American Express's efforts to rally Americans in support of local small businesses on "Small Business Saturday" have fallen short, with spending declining by 20% compared to last year. The day, which is meant to promote and celebrate small businesses, has instead highlighted the challenges faced by these enterprises.
Despite the SBA Administrator Kelly Loeffler's enthusiastic call to action, encouraging Americans to shop local during the holiday season, many consumers failed to take notice. American Express reported an estimated $18 billion spent shopping at retailers and restaurants on Small Business Saturday, a 20% decrease from last year's $22 billion.
The National Retail Federation reported that 62.7 million shoppers visited physical stores on Small Business Saturday, slightly above the number of shoppers who went in-store last year. However, online shopping continued to dominate, with 63 million consumers making purchases over the internet - a 16% increase from the previous year's figure.
RetailNext paints a different picture, stating that retail foot traffic declined by nearly 9% nationwide due to heavy snowstorms in the Midwest, which further dampened consumer enthusiasm. Meanwhile, local retailers continued to struggle as shoppers increasingly turned to big-box stores for better deals and discounts.
The harsh economic reality is clear: consumers are feeling the pinch of inflation and stagnant wages, leading them to prioritize price-conscious shopping over supporting local businesses. This sentiment was echoed by the Conference Board's Consumer Confidence Index, which dropped seven points in November from its October reading of 95.5 to a mere 88.7.
As small retail businesses face dwindling budgets and shrinking customer bases, it is becoming increasingly difficult for them to compete with larger retailers that can offer lower prices and deeper discounts. Despite American Express's efforts to support these enterprises through grants and promotions, the company acknowledges that one day may not be enough to turn the tide in favor of local businesses.
To combat this trend, American Express has expanded its Small Business Saturday program to include a small business grants initiative, offering $100 million in funding to small businesses from 2023 to 2028. The program also provides additional support through partnerships with Main Street America and other organizations.
However, it remains to be seen whether these efforts will be enough to stem the tide of economic challenges faced by small retailers. As one industry expert noted, "small businesses are not just vital to local communities - they are the backbone of our nation's economy."
Despite the SBA Administrator Kelly Loeffler's enthusiastic call to action, encouraging Americans to shop local during the holiday season, many consumers failed to take notice. American Express reported an estimated $18 billion spent shopping at retailers and restaurants on Small Business Saturday, a 20% decrease from last year's $22 billion.
The National Retail Federation reported that 62.7 million shoppers visited physical stores on Small Business Saturday, slightly above the number of shoppers who went in-store last year. However, online shopping continued to dominate, with 63 million consumers making purchases over the internet - a 16% increase from the previous year's figure.
RetailNext paints a different picture, stating that retail foot traffic declined by nearly 9% nationwide due to heavy snowstorms in the Midwest, which further dampened consumer enthusiasm. Meanwhile, local retailers continued to struggle as shoppers increasingly turned to big-box stores for better deals and discounts.
The harsh economic reality is clear: consumers are feeling the pinch of inflation and stagnant wages, leading them to prioritize price-conscious shopping over supporting local businesses. This sentiment was echoed by the Conference Board's Consumer Confidence Index, which dropped seven points in November from its October reading of 95.5 to a mere 88.7.
As small retail businesses face dwindling budgets and shrinking customer bases, it is becoming increasingly difficult for them to compete with larger retailers that can offer lower prices and deeper discounts. Despite American Express's efforts to support these enterprises through grants and promotions, the company acknowledges that one day may not be enough to turn the tide in favor of local businesses.
To combat this trend, American Express has expanded its Small Business Saturday program to include a small business grants initiative, offering $100 million in funding to small businesses from 2023 to 2028. The program also provides additional support through partnerships with Main Street America and other organizations.
However, it remains to be seen whether these efforts will be enough to stem the tide of economic challenges faced by small retailers. As one industry expert noted, "small businesses are not just vital to local communities - they are the backbone of our nation's economy."
. I mean, I get it, inflation is killing people and everyone's on a tight budget. But it feels like we're losing that personal touch that makes shopping local so special. I went to my fave little coffee shop downtown last weekend and they were literally crying about the lack of customers... sad to see! 
The whole point of Small Business Saturday is supposed to be about supporting those small businesses, but it feels like nobody's taking notice. American Express tried their best with all the grants and promotions, but I guess that just wasn't enough this year 
think we gotta shift gears on this whole shopping local thing... inflation's got everyone feeling broke 
and small biz owners struggling to stay afloat 
. can't blame ppl for looking for deals online 
but it's just not the same as supporting the community 
. need more than just one day or grants to turn it around 
I guess the only good news is that they're trying to offer some grants and promotions to help them out. But $100 million just isn't going to cut it, you know? Maybe American Express needs to think outside the box (or store) and come up with some new ideas to support small businesses... 
and im not surprised, inflation is really hurting people's wallets right now. it feels like everyone is just looking for the cheapest option these days 
anyway i think american express is trying but like its super tough for people to care about supporting small businesses when everyone's trying to pinch pennies 
inflation and stagnant wages are a real thing, folks. and yeah its sad that people turned away from shopping local because of better deals at big-box stores 
. It's like we're putting all our eggs in one basket, expecting a single day to make a huge difference for local businesses 
. Newsflash: consumers are feeling the squeeze and prices are just too high 
Like, yes, big-box stores might have better deals, but where's the character? Where's the community? It's like people forget that shopping local is about more than just getting a good price 
.
i feel bad for all those local business owners who were counting on that day to bring in some cash. inflation and stagnant wages are definitely hitting people hard, but it's like we're giving up on supporting our own communities? 
. Maybe American Express's grants and promotions will make a difference, but we'll have to wait and see 
. We need to find a way to support these small businesses more consistently and creatively, because they truly are the backbone of our economy 
. let's hope americ express can make things right next year 
. Did you know that 95.5% of Americans said they're concerned about inflation? 
Yeah, it's no wonder people are prioritizing price-conscious shopping over supporting local businesses 
.
It's clear that consumers are feeling the squeeze with inflation and stagnant wages, so it's no surprise they're prioritizing price over quality.
). We need a more sustainable solution to help these businesses thrive.