How small retailers are preparing for Small Business Saturday

Small retailers are preparing for Small Business Saturday with sales, early customer outreach, local events and efforts to improve their online visibility. Their plans reflect a central reason consumers shop small during the holidays — to support businesses in their communities. 

The National Retail Federation's October Holiday Consumer survey, conducted by Prosper Insights & Analytics, found one in five holiday shoppers plan to purchase gifts and other holiday items at small or local businesses this year. Among shoppers planning to buy from those businesses, 71% cite supporting businesses in their community as a reason. 

Small businesses also represent a substantial share of retail firms. According to NRF’s Economic Contribution of the U.S. Retail Industry report, 98% of retail firms had fewer than 50 employees in 2022.

How are small retailers reaching holiday shoppers? 

Small retailers are using customer emails, social media, local partnerships and digital marketing to promote holiday shopping. 

Richard Brown of Proof Culture in Cleveland, Ohio, told NRF he plans to run a Small Business Saturday sale and use social media posts and email communications to customers to promote the markdowns. “It’s our way of saying thank you to our customers, because they’re the reason we’re here, and we want them to know we appreciate their support on Small Business Saturday,” he says. 

Nati Mazor of Reed Leather in Detroit plans to leverage AI to reach customers and generate visibility. “We believe AI-powered marketing, combined with public relations and digital visibility, represents one of the greatest opportunities for small retailers,” Mazor says. He is focusing on improving product information, developing AI-friendly digital content and strengthening his brand's online presence. 

Community events are central to reaching customers for Jessica Bettencourt of family-owned hardware store Klem’s in Spencer, Mass. This year, Bettencourt plans to partner with other local businesses on Small Business Saturday for a fun in-person shopping experience. “We are hosting pop-ups from other local businesses like breweries, a winery and a gourmet doughnut shop,” she says.  

How are retailers preparing for Small Business Saturday? 

Early communication, community involvement and visibility beyond the event are priorities for the small retailers.

For Jessica Bettencourt of Klem’s, success on Small Business Saturday starts with local involvement. “We always involve the community in our events,” she says. 

Niki Mazor recommends small retailers generate visibility beyond the event itself though public relations, local media coverage and social media storytelling, which can be even more valuable for future AI visibility. 

“Credible news coverage, published brand stories and accessible information about local shopping events can help AI-powered discovery systems understand and surface small businesses like Reed Leather,” he says. 

Early planning and communication are Richard Brown’s tools for a meaningful Small Business Saturday at Proof Culture. “What drives it is simple: We tell our customers early, with a social posts and emails, and we back it with a sale that says thank you. People respond when they know we mean it,” he says. 

Why do holiday shoppers chose small and local businesses? 

Supporting community businesses is the leading reason holiday shoppers choose small or local businesses, according to the National Retail Federation’s October Holiday Consumer survey, conducted by Prosper Insights & Analytics. Among shoppers planning to buy from these businesses, 71% cite community support as their top reason why, followed by unique gifts and décor (56%), supporting artists through handmade purchases (37%) and finding high-quality products (33%). 

“Sneakerheads shop small because they want to support people who care about sneaker culture,” says Proof Culture’s Richard Brown, who has a loyal customer base of people who share his passion for sneakers. “When they buy from us, they aren't supporting a faceless brand, and they know that every purchase helps fuel our growth and the impact we have on our community.” 

“Customers value authenticity, quality, personal service and the knowledge that their purchases support independent businesses and local communities,” Reed Leather’s Niki Mazor says. 

Jessica Bettencourt says Klem’s customers are motivated to shop small not only because they want to see their communities thrive, but also because they value the one-of-a-kind experience that comes from supporting local businesses. “Small businesses all have their own vibe, culture and uniqueness that can only be experienced by shopping small,” she says. 

Explore more about the National Retail Federation holiday shopping research at NRF’s Winter Holiday Headquarters.