In 2010 American Express created Small Business Saturday (SBS), recognizing the important role small businesses have in their communities and the support they need to be profitable and sustainable. This year’s SBS held on November 27th follows one of the worst economic slowdowns ever to impact the small business segment of the economy, but a follow-on survey shows that small businesses are rebounding as US shoppers increase their spending.
The 12th annual event even looks to be one of the most impactful shopping days of this holiday season, according to American Express. Its 2021 SBS Consumer Insights Survey projects that an estimated $23.3 billion was spent on SBS, based on reported totals for U.S. consumers who shopped at independent retailers and restaurants. This is an 18% increase from $19.8 billion in 2020 and an increase from pre-pandemic spending in 2019 of $19.6 billion.
“This Small Business Saturday, communities coast to coast came together to show their support for the small businesses they cherish,” said Elizabeth Rutledge, Chief Marketing Officer at American Express. “We can all make a difference when we Shop Small® and American Express is committed to encouraging consumers to do so all year long through our goal to drive $100 billion in consumer spending at small businesses over the next five years.”
The survey also reveals that 79% of consumers this year know that it is important to support small businesses in their community, while 66% state that the day spurs them to shop in their communities all year long.
Also, more shoppers felt motivated to support independent restaurants as 54% reported that they dined or ordered takeout from a small restaurant, bar or café, up from 48% in 2020.
Most noteworthy is that 64% of those surveyed indicate they keep in mind to shop at underrepresented-owned businesses in their communities that were hit hard by the pandemic.
Online shopping that plays a key role in bringing more revenue to small businesses was up slightly on the day, with 58% of shoppers purchasing online versus 56% in 2020 and 43% in 2019.
Overall, research released in early November by American Express found that during this holiday season consumers shopping local have the potential to contribute an estimated $695B into the U.S. small business economy. However, while independent retailers are encouraged by the year to year progress, 78% indicate that holiday sales are very much a determinant for them to stay in business in 2022.
The high number of retailers who indicate that their small business remains on un-firm ground speaks to the growing importance of Small Business Saturday that began 12 years ago. American Express has tracked consumer spending on SBS and since its inception they report that an estimated $163 billion has been generated over the course of all of the annual SBS’s.
“We can all make a difference when we Shop Small® and American Express is committed to encouraging consumers to do so all year long through our goal to drive $100 billion in consumer spending at small businesses over the next five years,” explains Rutledge.
Key Notes about the American Express 2021 Small Business Saturday Consumer Insights Survey
- The American Express 2021 Small Business Saturday Consumer Insights Survey was conducted by Teneo on behalf of American Express and the National Federation of Independent Business (NFIB). The study is a nationally representative sample of 2,426 U.S. adults 18 years of age or older. Projections are based on the current U.S. Census estimates of the U.S. adult population, age 18 years and over.
- This spend statistic is an aggregate of the average spend as reported by consumers who shopped small on Small Business Saturday in surveys commissioned by American Express reporting spend habits on Small Business Saturday since 2012. It does not reflect actual receipts or sales. Each such survey was conducted online among a nationally representative sample of U.S. adults. The data was projected from the samples based on then- current U.S. Census estimates of the U.S. adult population (18+).
- The analysis of the 2021 potential impact from holiday spending, was conducted by Econsult Solutions, Inc. (ESI). ESI calculated the number and composition of small businesses in the US using data from the U.S. Census Statistics of US Businesses and the Bureau of Economic Analysis and spending among all US small businesses in select industries using the American Express Shop Small Impact small business owner survey data from Teneo on estimated revenue at small businesses during the 2021 holiday period.
