41 percent of total consumer spending is expected to go toward “shopping small,” with a 44 percent year-over-year increase.
SAN DIEGO — A record 187 million shoppers are expected to hit stores this holiday season beginning Black Friday through Cyber Monday, according to the National Retail Federation, with 67 million specifically planning to support small businesses on Small Business Saturday. The surge in holiday spending comes despite declining consumer sentiment about the economy, with a growing number of retailers and shoppers alike banking on the annual initiative to drive sales and strengthen local communities.
Small Business Saturday, started in 2010, encourages consumers to skip major retail chains and instead shop at smaller, often family-owned businesses in their own neighborhoods. The movement is gaining traction, particularly among younger shoppers: a survey by Intuit QuickBooks found that 41 percent of total consumer spending is expected to go toward “shopping small,” with a 44 percent year-over-year increase among millennials and Gen Z shoppers.
Local business owners are optimistic about the weekend ahead.
Jackie Sterling, owner of the Cave of Wonders, a North Park gem and jewelry shop, said “It’s always more fun when a lot of people come out.”
Just down the street in North Park, Casa y Cocina, recently relocated to its new home on Ray Street, is also anticipating increased foot traffic. “For us it means a lot, and we’re creating a community, we’re creating jobs, we’re supporting other local artisans,” said Elexia De La Parra, owner of Casa y Cocina. “We’re just excited for Small Business Saturday to be here,” she told CBS 8.
The economic benefit of supporting small businesses extends beyond individual retailers. For every dollar spent at a local small business, roughly 70 cents stays local and is reinvested into the community, according to economists. By contrast, only about 40 cents of every dollar spent at national retailers remains in the community.
Jessica Nardi is already getting a jump-start on her holiday purchases at local businesses.
“It’s really good to put the money back into the community, to help it grow. It is a way for people to connect, and to get together and bring families out and friends,” Nardi said. “You put the money back into the community. That way, the community grows,” she added.
The overall holiday spending surge is significant given that consumer sentiment a measure of how people feel about the economy has declined from October to November and dropped significantly compared to last November.
However, not all consumers are planning to spend freely this season. Gen Z shoppers, primarily those in their twenties, are planning to cut back, facing higher living expenses for rent and food. Economists report that group plans to spend 23 percent less this holiday season overall.
