As the holiday season approaches, small business owners are faced with significant revenue opportunities. According to recently announced Intuit QuickBooks Holiday Shopping ReportU.S. consumers are expected to spend $263 billion this holiday season, up 25% from last year. This increase in spending presents a $109 billion opportunity for small businesses as consumers increasingly rely on local stores and 41% of holiday spending is earmarked for small business purchases.
In this annual Intuit survey of 6,000 consumers and 1,000 small business owners, participants expressed that the desire to give gifts to loved ones overshadows concerns about economic pressures such as tariffs and inflation. Nearly half of consumers surveyed said they were willing to cut back on other spending, including eating out and even necessities like groceries, so they could give gifts to family and friends. This year’s festive mood is fundamentally about prioritizing joy over economic anxiety. 42% of respondents said gift giving was more important than ever.
This optimistic sentiment among consumers is pivotal for small businesses that rely on holiday crowds for a significant portion of their annual revenue. In fact, 93% of small business owners say the holiday season is very important to their overall success. Many expect holiday sales to account for nearly half of annual sales, up from 33% the previous year. Additionally, 65% of owners expect revenue to increase compared to last year, with 89% of small business owners surveyed having a general confidence that their customers will spend enough to meet their revenue goals.
Liz Pham, owner of Bows Arts, echoes this sentiment when she says, «For small businesses like us, the holiday season is when everything comes together. Not only is it the busiest time of the year, but it’s also the time when community support makes the biggest impact.» Pham emphasizes that tools like QuickBooks and Mailchimp streamline operations so you can stay focused on creating great customer experiences.
Although the outlook is positive, this holiday season is not without its challenges. The economic factor is still huge. For example, 86% of consumers expressed concern that tariffs and inflation would impact their holiday shopping behavior, and more than half expected to face higher prices. Small business owners share similar anxieties. 68% acknowledged that tariffs have had a significant impact on their operations. In response, many small and medium-sized businesses have adjusted their strategies. 32% have increased prices, and 44% plan to offer special discounts to attract customers.
Simon Worsfold, head of data communications at Intuit QuickBooks, emphasizes that small businesses need to adopt a strategic approach in a volatile economic environment. “With nearly half of U.S. consumers prioritizing shopping small this season, small business owners can leverage digital and AI-based tools to capitalize on this in the coming months,” he says. These tools can support marketing efforts, inventory management, and operational efficiency.
To navigate this bustling shopping hub, small business owners may want to consider implementing several actionable strategies.
This report outlines a clear path for small businesses to thrive this holiday season by leveraging both digital tools and consumer trends that prioritize support for local businesses. By remaining adaptable and resourceful, small business owners can significantly boost their holiday sales and have a successful year-end.
For more information about this report, visit Intuit’s original post. investor relations.
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