Across Canada and globally, retail is entering a period of rapid reinvention. With shifting consumer behaviors, technological acceleration, and ongoing supply chain disruption, the next decade will favor retailers that can combine agility, personalization, and responsible growth.

Grounded in key market observations and aligned with CGI’s 2025 Voice of Our Clients research, here are the six forces shaping retail in 2026, and what retail leaders can do to stay competitive.

1. Consumers are redefining value and expecting omnichannel convenience

Canadian shoppers remain highly value-conscious amid rising living costs, but expectations around convenience and experience continue to grow.

  • 90% of Canadians are managing budgets and seeking deals, and 71% are changing their shopping habits to cope with higher costs.
  • Grocery prices are up 21% since 2021.
  • Consumers are increasingly adopting online and hybrid shopping journeys. They expect retailers to connect both seamlessly, offering real-time product visibility, simple fulfillment options, and consistent experiences wherever they shop.

Implication: Affordability matters, but so does speed, availability, and seamless experience across channels.

2. Technology acceleration is reshaping the retail operating model

AI, automation, and real-time data are driving changes across Canadian retail from merchandising to in-store operations.

  • Retailers are increasing adoption of digital technologies such as cloud, e-commerce and CRM for analytics and automation.
  • Edge computing and IoT adoption is growing, with retail as a leading industry for real-time use cases.
  • Smart store technologies like digital shelves, computer vision, and frictionless checkout continue to expand in pilots and across global retailers.

Implication: Technology has moved from an enabler to a foundation for operational agility and customer experience.

3. Geopolitical and economic volatility is driving supply chain reinvention

Canadian retail supply chains remain exposed to global disruptions, transportation constraints, and shifting consumer demand.

  • Supply chain pressures remain above historical averages, particularly for imported goods.
  • Over 70% of Canadian manufacturers still face supply delays or input shortages.
  • Inflation, though easing, remains higher than pre-pandemic norms.

Implication: Diversified sourcing, better forecasting, and supply chain digitization are becoming essential.

4. Regulatory and data governance expectations are increasing

Governments across Canada and globally are introducing new rules on sustainability, emissions reporting, product traceability, and data protection.

  • New sustainability disclosure standards will require more detailed climate-related risk and emissions reporting.
  • Provincial privacy laws are expanding data governance and transparency requirements.
  • EU rules like CSRD are encouraging more consistent global practices for multinational retailers operating in Canada.

Implication: Regulatory complexity is rising, making transparency and governance critical to customer trust and compliance.

5. Sector convergence is expanding what it means to be a retailer

Retailers are evolving into service and experience providers, offering logistics capabilities, media platforms, and community spaces.

  • Retail media spending exceeded $120B in 2024 and is growing in Canada.
  • Retail, logistics, and technology are converging into integrated commerce ecosystems.
  • Experiential formats are outperforming traditional store formats.

Implication: Competitive advantages will increasingly come from platforms, partnerships, and integrated service ecosystems.

6. Sustainability and circularity are becoming core business imperatives

Canadian consumers, regulators, and municipalities are accelerating expectations around sustainability and waste reduction.

  • Improving building energy efficiency can significantly reduce commercial energy consumption.
  • Municipal regulations on single-use plastics and packaging waste are tightening.
  • Reuse and recycling programs are growing globally and influencing Canadian strategies.

Implication: Circularity, energy efficiency, and material innovation are now business-critical, not optional.

What will set top retailers apart

  • Deliver personalization at scale
    Unified data, AI-driven insights, and tailored experiences across channels.
  • Build intelligent, automated operations
    Using IoT, analytics, and automation to enhance accuracy and reduce costs.
  • Strengthen supply chain resilience
    Diversify sourcing, digitize planning, enhance traceability, and build real-time visibility.
  • Prioritize transparent, responsible governance
    Responsible AI, stronger data protection, and sustainability reporting.
  • Unlock new value through ecosystems
    Retail media, logistics-as-a-service, and community or experience-led retail.
  • Lead with sustainability
    Optimize store footprints, reduce emissions, and accelerate circularity initiatives.

Retail is transforming faster than ever

Those who act now, balancing innovation, resilience, and responsibility, will define the next decade of retail in Canada.

How will your organization lead?

Looking to stay ahead in a rapidly evolving retail landscape?

Let’s connect. I’m happy to share what’s working for retailers today.

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Sources

  • ¹ Retail Council of Canada, “Holiday Shopping in Canada”, 2024
  • ² Statistics Canada, “Consumer Price Index”, 2024
  • ³ Government of Canada, “Digital Economy and Society Statistics”, 2024
  • ⁴ Statistics Canada, “Survey of Digital Technology and Internet Use”, 2024
  • ⁵ IDC, “Worldwide Edge Spending Guide”, 2024
  • ⁶ Statistics Canada, “Canadian Supply Chain Pressure Indicators”, 2024
  • ⁷ Canadian Manufacturers & Exporters, “Management Issues Survey”, 2024
  • ⁸ OECD, “Inflation Dashboard and Outlook”, 2024
  • ⁹ Canadian Sustainability Standards Board, “Canadian Sustainability Disclosure Standards (CSDS) 1 and CSDS 2 Exposure Drafts,” 2024
  • ¹⁰ Government of Quebec, “Law 25: Modernization of Personal Data Protection”, 2024
  • ¹¹ eMarketer, “Global Retail Media Forecast,” 2024; “Canada Retail Media 2025,” 2025
  • ¹² U.S. Census Bureau & Statistics Canada, “Retail Trade and E-commerce Data”, 2024
  • ¹³ CBRE, “Global Retail Trends Report”, 2024
  • ¹⁴ Canada Energy Regulator, “Commercial Energy Use and Efficiency”, 2023
  • ¹⁵ Government of Canada & Municipal By-laws, “Single-Use Plastics and Waste Reduction Regulations”, 2023–2024
  • ¹⁶ United Nations Environment Programme, “Turning off the Tap: How the world can end plastic pollution and create a circular economy”, 2023–2024