In Canada right now, the pressure is real. Interest rates are still high. Gas prices are creeping up. Taxes and fees keep stacking, whether it’s at the pump, on liquor, or across everyday services. Property tax, insurance, utilities, and food are all moving in the same direction. Up. And when fuel costs rise, everything follows.
The result is simple. Customers feel stretched. And when that happens, every dollar gets scrutinized.
What’s changing isn’t just how much they spend. It’s how they decide where to spend.
The shift most retailers are underestimating
This is not just a slowdown. It’s a reallocation moment.
Customers are quietly reshaping their habits. They are cutting out certain retailers, reducing frequency with others, and concentrating spend where it feels easiest, safest, and most justified.
Which means:
If your customers are spending less, your growth has to come from someone else’s.
So let’s stop talking about the “what” and get into the part that actually matters:
1. Make value undeniable in the first 10 seconds
Customers are not browsing the way they used to. They are scanning.
If they don’t understand why something matters quickly, they move on.
So what do you actually do?
Anchor every product in a clear use case “Perfect for small spaces” beats a list of features
Show the outcome, not just the item What does life look like after they buy this?
Remove risk wherever possible Reviews, guarantees, simple returns
If a customer has to figure it out, you’ve already lost them. Clarity wins the moment.
2. Turn “we listen” into something customers can see
Most retailers think listening is data.
Customers experience it through decisions.
So how do you show it?
Tighten assortments based on real demand, not supplier push
Merchandise around real-life moments, not categories
Call out “why this matters right now” in-store and online
Example mindset shift: Don’t just sell patio furniture. Sell “easy summer setups under $500” or “small backyard solutions.”
When customers feel understood, they lean in. That’s how you pull them from competitors.
3. Build baskets by solving the whole problem
Upselling feels forced right now. Solving feels helpful.
So how do you actually grow the basket?
Pre-build bundles that complete a task Not “frequently bought together” but “everything you need to…”
Reduce decision fatigue Fewer, better options presented with confidence
Guide the journey Signage, content, or staff that answer “what am I missing?”
If a customer leaves needing to go somewhere else, you gave away share. If they leave feeling done, you took it.
4. Earn loyalty by making the experience predictable
In uncertain times, predictability becomes powerful.
Customers don’t want surprises. They want consistency.
So what does that look like?
Same experience across store and digital
Reliable in-stock on core items
Clear pricing, no games at checkout
And most importantly:
Remove friction in the moments that matter Returns, exchanges, finding help, checking out
Customers don’t talk about this. They just reward it with repeat spend. Ease becomes loyalty.
5. Cut your messaging in half and double the meaning
More marketing is not the answer right now.
Better marketing is.
So how do you cut through?
Say one thing clearly instead of five things poorly
Tie every message to a real customer pressure
Stop chasing campaigns, start building conviction
Ask yourself:
Would a customer say “that’s exactly what I need right now”?
If not, it’s noise. And noise pushes customers away. Clarity pulls them in.
6. Win the habit, not just the trip
This is the big one.
In this environment, customers are choosing fewer retailers. Once they choose, they stick.
So how do you become the default?
Give them a reason to come back quickly Not points, but relevance
Stay connected between purchases Helpful, not promotional
Deliver consistency every time they show up
You are not trying to win one visit. You are trying to remove the need to consider anyone else.
That’s how share of wallet compounds.
What this means
Your loyal customers may spend less this year.
That’s not a strategy problem. That’s reality.
Growth now comes from:
Taking customers from competitors
Giving them a better reason to choose you
Making that choice easier every single time
This is not about doing more.
It’s about doing what matters better.
Final thought
Retail doesn’t break in moments like this. It sharpens.
The gap between good and great gets exposed fast.
Because when money gets tight, customers don’t experiment.
They decide.
And the retailers that win are the ones who make that decision feel easy.
Worth Paying Attention To
If you’re serious about where retail is heading, this is one to have on your radar.
I’ll be at the CommerceNext Growth Show 2026 in New York City, June 23–24, and it’s one of the few events where the right people are actually in the room.
This year’s theme is “The (AI)ntelligent Era”, which lines up perfectly with everything we’re seeing right now across retail, ecommerce, and AI-driven discovery.
What I like about this event is simple. It’s not theory. It’s operators sharing what’s actually working.
A few areas I’m watching closely:
Agentic AI moving from insight to action
Loyalty as customers pull back spending
Omnichannel as an expectation, not a strategy
The next wave of ecommerce and marketing tech
Commerce media and where it really fits
You’ll get real conversations, real examples, and a clear sense of where things are going.
Retail Rewired is proud to partner on this. And a big thank you to Lena Moriarty for being a great partner on this as well.
Here’s the part that matters:
Retailers and brands can attend for free
Tech and agencies can get 10% off using code RETAILWIRED
👉 Register here: https://growthshow.commercenext.com/?utm_source=RetailRewired&utm_medium=email&utm_campaign=Partnerships
If you’re going to be there, let me know. Always good to connect in person.