Consumers shop at local businesses, large chains for different reasons

Six-in-10 Americans prefer to purchase gifts for others at local shops because they can find more personal and unique options.

Small businesses and large retail chains have divided shoppers on where to shop and what for.

Twenty-nine percent of shoppers 29% favor local or small businesses, while 29% prefer national retailers, according to a new survey from Empower. Shoppers say they appreciate the personalized customer service (36%), high-quality and craftsmanship (34%) and locally-made products (56%) found at the stores in their neighborhood, while lower prices (85%), greater product variety (71%) and more flexible return policies/warranties (64%) motivate consumers to pick large retailers.

A large majority (82%) shop at both large and small businesses for different items. Those surveyed reported spending an average of $106 per month at small, local businesses, while the average monthly spend at large chains was $333. However, 44% of shoppers say inflation has made them less likely to shop small.

Baby boomers (41%) and Gen Xers (31%) are more likely to prefer shopping locally, while millennials and Gen Z are more flexible (42% and 46%, respectively) reporting that they have no preference. Gen Xers ($113) spend the most per monthly average across both local and big chain stores, followed by millennials ($110), while Gen Z ($96) and baby boomers (88%) report lower spending overall.

Beyond price, six-in-10 Americans prefer to purchase gifts for others at local shops because they can find more personal and unique options. Three-quarters support small businesses in their town by eating at local restaurants (non-chains) and shopping for produce at farmers’ markets (51%). Other local finds consumers are on the hunt for include books and media (51%) and home goods or decor (44%).

Big chains attract shoppers with competitive prices, convenience, and loyalty rewards. Gen Zers are the most likely to seek rewards and discounts, with 61% preferring to shop at national retailers to take advantage of these perks. When shopping online specifically, Gen Xers (79%) are more likely to buy from chain stores because of deals offered.

Additional findings from the Empower survey include the following:

Though price remains top-of-mind for many shoppers (62%), speed is a major factor for consumers. More than half (53%) of those surveyed say they want to get an item as fast as possible, no matter where it comes from.
More than a third (35%) are willing to pay extra at a local store for a product they could also buy at a big chain. On average, consumers are comfortable paying up to $14 more, with 10% ready to spend over $30.
Over half of Gen Zers (56%) would shop “small” more often if faster shipping options were available.

Empower conducted an online survey of 1,009 Americans in October 2024.