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The DTC Shift: How Canadian CPG Brands Balance Online and In-Store Success

In 2025, the direct-to-consumer (DTC) movement is booming in Canada. More CPG brands are setting up Shopify stores, social commerce channels, and subscription models to sell directly to consumers. This has become an even greater priority in the face of tariffs as Canadian brands look for increased sales and new revenue streams here at home.

But here’s a critical truth: Retail merchandising still matters.

Leading Canadian CPG brands aren’t abandoning retail shelves—they’re mastering a blended approach that balances online reach with physical visibility. DTC is a bonus to amp sales vs an alternative to retail.

Here’s how innovative brands are managing the DTC-retail balance.

  1. DTC for Relationship Building, Retail for Scale

Brands recognize that:

  • DTC = Personalization. They can control messaging, test new products, gather first-party data, and build deeper customer relationships.
  • Retail = Reach. Even Canada’s biggest DTC brands acknowledge that traditional stores offer volume that online channels can’t yet match.

Winning strategies use DTC to deepen loyalty and retail to maximize brand exposure.

  1. Coordinated Merchandising and Marketing Calendars

Leading brands are:

  • Synchronizing DTC promotions with retail campaigns.
  • Launch limited editions online first, then expand to retail.
  • Using retail “as marketing” — understanding that being visible on a shelf boosts brand trust, even if a shopper later buys online.

Consistency across channels builds stronger, more resilient brands.

  1. Using DTC Insights to Power Retail Wins

Direct channels provide real-time feedback on:

  • Best-selling SKUs.
  • Emerging flavour trends.
  • Packaging preferences.

Innovative brands take that learning and optimize their retail merchandising faster than competitors who rely only on quarterly retailer feedback.

Example: A Canadian snack company noticed DTC buyers favored a new flavor combo—so they fast-tracked a retail launch, gaining first-mover advantage and shelf buzz.

  1. Building Retail-Exclusive Lines

Some DTC-savvy brands create:

  • Online-exclusive products for loyalists.
  • Retail-exclusive SKUs to entice in-store shoppers.

This reduces channel conflict while rewarding both audiences. Retailers appreciate the effort to protect their margins and differentiation.

  1. Strengthening Retail Partnerships, Not Undermining Them

A common mistake: Brands aggressively push DTC and neglect retail partner relationships.

Leaders understand:

  • Retailers need confidence that your brand isn’t “poaching” their customers.
  • Merchandising support, joint promotions, and loyalty to retail accounts matter.

Healthy DTC growth shouldn’t come at the expense of retail goodwill.

Key Takeaways for Canadian CPG Brands

  • Treat DTC and retail as partners, not competitors.
  • Use DTC insights to make your retail presence smarter and faster.
  • Respect retail relationships by continuing to invest in merchandising, promotional support, and availability.
  • Remember: Being physically present on a shelf is still a major brand validation signal.

The future isn’t DTC or retail. It’s DTC and retail working in tandem.

Canadian CPG brands who master this balance will have a massive advantage: deeper customer loyalty, broader brand reach, and more resilient revenue streams—no matter how shopping behaviors evolve.

Whether they click or cart, consumers still expect your brand to show up everywhere they are.

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