Love thy Regular: Loyalty Drives Local Economies
The inaugural Square Local Economy Report reveals that a small group of repeat customers—those who visit four or more times a year—generates nearly six times more annual revenue for Canadian small businesses than one-time visitors.
For high-density commercial districts, these findings offer a roadmap for thriving in 2026. Here is a breakdown of the report and why it matters to independent business owners.
1. High-Frequency Over High-Spend
While a one-time visitor might drop a larger amount in a single transaction, it is the consistency of the regular that keeps the lights on. According to the data, 84% of regulars spend the same or more per visit once a relationship is established. Nationally, these repeat customers return an average of 9 to 10 times per year, providing a steady revenue stream that helps businesses withstand rising costs and economic uncertainty.
2. The "Neighbourhood Network Effect"
Success in a local business hub isn't solitary; it’s shared. The report highlights a "Neighbourhood Network Effect" created by shared customers between nearby shops.
Shared Loyalty: In Vancouver, 55% of businesses share regular customers with at least one other nearby business.
The Anchor Effect: Certain businesses act as "bridges." A customer stopping for a morning coffee or a quick errand is significantly more likely to then pop into a neighboring retail shop or service provider.
The Financial Impact: Nationally, each additional local business connection (a shared regular) is associated with an average $2,067 increase in annual revenue. When one business wins, the entire block wins.
3. Proximity Trumps Price
Despite tightening household budgets, 81% of Canadians plan to shop in their local neighborhoods as much or more than last year. Most importantly for local owners: proximity to home now ranks as the top driver of spending decisions—beating out price. Consumers are consolidating their errands. They aren't looking for the absolute cheapest option; they are looking for convenience, familiarity, and trusted experiences. If it is easy and pleasant for a neighbor to visit, they will choose the neighborhood over a cross-town competitor.
The Path Forward
This report proves that strength lies in density and community connection.
Double Down on Loyalty: Whether it’s a formal reward program or simply a personalized greeting, recognizing regulars is a high-ROI strategy.
Collaborate Locally: Since customers often visit multiple shops in one trip, look for ways to cross-promote with nearby neighbors.
Experience Over Discounting: 61% of shoppers would stay loyal even if prices increase, provided the value and experience improve.
The Bottom Line: Loyalty doesn’t happen by accident. By fostering the "Neighbourhood Network Effect" and treating every visitor like a future regular, owners aren't just growing individual businesses—they are strengthening the entire economic fabric of the community.