By Jay Bemis | Advertising Systems Inc.
Working harder to fight big-box and department-store competition is the norm for many small businesses during the holiday shopping season, but the challenge has been even tougher this year, thanks to a shortened holiday shopping season that’s five fewer days than it was a year ago.
With but two weekends left during this year’s briefer shopping period, expect many promotions centered on local holiday events in the days ahead.
“One key strategy is to promote deals to customers wherever you can, from social media to physical ads,” says Mae Anderson, an Associated Press writer who focuses on issues facing small businesses. “Also, cultivate repeat customers by offering special deals to loyalty program members.”
One small-business owner, Roberta Perry, of ScrubzBody Skin Care Products shop in Farmingdale, New York, told the AP that she started offering a “buy one, get one free” promotion a week early this year, or the Friday before the Black Friday holiday shopping weekend occurred. The holidays are key for her because she makes 30% of her sales during the annual holiday shopping period.
Offering the discount early “has given us the opportunity to hype our own special sales day and take away some of the pressure from people who start their season the following week,” Perry said. “It also gives us a week before the true holiday season begins to send out the orders and get set for the next few weeks.”
Also, on Black Friday and Small Business Saturday, she offered a free gift with purchase, and, for the rest of the holiday season, her shop is offering free gift wrapping and cards and extended December hours.
“Anything to make our customers lives easier,” Perry said.
Small Business Saturday’s Sales Spark Optimism
Speaking of Small Business Saturday, this year’s Nov. 30 designated day stirred an estimated $22 billion in sales at local shops and restaurants, according to figures from American Express, the credit-card company that started the event 15 years ago.
That marked a nearly 30% increase from last year’s $17 million in spending, offering plenty of optimism for small business owners. It did fall a bit shy of the $23.3 billion spending record from 2021.
It’s estimated that over the history of 15 Small Business Saturdays, spending has totaled $223 billion.
In an “insights survey” that American Express took prior to this year’s event, 85% of consumers surveyed said they planned to “shop small” this holiday season, including 88% of millennials and Gen Zers who were polled. Three-quarters of those surveyed agreed that small businesses were essential to their neighborhoods.
Conducted by Teneo on behalf of American Express, the survey quizzed a nationally representative sample of 2,601 U.S. adults 18 years of age or older.
The insights survey also found that the percentage of business owners who expect their holiday sales to be stronger this year than last year rose from 65% to 87%.
“Additionally,” American Express said, “66% of consumers who shopped on Small Business Saturday strongly agree that they found a small business or independently owned restaurant where they are likely to return and become a regular customer, and 73% plan to continue to participate in Small Business Saturday because of the impact it has on their local communities.”
Shorter Season Did Mean Earlier Promotions
The AP also spoke with Amy Peterson, co-founder of Rebel Nell, a jewelry shop in Detroit. She said her shop dealt with the shorter season by starting promotions early and creating a “design your own jewelry” event to attract more customers.
Her store also launched a special holiday collection featuring crystals and pieces made with material from Fox Theatre, a historic theater in Detroit that was recently renovated.
The Fox Theatre pieces “resonated with customers seeking meaningful, one-of-a-kind gifts,” Peterson told the AP.
“Trends show shoppers are still expecting Black Friday promotions,” she said, “and while small businesses like ours can’t match the margins of big box stores, we’ve embraced the opportunity to remain competitive and show appreciation to our loyal customers.”
