The holiday season is upon us, ushering in a frenzy of shoppers trying to snag last minute gifts. From the early fall planners who start making their lists months in advance to those making last-minute trips to the mall on the eve of the big holidays, it’s a busy time for retailers. Each year, this time is filled with excitement and anxiety.
Local shopping always sees a boost during the holidays. Many consumers express a desire to support local businesses, recognizing the positive impact on their communities. However, a recent survey from Lightspeed Commerce reveals some nuances that retailers should consider. While 74% of respondents stated that shopping locally is important to them, their enthusiasm often varies depending on what they’re buying.
Top Products Shoppers Prefer to Buy Local
When we look closely at the survey results, food and beverages take the top spot, with 71% of respondents indicating they prefer to buy these items locally. This preference likely stems from the desire for fresh, quality products and the unique offerings that local vendors provide.
Home and garden products, along with wine and liquor, tie for second place at 41% each. The holiday season is a time for gatherings and celebrations, and many shoppers may feel more inclined to purchase local goods that enhance these experiences.
Gifts come next, with a slightly lower 32% of people opting to shop local for their presents. Local shops often offer unique, artisanal items that can add a personal touch to gift-giving.
When it comes to apparel, 31% of respondents said they’d consider buying clothing locally, which goes to show that while buying local for apparel is considered, affordability and quality trump location. This is an important insight for retailers in the fashion industry, as it suggests that while consumers value local shopping, they may prioritize other factors when it comes to clothing.
When asked about their apparel purchasing decisions, shoppers emphasized affordability (72%) and quality (65%) as their top priorities. Locally made options ranked last, at just 8%. This indicates that while shoppers want to support local businesses, they are also highly conscious of their budgets and the quality of what they are purchasing.
How Small Retailers Can Attract Consumers
In light of these findings, retailers need to adapt their strategies to appeal to holiday shoppers effectively. Focusing on local appeal where it matters—such as food, gifts and home goods—could provide an opportunity for businesses to enhance their presence during the season. To help capture consumer interest, try the following tips:
- Promote local products
- Emphasize quality
- Offer competitive pricing
Retailers also need to consider how they present themselves online. Finding new customers has become more challenging than ever, and age plays a big role in how brands can capture buyers’ attention. For those targeting an older demographic (55+), the most trusted sources are a retailer’s website (52%), recommendations from friends and family (36%) and online review sites (34%). This age group values reliability and often seeks reassurance through social proof before making purchases.
Middle-aged shoppers (35-55) have similar preferences but lean even more on a retailer’s online presence (44%) and review sites (37%), with a slightly lesser reliance on friends and family (34%). This suggests that as consumers become more accustomed to online shopping, they are increasingly turning to digital platforms to inform their decisions. Social media platforms like Facebook (20%) and Instagram (16%) also play a significant role for this age group, indicating they use a mix of online sources when making purchasing decisions.
Meanwhile, Gen Z and young Millennials (18-34) have a different approach altogether. For them, TikTok is the top go-to resource (37%), followed closely by retailer websites (36%) and Instagram (32%). This marks a fundamental shift in how younger consumers engage with brands and discover products.
TikTok, in particular, has become a powerful platform for product discovery, where trends can go viral overnight and heavily influence buying decisions. This highlights the critical importance of having a strong social media presence, especially on platforms favored by younger shoppers.
Remain Flexible for Shoppers
As the holiday shopping season unfolds, retailers must remain flexible and responsive to these varying preferences. You can create a more inviting shopping experience by:
- Engaging with customers through personalized marketing
- Leveraging social media trends
- Highlighting local offerings
The holiday shopping season is a dynamic time where different consumer preferences come to light. For retailers, understanding these shifts—from the local shopping trends to the varying online habits across age groups—can be key to capturing attention and driving sales. By tailoring their strategies, focusing on local appeal where it matters and building a robust online and social media presence, retailers can better position themselves for a successful season.
The key is staying adaptable and being ready to meet shoppers where they are, whether that’s at a local market or scrolling through TikTok. Ultimately, those who embrace these changes and engage with their customers on multiple levels will not only thrive during the holidays but also cultivate lasting relationships that extend beyond the season.
John Shapiro is the Chief Product & Technology Officer at Lightspeed.
