015 Pan Am Games, demonstrates how retail and information services can coexist effectively. This facility was specifically designed to provide visitors with both tourism information and retail opportunities, creating a template for how government entities can successfully operate consumer-facing retail in transportation hubs.
The Union Station tourism centre’s success suggests similar hybrid models could work throughout the TTC network, particularly at major interchange stations where tourists and occasional riders seek both information and memorabilia. Unlike the tourism centre’s focus on provincial and municipal promotion, TTC retail locations could concentrate specifically on transit-themed merchandise while providing wayfinding assistance.
Separating City and TTC Retail Strategies
While both the City of Toronto and TTC could benefit from retail operations, the organizations face different opportunities and constraints.
The TTC’s first foray into physical retail could serve as a valuable pilot program for broader municipal retail initiatives. Success metrics, operational challenges, and customer response data from TTC stores would provide crucial insights for potential City of Toronto retail expansions.
Matlow acknowledged this broader potential while emphasizing the TTC’s unique position. The strategic thinking encompasses operational storytelling and cultural integration. “We’ve got stories to tell. Like our city is a remarkable city. So many waves of immigration, so many trials and tribulations, losses, celebrations. Like every relationship, we have a relationship with our city. And our transit system has been a spine of that. It’s been a core of that. That’s how many people live their lives every day and therefore develop their own stories and their community stories,” Matlow said.
The TTC’s operational authenticity provides merchandising opportunities unavailable to general municipal retail, from authentic vintage signage to decommissioned vehicle parts, creating differentiated inventory that justifies premium pricing while telling authentic Toronto transportation stories.
The Licensing Revenue Gap
A significant portion of our interview focused on substantial revenue currently flowing to unofficial TTC merchandise sellers without benefiting the transit system—a missed opportunity that could generate millions in annual income.
Matlow detailed personal examples of this gap. “If you visited my home, you would see, I’ve got a beautiful picture of a streetcar on one of my walls. I’ve got cork coasters on my coffee table that has the Toronto maps and things like that. I’ve got posters of different neighborhoods in my community. I’ve got all sorts of fun stuff here. Not a single dime of anything I got actually goes toward the City of Toronto because they’re neither producing or licensing any of those products,” he said.
The conversation revealed how Toronto’s brand equity is being monetized by others without benefiting the city or its transit system. From Starbucks “You Are Here” mugs featuring TTC imagery to countless independent retailers selling unofficial Toronto-themed merchandise, significant revenue streams are flowing away from the very institutions that create the brand value.
During our discussion, I presented a framework for how licensing partnerships could capture this lost revenue, using the puzzle manufacturing industry as an example. Puzzle companies don’t typically create their own photography—instead, they partner with artists and photographers, creating revenue-sharing arrangements where each sale benefits both the creative professional and the business. This same model could allow the TTC and City of Toronto to partner with local artists while capturing revenue from their brand usage.
The conversation also highlighted successful local examples, from GO Transit and UP Express merchandise operations to the Toronto Blue Jays’ experience store that was at the Eaton Centre. These demonstrate that Toronto-based entities can successfully monetize their brands through strategic retail partnerships.
Retail and leasing professionals consulted for this story emphasized the importance of taking immediate action rather than waiting for perfect conditions. The industry is eager to see Toronto’s public entities capitalize on their brand equity, particularly given recent focus on closures rather than expansion opportunities.
Matlow embraced the licensing framework approach: “Yeah, no, I get what you mean. I think that’s really creative, Dustin. And we should be exploring those ideas. And that’s why my motion didn’t prescribe the model because I’m not gonna make it up. I want staff to look at what are the best models. They should be reviewing that suggestion. And if there’s a way to make it work, let’s do it. I mean, and maybe both.”
The potential extends beyond simple merchandise sales to comprehensive artist partnerships that could support Toronto’s creative economy while generating sustainable revenue streams for public institutions.
“Ultimately, I just know that we have, we’ve got something to sell, we’re broke. It’s time to start being creative with what we have,” Matlow concluded.
Customer Psychology and Emotional Investment
Matlow’s retail vision emphasizes emotional connection over transactional sales, acknowledging Toronto residents’ complex relationship with their transit system.
“We complain about it because we also care about it. We want it to be well, we want it to succeed because if it’s doing well, then we’re doing well,” he said. “You can love something that you’re frustrated with just like you can love somebody who you’re frustrated with. I love the TTC and I’m frustrated with it every day, but I want it to be the better way.”
The strategy leverages emotional investment through direct messaging about merchandise impact. “Every hat you buy, every shirt you buy is going to make our TTC better. Like you’re actually investing in your own ride. I think it’s something that we could see some success with,” Matlow explained.
This approach addresses what Matlow sees as Toronto’s marketing challenges. “I feel like Torontonians have that typical Canadian inferiority complex where we don’t boast about ourselves. We don’t literally put ourselves in the shop window. I want us to start doing that. We’re amazing. Let’s talk about that. Let’s talk about what we have. And by doing that, people will pay for that. And therefore we don’t just talk about being amazing. We invest in being more amazing. That’s what I want us to,” he said.
“I want it to be something that both Torontonians take pride in, have fun with. And what’s better to have fun and take pride in your city, well, literally investing your money into it at the same time and improving the system that you’re taking pride in, literally by your dollar, by your choices. You’re making an investment, you wanna reap the dividends,” Matlow explained.
Integration with Cultural Development Strategy
The TTC retail strategy connects with Matlow’s broader cultural agenda, including his long-advocated City of Toronto Museum at Old City Hall.
“I’ve been for a very long time an advocate for creating a City of Toronto Museum at Old City Hall. And one can say, well, we have other priorities. We’ve got all sorts of different challenges in our city. Why would you waste your time on that? My answer is, if you run government well in a big city, you’ve got lots of different priorities and you need to know how to multitask. I mean, life is complex. In our own personal lives, you don’t just do one thing. You don’t just like fix something that’s broken and then don’t go to the dentist, you do it all. So that’s how I think we should be managing our city,” Matlow said.
The integration would create coordinated development. “We have a virtually empty old city hall right next door that, along with the Toronto Museum, there’s a lot of rooms to fill up. There’s a lot of, we, there’s opportunities,” he explained.
This extends to major events, with Matlow criticizing missed FIFA World Cup opportunities. “The deal that John Tory signed put the city in a major, major hole. That contract, FIFA just ran away with it. So I made the argument to the city. Like everyone is going to be opening up something to make some money off this. Every kid’s going to open up a lemonade stand if they’re smart. The city should be no different. We need a revenue strategy above and beyond what’s in the contract to start bringing in some money off these games. We always need to be innovative. We always need to look for those opportunities. The ways we’ve always done things have not worked out well for us,” he said.
Implementation and Revenue Expectations
TTC staff have until Q4 2025 to deliver comprehensive feasibility analysis. During our conversation, I noted the enthusiastic industry response: “You should have seen the excitement in the leasing community, in the retail community. People have talked so much about closures recently that it’s fun to think about.”
Matlow emphasized realistic expectations while positioning retail as part of broader revenue diversification. “Constitutionally, cities in Canada are not set up to bring in sufficient revenue to do everything we’re expected to do. So let’s be creative. And this is one of many ways that we should do it,” he explained.
The Power of Partnership and Discourse
As our interview concluded, Matlow emphasized the significance of collaborative policy development, crediting our conversation as an example of how municipal innovation emerges through community engagement.
“Much of the idea of moving forward with a TTC store came out of a conversation that I had with you and I want to acknowledge that. And I really appreciate the role that you’re playing in our city because people like you and others who just love this city acknowledge its challenges, but don’t just sort of get defeated by those challenges, but go, okay, let’s lean in on solutions,” Matlow said.
“Let’s really run with what we have because we love this city, we want it to be better, and that’s all that matters. Let’s keep doing things that are creative, fun, but ultimately successful,” he concluded.
The exchange demonstrates how informal conversations between elected officials and subject matter experts can generate concrete policy outcomes. From casual walk-and-talk discussion to unanimous Board approval, the TTC retail initiative illustrates the pathway from community engagement to institutional action through strategic partnerships and meaningful civic discourse.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes leadership roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024 and 2025, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.