US holiday spending to rise, small businesses to benefit

A 42 per cent surge in consumer spending at small businesses this holiday season is predicted, with nearly 3 in 5 consumers preferring the less stressful experience over big retailers. This positive outlook persists despite the fluctuating economic conditions marked by inflation and variable interest rates, according to a recent QuickBooks Holiday Shopping Report.

The survey, involving 6,500 US adults, reflects consumer optimism and highlights potential opportunities for small business owners to capitalise on holiday spending. A staggering 94 per cent of respondents intend to buy gifts, with an average spending of $485 at small businesses, a significant rise from $342 the previous year.

Driving factors for this spending boost include anticipated work bonuses, with 34 per cent of respondents expecting one, and early savings, with 70 per cent having started to save for holiday gifts in September or earlier.

Joseph Black, director of product management, commerce, Intuit QuickBooks, emphasises the importance of small businesses optimising their sales strategies to attract holiday shoppers. Recommendations include seamless checkout experiences, automation of manual tasks, and a robust online presence across multiple sales channels.

The report advised small businesses to consider flexible payment models, such as Buy Now, Pay Later (BNPL), offer seamless checkout experiences, provide holiday discounts, support local retailers, and ensure inventory availability in anticipation of an early shopping season kick-off, with Small Business Saturday and Black Friday being key dates.

ALCHEMPro News Desk (NB)