Consumers increasingly prioritize purchasing local goods, reflecting a shift towards community support and local economic growth. This preference for locally sourced products is seen across different generations, indicating a broader trend towards more conscientious shopping habits. Retailers aiming to retain customer loyalty may find value in emphasizing local offerings.
In the past, similar surveys have shown a growing interest in supporting local businesses, particularly during holiday seasons. Previous reports highlighted that a significant percentage of consumers planned to shop at small businesses both online and in-person, with many intending to participate in Small Business Saturday events. Revenue growth for small- to medium-sized businesses (SMBs) on Main Street has also outpaced GDP growth, further emphasizing this trend.
The latest PYMNTS Intelligence survey of over 3,000 U.S. consumers in April revealed that one-third of shoppers find the availability of locally made or sourced products to be very or extremely important. This concern surpasses other factors such as environmental sustainability, alignment of social values, and whether the merchant is community-owned.
Generational Insights
Interestingly, the preference for local products isn’t confined to a single age group but spans across generations. This trend underscores a broader movement towards supporting local economies and businesses, a shift that retailers can capitalize on to enhance customer loyalty and drive sustainable growth.
The PYMNTS Intelligence December report in collaboration with American Express (NYSE:AXP) noted a 72% consumer intent to shop from small businesses over the holidays, up from 65% the previous year. Such statistics highlight the growing consumer inclination towards supporting smaller, local enterprises.
Economic Impact
The April Small Business Week Report pointed out a 6% revenue growth for Main Street SMBs, outpacing the 5.7% GDP growth. This indicates a stronger consumer spending shift towards local businesses compared to two years ago when GDP growth was significantly higher than SMB revenue growth.
The increasing consumer focus on local products ties into the broader trend of conscientious shopping. This involves prioritizing community support and fostering local economic growth, which can significantly impact how retailers strategize to maintain customer loyalty and achieve growth.
Key Takeaways
– Consumers highly value locally sourced products.
– Supporting local economies is a growing trend across generations.
– Retailers should emphasize local offerings to foster loyalty.
Retailers focusing on local products can potentially gain a competitive edge in the evolving market landscape. As consumer preferences shift towards supporting local economies, businesses that emphasize local sourcing and align their values with community interests are likely to see increased customer loyalty. This trend, evident across various reports and surveys, signifies a substantial move towards more conscientious and community-driven shopping habits. For retailers, this means an opportunity to not only enhance customer satisfaction but also contribute positively to local economic growth.
