Small businesses hold out hope holiday shoppers will spend local

SACRAMENTO, Calif. — It’s been said it’s the happiest time of the year, but for small business co-owner of Zanzibar Fair Trade gift shop Josh Varner, the holiday season can be one of trepidation.

“We go through excitement, trepidation, all of the emotions,” Varner said. “It’s one of our favorite times of year, but it’s also one of the most stressful times.”

Which isn’t a great feeling, Varner said, given the holiday season can make up around half their yearly sales. He said consumer spending at small businesses like his, even around the holidays, can be like playing roulette.

“Corporate entities and online sales are absolutely crowding the market and shutting out smaller businesses that simply don’t have the economic ability to compete,” Varner said.

A record 183.4 million people in the U.S. are planning to shop in-store and online from Thanksgiving Day through Cyber Monday, according to the National Retail Federation.

The numbers sound good but who gets that money isn’t evenly split, and is still being affected by inflation, according to Deloitte retail research leader Lupine Skelly.

“I don’t think it’s a big, you know, shock or anything,” Skelly said. “But across income groups, we’re really seeing people show signs of frugal behavior. They’re willing to spend, they’re planning to spend about $1,778 this year, which is up 8%. But they’re saying, ‘hey, when I spend, I want to get a good deal.’”

Skelly said shoppers expect prices to be higher this year compared to last and part of the reason for the increased amount of $1,778 spent per person.

For shoppers like father of five Charlie Graves, when it comes to gifts, he’s always trying to be smart with his money and find a bargain. 

“Shopped in the stores a little bit,” Graves said. “You know, they always having sales and stuff. I mostly shopped online because they got the Cyber Monday.”

It’s this type of competition that is leaving many small businesses feeling uncertain and why shoppers need to recognize what small businesses mean to the community, said state director John Kabateck with the National Federation of Independent Business.

“That corner retailer or that toy store, that cafe, that restaurant and the survival of it, how very important it is not just to jobs, but to the actual tax base in that community,” Kabateck said.

It’s one of many reasons Varner hopes people will support small shops.

“It’s more important now that than ever,” he said. “If you love your local businesses, if you love small enterprises like ourselves, come in and shop.”

Because Varner said every little bit counts.