I think when my in laws went they crossed the US border and went to Buffalo. I'm sure someone who knows that area will be able to tell you though - I've never been to Canada. Have looked up hotels though as I booked one for the inlaws last year and they said it was lovely!

Toronto is full of shops. It depends what you want. Prices are quite a bit cheaper than the UK. You no longer get the tax refund though. There is the Eaton centre right in the middle of Toronto if you want designer stuff. Yonge Street is lined with shops for miles (apparently it is the longest road in the world). Or if you want a more general shopping experience then the Dixie Mall at Missessaugua is a huge place. About 90 mins away from the centre by tram and bus. There are other Malls on the outskirts but we didn't visit those. There is even a China town at Kensington.

The hardest thing to buy in Ontario is booze. You have to find an LSBO store (few and far between) or a 'beer store' (non in the city centre as far as we could tell, we only saw them in the suberbs). Shops (even the big supermarkets) don't sell it.