The Great Retail Loyalty Shift 

By Hélène Crépin and Luc Dumont

Retail loyalty is one of the most talked-about, and most misunderstood, topics in the industry today. Headlines regularly suggest that loyalty is disappearing, that consumers are more fickle than ever, and that price is the only factor that still matters.  

However, our data tells a different story.

After more than 15 years of tracking how Canadians experience retail, both in-store and online, one conclusion is clear. Loyalty is not eroding; it is being redefined.  

Loyalty is no longer anchored primarily in transactions, points, or habit. It is built on perceived value, trust, and consistent brand experience.

Retailers who fail to recognize that shift risk building strategy on outdated assumptions. 

The Two Loyalty Myths Retailers Need to Let Go Of 

The first myth is that loyalty is in free fall, driven by what feels like growing instability. Shoppers compare prices in real time, switch brands with ease, and discover new retailers through social media, influencers, and digital platforms. 

The second myth is that these behaviours signal disloyalty. These behaviours are not destroying loyalty; they are exposing loyalty models that were built for an older retail environment. 

The traditional loyalty playbook assumed predictable paths to purchase, limited choice, and retention driven largely by rewards. That context no longer exists. What has replaced it is not disloyalty, but a more demanding, value-conscious consumer. 

Price Doesn’t Buy Loyalty

In our latest research, including the WOW Study, the NextGen Study, and the Cracking the Newcomer Code Study, we see a consistent pattern. The retailers that consumers prefer and reward with repeat business are not necessarily the ones that offer the lowest prices. They are the ones that deliver more perceived value than the price they charge. 

In the 2026 edition of the WOW Study, this dynamic is captured through what we call the Experience-to-Price ratio. 

When that ratio is positive, consumers feel they are getting more than they are paying for, and loyalty follows. When it is balanced or negative, even financially healthy retailers become less distinctive and more vulnerable to switching.

Even during inflation and economic uncertainty, value is no longer about finding the lowest price. It is about paying the right price for the right experience. 

Why Perceived Value Outperforms Price 

What, then, justifies higher prices in the eyes of consumers? Our research consistently points to a small number of powerful value drivers. 

• • Superior product quality that clearly differentiates from lower-priced alternatives.  

• • Local, sustainable, or eco-responsible offerings that align with personal values.  

• • Knowledgeable and well-trained employees who add confidence to the purchase decision. 

One lever, however, remains consistently underestimated: the advisory role. 

Whether guidance comes from an in-store associate, a brand ambassador, or increasingly from AI-enabled tools, advice builds trust. In today’s retail environment, trust is one of the strongest predictors of long-term loyalty. 

What About Loyalty Programs 

There was a time when loyalty programs were the primary engine of retention. Points, rewards, and discounts still play an important role, particularly in driving enrolment and short-term engagement. They motivate behaviour in the moment. 

What has changed is what sustains loyalty over time. Our studies show that experience and trust now outweigh transactional rewards when it comes to driving repeat visits. Loyalty programs still matter, but on their own, they are no longer enough. 

Today, they must be embedded within a broader, human-centric experience that consistently reinforces the brand promise at every touchpoint. 

Shift Leaders: Gen Z and New Canadians 

Gen Z and Newcomers illustrate the loyalty shift especially well. 

Both groups expect seamless shopping experiences and have little tolerance for friction. They expect digital tools that work flawlessly so fast, intuitive checkout, whether online or in-store, is no longer a differentiator. It is a baseline expectation. 

When it comes to value, they need offers that feel genuinely personal rather than generic. And they have no patience for hidden conditions, fine print, or unexpected fees. 

The NextGen Study shows younger consumers balancing affordability with self-expression and convenience. The Cracking the Newcomer Code Study shows recent Canadians defining value through trust, reliability, and a sense of community connection, particularly when they are forming brand relationships for the first time. 

These consumers gravitate toward brands that reflect their identity, respect their communities, and communicate with transparency. 

Expectations are Changing Faster than Retailers 

As mentioned earlier, value is defined by quality that justifies the cost, fair and transparent pricing, convenience that removes friction, and products or brands that reflect personal or cultural identity. 

Endless choice has made exploration part of the shopping journey. Heightened price sensitivity means even small changes can trigger switching, especially among younger consumers and those facing economic pressure. Experience gaps remain the most damaging factor. A single inconsistent or frustrating interaction, online or in-store, can undo years of goodwill. 

These dynamics do not point to fickle consumers. They point to expectations rising faster than retail experiences are improving. 

How Retailers Can Rebuild Loyalty Now 

Our latest insights point to three clear priorities for retailers: 

• • Build trust through transparency. In an increasingly digital retail environment, trust now separates retailers who win from those who struggle. According to the latest DGTL Study, more than half of Canadians say they cannot easily tell what is real or trustworthy online. So, be open about pricing, policies, sustainability efforts, and limitations. Canadians reward honesty, even when the truth is imperfect. 

• • Personalize without being invasive. Move beyond demographics and focus on behaviour-based signals. When customers feel recognized, loyalty grows.
    

• • Be consistent. Align your in-store experience, digital channels, and customer service with a overarching strategy that showcase your brand’s values.
    

• • Treat loyalty as something you earn, not automate. It must be earned continuously and evolve alongside your audience.
     

Loyalty is Not Dead 

Loyalty is evolving into something more intentional, more emotional, and more closely tied to identity and lived experience. 

Retailers who understand how different segments define value, and who deliver that value consistently, will be the ones who earn trust and loyalty in the years ahead. 

Our studies help retailers decode this evolution and build loyalty strategies grounded in the realities of today’s diverse and fast-changing Canadian consumer landscape.