Adobe's new analysis sheds light on consumer spending at small retailers, revealing the top categories, discovery methods, and demographics driving this trend.
Key Findings:
Top Spending Categories: Consumers spend the most money at small retailers in the following categories: Furniture, Groceries, Automotive Repair, Fitness Services, Clothing, Pet Care, Eco-Friendly Products, Home Decor, Beverages, and Beauty Products.
Monthly Spending: On average, consumers spend $128 per month at small retailers, with millennials and men leading the way.
Discovery Methods: Consumers primarily discover small retailers through friends, online reviews, family, community events, and social media platforms like Facebook and Instagram.
Generational Preferences: Baby boomers favor small automotive businesses, Gen X prefers beauty products, millennials lean towards art, and Gen Z shops for clothing.
Shopping Preferences: While most consumers (78%) regularly shop at small retailers, a slight majority (51%) prefer to do so in physical stores rather than online.
Online Presence Matters: 31% of consumers have avoided shopping at small businesses due to their lack of a website, highlighting the importance of an online presence.
Reasons for Supporting Small Retailers: Consumers support small businesses due to their local nature, small business status, and sometimes because they are women-owned, minority-owned, or LGBTQ+-owned.
Implications for Small Retailers:
Focus on Key Categories: Small retailers in the top spending categories should leverage this trend to attract and retain customers.
Embrace Online Presence: Investing in a website and social media presence is crucial for reaching a wider audience and driving sales.
Cater to Generational Preferences: Tailor marketing and product offerings to specific demographics to maximize appeal.
Highlight Values: Communicate the unique values of being local, small, or diverse-owned to resonate with conscious consumers.
Enhance Customer Experience: Provide excellent customer service both online and offline to foster loyalty and positive word-of-mouth.
Additional Insights:
Gen Z consumers are more likely to avoid businesses without a website and show the highest support for diverse-owned retailers.
Groceries, bakery goods, and beverages are the most frequently purchased items from small retailers.
Instagram and TikTok Shops are considered important by a significant portion of consumers.
By understanding these consumer trends and preferences, small retailers can adapt their strategies to thrive in a competitive market.
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