Generate More Sales With These Retail Marketing Strategies

From doing market research to building your online store and setting up your social channels, you’ve worked hard to launch your retail business. Now working smart can help you grow. With the right retail marketing strategy, you can get more customers to discover your store, keep existing ones coming back and drive more sales.

Whether you own a clothing store with multiple locations or sell home goods, this guide breaks down what you need to know about how to implement a retail business marketing strategy that will drive results.

What is retail marketing?

Retail marketing is the way you get the word out about your store and products. Whether you run in-store promotions, create email marketing campaigns, launch a loyalty program or go viral on TikTok, the goal is to attract customers and drive purchases. Retail marketing strategies can vary based on the type of business you own and the audience you’re aiming to reach.

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The key components of retail marketing: The 6 Ps

Your retail marketing strategy will likely involve different layers. There are timeless guiding principles you can rely on to refine it, like the four Ps of marketing, which stand for Product, Price, Place and Promotion. In recent years, marketers have added two extra Ps to the framework to make it more comprehensive: People and Presentation.

Here’s what each one of the six Ps mean in practice and why each component is key to your retail marketing strategy.

1. Product: A successful retail marketing campaign starts with a strong understanding of your product(s). Why is your product unique? Is it the first of its kind or does it offer something that the competition doesn’t? What features and attributes stand out? Why do people need it right now? If you haven’t already conducted market research, dig into broader trends to understand where your product fills gaps.
2. Price: Pricing influences how customers see your brand, how you position your products and how you persuade people to buy them. While covering production costs and turning a profit is essential, you should also consider the perceived value of your product, which is your customer’s perception of it and how much it should cost, as well as how competitors are pricing similar items.
3. Place: Place is the aspect of marketing that people often refer to as “distribution” – it’s about where you sell and how you can make your product available to customers in the right places. Distribution channels may include brick-and-mortar locations, online platforms like your website or partnerships with wholesalers like Costco.
4. Promotion: Promotion is a big part of your retail marketing strategy, as it involves all your efforts to let customers know that your product exists and that it’s the right one for them. It includes all communications about your product, whether you pay to have an ad broadcasted on the radio, put up an in-store banner to advertise a holiday sale, write a blog post on your website as part of your SEO strategy or send out a newsletter.
5. People: From your customers to your staff, people play a central role in your retail marketing strategy. Every choice you make should be informed by the experience you want to create for customers across touchpoints. As for your team members, they can shape the shopping experience and impact your brand’s reputation, from providing product recommendations to publicly addressing issues in customer reviews.
6. Presentation: Presentation is how you showcase your brand and products. It includes your packaging and labelling, as well as how customers experience your retail business across different settings. In-store presentation includes your layout, signage, lighting and even the scent that customers smell when they walk in. In an online setting, your website design, product photos and social media content are part of your presentation.

Benefits of retail marketing

From knowing your customers to selling more products, retail marketing comes with several business benefits that can help you thrive:

• Clearer market and customer insights: Retail marketing involves doing research, unpacking the preferences of your ideal customers and digging into trends, which leads you to have a better understanding of the market and can give you a competitive edge. For example, if you’re working on a holiday campaign and learn that 81% of Canadians plan to support local businesses when buying gifts, you may decide to spotlight the local makers behind your products in your storytelling – an idea that came from market insight and may help you stand out.
• More effective targeting: Retail marketing means you can target specific audiences, which matters more to younger shoppers. According to a KPMG survey, 42% of respondents between the ages of 18 and 44 say they sometimes engage with targeted marketing, compared to nearly 30% of consumers aged 45+ who say the same.
• Stronger brand awareness: When you build omnichannel marketing strategies, you create a fluid, connected experience for customers, whether they order a product online and decide to return it in-store or sign up for your newsletter after seeing a post on social media.
• Increased sales potential: Maybe you work with influencers to promote your new activewear collection, give them a discount code for their audience and sell out on day three. Perhaps you collaborate with another business to sell your product on their shelves and see a 10% increase in total sales that month.
• Enhanced loyalty: A strong retail marketing strategy also keeps existing customers coming back. For example, 61% of Canadian consumers told Square that they find loyalty program alerts and notifications valuable. Using these types of features provides an opportunity to boost customer retention.

Types of retail marketing

While the high-level pillars of a retail marketing strategy remain the same, there are different types of retail marketing you can leverage to help customers discover your business.

Online marketing

Online marketing is a key driver of success in Canada. According to the Retail Council of Canada, 71% of small and medium-sized retail businesses’ revenue is driven by four sales methods, three of which are digital: Brick and Mortar (31%), Web Store (15%), Online Marketplace (14%) and Click-to-Buy Social (11%).

These days, a well-rounded marketing strategy typically involves a few online channels, used intentionally to target ideal customers. Here are a few common ones:

• Email/SMS: Build your email/SMS list with a tool like Square Marketing and use those channels to create deeper relationships with your customers and encourage them to return.
• Google: Leverage SEO optimization to drive traffic to your online store.
• Instagram: Use carousels to showcase customer reviews or create Reels with product links.
• Pinterest: Create visually appealing pins of your products to foster brand awareness and send potential customers to your website.
• Facebook: Run ads to targeted audiences narrowed down based on interests, age, gender and location.
• YouTube: Create long-form YouTube videos to showcase your expertise and build brand awareness.
• TikTok: Post short-form video content that educates, entertains or shows off your products in action.
• Online marketplaces: Sell on marketplaces like Amazon, Facebook Marketplace, eBay or Etsy to access existing audiences of shoppers.

Offline marketing

Offline marketing includes all the promotional activities that you conduct in-person or in-store, and it still matters in the digital age. The retail industry is leaning into in-store experiences while still catering to online shoppers, and 83% of Canadian consumers rate their in-store experience positively, according to the Square Future of Retail 2025 report.

Examples of offline marketing include:

• In-store displays: Use unique themes and props to highlight your products and grab the attention of customers.
• Product samples: Give out samples to help new customers discover your product.
• Events: Participate in a pop-up event or host an in-store product demo to connect with your community.
• Flyers: Use flyers to advertise discounts and exclusive offers. According to Flyers Canada, putting discounts on flyers increases engagement by 50%.
• Newspaper, TV or radio ads: Put up an ad in the local newspaper or have one played on the radio during rush hour to foster brand awareness.
• Referral marketing: Tap into the power of word of mouth by incentivizing customers to refer friends and family.

Omnichannel marketing

Omnichannel marketing blends online and offline tactics and ties the entire shopping experience together. According to BazaarVoice, Canadians have omnichannel shopping habits, with 55% of shoppers gathering information in stores and later purchasing online, highlighting the need for retailers to adopt omnichannel marketing strategies.

Examples of omnichannel marketing include:

• QR codes: Have customers scan a QR code to join your email/SMS list or learn more about a product on a landing page.
• Loyalty programs: Reward customers whether they shop online or in-store. Square Loyalty lets you create a unified experience across touchpoints.
• Email/SMS follow-ups after in-store purchases: Send customers a thank-you note after an in-store visit, complete with an exclusive discount to use on their next online order.
• Retargeting ads based on online and in-store purchase history: Retarget customers who’ve bought your products in the past with social media ads.
• Buy Online, Pick Up In Store (BOPIS): Offer a quick, convenient experience to customers who want to pick up their items in-store without paying for shipping.

9 retail marketing strategies to drive growth

Whether you are starting out in the retail industry or just want to refresh your marketing plan, here are nine retail marketing strategies that will help you generate more sales for your store.

Use customer research and analytics

Analyze your data with a tool like Square Dashboard to glean insights into your customers’ purchase behaviour, which can then form the basis for your retail marketing strategy and tactics.

“I love how easy it is to access reports on the Square Dashboard – everything is accessible in two and a half seconds,” Dimitri Chapuis, president of Papillote & Cie, a Quebec City-based chain of ready-to-eat meal stores, told Square.

If you see certain products skyrocket in sales, for instance, you might consider pairing the popular product with other merchandise in your store and communicating the promotion through a campaign.

This can help you leverage the popularity of one product to increase sales of another. Or, if you see products that are lagging in sales, you might create innovative promotions or discounts to jump-start sales.

Focus on personalization

According to the Square Future of Retail 2025 report, consumers expect personalized experiences. From marketing/SMS campaigns to loyalty programs, there are different ways to deliver customer personalization, and you can use them to target customers across all marketing channels.

For example, you can send previous customers personalized product recommendations by email or use SMS communications to nudge people who have abandoned their cart to complete their purchase.

Listen to your customers

By implementing customer feedback software at your retail store, customers can communicate directly with you about their purchase or the customer service they received. You can use this information to fix issues, offer special promotions or even respond to customers directly with discounts.

For example, if you receive negative feedback on your return policy, you can take this opportunity to go back and review the return process. Do you give customers a sufficient return window from the time of purchase? Do your employees treat customers with returns politely? Are you tracking returns of specific products? Making changes based on customer feedback can build trust and strengthen your reputation.

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Reward your existing customers

One way to generate sales with your existing shoppers is to create a customer loyalty program.

When asked what they find most valuable about loyalty programs, 84% of Canadian consumers said they enjoy exclusive discounts and 85% want the ability to earn rewards, according to the Square Future of Retail 2025 report.

By setting up a program with a tool like Square Loyalty, your team can prompt customers to sign up at checkout and your retail POS will track their progress toward a reward automatically (no punch cards necessary).

“I think it’s so important to reward loyal customers. As a consumer myself, I want to be rewarded for shopping somewhere,” Brandon Shedden, owner of independent streetwear brand Cakeworthy, told Square.

Invest in your local presence

Don’t underestimate the power of building a robust local presence, from optimizing your Google Business Profile to tapping into niche communities to promote your business.

For example, when Shannon Nocos started Toronto-based KWENTO, a bakery known for its one-of-a-kind, artful cakes, she collaborated with other local Filipino-Canadian entrepreneurs to build her customer base, creating floral cakes in partnership with flower shops, for instance. She also posted photos of her creations on social media. Square for Retail and Square Online amplified those efforts by helping more people discover the bakery in search results and order cakes online (or directly through social media).

Create valuable content

While discounts have their place, there’s value in storytelling and informative content that doesn’t directly try to sell a product to customers.

Research shows that people match incoming information with the stories stored in their memories and when brands share stories, audiences relate to them on a personal level and feel connected. That sense of connection helps build relationships.

For example, with over 14 million Canadians on TikTok, the platform provides an opportunity to create engaging, bite-sized videos to nurture your audience. Whenever you show outfit-styling tips or share behind-the-scenes footage of your product being made or packed, you’re creating moments that invite your audience to connect with your brand. People might not buy your products on the spot, but they might remember your brand when they’re ready to make a purchase.

Use limited-time offers mindfully

Limited-time offers can help generate buzz and encourage customers to purchase items before they sell out. That said, there’s a way to frame them.

Research published in the Journal of Business Research revealed that while limited-time offers can make products seem more appealing to customers, this positive effect can be reversed if they feel rushed or restricted, like if they’re unable to return the product or don’t have enough time to make a decision.

Use positive language to avoid creating a feeling of pressure, and leave flexibility in your return policy for purchases made during a sale.

Leverage social proof

Social proof is a psychological phenomenon you can use in your marketing campaigns. It’s the idea that people look to others to decide what to do, which is why showcasing customer reviews or photos of customers wearing your product can influence buying decisions. According to BazaarVoice, 65% of Canadian shoppers consider UGC – like ratings, reviews, photos and videos — essential to their shopping journey, and nearly half (46%) use it to influence their purchases.

Cakeworthy regularly benefits from the power of social proof. Its products are colourful and feature pop-culture references, which makes people want to show them off. “Our customers get really excited to share their purchases with their friends, or, in the case of some larger scale content creators, their followers on social media. I think that’s really contributed to the success of our brand,” said Shedden.

Partner with other brands

Creating win-win partnerships with complementary businesses can put your product in front of new audiences. For example, Vancouver-based Downlow Chicken Shack, a quick-service restaurant with retail offerings, partnered up with a big ketchup brand to sell an exclusive sauce.

Shop-in-shop initiatives, which involve one retailer creating a curated space inside another retailer’s store, can bring in more foot traffic for both brands thanks to a more dynamic shopping experience. Partnerships can lead to more sales with the featured brand accessing the host’s existing customer base and the host brand reaching new customers.

But you don’t need a brick-and-mortar location to successfully collaborate with other brands. Cross-promoting each other in your respective newsletters with a tool like Square Marketing or giving each other shout-outs on social media is a lower-lift way to expand your reach.

Retail marketing trends

As technologies like AI and automation reshape the future and customer preferences change based on cultural and socio-economic factors, retail marketing is always evolving. According to the Square Future of Retail 2025 report, these retail marketing trends should be on your radar:

• Tech-forward payment experiences: Retailers are embracing technology to create smoother checkout experiences and consumers are enjoying it: 53% of Canadians consumers like interacting with mobile apps to complete a purchase and 66% like paying using self-checkout. It’s all about giving customers options and convenience when they buy products.
• Email and texting: Personal, one-on-one interactions with customers are key, even in the age of social media – 65% of Canadian shoppers prefer email communication and 40% prefer receiving text messages from brands. These channels give you the chance to add personal touches to the shopping experience, from sending birthday messages to loyal customers to addressing them by their first name.
• In-store experiences: In-store retail is having a resurgence: 71% of Canadian retailers believe that in-store experiences are the key to future success, and consumers agree, with 83% rating their overall in-store experience positively. People are craving real-life interactions in a digital world, and events like in-store product demos or interactive workshops can complement the online experience and help shoppers connect to your brand across different touchpoints.
• Loyalty programs: Loyalty programs are here to stay – 77% of retail leaders say their loyalty program fosters repeat visits, 76% say it helps increase order/basket size and 74% agree that it drives ROI. These programs offer the opportunity to personalize the shopping experience with features like exclusive discounts, product recommendations based on a customer’s history or targeted alerts and notifications, which 61% of shoppers find valuable.

Ready to see how the right tech stack can help grow your retail business for years to come? Check out Square for Retail for more information.

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Retail marketing strategy FAQs

What is a retail marketing strategy?

A retail marketing strategy includes all the tactics you use to attract new customers and keep existing ones coming back.

Types of retail marketing strategies include analysing customer data, personalising experiences, implementing customer feedback, offering loyalty programs, investing in local communities, creating valuable content, leveraging social proof, partnering with local brands and harnessing limited offers in a mindful way.

Why is retail marketing important for business growth?

Your retail marketing strategy helps put the right products in front of the right people at the right time so you can drive more sales, foster brand awareness and keep standing out in a competitive market.

What are the key components of retail marketing?

The 6 Ps is a framework that effectively summarizes the key components of retail marketing, regardless of your business type or industry:

• Product: Knowing what makes your product stand out
• Price: Choosing your pricing strategy
• Place: Deciding where to sell your products
• Promotion: Coming up with different promotion channels and approaches
• People: The customers and team members behind your product and brand
• Presentation: The way you display your products across channels

How do I start retail marketing?

Start your retail marketing journey by understanding what makes your product unique, why people need it and who it’s best for. Then, choose a few channels to focus on based on your ideal customers and where they would likely come across your product, from participating in local pop-up events to growing your social media presence.

What tools do I need for retail marketing?

An all-in-one retail POS, like Square for Retail, gives you everything you need to get started with retail marketing. It comes with tools like Square Online, which lets you build an online store in minutes and integrates with Facebook and Instagram to create shoppable post. You can leverage tools like Square Marketing to create targeted campaigns and build relationships with customers, create a loyalty program, sell gift cards and more – all while accessing valuable data in a central dashboard.