More than half of consumers plan to shop at Small Business Saturdays
Thanksgiving weekend is upon us, and after turkey dinner and football, shopping is one of the time-honored traditions of the holiday weekend. Last year, the National Retail Federation reported that nearly 180 Americans shopped over the five-day holiday weekend.
Sandwiched between Black Friday and Cyber Monday is Small Business Saturday, Amex’s shopping holiday
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Two years after people’s holiday activities were curtailed by the pandemic, they’re getting ready to meet neighbors and friends on Main Street. Small Business Saturday is a great excuse to get out and about.
Unsurprisingly, interest in attending Small Business Saturday is much stronger this year than last year. More than half of shoppers (53%) said they planned to shop locally or dine at independent restaurants during Small Business Saturday this year. That’s according to a survey of more than 1,000 adults conducted by Teneo on behalf of Kabbage, an American Express company.
In comparison, only 42% of shoppers surveyed last year expected to engage. That equates to about 51 million small business Saturday shoppers by 2021, according to the NRF. However, that’s a sharp drop from the 60 million shoppers who attended Small Business Saturday in 2019.
Shoppers vote with their wallets, and they overwhelmingly support small businesses run by their neighbors and friends. Some 79% agree that small businesses are important to their communities.
In addition to wanting to help small businesses stay afloat, shoppers are drawn to local independent retailers where they can find unique holiday gifts (73%) that larger retailers can’t offer.
Some 66% of respondents have scaled back their holiday shopping this year despite the headwinds, and consumers want to pay more at independent specialty stores, but that hasn’t stopped them. Some 86% of consumers said they were likely to shop this holiday season, while only 13% were likely not to.
People crave real-world connections when they shop locally. About two-thirds of consumers said the story behind the small business attracted them, and more than half were more likely to seek out a small business than a large retailer for their holiday shopping.
In contrast to Kabbage’s consumer survey, we surveyed 550 small business owners (SBOs). Overall, they expect strong holiday sales, with 64% of respondents believing this year’s holiday sales will be better than last year’s.
A strong holiday 2022 will have a real impact on small businesses. SBOs surveyed reported that nearly a quarter of their annual income was earned between Black Friday and New Year’s Eve.
While SBOs are optimistic about the outlook for the remainder of the year, nearly a quarter (24%) of respondents said their very existence depends on the outcome of the upcoming holiday season, which determines whether their business will survive to next year.
Small Businesses Saturday, November 26th will be the official start of the year-end small business run. They have been challenged throughout the year by inflation, the need to raise prices and ongoing supply chain issues.
They also experience ongoing difficulties in recruiting and retaining the optimal level of staff, which is critical to providing the enhanced customer service that differentiates independent retailers from larger retailers.
Still, SBOs have high hopes for Small Business Saturday. More than 52 percent of respondents expect it to make a significant contribution to overall holiday sales, and half believe Small Business Saturdays are more important to their business than ever.
“Small businesses understand the importance of successfully navigating this time of year,” said Brett Sussman, vice president and head of sales and marketing for American Express Kabbage. and adjust to earn the holidays.”