Move Over, Big Box: Shoppers Say Small Businesses Make the Season Bright

The holiday season may call to mind online deals and big-box store blowouts, but for many Americans, the heart of their shopping list is closer to home.

According to a new SurePayroll® By Paychex survey of 2,000 U.S. consumers, the majority of shoppers turn to their local main streets. On average, respondents said they purchase 44% of their holiday gifts from small businesses. Even more telling, a third said that more than half of their purchases come from these neighborhood shops.

Small Businesses Take Center Stage in Holiday Shopping

The findings, released ahead of Small Business Saturday, reveal a powerful truth about the role of small businesses in holiday traditions. Americans say the holidays wouldn’t feel the same without small businesses. Nearly seven in ten respondents (72%) agreed that their holiday celebrations wouldn’t be complete without their favorite local establishments.

“It’s inspiring to see that Americans plan to do nearly half their holiday shopping at small businesses. It speaks volumes about the impact small businesses have in their communities when shoppers say the holidays wouldn’t be the same without their favorite local establishments,” says Ylang Nguyen, director, digital market strategy and product management.

At SurePayroll, we’re proud to help small business owners ease their administrative load behind the scenes so they can focus on serving their customers.”

Americans Choose Local Over Large

When asked about their holiday shopping preferences, twice as many people said they favor small businesses (34%) over large retailers or national chains (17%). This trend is strongest among Gen X and Millennials, who say they appreciate the quality, service, and sense of community the local businesses provide.

The survey also found that two-thirds of respondents (64%) are regular customers of small businesses in their community, many of whom have maintained these relationships for about eight years. Nearly one in five consumers can name 10 or more small business owners personally, further emphasizing the close ties between the entrepreneurs and their customers.

That fosters loyalty: almost two-thirds (64%) of shoppers said they would travel farther to shop at a small business they enjoy than visit a larger chain that’s closer. A third would even drive 10 miles or more, motivated by the quality (60%) and personal connection (48%) that small businesses offer.

The Impact of Shopping Small

From bakeries to boutiques, local businesses contribute far more to the holiday season than just sales. They help sustain traditions and community spirit.  

When small retailers close, consumers feel the impact deeply. Nearly half of respondents said their holiday plans would be disrupted if their small grocery (46%) or retail shops (43%) were no longer available. And when it comes to the treats and traditions that define the season, small businesses play an even bigger role:

• 48% said their holidays wouldn’t be as merry without their favorite bakery.

• 46% said the same about their local grocery.

• 41% can’t imagine the season without their neighborhood coffee shop.

Beyond food and drink, respondents also turn to small businesses for services (36%), gifts and presents (34%), and clothing (32%).

Why Shoppers Choose Small

The data highlights what many already know: for consumers, shopping small is personal. When asked what they value most, respondents cited good quality (60%), a deeper sense of community (48%), and attentive employees (46%) as their top reasons for buying from small businesses.

Nearly three-quarters (73%) said it’s important to have a good relationship with the owner of the local stores they frequent. These personal connections distinguish local businesses from large retail chains—especially during the holidays.

A Growing Share of Holiday Spending

The trend toward supporting small businesses during the holiday season reflects a broader national movement. According to the National Retail Federation (NRF), nearly 197 million U.S. consumers shopped over the 2024 Thanksgiving holiday weekend, with Small Business Saturday ranking among the busiest shopping days of the year.

When nearly half of consumers’ holiday purchases already come from small businesses, local entrepreneurs have an opportunity to grow their share of holiday spending. For small business owners, this season is more than just an opportunity to increase sales. It is a critical time to deepen customer loyalty and enhance visibility in the community.  

Read our post on tips to help small businesses prepare for the holiday season.  

Generational Differences: Quality, Connection, and Service

While shopping small spans across all age groups, the reasons driving the preference vary by generation.  

• Gen Z and Millennials often shop local for groceries and coffee, with 49% of each group buying food staples from small businesses.

• Gen X and Boomers are more drawn to local bakeries and dining establishments, emphasizing tradition and quality service.

• The Silent Generation prioritizes personal services like hair, nail, and cleaning businesses, with 56% saying these shops are vital to their daily lives.

Despite these differences, the common thread across generations is the importance of human interaction and the quality small businesses consistently provide.  

Holiday Generosity Extends Beyond Gifts

The spirit of the season extends beyond shopping small to appreciating service workers. The survey found that two-thirds of Americans who tip (67%) say they’re more likely to leave a larger gratuity during the holidays—with Millennials (77%) and Gen Z (74%) leading the way. On average, respondents reported a 6% increase in tip amounts during the holiday months.

Those who tip more said they do so because the holidays are about generosity (62%) and because they empathize with how stressful service jobs can be this time of year (47%).

Small Business Saturday: A Reminder of What’s Local

As the holiday season ramps up, Small Business Saturday serves as a national reminder to slow down, shop local, and reinvest in the community. This day celebrates the entrepreneurs and small business owners who create jobs, foster partnerships, and contribute to the economic growth of towns and cities across the country.  

“Small Business Saturday is more than a shopping event—it’s a reminder of the vital role local businesses play in our communities,” said Nguyen. “When consumers choose to shop small, they’re helping sustain the entrepreneurial spirit that drives Main Street year-round.”

SurePayroll: Simplifying Success for Small Business Owners

At SurePayroll, we’ve spent more than 25 years making it easier for small business owners to manage payroll and payroll taxes without getting lost in paperwork or stress.  

Whether you're an established business, a solopreneur, engaging your first contractor, or adding part-time help for your growing side hustle, we’re here to simplify the back office so you can stay focused on what matters most: growing your business and taking care of your customers.  

Discover how SurePayroll can help simplify success for your small business this holiday season and every day.  

About the Study

This online survey of 2,000 general-population adults in the United States was commissioned by SurePayroll® By Paychex and conducted by Talker Research in advance of Small Business Saturday 2025.

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