This Black Friday, if consumers had their wish, they’d spurn lengthy lines at big-box retailers and national chains, and opt for the cozy confines of a local independent store.
Additionally, the survey found that 77 percent of shoppers would buy from a small business instead of a large retailer when prices are equal.
“The shopping decisions made by consumers are critically important to the nationwide and local economy,” Heather Perry, CEO of family-owned coffee company Klatch Coffee, told The Independent by email.
“There are implications for local sales tax providing additional funding for local government services, opportunities to provide employment…and when you buy from a local small business, you’re also increasing sales and service opportunities for upstream providers in your community.”
The survey arrives ahead of Small Business Saturday on November 29, a nationwide initiative that encourages shoppers to support local, independent businesses.
What drives a shopper’s preference for small businesses?
AT&T’s survey found that small businesses offer specific advantages over large retailers. For example, 73 percent of consumers said they find “better, more unique” holiday gifts at small businesses.
Shoppers also hinted that small businesses may be easier to communicate with. The survey found that 65 percent of consumers prefer calling a small business to get their questions answered compared to 35 percent of respondents who would rather call a large retailer.
Consumers also believe that shopping at small businesses provides an economic boost to their area, with 67 percent saying they shop at small businesses because they want to support their local economy.
If you’re running short on gift ideas for family and friends, a trip to a local business could be the solution. While not specific to small businesses, the AT&T survey found that 72 percent of shoppers say they get ideas from shopping in person compared to using social media.
How do small businesses benefit local economies?
Imagine scanning your holiday shopping list and, instead of finding all those gifts at a large retailer and dropping them into your online cart, you hop in your car and shop at local small businesses instead.
What kind of impact would that have on those businesses, and how would it benefit your local economy? If the majority of shoppers adopted the practice of shopping at local small businesses, the impact could be significant, according to a 2021 study from the American Independent Business Alliance.
The study found that 48 percent of the money you spend at local small businesses is recirculated locally, while that figure is less than 14 percent for chain stores.
That local economic benefit is multi-dimensional, too, said Andrew Kanzer, North America managing director at small business accounting software firm Xero.
“Spending with small businesses keeps more dollars circulating locally, supports job stability, strengthens community supply chains, and reduces the economic consolidation that has accelerated in recent years,” Kanzer said in an email to The Independent.
For shoppers hesitant to swap big-box stores for local small businesses, Kanzer noted that devoting some – not all – of your spending to local shops can make a difference.
“If more shoppers shifted even a portion of their Black Friday budgets to , the result would be stronger, more resilient regional economies with greater reinvestment into hiring and innovation,” he said.