I work in Kensington Market so I often pick up bread from Blackbird Bakery. Bakery bread is so much better than the heavily processed ones in the supermarket.
I highly recommend the lemon tart and butter croissant, though it is a bit pricey. They also offer Challah bread for 6.50 on Fridays that are delicious. The canned jams they have from Manning Canning are also pricey but very good.