Canadian retail’s digital transformation has stalled at a critical moment. According to Leger’s 2026 WOW Digital study, only 30% of retailers improved their digital experience in 2025, down sharply from 42% in 2024. Another 32% saw their performance decline. The overall WOW Digital Index dropped two points.
But the numbers tell only part of the story. What’s fundamentally changed is how Canadians use retail websites and apps—and why they bother visiting at all.
“What we’re seeing is that trips to a store, whether physical or digital, are becoming much more intentional,” says Luc Dumont, Leger‘s Senior Vice President of Consumer Insights. “Retailers have to make every single visit matter significantly more than before. The days of casual browsing just to see what’s new? Those are largely over.”
The study surveyed over 24,000 Canadians across 346 retailers in 27 sectors between October and December 2025. Visit frequency declined across most categories—meal delivery, department stores, electronics, and arts and leisure all dropped an average of three percentage points. Beauty was the sole category showing growth, gaining seven points. Canadians are shopping less frequently, but when they do engage, they’re making it count.
The Basics Still Separate Winners from Everyone Else
KaseMe topped the national rankings with a score of 97.3, followed by MIA Bijoux at 97.1 and Simons at 95.3. Thirteen retailers scored above 90. Meanwhile, Amazon Canada ranks 70th at 79.6. Walmart sits at 119th with 75.5. Best Buy lands at 231st with 66.4.
The disconnect between market share and customer experience reveals something Dumont emphasizes repeatedly: execution on fundamentals remains the differentiator.
“There are huge discrepancies in the online realm of retail on things as basic as ease of navigation, the ability to find products quickly, product descriptions being detailed and inspiring,” he explains. “The retailers that do really well excel on those things. They nail the basics. But they’re also very focused on making sure that the online experience is not just functional, but experiential as well. They understand their brand promise has to translate digitally.”
Leger identified four core drivers that predict recommendations: competitive pricing perception, brand image consistency across channels, independence and autonomy in the shopping journey, and visual appeal. What concerns Dumont is that average performance declined across nearly every dimension—brand image consistency, product variety, information search, independence, and inspiration. The only improvement? The transactional process. Checkout got smoother while everything leading to checkout eroded.
“Many of the declines we’ve seen aren’t necessarily tied to failures by those particular retailers,” Dumont observes. “They’re more tied to them not keeping up with what else is happening. Consumers are fickle. They’re easily influenced. The latest and greatest experience will make you have a poorer opinion of something that probably two months ago was perfectly fine. You’re always one Instagram post away from being irrelevant.”
Websites Have Become Journey Orchestration Tools
The research reveals a fundamental shift in website purpose. Only 20% of Canadians visit retail sites “to make a purchase.” Another 13% are checking prices, 10% want to verify in-store stock, and 9% are browsing for discovery. The digital property has evolved from transaction engine to something Dumont describes as more comprehensive.
“The website has become more than just an alternative to a retail location,” he says. “It’s a utilitarian tool anchored in the entire purchase journey. It used to be a different way to buy. Now it’s a different way to interact with the retailer—personality, personalisation, exclusive offers for subscribers. It helps consumers decide the right moment for purchase: now online or later in store? They’re using digital tools to augment their future retail visits.”
This matters because it changes what success looks like. The proportion of visitors who head to stores after browsing online is declining. Online conversion rates have ticked up. When consumers commit to a channel, they’re deliberate about it. Retailers optimizing solely for the purchase path are missing the research path, the comparison path, the “I’m standing in your store and need to check something” path. Each journey shapes where the eventual transaction happens.
New Entrants Prove Legacy Systems Are Anchors
Hardware and renovation posted the strongest digital gains. Canac scored 80.4, Patrick Morin 72.4, Home Depot 70.1. RONA struggled at 56.1. The pattern reflects a competitive reality: newer entrants built digital presence without legacy constraints. They could implement current best practices from day one rather than retrofitting 15-year-old infrastructure.
Lingerie and swimwear showed surprising strength—Manmade at 94.9, Aerie at 93.9, Knix at 92.4. Their advantage comes from influencer strategy executed at a level traditional retailers haven’t matched.
“Their digital index increases are directly linked to highly creative and strategic partnerships with influencers,” Dumont explains. “Despite ongoing debates about influencer credibility, the data is clear—they drive purchases. Look at lingerie brands, particularly men’s underwear companies with their targeted Facebook presence. They’re smart and nimble in ways legacy retailers haven’t mastered.”
Meanwhile, online-only sites delivered a wake-up call. Amazon Canada leads the category at 79.6, but that’s 70th overall. eBay sits at 64.9. AliExpress at 63.7. Temu, despite aggressive market entry, ranks last at 54.4. Pure digital players are delivering worse experiences than 184-year-old department stores. Being “digital-first” isn’t an advantage when everyone has digital capabilities.
Category Context Determines Experience Expectations
In telecommunications, Fizz leads at 79.2 while Rogers/Shaw sits at 46.4—a 32-point spread that seems significant until you compare it to groceries, where Lufa Farms (93.8) beats Loblaws (54.9) by 38 points.
“Telecommunications is a very functional category,” Dumont notes. “There aren’t many repeat visits—most people visit a telecom retailer once or twice a year. The evaluation is different. But when you’re purchasing things that make you feel good about yourself—the food you eat, what you provide your family, the clothing you wear—you expect a better experience. Emotional investment demands it.”
This insight reframes how retailers should think about benchmarking. Comparing your grocery site to a telecom site misses the point. Consumers judge you against others in emotionally similar categories. A mediocre digital experience from your mobile carrier is annoying. A mediocre experience from your grocery store? That’s reason to switch.
The Social Media Personalization Imperative
The study reveals what Dumont calls a seeming contradiction: 45% of Canadians say they see too many posts and ads from retailers, while 42% claim they’re not interested in any brand content on social media. Yet promotional emails (32%) and social media posts (22%) top the list of channels triggering purchases. Social media publications drive 29% of online shopping and 26% of account openings.
Only 23% of consumers recall seeing social media content from the retailers they evaluated, but among that group, 87% view it positively. The issue isn’t volume—it’s relevance.
“Within your pool of customers, you have different types of customers,” Dumont emphasizes. “You have to adapt the cadence and volume of your communications based on individual preferences. What often happens is retailers deploy an across-the-board strategy. But that’s a mistake—every retailer has different customer segments. Understanding those differences takes research and time to operationalize, but it’s critical. What works for one customer may not work for another.”
Facebook remains dominant for brand visibility at 55%, followed by Instagram (39%), YouTube (23%), and TikTok (19%). Content preferences skew transactional: 27% want offers and promotions, 14% want new product presentations, 13% want contests. That 42% who say they don’t want any particular content aren’t being difficult—they’re being honest that most brand content adds no value to their lives.
Email Drives Results While Social Gets Attention
Newsletter subscription rates sit at 19% across evaluated retailers. Most subscribers (21%) prefer monthly communications, while only 16% want weekly or more frequent contact. Thirty-nine percent don’t want newsletters at all.
But for those who opt in, email dominates effectiveness. Promotional emails trigger 32% of purchases—higher than any other channel. They’re responsible for 26% of store visits, 24% of account openings, and 25% of appointment bookings. Social media commands attention and budgets. Email generates revenue.
Content preferences mirror social media: offers and promotions (27%), rewards for engagement (18%), new product presentations (15%). Consumers want tangible value delivered directly, not brand storytelling.
Interestingly, website banners and pop-ups—frequently criticized by UX experts—prove surprisingly effective for service actions, driving 30% of account openings, 31% of appointment bookings, and 29% of quote requests. The issue isn’t the format. It’s relevance and timing.
Loyalty Has Become Purely Transactional
When asked how they want retailers to recognize loyalty, 31% want exclusive offers or personalized discounts, 28% want small gifts or samples, 12% want birthday benefits, and 10% want pre-sale access. Notice what’s absent: emotional connection, brand love, community. The loyalty equation has simplified to “give me tangible value in exchange for repeat business.”
The Widening Gap
What emerges from the data is a market bifurcating between retailers who understand that digital experience requires continuous evolution and those treating it as a solved problem. The retailers scoring above 90 delivered during the crucial October-December holiday period. Those struggling below 60 have fundamental work ahead. The majority sitting in the middle face the most critical decision: invest in improvement or watch the gap widen.
“Consumers are comparing constantly,” Dumont emphasizes. “They’re evaluating against the latest and greatest they’ve encountered. What was perfectly fine two months ago might seem inadequate now because they’ve experienced something better elsewhere. So you can never take your eye off what else is happening, because that’s how consumers live and breathe.”
The hardware sector proves new entrants can leapfrog established players by building modern digital without legacy constraints. The lingerie brands prove nimble social strategy beats big budgets. The online-only sites prove having “digital” in your DNA doesn’t guarantee you’ll deliver good digital experiences.
For Canadian retailers, the stalled momentum isn’t inevitable. It’s a choice. The tools exist. The playbook is visible in the top performers. The question is whether retailers will treat digital experience as the customer relationship control center it has become, or continue treating it as a marketing channel that supports the “real” business happening in stores.
The data suggests consumers have already made their decision. They’ll go wherever the experience justifies the effort. Proximity, brand heritage, and market position no longer compensate for digital mediocrity.
The complete Leger WOW Digital 2026 study evaluated 346 retailers across 27 sectors, with data collected from over 24,000 Canadian consumers between October 8 and December 4, 2025.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes leadership roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024 and 2025, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.