Will Americans be shopping small?
Saturday likely to boost independent businesses as holiday season begins
Black Friday is symbolic of the beginning of holiday shopping season. As many as 130.7 million people were planning to shop on Black Friday this year, according to data from the National Retail Federation. But nestled in between Black Friday and Cyber Monday is Small Business Saturday – an opportunity for consumers to support their local communities and check off items on their shopping list.
Initially launched by American Express in 2010, Small Business Saturday encourages consumers to shop at one of the 33 million independent businesses in the U.S. In 2011, the Senate passed a resolution officially recognizing Small Business Saturday.
In 2022, U.S. consumers spent an estimated $17.9 billion with small businesses the last Saturday of November, according to the 2022 Small Business Saturday Consumer Insights Survey.
How will the increasing popularity of Small Business Saturday affect consumer’s participation in Black Friday?
Who’s likely to be shopping?
According to a survey from Bankrate, 61% of holiday shoppers are likely to choose Small Business Saturday for holiday shopping, compared with 56% of consumers saying they’re likely to shop on Black Friday instead.
While many consumers will partake in more than one shopping event this weekend (Black Friday, Small Business Saturday and Cyber Monday), results from the survey show a growing popularity and interest by consumers to support local businesses.
Small Business Saturday is an especially appealing attraction for younger crowds. Bankrate found that nearly three-quarters of millennials said they are planning to shop this Saturday. Here is how consumer demographics break down for the holiday:
72% of millennials said they plan to partake in Small Business Saturday. 69% of Gen Zers.
59% of Gen Xers.
51% of baby boomers.
Holly Wade, executive director of research at the National Federation of Independent Business, told USA TODAY that unlike big retailers, small businesses haven’t accumulated unusually high inventory levels because many of them lack storage. Wade said that’s good from a business point of view but could be bad for consumers, who may not find steep discounts at small businesses.
In general, there is less expectation for huge discounts because shoppers understand it is more difficult for small businesses to provide the same offers as major retailers.
Small businesses can provide a more tailored and personalized shopping experience. According to Bankrate, 96% of holiday shoppers feel small businesses provide better experiences than large businesses in at least one of the following areas:
The shop’s unique gift ideas (56%). Customer service experience (54%).
Fostering a sense of community (44%).
Small businesses on rise in US
In 2021, a record 5.4 million new business applications were filed in the U.S. Small businesses have accounted for 62.7% of net new job creation since 1995, according to the Small Business Administration.
Data from the Federal Reserve’s Survey of Consumer Finances shows that between 2019 and 2022, the share of families owning a business increased by 9%, with significant increases among Black and Hispanic households. During this same time period, the percentage of Black households owning a business more than doubled.
Finding local small businesses
Nearly 85% of people surveyed in a May 2023 Google/Ipsos survey said supporting local and/or small businesses is important to them.
If you’d like to buy local or from a small business for your holiday shopping, Google is making it a little easier.
Google has a new small-business filter for search and maps, allowing shoppers to find products offered online by local retailers that identify as small businesses, according to a press release. Products will include e-commerce brands, local businesses, and sellers from marketplaces such as Etsy and eBay.