Sep 14, 2026
When Canadian grocery giants faced backlash for locking everyday discounts behind loyalty cards, consumers viewed it as another layer of inflation fatigue. For retail analysts, however, the shift signaled something far more lucrative: Canada’s major grocers are turning their aisles into digital advertising networks.
What began as a push for member-only pricing at major banners has evolved into a strategic play for first-party data. By requiring shoppers to scan a loyalty app like PC Optimum, Scene+ or Moi to access weekly sales, grocers gain precise, real-time insights into consumer buying habits.
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That data is the foundation of Retail Media Networks (RMNs), one of the fastest-growing and highest-margin segments in global advertising.
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The margin engine behind the shelf
Traditional grocery operations run on razor-thin net profit margins, often hovering between 2 and 4%. Retail media advertising, by contrast, commands profit margins upwards of 70 to 80% because the underlying infrastructure — the physical stores and web traffic — already exists.
By capturing verified transaction histories through loyalty programs, grocers can sell ad space to consumer packaged goods companies. Brands no longer just pay for shelf placement; they pay to serve targeted digital ads to specific demographic segments both online and on brick-and-mortar digital screens.
Loblaw Companies Ltd. has led the push in Canada through its retail media arm, expanding in-store video networks and digital advertising integration tied to purchase history. Competitors like Empire Company Ltd. (owner of Sobeys and Safeway) and Metro Inc. have similarly scaled their loyalty integration to bolster ad revenues.
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Paywalling the aisle for data
Member-only pricing functions as a funnel to convert anonymous cash-and-carry shoppers into tracked digital profiles. While non-members pay regular price, loyalty cardholders receive immediate discounts at checkout.
The price gap creates a strong incentive for consumers to sign up and consistently scan their app. For grocers, the value of harvesting that continuous stream of behavioural data far outweighs the dollar amount of the discounts provided.
The global shift in retail revenue
Canada’s grocers are following a playbook established by global retail giants. Walmart Connect and Target’s Roundel in the United States have demonstrated that ad networks can generate hundreds of millions, and sometimes billions, in high-margin revenue, effectively subsidizing logistics and operating costs.
As food inflation normalizes and grocery volume growth remains modest, ad monetization offers grocers a way to expand profit margins without relying solely on food price increases.
For shoppers, member-only discounts are likely here to stay. As grocery aisles become digitized media environments, access to lower shelf prices will increasingly require consumers to trade their personal purchasing data for a discount at the checkout.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
