Retail media has evolved quickly, and 2026 marks a new inflection point. The category is maturing, budgets are diversifying, AI is operational (not theoretical), and omnichannel measurement is the expectation rather than a differentiator. For those of us who’ve spent years immersed in Canada’s retail media ecosystem, this year feels like the moment when both opportunity and complexity reach new heights.

Across Canada, retailers, brands, and agencies are navigating rapid change, and networks like Walmart Connect Canada are contributing to this momentum while also evolving alongside the broader industry.

2. Canada’s economic polarization is changing 
shopper behaviour

Canadian consumer behaviour is undergoing a structural shift. Retail Insider reports that Canada is entering 
a K-shaped economy, with a clear split between households that continue to spend with increased confidence
and those that have had to pull back spend.

This polarization influences retail media in several ways:

• Value-driven categories grow faster, driving demand for highly targeted, conversion-oriented media.
• Premium categories rely more on mid and upper‑funnel retail media to reinforce brand desirability.
• Retailers view retail media as a way to engage both value seekers and resilient spenders.

In this climate, retail media networks need to help advertisers reach audiences with smarter segmentation, leaning heavily on first‑party data and predictive AI tools to ensure relevancy in an economically diverse consumer base.

3. In‑store retail media is creating a battleground

In‑store retail media has been heralded as “the next big thing" for years, but 2026 finally brings the statement
to fruition.

Why the surge?

• Brands want to influence purchase moments closer to the shelf.
• Retailers are looking for omnichannel offerings (onsite + offsite + in-store).
• Measurement for in‑store media is catching up and driving strategy and adoption.

Canadian retailers, from grocers to mass merchants, are adopting screens, audio networks, and even QR‑enabled formats that connect physical browsing to digital media buying.

4. AI is transforming from theory to actuality

2026 is the year AI becomes more than just a buzzword and integrates further into the everyday operations of 
retail media.

Commerce Media Insiders reports that in some cases, AI is now powering:

• Predictive audiences
• Automated bidding and forecasting
• Creative generation and variant testing
• Campaign optimization at scale

Even more transformative is the shift from AI tools to agentic AI experiences, where shoppers use conversational 
AI to browse, compare, and even purchase products.

At Walmart Connect, we are among the global networks exploring AI-driven platforms such as agentic search formats and automated creative solutions, and Canadian retailers can benefit as these capabilities develop and scale.

Expect the back half of 2026 to be defined by:

• AI-assisted workflows for both brands and agencies
• Faster creative production cycles
• More sophisticated targeting and personalization
• New retail media modules embedded directly in AI shopping agents

AI is not replacing marketers. It’s removing friction so they can focus on strategy, not manual execution.

5. Omnichannel is becoming the default strategy

In 2026, omnichannel execution is the expectation, not the exception.

Key forces include:

Growth of Connected TV (CTV)

Canadian ad spend forecasts by Guideline, a global provider of advertising data and planning technology, 
predict that CTV will increase by 19.3% in 2026, driven by its ability to merge upper-funnel storytelling with closed-loop measurement.

Maturation of off‑site media

Retailer-powered demand-side platforms (DSPs) are enabling predictive audiences, cross channel sequencing, and closed-loop reporting across publisher networks.

Scaling of in‑store digital placements

Screens, point‑of‑sale placements, and shoppable in‑store technologies bring digital accountability into the physical world. All of this supports a full-funnel, omni-channel model that retail media has long promised.

This reinforces two truths:

1. Retail media is no longer a niche channel; it’s now a core part of the Canadian media mix.
2. Even in economic uncertainty, advertisers prioritize accountable, commerce-connected media.