Five Tips To Maximize Profits On Small Business Saturday And Beyond

Consumer spending on the winter holidays is expected to reach a record $902 per person on average across gifts, food, decorations and other seasonal items, according to the National Retail Federation (NRF)’s latest consumer survey. The amount is about $25 per person more than last year’s figure and $16 higher than the previous record set in 2019. The NRF anticipates total holiday retail sales (November–December) will grow by 2.5–3.5%, reaching between $979.5 billion and $989 billion. That’s up from $955.6 billion in 2023.

Big-box retailers traditionally kick off the holiday shopping season with “price buster” promotions on “Black Friday” (the day after Thanksgiving) that lure bargain hunters to their stores. Typically, they succeeded. As eCommerce gained in popularity, online retail giants reaped rewards from Cyber Monday, another key date for the holiday season. Online shopping remains a significant driver of retail sales, with expectations of up to $297.9 billion in e-commerce sales during the 2024 holiday shopping season.

Meanwhile, small businesses struggled to compete during this critical sales period. Recognizing this gap and the vital role small businesses play in the economy, American Express launched Small Business Saturday, which encourages consumers to “shop small” and support their local merchants. The genesis of Small Business Saturday came in 2010 as a response to the negative effects the “Great Recession” had on small retail businesses.

Born out of economic necessity and fueled by a desire to bolster local commerce, the effort is more than just a shopping holiday; it’s a movement that celebrates local entrepreneurs and the vibrancy they bring to communities across America.

The annual initiative has had a powerful impact on small businesses, local economies, and the way consumers think about shopping. American Express’s 2023 Saturday Consumer Insights Survey, found that the total spending of U.S. consumers who shopped at independent retailers and restaurants on Small Business Saturday last year reached an estimated $17 billion.

This year, Small Business Saturday falls on Nov. 30 and will promote local businesses that make tremendous impacts on our nation’s economy. Small Business Saturday’s success is due to grassroots promotion, the resilience of small businesses, and the willingness of consumers to support their communities.

The impact of small business on the U.S. economy

Small businesses accounting for about 44% of the nation’s GDP and creating two-thirds of the country’s new jobs. For many entrepreneurs, Small Business Saturday represents an opportunity to attract customers, generate sales, and build relationships. The impact of this shopping holiday goes beyond a single day of sales; it’s about cultivating customer loyalty and encouraging year-round support.

Every dollar spent at a small business stays in the local economy and can contribute to other nearby businesses through the “multiplier effect.” The American Independent Business Alliance reports that for every $100 spent at a local business, approximately $45 remains in the community, compared to $14 from national chains. This local reinvestment drives economic growth, funds essential public services, and sustains community development.

Tips to Take Advantage of Small Business Saturday

1. Prepare a Marketing Plan: Use social media, newsletters, and flyers to inform your community of any promotions, events, or specials. Share your story, spotlight products, and interact with customers using hashtags like #ShopSmall, #ShopLocal, and #SmallBusinessSaturday.

2. Offer Promotions or Bundles: Offer discounts, special bundles, or buy-one-get-one offers to encourage sales in order to create a sense of urgency for consumers to make purchases on Small Business Saturday.

3. Collaborate with Other Businesses: Partner with nearby businesses to host an event or create a special promotion that benefits multiple stores. For instance, a retailer could attract customers with Small Business Saturday promotions that encourage shoppers to show their receipts at a nearby restaurant for a special discount on their meals.

4. Enhance The Purchasing Customer Experience: Provide free gift wrapping and offer samples, or small giveaways. These little niceties can leave a lasting impression and spur repeat visits throughout the year.

5. Follow Up with Customers After Small Business Saturday: Capture emails or social media followers during Small Business Saturday and continue engaging with them through exclusive offers and updates throughout the year.

The Small Business Saturday campaign is important not only for the holiday season, but also for continued patronage throughout the year. Supporting small businesses creates local jobs and strengthens communities. This annual effort builds relationships during the holiday season and can extend into the future.

When customers “shop small,” they’re investing in their neighbors, their communities, and a more sustainable economy. Small Business Saturday reminds us all that where we spend our dollars makes a difference. Supporting local businesses keeps unique products, exceptional services, and vibrant community traditions alive. Every transaction, no matter how small, can have a big impact in bolstering the financial health of small businesses nationwide.