42% of Americans are willing to pay more when shopping local to support small businesses

Americans are evenly split on their shopping habits, shopping both big and small — 29% favor local or small businesses, while 29% prefer national retailers. Though price remains top-of-mind for many shoppers (62%), speed is a major factor, too: 53% say they want to get an item as fast as possible, no matter where it comes from.

Shoppers appreciate the personalized customer service (36%), high-quality and craftsmanship (34%) and locally made products (56%) found at the stores in their neighborhood. While lower prices (85%), greater product variety (71%) and more flexible return policies/warranties (64%) motivate consumers to pick big-box retailers.

Key takeaways

• Best of both: 29% of Americans prefer big chains, 29% favor local small businesses; 82% Americans say they shop at both big chains and small businesses for different items
• 53% want to get items as fast as possible, no matter where it comes from
• Half of Americans say bigger chain stores offer convenience (56%) and more loyalty programs or rewards (51%)
• 3 in 5 (61%) prefer to buy gifts from small businesses because they can find more unique and personal options.
• Eating at local restaurants (75%) and shopping for produce at local famers’ markets (51%) are ways consumers support their local economies.

• Monthly spending at local small businesses averages $106, with Gen X ($113) and Millennials ($110) splurging more.

   

Purchasing preferences

Economic pressures can play a role in where Americans are shopping around: 44% report purchasing items less at small businesses due to inflation. Three-quarters of spenders say they buy online from big box stores to get better deals.

Beyond price, 6 in 10 Americans prefer to purchase gifts for others at local shops because they can find more personal and unique options. Three-quarters support small businesses in their town by eating at local restaurants (non-chains) and shopping for produce at farmers’ markets (51%). Other local finds consumers are on the hunt for include books and media (51%) and home goods or decor (44%).

The return or warranty policies at big chains offer financial peace of mind for many (49%), while shoppers are looking for electronics and appliances (92%) and sporting goods (81%) at nationwide retailers.

Baby Boomers (41%) and Gen X (31%) are more likely to prefer shopping locally, while Millennials and Gen Z are more flexible — 42% and 46%, respectively, say they have no preference. Gen Xers spend the most per monthly average across both local and big chain stores, followed by Millennials follow closely, while Gen Z and Baby Boomers report lower spending overall.

Average monthly spending at local small businesses, by generation:

• Gen X: $113
• Millennials: $110
• Gen Z: $96
• Baby Boomers: $88

Average monthly spending at big chain stores, by generation:

• Gen X: $379
• Millennials: $338
• Gen Z: $298
• Baby Boomers: $259

The appeal of small businesses

More than a third (35%) are willing to pay extra at a local store for a product they could also buy at a big chain. On average, consumers are comfortable paying up to $14 more, with 10% ready to spend over $30.

Convenience is another important factor, especially for younger generations. Over half of Gen Zers (56%) would shop “small” more often if faster shipping options were available.

Online platforms like Etsy have also gained traction. About half of Americans (51%), including 54% of both Gen Z and Millennials, use these channels to support small businesses.

Additional reasons shoppers value small businesses include locally handcrafted products (56%), building relationships with owners (39%), and the personalized service (36%).

The allure of big chains

Big chains attract shoppers with competitive prices, convenience, and loyalty rewards. Gen Zers are the most likely to seek rewards and discounts — 61% prefer shopping at national retailers to take advantage of these perks. When shopping online specifically, Gen Xers (79%) are more likely to buy from chain stores because of deals offered.

Methodology

Empower conducted an online survey of 1,009 Americans in October 2024.