Dive Brief:
- Signaling the appeal of independent businesses, 72% of holiday shoppers plan to purchase from a small business in person or online during the holiday season, according to a Bankrate and YouGov survey. That marks an increase from 65% who said the same last year.
- Sixty-one percent of holiday shoppers are likely to choose Small Business Saturday on Nov. 25 for holiday shopping, slightly more than the number of people likely to shop on Black Friday (56%).
- Seventy-two percent of millennials are planning to shop on Small Business Saturday, followed by Gen Zers (69%), Gen Xers (59%) and baby boomers (51%), according to the report.
Dive Insight:
The push to support independent businesses during the holiday season with Small Business Saturday began with American Express in 2010 and the holiday was co-sponsored by the U.S. Small Business Administration the following year.
For the past 20 years in the U.S., small businesses have generated 40% of the country’s gross domestic product, pouring trillions of dollars into the economy, according to the U.S. Chamber of Commerce. Data from QuickBooks cited by the Chamber of Commerce states that up to 65% of small businesses’ annual revenue was generated during the holidays last year.
As for how small businesses generate that economic activity, the survey from Bankrate and YouGov offers some insight into why consumers are choosing to shop at independent businesses. Comparing small and large businesses across a range of criteria, nearly all survey respondents (96%) said small businesses provided better experiences in at least one trait. More than half of respondents said small businesses are better at offering unique gift ideas (56%) and superior customer service (54%). Plus, 44% said small businesses foster a sense of community.
“Most shoppers seem to be embracing an omnichannel strategy this holiday season — they’re planning to shop online and in-person and are likely to buy from large and small businesses,” Bankrate Senior Industry Analyst Ted Rossman said in a statement. “I think each type of shopping offers distinct advantages, and it makes sense for consumers to cast a wide net. Cost and convenience seem to be the biggest drivers this year, as supply chain and health concerns have faded away.”
Last year, Small Business Saturday drove nearly $18 billion in spending, according to American Express. Seventy-two percent of shoppers that year said they would continue to shop at independent businesses throughout the holiday season due to the impact that it has on their local community.
