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2026 retail trends in Canada: What Canadian retailers need to know
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2026 retail trends in Canada: What Canadian retailers need to know

By: Niyati Budhiraja
Social and Community Engagement Specialist
February 24, 2026 clock Calculating time...
2026 retail trends in Canada

Canadian shoppers are not all moving in the same direction. As we head into 2026, some households are feeling more comfortable spending again, while others are being very careful with their money. This split is shaping everything from store traffic to delivery expectations.

Here is a simple breakdown of what is changing and what Canadian retailers should pay attention to this year.

Canadians are spending, but not evenly

Canadians kept spending in 2025, but growth was modest and uneven. Retail sales rose 1.2 per cent early in the year, with March reaching $69.8 billion, led by car sales while gas station sales fell. Spending remained choppy as November saw a 3.1 per cent year‑over‑year increase, but December dropped 0.5 per cent. 

Inflation eased slightly. The average inflation rate was 2.1 per cent for 2025. Goods increased 0.8 per cent, while services rose 3.1 per cent. Gasoline prices fell 8.6 per cent after the carbon price was removed, but grocery prices climbed 3.5 per cent. 

Savings improved only slightly. Canada’s household saving rate reached 4.7 per cent in the third quarter of 2025. But lower‑income households saw disposable income decline, and middle‑income families saved less due to weaker wage growth. 

What this means for retailers: Not all shoppers have the same spending power. Offer both affordable options and higher‑end choices. Adapt pricing and promotions based on each store’s local customer base.

2026 retail trends in Canada

Canadians are cautious, especially with talk of tariffs and trade issues

Even though inflation has slowed, consumer confidence remains low. Ipsos reported negative confidence levels at the end of 2025, and other indexes showed similar trends. 

Many Canadians worry about how trade tensions and tariffs might affect prices and jobs. Bank of Canada surveys found people are delaying major purchases and focusing on essential items because they expect prices to rise. 

What this means for retailers: Help customers feel in control. Offer clear pricing, value options, and smaller pack sizes where it makes sense. If you offer instalments, make sure the terms are simple and transparent.

Buy Now Pay Later usage continues to grow in Canada, and the market is expected to keep expanding over the next few years. 

Fast delivery is raising expectations everywhere

Amazon expanded faster same‑day and overnight delivery in major regions across Ontario and British Columbia in 2024 and 2025. Many customers can now get items within hours, often at no extra cost if they spend over $25.

This changes how Canadians think about convenience. If delivery can be almost instant, visiting a store must offer something more valuable than speed.

What this means for retailers: If you cannot match same‑day delivery, make pickup incredibly easy. Offer quick pickup windows, dedicated spots, and reliable timing. Make sure customers know exactly when their order will be ready.

Stores still matter, but customers want more from them

Even with strong online shopping, Canadians still buy most things in stores. Deloitte reports that while most shopping journeys begin online, about 80 per cent of purchases still happen in person. 

Online sales remain high, too. Canada saw about $4.3 billion in e‑commerce sales in December 2024, representing 6.1 per cent of all retail sales that month. 

Canadians also continued to look for value. General merchandise retailers captured more food spending in 2024 as shoppers searched for lower prices. 

What this means for retailers: Make your stores worth the visit. Offer services such as alterations, repairs, product demos, expert help or hands‑on experiences. Ensure staff can help customers order items that are not available in-store.

2026 retail trends in Canada

Retailers are finally using AI in practical, everyday ways

AI adoption is rising quickly. A 2024 KPMG survey found that 81 per cent of Canadian retail executives believe they must invest in generative AI to stay competitive. Many are already using AI for fraud detection, forecasting, recommendations and better search tools. 

Global research shows that AI can improve customer service and operations, but many retailers are still figuring out data quality, privacy and training. 

What this means for retailers: Start with simple, high‑impact uses:

  •     Better demand forecasting

  •     Improved on‑site search

  •     Fraud alerts

  •     Fast responses in customer service

Set clear rules for how AI is used so customers and employees feel comfortable.

The bottom line

The year ahead is not just another cycle of retail trends. It is a test of how well Canadian retailers can read a consumer landscape that no longer moves in one direction. The gap between what shoppers need and what they aspire to has never been wider, and both realities can exist within the same household, even the same shopping trip.

Success in 2026 will not come from doing more of what worked before. It will come from asking harder questions:

What truly matters to our customers now? What are they willing to trade for value, for convenience, for meaning? And how do we build retail experiences that respect their time, their pressure points and their ambitions?

Retailers who treat 2026 as a turning point, not a hurdle, will shape the next decade of Canadian commerce. The choices made this year about service, technology, pricing and purpose will determine who earns trust in a market where trust is becoming the most valuable currency.

 

Author Profile

Niyati Budhiraja

Author Profile

Niyati Budhiraja is a word nerd who turns tricky business talk into fun, simple and genuinely helpful content. She writes features on inspiring Canadian businesses, crafts easy-to-follow guides and shares smart tips to help small businesses feel confident and supported. When she’s not writing or dreaming up her next blog idea, you’ll likely find her hunting down the city’s best hot chocolate.

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