As we approach another holiday season, economic pressure on American families has only grown. A new survey from Thrivent finds two out of every three Americans have concerns about how they’ll manage their finances this year. Inflation and rising costs have made many rethink their holiday budgets, with NerdWallet’s latest survey revealing that shoppers are planning to spend even less than last year.
Yet, amid this tightening of the purse strings, local businesses are in dire need of community support. Surprisingly, only 16% of shoppers plan to prioritize local or small businesses this season, a significant drop from last year’s 27%.
This downturn couldn’t come at a worse time for small business owners, many of whom operate with razor-thin margins and limited resources. A continued lack of local spending could lead many to close their doors, impacting local jobs and the community economy. Earlier this year, a survey of 80,000 small businesses surveyed across the country found that four in 10 now said they are delaying paying bills while seven in 10 had put all staffing plans on hold due to financial strains.
Small businesses are the heart of our towns and cities, and choosing to shop locally has a significant impact on the local economy. According to American Express, 67 cents of every dollar spent at a local business stays within the community, helping to support neighbors, families, and the local infrastructure. In contrast, a 2020 survey by the American Booksellers Association found that purchases from Amazon return only 5.8 cents per dollar to the local economy.
The appeal of online businesses and big-box retailers is clear: they offer unmatched convenience, aggressive marketing, and lower prices, which strongly influence consumer behavior. It’s true that small businesses often have higher prices, primarily due to economies of scale. While a small retailer may buy a single box of a product, big-box stores and online giants like Amazon purchase entire pallets, allowing them to reduce costs.
As a result, online retailers often enjoy profit margins of 15-25%, while the average small business on Main Street operates on slimmer margins of just 5-10%. When you can save money, get more, and save time, the choice seems obvious — making this conversation even more critical.
Shopping locally is an investment in your community. It’s about more than just transactions; it’s about preserving the unique character, culture, and vibrancy that make your town feel like home. By supporting small businesses, we ensure our communities remain distinct, lively, and full of opportunities for everyone.
There’s something irreplaceably personal about shopping at local stores. A purchase isn’t just a transaction; it’s a chance to connect with people who care about their communities. Whether it’s a holiday gift from a local artisan, treats from a family-owned bakery, or services from nearby providers, local businesses bring unique value that big-box retailers and e-commerce simply can’t replicate.
This holiday season, please join WECU in making a conscious decision to shop locally. While the cost of living may feel overwhelming, your holiday spending can have a lasting positive impact on your community. By choosing to support local businesses, we ensure they survive to create jobs, provide essential services, and preserve the vibrant communities we call home.
Kent Bouma is vice president of Business Banking at WECU, a leading Whatcom County financial institution since 1936.
This holiday season, supporting local businesses is more important than ever
Consumer pressures are real, but 'Shopping locally is an investment in your community'
As we approach another holiday season, economic pressure on American families has only grown. A new survey from Thrivent finds two out of every three Americans have concerns about how they’ll manage their finances this year. Inflation and rising costs have made many rethink their holiday budgets, with NerdWallet’s latest survey revealing that shoppers are planning to spend even less than last year.
Yet, amid this tightening of the purse strings, local businesses are in dire need of community support. Surprisingly, only 16% of shoppers plan to prioritize local or small businesses this season, a significant drop from last year’s 27%.
This downturn couldn’t come at a worse time for small business owners, many of whom operate with razor-thin margins and limited resources. A continued lack of local spending could lead many to close their doors, impacting local jobs and the community economy. Earlier this year, a survey of 80,000 small businesses surveyed across the country found that four in 10 now said they are delaying paying bills while seven in 10 had put all staffing plans on hold due to financial strains.
Small businesses are the heart of our towns and cities, and choosing to shop locally has a significant impact on the local economy. According to American Express, 67 cents of every dollar spent at a local business stays within the community, helping to support neighbors, families, and the local infrastructure. In contrast, a 2020 survey by the American Booksellers Association found that purchases from Amazon return only 5.8 cents per dollar to the local economy.
The appeal of online businesses and big-box retailers is clear: they offer unmatched convenience, aggressive marketing, and lower prices, which strongly influence consumer behavior. It’s true that small businesses often have higher prices, primarily due to economies of scale. While a small retailer may buy a single box of a product, big-box stores and online giants like Amazon purchase entire pallets, allowing them to reduce costs.
As a result, online retailers often enjoy profit margins of 15-25%, while the average small business on Main Street operates on slimmer margins of just 5-10%. When you can save money, get more, and save time, the choice seems obvious — making this conversation even more critical.
Shopping locally is an investment in your community. It’s about more than just transactions; it’s about preserving the unique character, culture, and vibrancy that make your town feel like home. By supporting small businesses, we ensure our communities remain distinct, lively, and full of opportunities for everyone.
There’s something irreplaceably personal about shopping at local stores. A purchase isn’t just a transaction; it’s a chance to connect with people who care about their communities. Whether it’s a holiday gift from a local artisan, treats from a family-owned bakery, or services from nearby providers, local businesses bring unique value that big-box retailers and e-commerce simply can’t replicate.
This holiday season, please join WECU in making a conscious decision to shop locally. While the cost of living may feel overwhelming, your holiday spending can have a lasting positive impact on your community. By choosing to support local businesses, we ensure they survive to create jobs, provide essential services, and preserve the vibrant communities we call home.
Kent Bouma is vice president of Business Banking at WECU, a leading Whatcom County financial institution since 1936.
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