Consumers shop at local businesses, large chains for different reasons
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.
[READ MORE: ICSC: 207 million Americans shopped over Thanksgiving weekend]
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.
