Shopping small amid chain store holiday deals impacts local economy for the better

ST. GEORGE, Utah (KUTV) — Shopping at small businesses amid big chain stores’ Black Friday and Cyber Week deals can make a great impact on local economy.

Cyber Week, the week of shopping discounts starting the Monday before Thanksgiving, is expected to bring in $40.6 billion in online sales, according to Adobe Analytics.

While big box stores and national chains will see the majority of that revenue, small businesses are focusing on quality and customer services to keep up.

“The day before Thanksgiving is our Super Bowl. We sold over 400 pies this year and we hit our goal,” said Chris Connors, co-owner of Farmstead Bakery in St. George. “With a small business, about 60 to 70 percent of what you spend stays in in the community. It strengthens the local economy.”

Online sales are projected to hit $240.8 billion this season, up 8.4% from last year. Cyber Monday alone is expected to generate 13.2 billion, making it the year’s largest online shopping day.

While big retailers benefit from supply and global supply chains, experts say small businesses can still compete by offering something unique and localized.

“When it is big-box manufacturers, they have a big advantage because they can source raw materials from all over the world,” said Munir Mahmud, a professor of economics at Utah Tech University. “Smaller stores can actually specialize and still benefit if they add a certain quality that big-box manufacturers cannot.”

Connors said Farmstead Bakery was founded to fill a gap in the market for fresh handmade pastries and bread. Beyond their products, he emphasized the value of small businesses reinvesting in the community.

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“We hire people within a five-mile radius of our locations, and they’re then spending their money locally,” he said. “Your return on investment in supporting a small business is way better than supporting a national franchise or a big-box store.”

Experts agree that consumer spending is critical to the economy.

“About 70% of the spending comes from consumers,” Mahmud said. “Consumer spending is in our psyche — we consume a lot here in the U.S.”

As holiday spending accelerates, small businesses hope shoppers will consider the broader impact of their dollars.

“You make your community stronger,” Connors said.

Farmstead Bakery is opening their third location in Hurricane, Utah on November 27.

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