Square Report Finds Group of Loyal ‘Regulars’ Generates 6x More Revenue for Canada’s Small Businesses

Why It Matters

The findings highlight that cultivating repeat customers and local network ties is a decisive growth lever for small businesses facing cost pressures, and it reshapes how retailers should prioritize loyalty over pure price competition.

Key Takeaways

• Regulars generate six times more revenue than occasional shoppers.
• 81% plan to shop locally despite tighter budgets.
• Neighborhood network effect adds $2,067 revenue per connection.
• Loyalty programs boost repeat visits and per‑visit spend.
• Proximity now outranks price as top local‑spending driver.

Pulse Analysis

Square’s new Local Economy Report provides a data‑driven snapshot of Canada’s neighbourhood commerce, revealing that a modest cohort of repeat shoppers fuels the bulk of small‑business earnings. By classifying "regulars" as customers who visit at least four times a year, the analysis shows these patrons generate up to six‑fold higher revenue than occasional buyers, with Montreal’s regulars delivering seven times the annual value. The report also quantifies the "Neighbourhood Network Effect," where shared customers across adjacent stores translate into an average $2,067 revenue lift per additional connection, reinforcing the economic interdependence of local retailers.

For small‑business owners, the implications are clear: loyalty is no longer an ancillary benefit but a core revenue engine. Investing in loyalty programs that recognize repeat patrons, personalize orders, and reward frequency can convert casual foot traffic into high‑value relationships. Moreover, fostering collaborative ties with nearby merchants—such as cross‑promotions or joint events—leverages the network effect, amplifying footfall and spending across the local ecosystem. The data shows that 84% of regulars either maintain or increase their spend once a relationship is established, providing a buffer against inflationary pressures and volatile consumer confidence.

On a broader scale, Canadian consumers are consolidating errands and favoring proximity over price, with 81% planning to maintain or increase local shopping despite tighter household budgets. This shift signals a durable trend toward hyper‑local consumption, where convenience, familiarity, and trust outweigh marginal cost differences. Retailers that align their strategies with these preferences—by enhancing in‑store experiences, streamlining multi‑stop trips, and emphasizing community ties—will be better positioned to capture the growing share of spend allocated to neighbourhood businesses, ensuring sustained growth in an uncertain economic climate.