The 2024 holiday shopping season is witnessing a remarkable shift in consumer behavior, characterized by a growing preference for supporting small businesses. Traditionally, Black Friday has been dominated by large retailers offering deep discounts, but a recent GoDaddy study indicates that U.S. consumers are increasingly willing to pay more to support local enterprises, even amidst inflation concerns. This notable change highlights an evolving mindset among shoppers, keen on bolstering local economies and savoring unique shopping experiences, a sentiment that many small businesses can capitalize on to thrive amid economic uncertainty.
Rising Consumer Support for Small Businesses
An astonishing 71% of U.S. shoppers have expressed their willingness to spend more to support small businesses, signaling a dramatic shift in shopping preferences. This altruistic sentiment is driven by a variety of factors, including a desire to bolster local economies, which was cited by 30% of respondents. Additionally, 18% of consumers are motivated by the prospect of receiving better customer service, while 13% are attracted to the unique or handmade products that small businesses often offer. This shift suggests that the traditional allure of large retailers, catalyzed by convenience and competitive pricing, might be losing its grip on a significant portion of the shopping populace.
Despite ongoing inflationary pressures, with 65% of respondents acknowledging that inflation will influence their shopping decisions, the determination to support small businesses remains robust. Notably, more than three-quarters (78%) of surveyed consumers indicated that they are as likely or more likely to shop at small businesses during Black Friday and the broader holiday season compared to previous years. This unwavering support is instrumental for small businesses aiming to capture a larger market share during the busiest shopping period of the year. Factors such as better customer service and distinctive products seem to outweigh the higher costs incurred by shopping at smaller stores.
Generational Preferences and Spending Habits
The trend of supporting small businesses is particularly pronounced among younger generations, namely Gen Z and Millennials, highlighting a significant generational shift. A significant 85% of Gen Z members and 83% of Millennials have expressed a preference for shopping at small businesses. This generational pivot underscores a broader movement towards valuing community support and unique shopping experiences over the convenience and often lower prices offered by large retailers. The younger demographic’s inclination towards ethical consumerism and personalized experiences is reshaping the retail landscape, indicating that small businesses might enjoy continued support well beyond the 2024 holiday season.
Holiday shopping plans among U.S. consumers remain robust, with 40% intending to complete most of their shopping within the next four weeks. Nearly one-fifth (19%) plan to do the bulk of their shopping on Black Friday itself, showcasing the significance of the day in the holiday shopping calendar. The spirit of giving is evident, as consumers plan to extend their generosity to multiple recipients, with 31% intending to purchase gifts for six or more people, and 10% for more than ten individuals. This widespread planning and generosity mean that small businesses have a substantial opportunity to attract and retain customers eager to partake in the festive spirit.
Individual Spending and Self-Gifting Trends
Individual spending projections highlight significant expenditure during the holiday season, reflecting consumers’ strong commitment to holiday shopping despite economic challenges. According to the survey, 22% of respondents typically spend over $100 per person, while 32% allocate between $51 and $100 per person for gifts. These figures indicate that over half (54%) of respondents plan to spend at least $50 per person, underscoring the generous nature of holiday gifting. Such spending behavior highlights the potential for small businesses to capture lucrative sales by emphasizing the unique value and quality of their products, which can justify the higher price points to willing consumers.
An interesting trend emerging from the survey is the propensity for self-gifting, with two-thirds (67%) of consumers planning to treat themselves during the holiday season. This trend is particularly prevalent among Gen Z, of whom 83% intend to indulge themselves. The self-gifting behavior suggests that consumers are not only focused on giving to others but also on rewarding themselves during the festive season. For small businesses, this presents an additional avenue to tap into by offering products and promotions that cater to the self-gifting demographic, potentially boosting their holiday sales even further.
Strategies for Small Business Success
Given the current consumer sentiment, it is vital for small businesses to enhance the “shopping small” experience to attract and retain customers during the holiday season. GoDaddy’s Small Business Trends Expert, Amy Jennette, advises that small businesses should focus on offering unique holiday promotions, superior customer service, and exclusive products and experiences. By leveraging these strategies, small businesses can differentiate themselves from larger retailers and create a loyal customer base that values the personalized experience shopping small can offer. This approach not only increases sales during the high season but also encourages repeat business in the future.
For small businesses seeking to maximize their holiday sales, GoDaddy provides numerous resources including the “Ultimate Guide to Holiday Campaign Planning.” This guide offers marketing advice tailored to different channels, best practices for seasonal promotions, and AI-driven tools to streamline business operations and enhance online presence. Specifically, the AI-powered GoDaddy Airo experience is highlighted as a significant aid for small businesses in establishing a robust and efficient online presence. Utilizing these resources can help small businesses optimize their marketing strategies and capture the growing consumer interest in supporting local enterprises.
Survey Insights and Methodology
The insights discussed in the article originate from two comprehensive surveys conducted by GoDaddy, aimed at uncovering U.S. consumers’ holiday shopping habits and preferences. The first survey, conducted in October 2024, involved 1,247 respondents, while the second, conducted in September 2024, included 1,520 respondents. These surveys provide a detailed understanding of the current consumer landscape, revealing a strong inclination towards supporting small businesses. The data collected offers valuable information that small businesses can use to refine their strategies and better meet the needs and preferences of their target customers, especially during peak shopping periods.
About GoDaddy’s Role
The 2024 holiday shopping season is showcasing a significant shift in how consumers behave, with a growing trend towards supporting small businesses. Historically, Black Friday has been dominated by large retailers offering steep discounts to attract shoppers. However, a recent study by GoDaddy reveals that American consumers are increasingly willing to spend more to support local enterprises, even in the face of inflation concerns. This notable shift underscores a changing mindset among shoppers who are eager to strengthen local economies and enjoy distinctive shopping experiences. This evolving sentiment presents a golden opportunity for small businesses to thrive despite economic uncertainties, as they can leverage this consumer preference to attract more customers who value community support and unique products, thus helping to boost their sales during this critical shopping period. As a result, small businesses can harness this favorable consumer behavior trend to secure a stronger foothold in the market and ensure their growth and sustainability in challenging economic times.
