Ahead of Small Business Saturday® and the peak holiday shopping season, embedded payments leader NMI finds that 87% of consumers say small business gifts outshine big box stores
A new survey by NMI, a global leader in embedded payments infrastructure, reveals that 87% of consumers say gifts from small businesses are more thoughtful, while 78% of consumers are willing to pay more to help small businesses thrive.
The survey of 1,000 U.S. adults explores consumer attitudes and shopping patterns, offering actionable insights to help small and medium-sized businesses (SMBs) understand how they can attract and retain customers. The findings come as the holiday shopping season approaches and ahead of American Express® Small Business Saturday, which takes place on November 30 this year.
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Black Friday and Cyber Monday are king, but Small Business Saturday gains traction
The survey highlights strong emotional connections associated with supporting small businesses and found that 53% of consumers surveyed feel a sense of belonging or community, 49% feel satisfied, and 40% feel proud. While 49% of consumers plan to shop on Small Business Saturday, this trails the 66% who plan to flock to big box stores for Black Friday (66%) and Cyber Monday (61%) deals, indicating that SMB owners still struggle to convince holiday shoppers to shop small. Coffee shops, casual takeout restaurants and bakeries top the list of small businesses most likely to win consumers’ hearts this year.
Millennials lead the charge in supporting small businesses
Millennials emerged as the most supportive demographic for supporting small business, with 90% agreeing that gifts from local outlets are more thoughtful, 83% willing to pay more to help SMBs, and 81% more likely to shop small during challenging times like economic turbulence or natural disasters.
This tech-savvy group also has higher expectations for convenience. Online ordering was cited as a key factor influencing consumers to shop at larger retailers, with 39% of Millennials and 34% of Gen Zers highlighting it as a deciding factor. Flexible payment options, such as contactless payments and mobile wallets, were a draw for 42% of Gen Zers and 29% of Millennials, compared to 21% of U.S. adults overall.
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Local products drive holiday cheer, but outdated checkout experiences emerge as the Grinch
When asked why they might choose a large retailer, service, or hospitality brand over a small business, modern checkout experiences emerged as a significant factor, particularly for younger generations. Online ordering was cited by 32% of U.S. adults as a key draw, increasing to 39% among Millennials and 34% for Gen Z. Similarly, 21% of consumers pointed to flexible payment options as an advantage, with this figure climbing to 42% for Gen Z and 29% for Millennials. These preferences align with the most popular payment methods consumers use when shopping small, including credit/debit cards, cash, and contactless options like Apple Pay or Google Pay.
