April 16, 2026
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How Can Independent Retailers Improve ‘Shop Local’ Consumer Intent?
With independent retailers beset on all sides by larger and often better-equipped competitors, it may be surprising to note that the average U.S. consumer spends $11,740 at indie stores, per OnDeck survey data.
“‘Shopping local’ means buying from independently owned businesses and neighborhood stores instead of big corporate chains. Doing so benefits the neighborhood socially and keeps your dollar circulating between local businesses and families,” wrote Matt Pelkey for OnDeck.
The survey of 2,000 American shoppers, across demographics, produced the following key data points:
- Millennials make the most purchases from local businesses, and spend the most: Millennials spend an average of $19,173 locally, nearly five times as much as baby boomers (at $4,077), racking up 158 purchases annually.
- Men spend more than women at local independent retailers: Men spend an annual average of $14,106 at local stores, while women spend $9,468.
- Local grocery retail led the pack: The grocery category saw the highest percentage of overall spending budget (37%) done locally, compared to restaurants (30%), electronics (19%), home decor (17%), beauty (16%), and bookstores (13%).
- Reasons for shopping local: The top reason given by respondents as to why they shop local was to help the local economy (48.2%) and to find unique products (41.9%). On the opposite end, friendlier staff (29.5%), to connect to the local community (26.9%), to purchase better quality products (27.2%), and to help the environment (13.5%) were noted.
Pelkey cited research from the American Independent Business Alliance, and a quote from Monica Haynes of the Bureau of Business and Economic research, as backing the reasoning for consumers to keep their dollars close to home.
“Small independent retailers return more than three times as much money per dollar of sales to the local economy than chain competitors,” Haynes said.
When it comes to 2026, American shoppers plan to increase their indie grocery spend by 12.6%, restaurant spend by 11.9%, and shoes and clothing spend by about 10%. On the holidays and life events front this year, respondents indicated a projected increase in “shop local” spend for Christmas (up 14.2%, and the holiday or event most associated with local spend overall, at 32.6% more broadly), birthdays (up 10.2%), Thanksgiving (up 9.5%), Valentine’s Day (up 9.1%) and wedding anniversaries (up 8.8%).
BrainTrust
Nicholas Morine
Recent Discussions
Discussion Questions
If you were to give one piece of advice to independent retailers as to how best to increase interest, spend, and retention in today’s environment, what would it be?
Do you believe shoppers are being honest about how much money they spend with independent local retailers? Why or why not? What factors are at play?
What can be made of the data points surrounding differences in generational spend concerning shopping local, if anything?
Poll
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I hate the phrase “shop local.” It’s plastered across the windows of shops that don’t care a whit about serving the customer standing in front of them. Dusty displays. Staff on their phones. An owner who hasn’t walked the floor in a month. And somehow I’m supposed to feel guilty for clicking “Buy” on Amazon?
When I’m spending my money, I shouldn’t have to settle. Not for indifferent greetings, not for “we can get it in about two weeks,” not for a shrug at checkout because you’re too busy to ring me up like I matter.
How about customers walking in with t-shirts on that say “Sell Better” instead? Earn the local dollar. Train your people. Merchandise like you mean it. Greet me like I walked into your home, not your storage unit.
Local isn’t a charity. It’s a competition. And many shops begging for loyalty haven’t done a single thing to deserve it.
You sound bitter about something in this concept…
Two things come to mind. First, distinguish your shop from the rest of the crowd by hiring well and training everyone in the winning ways of retail even better (smile, be courteous, be attentive, know your inventory, be available, take an interest in the customer’s need). That means you have to be there. Second, work with the local chamber of commerce and make sure that it supports and campaigns for “shop local” in your locality.
Ultimately every business tries to attract trade by being the “best”, and each will do so by defining that term in a way that plays up to its strengths. Larger stores will typically do that thru price or selection or convenience (in being part of a larger organization); smaller ones will do so by customizing themselves to the community (hence the “curated” trope). I would tend to discourage emphaszing – or at least overemphasizing – the “local” angle: it’s vague and ultimately not very meaningful.
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I hate the phrase “shop local.” It’s plastered across the windows of shops that don’t care a whit about serving the customer standing in front of them. Dusty displays. Staff on their phones. An owner who hasn’t walked the floor in a month. And somehow I’m supposed to feel guilty for clicking “Buy” on Amazon?
When I’m spending my money, I shouldn’t have to settle. Not for indifferent greetings, not for “we can get it in about two weeks,” not for a shrug at checkout because you’re too busy to ring me up like I matter.
How about customers walking in with t-shirts on that say “Sell Better” instead? Earn the local dollar. Train your people. Merchandise like you mean it. Greet me like I walked into your home, not your storage unit.
Local isn’t a charity. It’s a competition. And many shops begging for loyalty haven’t done a single thing to deserve it.
You sound bitter about something in this concept…
Two things come to mind. First, distinguish your shop from the rest of the crowd by hiring well and training everyone in the winning ways of retail even better (smile, be courteous, be attentive, know your inventory, be available, take an interest in the customer’s need). That means you have to be there. Second, work with the local chamber of commerce and make sure that it supports and campaigns for “shop local” in your locality.
Ultimately every business tries to attract trade by being the “best”, and each will do so by defining that term in a way that plays up to its strengths. Larger stores will typically do that thru price or selection or convenience (in being part of a larger organization); smaller ones will do so by customizing themselves to the community (hence the “curated” trope). I would tend to discourage emphaszing – or at least overemphasizing – the “local” angle: it’s vague and ultimately not very meaningful.