Small and Midsized Businesses in Canada are Diversifying Sales Methods, Optimistic about Future Growth: New Retail Council of Canada Survey Français
SMBs are embracing digital sales channels and tools, but brick-and-mortar stores continue to be the preferred sales method
TORONTO, Oct. 21, 2024 /CNW/ - Retail Council of Canada (RCC) has released a new survey, Navigating the Future: A Study of Sales Strategies and Challenges for Canada's Retail SMBs , conducted by Leger that explores the sales practices employed by small and medium-sized businesses (SMBs) nationwide to connect with customers and drive sales. The research also analyzes the adoption of new sales channels and integration of digital tools, and their impact on SMB optimism and economic prospects.
The findings from over 750 SMBs underscores SMBs in Canada now have access to affordable, powerful digital tools and platforms that enable innovative selling methods, complementing traditional practices if desired.
The survey finds that despite the rise of digital sales channels, brick-and-mortar stores continue to be the preferred sales method for 50% of SMB sellers, contributing to 31% of their revenue on average. Web store ranks as the second most popular method at 41%. However, SMB sellers can now effortlessly enhance these sales channels with online marketplaces, click-to-buy features on social media, and other easy-to-use alternatives. The distinction between digital versus physical, or online versus offline sales, is now an outdated and inadequate way to describe current retail operations. Regardless of their size, even the smallest SMBs with fewer than ten employees can adopt advanced sales strategies that compete with, or even surpass, those of larger traditional retailers.
"Small and medium-sized businesses have shown incredible resilience, using a variety of methods—e-commerce, in-store, and hybrid approaches—to keep connecting with consumers during and after COVID-19. This adaptability has allowed them to continue delivering the products and services consumers across our country rely on. The survey results highlight SMBs' ability to innovate, and despite past and current challenges, they remain optimistic about future growth," said Diane J. Brisebois, President and CEO, Retail Council of Canada.
"This survey is great news," said Federal Minister of Small Business Rechie Valdez. "It reflects how our government's initiatives, like the Canada Digital Adoption Program, is empowering small and medium-sized retailers in Canada to seize new opportunities. It's encouraging to see Canadian retailers embracing digital tools and having the choice to partner with those who best support their growth. Together, we're driving entrepreneurial success and strengthening Canada's economy."
KEY FINDINGS
- Multichannel adoption is prevalent, with 60% of SMB sellers using more than one sales channel, and 34% utilizing at least three different methods. The average SMB uses two sales channels to sell products.
- The eight most popular sales channels used by SMBs in Canada are: Brick & Mortar Store (50%), Web Store (41%), Online Marketplace (33%), Click-to-Buy on Social Media (28%), Offline Marketplace (25%), App Store (22%), Wholesale (11%), and On-Demand Delivery (10%).
- 71% of SMB revenue is driven by the top four sales methods: Brick and Mortar (31%), Web Store (15%), Online Marketplace (14%), and Click-to-Buy Social (11%).
- While using a digital sales method, most SMBs often leverage multiple companies. For example, 84% of SMB sellers on Amazon Marketplace concurrently engage in sales on at least one additional online marketplace platform. 52% also offer their products on eBay, 33% on Facebook Marketplace, and 25% on Etsy.
- Nearly half of SMBs anticipate increased annual gross sales in 2024 compared to 2023, reflecting a positive outlook on business growth.
- The more sales channels SMBs employ, the more optimistic they are about their business prospects, highlighting the importance of diversification.
- 88% of SMB Sellers utilize at least one digital tool, with Payment Processing Systems (45%) being the most common, followed by Social Media Management (33%) and Mobile Payment Systems (32%)
- Integrated digital tools, such as payment processing systems, social media management, and mobile payment systems play a crucial role in SMB success, with 94% of all SMBs emphasizing their importance.
About Leger:
Leger is the largest Canadian-owned polling, marketing research and analytics firm, with over 600 employees in Canada and the United States. Established in 1986, Leger also owns LEO, an online panel, LEA, Leger Analytics, and Leger DGTL, a digital performance agency. For more information: leger360.com
About Retail Council of Canada
Retail is Canada's largest private-sector employer with over 2.3 million Canadians working in our industry. This sector is a major economic contributor, generating more than $93 billion annually in wages and employee benefits. In 2023, core retail sales (excluding vehicles and gasoline) exceeded $502 billion. Retail Council of Canada (RCC) members account for more than two-thirds of these core retail sales and 95 per cent of the grocery market. Our membership extends across the country, embracing over 54,000 storefronts in diverse formats such as department, grocery, specialty, discount, independent retailers, online merchants, and quick service restaurants. As the Voice of Retail™ in Canada, RCC, a not-for-profit, industry-funded association, proudly represents retail businesses of all sizes, from small independents to large national chains, in communities nationwide. retailcouncil.org.
Contact: Matt Poirier, [email protected]
SOURCE Retail Council of Canada
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