A recent Retail Council of Canada (RCC) survey conducted by Leger shows that while small and medium-sized businesses (SMBs) in Canada are increasingly turning to digital tools and sales channels, physical stores are still the best choice. for many.
The study, titled Navigating the future: An examination of sales strategies and challenges for Canadian SME retailinghighlights how SMEs use new sales strategies and technologies to stay competitive.
Physical stores are still dominant
Despite the rise of online sales platforms, the research shows that 50% of SMEs still prefer physical stores as their main sales method. On average, these stores account for 31% of SME turnover.
Digital alternatives, such as online stores, are the second most popular option, with 41% of companies using this method. The findings suggest that traditional stores will continue to play a crucial role in the retail landscape, even as digital sales gain traction.
Embrace multiple channels
Many SMEs do not limit themselves to just one sales channel. The research shows that 60% of companies use more than one method to reach customers, while 34% use at least three different sales platforms.
Of these, online marketplaces and click-to-buy features on social media are becoming increasingly popular.
The research shows that the distinction between physical and digital sales channels is blurring as companies often integrate both methods to maximize revenue.
Optimism for future growth
The survey also points to optimism among SMEs, with almost half expecting an increase in gross sales by 2024. Diversification appears to be the key to this positive outlook. SMEs that use multiple sales channels tend to have a better idea of their future prospects, underscoring the importance of flexibility in today’s retail environment.
While digital tools and platforms offer new opportunities, the research shows that physical stores still have a strong presence in the Canadian retail landscape, with companies embracing a combination of both approaches to drive growth.
“How Small Canadian Retailers Thrive Across Multiple Sales Channels” was originally created and published by Retail Insight Network, a brand owned by GlobalData.
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