Last weekend Black Friday, Small Business Saturday, and Cyber Monday ushered in the 2023 holiday shopping season, and U.S. consumers were ready.
Americans spent a record $9.8 billion on Black Friday, a 7.5 percent increase from 2022, and a record $12.4 billion, a 9.6 percent increase, on Cyber Monday.
But what about Small Business Saturday — and what effect does shopping locally really have on the community?
The biggest benefit, ultimately, is money. Dollars spent at local businesses have significantly more impact on the local economy (and local charities) than those spent at national chains.
The local economic effect of spending money at local businesses is, appropriately, called the local multiplier effect.
Though numbers for 2023 are not known at the time of publication, in 2022 Small Business Saturday spending totaled an estimated $17.9 billion. According to a Civic Economics impact study, $12.2 billion of that — 68 percent — was likely reinvested by those small businesses into their local communities.
The study found that just 14 percent of national retailer revenue is locally reinvested — compared to 52 percent for local retailers.
An even higher 79 percent of local restaurant revenue was found to be reinvested into the local community, compared to 30 percent for chain eateries.
Local businesses also give more — way more — to local charities. A Score report found that small business giving to local charities was, on average, a full 250 percent higher than their big-box competitors.
Local businesses have local employees, rent locally, and pay local taxes. Most important, however, they are also our neighbors — part of our communities.
The National Retail Federation estimates that, on average, consumers spent about $321 on holiday-related purchases during the five-day period starting on Thanksgiving and ending on Cyber Monday, totaling a whopping $38 billion in online sales alone.
That sounds like a lot, but in 2022 total holiday spending topped $936 billion — and the NRF estimates total 2023 spending may top 966 billion (a four percent increase). With just under four weeks left before Christmas, there are still a lot of dollars left to be spent.
Last weekend the City of Falls Church announced the return of The Little City Gift Card Program, as well as a $100,000 fund providing bonus gift cards worth 50 percent of each card purchased (limit 3 cards up to $150 per person). The cards operate as prepaid MasterCards, and are exclusively redeemable at over 75 local businesses, stores, and restaurants around Falls Church City that have been approved into the program. Bonus cards must be spent within 90 days, but Little City Gift Cards never expire.
The News-Press, I should mention, is on this list, and Little City Gift Cards may be used to purchase subscriptions to FCNP. Subscriptions make a great gift, and help secure the future of what has become a rarity these days: a local print newspaper (and one that certainly reinvests — heavily — in local businesses, restaurants, and charities)!
With free money on the table, the program has substantial incentive to participate — but the list of approved participants goes further, providing a great starting point for how and where to spend locally, ensuring your holiday spirit makes the whole neighborhood bright.
The NRF estimates that U.S. consumers will spend an average of $875 each in core holiday purchases. For a community of 14,493, that’s $12,681,375 — and Falls Church is one of the wealthiest places in the country, likely spending significantly more than the average American.
A lot of potential reinvestment is at stake, based on how much we decide to spend locally this holiday season (and beyond).
