While 78% of consumers say they are willing to pay more to shop at small merchants to help those businesses flourish, most plan to shop at large retailers as the holiday shopping season kicks off, a survey from payments processor NMI says.
When the holiday shopping season officially kicks off next week, just 49% of consumers say they plan to shop on Small Business Saturday, which takes place the Saturday after Thanksgiving. Meanwhile, 66% of respondents say they plan to shop at big-box stores on Black Friday, the day after Thanksgiving, and 61% say they plan to shop on Cyber Monday, which ends the opening weekend of the holiday shopping season.
“While we know consumers want to patronize small businesses, and are often willing to pay a premium to do so, big-box retailers have the benefit of scale and increased visibility, especially during the holidays when marketing budgets are at an all-time high,” says Peter Galvin, chief marketing officer at NMI, by email.
Small Business Saturday was launched by American Express Co. in 2010 and is co-sponsored by the U.S. Small Business Administration. NMI surveyed 1,000 adults in the United States with the aim of helping small and mid-size businesses understand how they can attract and retain customers, the company says.
Merchants can attract more shoppers by offering online ordering and flexible payment options, such as contactless payments and mobile wallets, the survey says.
Overall, 32% respondents cited online shopping as a reason to patronize a merchant. That figure increases among Millennials, with 39% citing online shopping as a key draw. Among Gen Zers, 34% cite online ordering as a draw.
When it comes to flexible payment options, 21% of respondents cited this as a reason to shop at a merchant. Gen Zers are most inclined to shop at merchants offering flexible payment options (42%), followed by Millennials (29%).
Millennials are the demographic most likely to support small merchants, with 83% saying they are willing to pay more to help SMBs, while 81% are more likely to shop at small merchants during challenging times like economic turbulence or natural disasters. Overall, 90% of Millennials say gifts from local outlets are more thoughtful.
