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%).