GoDaddy Study Shows Consumers Favor Small Businesses in 2024 Holiday Shopping

A new survey from GoDaddy reveals that 2024 could see the “smallest Black Friday ever” as consumers express a greater preference for shopping at small businesses this holiday season.

According to the survey, 71% of American consumers are willing to pay more to support small businesses, and 53% of them are willing to spend up to 10% more than they would pay at a supermarket.

Despite concerns about inflation, with 65% of respondents admitting its impact on their holiday budget, consumers show a clear desire to support small businesses.

More than three in four shoppers (78%) are the same or more likely to shop at a small business this Black Friday and throughout the season compared to previous years. Gen Z leads the way, with 85% indicating a preference for shopping less, followed closely by 83% of Millennials.

GoDaddy Small Business Trends expert Amy Jennette emphasizes the shift in consumer behavior. He says, “Black Friday has long been considered the peak sales season for major retailers, but GoDaddy’s research makes it clear that American shoppers are willing and eager to make this the smallest Black Friday ever. Despite concerns about inflation and rising costs, consumers want to support local businesses and their economies.”

Jennette advised small businesses to tap into this trend by focusing on unique holiday promotions and improving the shopping experience to attract customers. According to the survey, reasons for choosing small businesses include supporting the local economy (30%), enjoying better customer service (18%), and access to unique or handmade products (13%).

Key Consumer Spending Trends

The GoDaddy survey highlights several consumer buying behaviors:

• Purchase Timeline: 40% of US consumers plan to complete most of their holiday shopping in the next four weeks, and nearly 1 in 5 (19%) intend to do more shopping on Black Friday.
• Giving Gifts: About one-third (31%) of consumers buy gifts for six or more people, and 10% extend their shopping lists to more than ten recipients.
• Spending each Gift: About 22% of respondents spend more than $100 per person on gifts, and 32% spend between $51 and $100. This shows that more than half of holiday shoppers (54%) plan to spend more than $50 per person on gifts.
• Giving Gifts: Two-thirds (67%) of consumers plan to indulge in some holiday fun themselves. Gen Z is the most likely to do so, with 83% intending to purchase something special or experience for themselves.

Small Business Success Resources

To help small businesses make the most of the holiday season, GoDaddy offers a Ultimate Guide to Holiday Campaign Planningwhich contains resources such as holiday marketing tips, seasonal promotion strategies, and AI instructions to simplify business management and promotion. Additionally, GoDaddy’s AI-powered Airo The platform is available to help small businesses build and manage their online presence effectively.

Photo: Envato