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The two-speed shopper: How Canada’s economic divide is reshaping retail media strategy

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Retail in Canada has always been shaped by regional nuance, seasonality, and shifting consumer sentiment. But in 2026, a more structural shift is underway, one that is redefining how brands must think about growth, targeting, and investment.

Canada is increasingly becoming a two-speed consumer economy, where spending behaviour is diverging across income groups. For marketers and agencies, this is both an economic and media strategy story, with retail media at its core.

"What we’re seeing isn’t just a shift in spending, it’s a fundamental reset in how Canadians assign value," says Lesley Conway, Head of Walmart Connect Canada. "For marketers, that changes how every signal should be read."

"What we’re seeing isn’t just a shift in spending, it’s a fundamental reset in how Canadians assign value," says Lesley Conway, Head of Walmart Connect Canada. "For marketers, that changes how every signal should be read."

A divided consumer landscape

Retail spending in Canada remains resilient overall, but growth is increasingly uneven. Ongoing cost pressures are impacting lower- and middle-income households, while higher-income consumers continue to spend with greater flexibility. This dynamic is driving a clear divergence in shopping behaviour across income segments.

The implications are clear:

  • Premium and discretionary categories remain resilient among affluent households.
  • Value-oriented formats and promotions are gaining traction among budget-conscious shoppers.
  • Middle-market retail continues to experience the most pressure.


For retailers and brands, this is a structural shift in how Canadians shop. 

Why this matters for retail media

Retail media has grown rapidly in Canada, becoming one of the most influential forces in the advertising ecosystem. The market is expected to surpass billions in annual spend and continue expanding as advertisers look for more measurable, outcome-driven channels.

But the rise of the two-speed shopper introduces a new layer of complexity.

Retail media used to run on broad targeting and obvious high-intent signals. Now, those signals are layered because clicks, searches, or purchase intent don’t signal the same thing for every shopper.

Instead, marketers must now account for:

  • Diverging price sensitivity across segments
  • Different purchase cycles based on income confidence
  • Category elasticity that varies significantly by shopper type

In short, retail media is no longer just about reaching shoppers at the point of purchase but about understanding why they are there in the first place.

The end of one-size-fits-all targeting

The Canadian shopper is no longer a monolith, and media strategies must reflect that reality.

For value-focused consumers, decision-making is increasingly driven by price transparency, promotions, and perceived control. Data shows that many Canadians are delaying major purchases and focusing on essentials due to ongoing economic uncertainty and concerns about future costs.

At the same time, higher-income shoppers continue to prioritize convenience, premium experiences, and brand affinity, with less sensitivity to price fluctuations.

This divergence creates two fundamentally different retail journeys:
 

1. The value-seeking journey

  • Price comparison and deal-driven behaviour 
  • Increased responsiveness to promotions and pack sizes 
  • Higher reliance on trusted, essential brands


2. The premium/convenience journey 

  • Faster path to purchase 
  • Greater openness to discovery and new brands 
  • Higher expectation for seamless omnichannel experiences 

Retail media must now operate across both journeys and often simultaneously. 

Retail media’s unique advantage

In this environment, retail media is uniquely positioned to help brands navigate complexity.

Unlike traditional media channels, retail media operates within commerce environments enriched by first-party data and proximity to transactions. This allows marketers to:

  • Identify shifts in shopper behaviour in near real time
  • Differentiate between intent signals (e.g., deal-driven vs brand-driven browsing)
  • Activate campaigns dynamically based on evolving economic conditions

These capabilities are becoming increasingly important as the gap between shopper segments widens.

For example:

  • A value-conscious shopper may respond to lower price points, multipacks, or promotional messaging.
  • A premium shopper may respond to new product launches, convenience-driven messaging, or brand storytelling.

Retail media enables both strategies to coexist within a single ecosystem, without forcing brands to choose one over the other.

"Retail media now has to flex across two very different shopper mindsets," says Meaghan Brophy, Head of Sales for Walmart Connect Canada. "Precision isn’t optional anymore, it’s what drives performance."

"Retail media now has to flex across two very different shopper mindsets," says Meaghan Brophy, Head of Sales for Walmart Connect Canada. "Precision isn’t optional anymore, it’s what drives performance."

The role of omnichannel strategy

The shift toward a two-speed economy is also accelerating the importance of omnichannel retail media, something Walmart Connect Canada is uniquely positioned to provide.

Canadian consumers expect flexibility, not just in pricing, but in how they shop. Many are combining in-store visits with digital browsing, while also weighing delivery speed, availability, and convenience as part of their decision-making process.

For marketers, this means:

  • Value shoppers may prioritize in-store deals or pickup options.
  • Premium shoppers may favour delivery speed, digital convenience, or curated experiences.

Retail media strategies must therefore extend beyond a single channel or format. They need to connect signals across:

  • Onsite
  • Offsite
  • In-store environments
  • Supply chain and fulfillment experiences

The brands that succeed will be those that align their media strategy with the entire shopper journey, not just the final click.

Strategic implications for brands

As Canada’s retail environment continues to evolve, several clear implications are emerging for advertisers:

1. Segmentation must go deeper
Traditional demographic targeting is no longer sufficient. Brands must segment based on:

  • Behavioural signals
  • Purchase patterns
  • Economic sensitivity
     

2. Creative must reflect context
Messaging should vary based on shopper mindset:

  • Value-led messaging for price-sensitive audiences
  • Inspiration and innovation for premium audiences


3. Measurement must capture nuance
Standard metrics like ROAS remain important, but brands must also consider:

  • Incrementality
  • New-to-brand acquisition
  • Segment-specific performance


4. Flexibility is key
Budget allocation must remain agile, allowing brands to shift between strategies as consumer sentiment evolves. 

A new role for retail media in Canada


The emergence of the two-speed shopper marks a turning point for retail media in Canada.

What was once seen primarily as a performance channel is now becoming a strategic lever for navigating economic complexity. It offers brands the ability to respond to diverging consumer needs with precision, agility, and accountability.

For brands and agencies operating in Canada, the path forward is clear: Success will depend on the ability to understand, engage, and deliver value to both sides of the consumer divide.