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

Inaugural Square Local Economy Report shows repeat customers and shared neighbourhood business networks are strengthening Canada's local economies

A small but loyal group of repeat customers generates nearly six times more annual revenue for Canadian neighbourhood businesses than one-time visitors, according to new data released today by technology company Square.

The inaugural Square Local Economy Report combines anonymized transaction data from Canadian businesses with a national consumer survey. Findings reveal that "regulars" — defined as customers who visit four or more times within a year — are the backbone of Canada's neighbourhood economies, generating significantly more annual value for local businesses.

In Montreal, regulars generate seven times more annual value than occasional customers. Nationally, these repeat customers return at least nine or 10 times per year, creating steady revenue streams that help businesses withstand rising costs and economic uncertainty.

"We love all of our customers, but our regulars are truly the foundation of our business," said Lucas Spinosa, owner of Black Sheep Coffee Roasters in Ontario's Niagara region. "They're part of our daily rhythm. With our loyalty program, we can recognize them, remember their orders, and make sure they feel valued every time they walk in. That consistency builds trust — and trust keeps people coming back."

Despite Financial Pressures, Canadians Want Local

While many Canadians anticipate tightening household budgets in 2026, local loyalty remains strong:

• 81% of Canadians plan to shop in their local neighbourhoods as much or more than last year
• 61% would continue supporting local businesses even if prices increase, provided value improves
• 74% visit multiple local businesses in a single trip at least occasionally

Proximity to home now ranks as the top driver of local spending decisions, ahead of price alone, followed by word-of-mouth recommendations and perceived value. Rather than retreating from local businesses, consumers are consolidating errands and favouring convenience, familiarity, and trusted experiences.

The Neighbourhood Network Effect

The report also shows that local success is increasingly driven by a "Neighbourhood Network Effect" created by shared customers and connections between nearby businesses.

In Toronto, 49% of businesses share regular customers with at least one other nearby business. In Vancouver, that figure rises to 55%, illustrating how everyday errands such as coffee, food, and quick purchases can link independent businesses. In fact, these connections have real economic impact: in Toronto, each additional local business connection is associated with an average $2,067 increase in annual revenue.

Coffee shops, in particular, act as neighbourhood anchors, frequently serving as the bridge between retail, food, and service businesses.

Although regular customers may spend slightly less per visit than one-time shoppers, their frequency and consistency have an outsized impact. The data found that 84% of regulars spend the same or more per visit once a relationship is established, helping businesses weather economic volatility.

"When Canadians build local routines — a coffee, a haircut, a quick stop at a shop — they're doing more than running errands. They're strengthening a connected network of neighbourhood businesses," said Karisa Marra, Head of Sales at Square Canada. "Square is helping build that neighbourhood network by giving small businesses the freedom to focus, the tools to grow, and a trusted partner in their corner so they can recognize regulars, deepen loyalty, and strengthen local connections that power vibrant economies."

The Path Forward for Local Businesses

The path forward for local businesses is clear: loyalty doesn't happen by accident. As local shopping habits continue to shape how Canadians spend, sellers who invest in turning customers into regulars — and in building intentional neighbourhood connections — will be best positioned to thrive. In today's local economy, growth isn't just about attracting customers. It's about building the relationships and network effects that strengthen entire neighbourhoods.

For more information about The Square Local Economy Report and to read it in full, click here.

About the Square 2026 Local Economy Report Data Methodology

The Square Local Economy Report findings are derived from observed transaction-level data that is aggregated to protect confidentiality, along with nationally representative consumer research conducted in 2025. The report methodology is detailed below.

Transaction Data: Square analyzed all buyer-seller interactions from Jan. 2019 through Dec. 2025. A buyer-seller relationship was considered to be "regular" if there were transactions between them on four or more distinct dates within a year; all other relationships were considered "transient." Note that a single buyer can have both regular and transient relationships with different sellers. To calculate regular versus transient statistics, Square grouped transactions by regular and transient labels and computed summary metrics for each group, such as average spend and total transaction volume.

Network Data: Square isolated all "regular" buyer-seller relationships in 2025 based on the methodology described above. Square constructed city-level networks by drawing a connection between two sellers if they share at least one regular buyer. Most analyses are based on each network's largest connected component – i.e., the largest subgraph where there exists a path between every possible pair of nodes.

Network visualizations represent the subgraph of a given city by postcode. For each city, we select the postcode that produces a subgraph containing 10-100 sellers and the greatest number of connections to demonstrate local connectivity and ensure visualization clarity.

Marketing Data: Square analyzed statistics based on enrollment in any of the following marketing products: Email Marketing, Text Message Marketing (US only), and Loyalty Programs. We compared two groups of sellers: enrolled in a marketing product versus not. To quantify the effects of activating a marketing product, Square analyzed all sellers whose earliest activation occurred on or after Jan 2023, and compared performance in the three months preceding activation versus the three months following activation, only including sellers with at least 75 days of transactions in each period.

Consumer Survey Methodology: Square and Studio by Informa TechTarget conducted an independent survey of 1,010 consumers in Canada between September 23 and December 30, 2025. Respondents were screened to include a representative sample of age groups (18 to 61+) and geographical locations within Canada.

Cash App Data: Cash App Card transactions Jun, Jul, Aug 2025, Internal Data.

About Square

Square helps businesses turn transactions into connections and businesses into neighborhood favorites.

In 2009, Square started with a simple invention – the first mobile card reader, which changed how the entire financial system thinks about small businesses. Square has since grown into a global business platform helping millions of sellers of all sizes participate and thrive in their communities.

Whether independently run or a global chain, Square understands that sellers succeed when they have the freedom to focus on the experiences that keep customers coming back. From point of sale and payments to online commerce, staff management, cash flow tools, and more, Square brings together the tools sellers need to run and grow on one intelligent platform. For more information, visit www.square.ca.

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