Annual Square Report Reveals Canadian Businesses All-In on Automation and Tech Innovation in 2023
- 53% of Canadian retailers are creating entirely separate marketing approaches to target Generation Z
- 89% of restaurants plan to expand non-core offerings such as retail goods, meal kits and cooking classes
- More is better when it comes to sales channels, as 85% of Canadian businesses plan to add even more channels in 2023
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230131005132/en/
The 2023 Future of Commerce report from Square found Canadian retailers and restaurateurs are feeling optimistic and are eager to adopt new strategies and solutions to retain and attract customers this year. (Photo: Business Wire)
In collaboration with
For restaurants, 2023 is all about diversification, with a vast majority (89%) planning to expand their non-core products and services, such as selling retail goods and meal kits or offering cooking classes.
“Square’s ecosystem has evolved to help our sellers evolve. We know it's critical for sellers to diversify their revenue streams and it’s fantastic to see so many businesses already expanding their offerings and exploring new sales options,” said
As eCommerce grows, retailers renew focus in-store
Canadian retailers selling both online and in-store currently offer customers an average of five sales channels, and 85% of all Canadian retailers are planning to add even more commerce channels in 2023. Buy Now Pay Later options like Afterpay are now well established in
In-store selling is also seeing a swift post-pandemic resurgence, with Canadian retailers seeking ways to improve the brick-and-mortar experience. Forty-three per cent either use or are planning to introduce QR codes in-store to provide customers with additional product information and promotions. Virtual Reality (VR) offers another dimension to in-store commerce, with 37% of retailers adding VR, augmented reality or interactive kiosks to stores, perhaps in an effort to connect with the coveted Gen Z demographic.
Additionally, more than one-in-three retailers (37%) plan to have special pop-up showrooms to highlight items, and the same number are implementing in-store events like DIY classes and tastings. Ultimately, retailers are looking into adding unique offerings, with 41% saying they believe they need to add more one-of-a-kind products to better compete.
Restaurants move further into the retail space
As the competition gets stiffer, restaurants are increasingly moving into the retail arena. Sixty-five per cent of restaurateurs say non-core products and services are necessary to diversify their revenue and grow the brand, with retail playing a large role. Over half (54%) of Canadian consumers have purchased retail items in restaurants in the past year, up from 49% last year.
But one thing restaurateurs are very reluctant to do is to raise prices, with only 27% planning this step in 2023 to weather an economic recession. For their part, Canadian consumers would be okay with modest price hikes, with 85% saying they would be understanding if businesses did so. Sixty-six per cent of restaurateurs are not planning layoffs or holding off on filling open positions to weather a potential recession, indicating the lasting effects of the post-pandemic hiring market, where many businesses struggled to hire workers back.
“After surviving the past two years, businesses are playing the long game and taking a much more bullish approach to expansion and innovation,” said
The full Future of Retail and Future of Restaurants reports can be found here. For more information about how Square helps Canadian businesses of all types and sizes, visit Square.ca.
Square helps sellers more easily run and grow their businesses with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurants and retail operations, versatile e-commerce tools, embedded financial services, buy now, pay later functionality through Afterpay, an appointment booking platform, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. Square is part of
The consumer survey was conducted by
The retail survey was conducted by
The restaurant survey was conducted by
View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005132/en/