Competing on Values: What American Brands Must Understand About Canadian Consumers

Crossing the 49th parallel doesn’t just mean entering a new market—it means entering a new culture. As American brands continue operating and expanding in Canada, success hinges not only on their products or services but on their ability to reflect Canadian values. The Great Canadian Brand Index (GCBI) offers a clear message: Canadian consumers reward brands that align with values like friendliness, honesty, respect, and sustainability. For American brands like Starbucks, Walmart, Costco, and Sephora already in the Canadian market, competing with homegrown favourites means doing more than exporting a business model—it requires embedding themselves in the Canadian identity.

Take Tim Hortons and Starbucks. Tim Hortons may have American ownership, but Canadians perceive it as deeply Canadian, scoring 66.8 on friendliness and 63.8 on respectfulness. It represents comfort, familiarity, and national pride. Starbucks, on the other hand, competes by offering sophistication and customization—but to close the emotional gap, it must continue localizing its engagement with Canadian consumers. This means not only expanding its sustainability initiatives (already underway through reusable cup programs and local partnerships) but also integrating more Canadian cultural references in-store. As marketing research shows, cultural congruence between brand and consumer values significantly increases trust and loyalty (Beugelsdijk, Kostova, & Roth, 2017).

Walmart is another major American presence in Canada—and one with a complex relationship to Canadian values. Its aggressive pricing appeals to budget-conscious shoppers, but it competes with Canadian Tire, which scores 70.3 for friendliness and 69.9 for respectfulness. Canadian Tire’s ability to blend utility with national tradition—offering everything from snow shovels to patio furniture, wrapped in a sense of Canadian resourcefulness—creates an identity that Walmart can’t replicate unless it evolves. Walmart’s opportunity lies in community investment and employee treatment, two areas where perceived corporate ethics shape public trust (de Mooij, 2019). Programs like localized philanthropy, Canadian heritage product lines, and improved labour practices can bring its values closer to those of its Canadian audience.

In the grocery sector, Costco competes with Loblaws and offers strong value and loyalty incentives. However, while Loblaws scores 59.3 in friendliness and 57.6 in sustainability, Costco’s image in Canada is more functional than relational. To resonate more deeply, it can do what Loblaws has excelled at: reflecting the diversity of Canadian households. That includes culturally inclusive food offerings, ethical sourcing, and visible engagement with Canadian suppliers. As Zenk et al. (2019) note, grocery retail is a site of everyday cultural identity, and what’s stocked on the shelves reflects what—and who—a society values.

Sephora, operating under the LVMH umbrella, also faces stiff competition from Shoppers Drug Mart. While Sephora brings global glamour and prestige, Shoppers is widely trusted, earning GCBI ratings of 65.4 for friendliness and 65.2 for respectfulness. Sephora has made important strides toward inclusivity, particularly in shade range and staff training, but the Canadian market will increasingly expect brands to engage on broader social issues—particularly health, equity, and accessibility. Expanding French-language services, partnering with Canadian wellness initiatives, or supporting Indigenous beauty creators are all ways Sephora can deepen local alignment.

These cases suggest a broader pattern: American brands operating in Canada don’t fail because of poor service or inferior products. They struggle when they overlook the subtle emotional and cultural connections that Canadians have with local brands. As the GCBI shows, brands like Roots and Canadian Tire are seen as honest, friendly, and adventurous—precisely because they are associated with Canadian ideals such as modesty, resilience, and trust in institutions.

Academic work reinforces this view. Canadian consumers, compared to their American counterparts, show stronger preferences for egalitarianism and collective welfare (Schwartz, 1992). As a result, brand actions that demonstrate community care, environmental responsibility, and cultural humility are more likely to succeed. For American brands to thrive in Canada, they must go beyond operations and embrace identity.

This doesn’t mean American brands must perform “Canadianness” superficially. Instead, they should invest in understanding regional values, linguistic diversity, Indigenous reconciliation, and the role of public institutions in daily life. Aligning with these themes authentically can build trust and long-term loyalty in a competitive marketplace. The GCBI makes clear: in Canada, brand value is about more than profit margins—it’s about shared principles.

References

Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), 30–47.

de Mooij, M. (2019). Global marketing and advertising: Understanding cultural paradoxes (5th ed.). Sage Publications.

Schwartz, S. H. (1992). Universals in the content and structure of values: Theoretical advances and empirical tests in 20 countries. Advances in Experimental Social Psychology, 25, 1–65.

Zenk, S. N., Powell, L. M., Rimkus, L., Isgor, Z., Barker, D. C., Ohri-Vachaspati, P., & Chaloupka, F. J. (2019). Prepared food availability in U.S. food stores: A national study. American Journal of Public Health, 109(10), 1643–1646.