A recent study by the Retail Council of Canada (RCC), conducted by Leger, reveals that while small and medium-sized businesses (SMBs) in Canada are increasingly adopting digital tools and sales channels, brick-and-mortar stores remain the top choice for many.
The survey, titled Navigating the Future: A Study of Sales Strategies and Challenges for Canada’s Retail SMBs, highlights how SMBs are navigating new sales strategies and technologies to remain competitive.
Physical stores still dominant
Despite the rise of online sales platforms, the survey found that 50% of SMBs still prefer physical stores as their primary method of sales. On average, these stores account for 31% of SMB revenue.
Digital alternatives, such as web stores, are the second most popular option, with 41% of businesses using this method. The findings suggest that traditional stores continue to play a critical role in the sales landscape, even as digital sales gain ground.
Embracing multiple channels
Many SMBs are not limiting themselves to just one sales channel. The survey revealed that 60% of businesses use more than one method to reach customers, with 34% utilising at least three different sales platforms.
Among these, online marketplaces and social media ‘click-to-buy’ features are becoming increasingly popular.
The survey suggests that the distinction between physical and digital sales channels is becoming blurred, as businesses often integrate both methods to maximise sales.
Optimism for future growth
The research also indicates optimism among SMBs, with nearly half expecting an increase in gross sales for 2024. Diversification appears to be key to this positive outlook. SMBs using multiple sales channels tend to have a brighter view of their future prospects, underlining the importance of flexibility in the current retail environment.
While digital tools and platforms are providing new opportunities, the survey shows that physical stores still have a strong presence in Canada’s retail landscape, with businesses embracing a blend of both approaches to drive growth.
“How small Canadian retailers are thriving on multiple sales channels” was originally created and published by Retail Insight Network, a GlobalData owned brand.
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