November 20, 2015
How much do mom-and-pop stores gain from Small Business Saturday?
While everybody has heard of Black Friday, Small Business Saturday is catching up in both public awareness and spending. The retail holiday was launched by American Express in 2010 and recognized by the U.S. Senate in 2011.
According to a press release by Score, spending at small businesses on the day has increased steadily since 2012, with an increase from $11.4 billion that year to $14.3 billion in 2014. In 2014, 67 percent of people polled said they were aware of Small Business Saturday. There is still plenty of room for growth and improved strategy on the part of the holiday’s sponsors, however, according to one small local business.
RetailWire spoke with Jennifer Kilgore and Grant McKee, co-owners of Bucket O’ Blood Books & Records, about their perspectives on Small Business Saturday. Bucket O’ Blood is a store in Chicago’s Avondale neighborhood that specializes in independent music and used science fiction and horror books.
Because the record store industry pushes Black Friday, the store takes part in both retail holidays. It has been involved in Small Business Saturday for the past three years.
![[Image: Small Business Saturday]](data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCAxIDEiIHdpZHRoPSIxIiBoZWlnaHQ9IjEiIGRhdGEtdT0iJTJGcHVibGljJTJGaW1hZ2VzJTJGZGlzY3Vzc2lvbnMlMkYxODY4MiUyRnNtYWxsLWJ1cy1zYXQtc3RpbGwuanBnIiBkYXRhLXc9IjEiIGRhdGEtaD0iMSIgZGF0YS1iaXA9IiI+PC9zdmc+)
"There are some resources that AmEx makes available," said Mr. McKee. They’ve given us signage, graphics we can share on social media, and at that point it’s up to the individual business to use it. … I haven’t really seen a change over the past couple of years, but it may just be that we haven’t changed our own individual participation."
Ms. Kilgore noted that there are fewer American Express-related tie-ins now than earlier in the holiday’s history.
Mr. McKee sees value in the event possibly driving business beyond the holidays.
"A certain number of shoppers will buy something on impulse or because they see a business that day," said Mr. McKee. "But there are also a large number that are first made aware of something through an event like Small Business Saturday, who may not shop on that particular day but remember the store and will maybe think about it closer to the holidays. Or maybe their financial situation is changing, or they’re just not in a position to buy a gift that day, so they’ll come back."
The owners had recommendations for how the sponsors of the holiday could increase its impact.
"It’s kind of a cookie cutter template that they utilize for businesses across any sort of industry," said Mr. McKee. "I think they could benefit by taking a bit more of a local approach. Having people who are, for lack of a better word, Small Business Saturday ambassadors for a small geographic area."
Ms. Kilgore indicated that while Small Business Saturday representatives had attempted to mobilize individual business owners to volunteer to organize the event, such requests don’t take into consideration the time and effort small business owners already put into running their businesses.
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Recent Discussions
Discussion Questions
Do you think consumers are beginning to see Small Business Saturday as something beyond an American Express event? Are there lessons gained from Small Business Saturday that local retailers can use the rest of the holiday season and year?
Poll
Well, in our region — Scottsdale/Phoenix Arizona, it is well-promoted and my wife and kids are planning on hitting more small retailers on that Saturday. Seems it is another great way to shop later and in a more personal manner. So it is working and it will improve each year.
Small Business Saturday is a good idea. It provides a vehicle to create awareness and marketing efforts for local and independent businesses that otherwise would not be as noticed. And it does create exposure that can result in long-term business, even beyond Small Business Saturday.
It’s unlikely that most consumers connect the dots between Small Business Saturday and American Express. And that’s OK. The idea is to promote the small business in ways that it normally may not be able to do. And those businesses will connect with American Express for sure.
I believe consumers root for the small businesses. Whatever can be done to keep that entrepreneurial activity alive and help it thrive is surely endorsed by all.
No, I don’t see impact with consumers. When American Express bribed us with $25 cash rebates we went out and shopped. Unless American Express gives us a cash incentive, I don’t see this as being much of a promotion. The lesson is money talks or Small Business Saturday walks.
I love this day — I specifically go to the Little Italy neighborhood (here in San Diego) and enjoy the boutiques, quirky shops and cafes. It’s much more personal and less hectic than shopping centers, and more social than shopping online. AmEx was smart to start the program!
I am not sure there are any dots to connect between Small Business Saturday and American Express any longer. There once was a strong connection. Today, I am not so sure. But let’s get back to why there needs to be a Small Business Saturday. Go in to any mall, large or small any day other than Small Business Saturday. Track some of the traffic. You will find the majority of it is moving from one large box retailer to another with little stopping at the smaller “mom-and-pop” locations. While American Express has an agenda that is not always to protect the smaller retailers, it is good that they continue to spotlight the need for it.
Even before Small Business Saturday was a “thing” my store would see exceptional sales that day as compared to both regular Saturdays and Black Friday. The event that is Small Business Saturday focuses even more attention on the Shop Local movement.
Thanks to the 21st century and e-commerce I pretty much know exactly where to find what I need or want and how to get there. I am more aware of the alternative offerings that small businesses offer as well as the competitive pricing and services to be found. I was first made aware of this from my eBay and Amazon visits. Now when I perform a search I try to discipline myself to go three or more pages into the results where I have more often than not found some real deals. E-commerce and search engines have made the most out of my budget, savings and investments every day of the week.
Not everyone has to be “bribed” to shop. SBS is a “mnemonic” or top-of-mind awareness tool, no different than the ads and coupons that Macy’s runs. We need reminders to shop, or an ad pricks our interest in getting something; that is the spur to buy. People need reminders to shop locally. SBS is one such tool. And it is likely to help reify the value of local retail options and traditional commercial districts in the midst of an industrial sector that is dominated by chains and shopping malls.
P.S. The problem with “every day low prices,” is a lot of what we buy “we don’t need” sales can help people justify a purchase.
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Well, in our region — Scottsdale/Phoenix Arizona, it is well-promoted and my wife and kids are planning on hitting more small retailers on that Saturday. Seems it is another great way to shop later and in a more personal manner. So it is working and it will improve each year.
Small Business Saturday is a good idea. It provides a vehicle to create awareness and marketing efforts for local and independent businesses that otherwise would not be as noticed. And it does create exposure that can result in long-term business, even beyond Small Business Saturday.
It’s unlikely that most consumers connect the dots between Small Business Saturday and American Express. And that’s OK. The idea is to promote the small business in ways that it normally may not be able to do. And those businesses will connect with American Express for sure.
I believe consumers root for the small businesses. Whatever can be done to keep that entrepreneurial activity alive and help it thrive is surely endorsed by all.
No, I don’t see impact with consumers. When American Express bribed us with $25 cash rebates we went out and shopped. Unless American Express gives us a cash incentive, I don’t see this as being much of a promotion. The lesson is money talks or Small Business Saturday walks.
I love this day — I specifically go to the Little Italy neighborhood (here in San Diego) and enjoy the boutiques, quirky shops and cafes. It’s much more personal and less hectic than shopping centers, and more social than shopping online. AmEx was smart to start the program!
I am not sure there are any dots to connect between Small Business Saturday and American Express any longer. There once was a strong connection. Today, I am not so sure. But let’s get back to why there needs to be a Small Business Saturday. Go in to any mall, large or small any day other than Small Business Saturday. Track some of the traffic. You will find the majority of it is moving from one large box retailer to another with little stopping at the smaller “mom-and-pop” locations. While American Express has an agenda that is not always to protect the smaller retailers, it is good that they continue to spotlight the need for it.
Even before Small Business Saturday was a “thing” my store would see exceptional sales that day as compared to both regular Saturdays and Black Friday. The event that is Small Business Saturday focuses even more attention on the Shop Local movement.
Thanks to the 21st century and e-commerce I pretty much know exactly where to find what I need or want and how to get there. I am more aware of the alternative offerings that small businesses offer as well as the competitive pricing and services to be found. I was first made aware of this from my eBay and Amazon visits. Now when I perform a search I try to discipline myself to go three or more pages into the results where I have more often than not found some real deals. E-commerce and search engines have made the most out of my budget, savings and investments every day of the week.
Not everyone has to be “bribed” to shop. SBS is a “mnemonic” or top-of-mind awareness tool, no different than the ads and coupons that Macy’s runs. We need reminders to shop, or an ad pricks our interest in getting something; that is the spur to buy. People need reminders to shop locally. SBS is one such tool. And it is likely to help reify the value of local retail options and traditional commercial districts in the midst of an industrial sector that is dominated by chains and shopping malls.
P.S. The problem with “every day low prices,” is a lot of what we buy “we don’t need” sales can help people justify a purchase.