Sunday, February 8, 2026

Ontario Retail Settles Into New Normal as Price Sensitivity Reshapes Customer Expectations

Leger's 2026 WOW study shows how price-to-experience ratio is reshaping Ontario retail.

After last year’s exceptional 41-point surge in customer satisfaction, Ontario’s retail sector has returned to more typical performance levels. But the landscape retailers are operating in has fundamentally changed, according to Leger’s 2026 WOW In-Store Experience Study.

The WOW Index dropped 10 points in 2026, but the headline number misses the real story. This year’s data reveals something more significant: a sophisticated new calculus around the price-to-experience ratio that’s reshaping how Ontarians shop.

The study, now in its 16th year, surveyed more than 11,000 Ontarians across 176 retailers in 22 sectors between October 7 and November 18, 2025. The findings show that 54% of Ontario shoppers say they’d accept a lower-quality in-store experience in exchange for lower prices. By contrast, only 29% would pay slightly more to maintain their current shopping experience.

Luc Dumont

“This isn’t just about inflation,” explains Luc Dumont, Senior Vice President of Consumer Insights at Leger. “Consumers are not unwilling to pay more for things, but they’re unwilling to pay more without the feeling that they’re getting something back. There’s significantly more consideration for that price-to-experience ratio. Consumers now evaluate retail differently. They’re asking themselves: Is it worth my while when I go to this store, given their pricing and the experience they’re actually providing?”

Leger’s proprietary Experience/Price Matrix categorises retailers based on how their in-store experience compares to their perceived price level. This year’s results show 39% of Ontario retailers falling into what Leger calls the “red zone”—where the experience delivered is lower than price expectations would suggest. These retailers, which include names like Arc’teryx, Sephora, Longo’s, and Starbucks Coffee, are advised to act quickly to fix the price-experience mismatch.

Meanwhile, 50% of retailers sit in the balanced zone where experience roughly matches price expectations, from discount operators like Food Basics and Dollarama to premium players like Saint-Laurent and Lush. Only 12% have achieved the coveted “blue zone” where experience exceeds price expectations—retailers like The Bone & Biscuit, Cabela’s, and Bass Pro Shops that are told to protect their experience and elevate their generosity.

Leger WOW Study 2026 Ontario Rankings (Image: Leger)

The top performer this year was Saje Natural Wellness with a score of 98.2, followed by Lee Valley Tools at 97.9. Both are perennial top performers, which Dumont attributes to consistent attention to how consumers feel about their brands. Penningtons took third place with 96.5, followed by M&M Food Market at 95.6 and Global Pet Foods at 95.1.

What’s most telling isn’t what consumers won’t accept, but what they will. 30% would accept simpler or reused packaging, and the same percentage would eliminate paper flyers. Another 25% would accept simpler ambiance or décor, while 24% would tolerate increased self-checkout. But only 18% would accept reduced store hours, suggesting that convenience still matters most.

Dumont notes this reveals an important strategic insight: “I’m not convinced retailers are being as deliberate as they could be about the trade-offs they need to make. There’s simplification of the experience, certainly, but which simplifications are actually felt by consumers and which ones aren’t? The key is investing where the experience genuinely creates value.”

Saje at CF Toronto Eaton Centre (Image: Dustin Fuhs)

The Strategic Compass: Making Smart Trade-Offs

Lisa Hutcheson

Lisa Hutcheson, Managing Partner at JCWG, frames the trade-off problem through what she calls the Strategic Compass model—a framework that requires retailers to pick one primary direction of differentiation: Easy (saves time), Economic (saves money), Experience (social experience), or Ego (well-being).

“Like a compass in the woods, you can’t go in all directions or you’ll just spin around in a circle,” Hutcheson explains. “You must pick a direction and align all your tactics to support it.”

According to Hutcheson, the retailers succeeding at the Economic end of the compass understand which cuts matter and which ones backfire.

“No Frills strips out frills but keeps predictable pricing and decent hours,” Hutcheson explains. “FreshCo prioritises front-line staff and checkout speed despite lean stores. Walmart simplifies merchandising but maintains its ‘Everyday low price’ message. Giants Tiger uses community-oriented stores and sharp deals on groceries to offset sparse service.”

She continues: “Costco cuts fixtures and SKU counts while protecting staffing density and consistent hours. Winners-Marshalls operates with lean staffing by design but maintains predictable hours, fast checkout, and constant newness.”

“Shoppers will happily accept simpler and leaner,” Hutcheson says. “They won’t accept slower and sloppier. Retailers winning the price-sensitivity game are cutting décor and paper, not people and time.”

But the mistakes are equally instructive. Hutcheson identifies where retailers are cutting wrong: “Reduced hours that push shoppers to competitors. Over-reliance on self-checkout with too few staffed lanes. Undertrained staff at service counters. Pulling back on cleaning and maintenance.”

“These are the exact places where cutting backfires,” she notes. “The savings are small, but the hit to perceived quality and trust is enormous.”

Leger WOW Study 2026 Ontario Rankings (Image: Leger)

The data on visit incidence reinforces this point. Visits are declining across most sectors: alcohol down six points, men’s clothing down three points, and specialty food and hardware each down two points. Fewer visitors are interacting with employees for product advice, and performance on variety, innovation, and promotions all declined year-over-year. The issue isn’t that people have stopped shopping. It’s that they’re shopping more intentionally.

“Trips to a store are becoming much more intentional,” Dumont explains. “Retailers have to make every visit matter significantly more than before. They need to think about what works, but primarily about what doesn’t work.”

This pattern reflects a deeper shift in consumer behaviour. Consumers are now shopping less frequently but across more stores, constantly recalibrating their expectations against new experiences.

Every retailer operates within cycles of innovation, promotions, and loyalty programmes that shape how they’re perceived. But here’s the catch: what felt like a good value proposition two months ago can feel inadequate after encountering something better elsewhere.

This constant comparison creates an arms race where market expectations keep rising. For premium retailers especially, this presents a fundamental challenge. The experience alone no longer justifies the premium. “The experience doesn’t necessarily create value on its own,” Dumont notes. “It may create a good feeling, it may create something enjoyable, but that has to be tied to tangible value. That’s just as important as the product pricing.”

Ren’s Pets at Liberty Village (Image: Dustin Fuhs)

What doesn’t work, according to Ontario shoppers, remains remarkably consistent year after year. Rising prices dominate as the overwhelming top complaint, followed by waiting at checkout or to be served, stock shortages, and missing price tags on products. These aren’t new irritants—they’re persistent problems that retailers haven’t solved, and consumer tolerance is wearing thin.

When asked what in-store experiences would justify higher prices, consumers were clear. Twenty-five per cent cited high-quality products, 20% pointed to advantageous loyalty programmes, and 19% valued easy ordering of out-of-stock items with fast delivery. Expert staff, exceptional customer service, and frictionless checkout each garnered 17-18% of responses.

Notably, only 26% of consumers said they’d pay slightly more simply because a brand is perceived as prestigious or distinctive. This is a significant finding for premium retailers who’ve historically relied on brand positioning alone. Status isn’t the leverage it once was.

The challenge is particularly acute for the 16% of Ontario retailers classified as “Premium” in the matrix. These brands—including Saint-Laurent, Lush, Lee Valley Tools, and Nespresso—occupy the high experience, high price quadrant with a balanced ratio. But the fact that fewer than one in four consumers will pay more just for prestige suggests premium retailers need to work harder to justify their positioning.

“The Premium category retailers are in a balanced position, but they need to differentiate to avoid becoming commoditised,” Dumont explains. “Simply being expensive and having a nice store isn’t a sustainable strategy anymore.”


Redefining Prestige for Premium Retailers

According to Hutcheson, the key is understanding what customers consider prestigious—which often differs from what retailers assume. “The customer defines prestigious, not the retailer,” she notes.

Premium positioning depends on delivering clear advantages in five areas:

  1. Product superiority through fabric, craftsmanship, or fit.
  2. Service customers can feel, like appointment styling or tailoring.
  3. Access through priority drops and same-day delivery.
  4. Community experiences like trunk shows and maker demos.
  5. Price integrity through meaningful loyalty benefits.

The distinction matters because not all retail categories operate under the same rules. Functional categories—like telecommunications—show smaller experience gaps because visits are infrequent and transactional.

But in categories where consumers want to feel good—food they eat, clothing they wear, home goods they live with—experience carries more weight. “When you’re looking for things that make you feel good about yourself, you’ll want a slightly better experience,” Dumont notes. “You’ll want to feel better in those environments. The same applies to clothing and shoe stores.”

The implication is clear: premium positioning only works if it aligns with how customers actually want to feel in that category.

The retailers succeeding in this environment share a common trait: clarity about what value means to their customers and disciplined execution against that definition. Whether it’s Saje at the premium end delivering on wellness and expertise, or Costco at the value end delivering on treasure hunt excitement and bulk savings, the winners know exactly what they’re promising and they deliver it consistently.

“Consumers are comparing constantly,” Dumont emphasises. “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. Never take your eye off what else is happening, because that’s how consumers live and breathe.”

For Ontario retailers heading into 2027, the message is clear: every store visit must matter, and “good enough” experience at premium prices is no longer viable. The market has spoken. The question isn’t whether you can maintain your old model, but whether you can deliver clear value in this new reality.

The Complete 2026 WOW Top 16 (Ontario)

  1. Saje Natural Wellness (98.2)
  2. Lee Valley Tools (97.9)
  3. Penningtons (96.5)
  4. M&M Food Market (95.6)
  5. Global Pet Foods (95.1)
  6. The Bone & Biscuit (95.0)
  7. Lego (94.8)
  8. L’Occitane en Provence (94.7)
  9. Lindt Chocolate Shop (94.6)
  10. Nespresso (94.3)
  11. Lush (93.9)
  12. Cabela’s (92.8)
  13. Hermès (92.3)
  14. Ren’s Pets (92.2)
  15. Laura (91.5)
  16. Chocolats Favoris (91.4)

About the Study: Leger’s WOW In-Store Experience Study is now in its 16th year. The 2026 Ontario study surveyed more than 11,000 Ontarians across 176 retailers in 22 sectors between October 7 and November 18, 2025. Each retailer was evaluated by approximately 300 recent store visitors.

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