LOS ANGELES, Nov. 20, 2020 /PRNewswire/ -- In the midst
of a pandemic and a difficult year, holiday shoppers are focused on
supporting their local small businesses. Seven in 10 consumers
say it's more important to support small businesses than to get the
best deal, and four in 10 are willing to spend $20 more on a purchase to support them, according
to new research from Union Bank, a leading West Coast
bank.
According to the Union Bank Small Business Holiday Spending
2020 Survey, 74% of U.S. consumers feel an increased sense of
responsibility to support their community this year and over half
say they've already increased how much they shop and spend at small
businesses to help keep them afloat during COVID-19. Even more
compelling, 54% say they're specifically planning to shop at
minority-owned small businesses.
"Holiday spending is often the most significant financial
inflection point for small businesses each year. However, this year
will look much different, as many people continue to adapt to
stringent closure guidelines and recover from the overall economic
impacts of the pandemic," said Todd
Hollander, Head of Business Banking and Small Business for
Union Bank. "Small businesses are the backbone of our local
communities and sales during the holiday season are often critical
to a business's success. These survey results reinforce that our
communities feel a sense of responsibility and are rallying to help
businesses continue to recover and thrive through the 2020 holiday
season."
To gear up for the holiday season, small businesses have an
opportunity to promote themselves, as 35% of U.S. consumers say
that one of the biggest barriers to shopping at small businesses is
a lack of awareness or little advertising. More specifically, when
asked what drivers would make them more likely to spend at a small
business this season, U.S. consumers cited the following as most
important:
- 60% said offering holiday sales, discounts, promotions
- 51% said offering online ordering
- 46% said offering safety measures (mask requirements, social
distancing, curbside pickup, local delivery, contactless payment,
etc.)
"Now more than ever, small businesses need to tap into their
entrepreneurial spirit and continue to be creative in implementing
new strategies to keep consumers motivated to spend with them,"
said Hollander. "Fortunately, it's not too late to ramp up
marketing efforts, including social media, to showcase not only any
holiday specials but also any safety measures and conveniences that
have been put in place. Consumers want to know they can support
local businesses safely."
The findings also indicate that this holiday shopping season
will revolve less around big shopping events, with only one in five
planning to do most of their shopping on Black Friday and/or Cyber
Monday.
Despite U.S. consumers' focus on supporting small businesses,
the survey revealed some financial hurdles, as most consumers are
planning to spend less this holiday season compared to last year –
particularly on travel (62%) and restaurants (52%). The only
exception is retail, where 49% of U.S. consumers plan on spending
the same or more this year. The survey identified several specific
financial factors affecting U.S. consumer holiday spending
year-over-year, including one in four saying they've suffered a job
loss or hour/wage reduction, and one in four saying they're trying
to save more.
Californians are doubling down to aid small businesses this
holiday season.
California-based consumers are feeling
especially generous this holiday season, with 51% saying they'd
spend $20 more on an item to support
a small or local business vs. saving $20 and purchasing from a large retailer,
compared to 43% of national respondents.
Californians seem to understand the value and significance of
supporting their local community, with 68% saying it's more
important to support small businesses than to get the best deal or
discount this holiday season.
Additionally, California
consumers are also taking seriously their responsibility to local
minority-owned small businesses, as 56% say they specifically plan
to shop at minority-owned small businesses this holiday season.
"From retail gifts and gift cards for a variety of services to
restaurant take-out, we all have a key role to play during this
economic recovery process," Hollander said. "I'd like to call on
all of our Union Bank clients and larger West Coast community to
continue supporting local small businesses this holiday season –
the long-term impact will be significant and uplift many in your
local communities when they need us most."
About the Union Bank Small Business Holiday Spending
2020 survey
Research was gathered through an online survey
commissioned by Union Bank and conducted by global independent
research firm Edelman Intelligence. The survey was completed by
2,677 Americans (age 18+), sampled to be nationally representative.
Data was collected between Nov. 9 and Nov.
11, 2020. The margin of error is +/- 2 percentage
points.
About Union Bank
Union Bank is a full-service bank
with a rich history of investing in our clients, communities and
colleagues throughout the West Coast for more than 150 years. Union
Bank provides a wide range of personal and business banking
products as well as wealth management services. With nearly 340
branches in California,
Oregon and Washington, Union Bank remains committed to
serving the needs of its local communities. As a member of the
Mitsubishi UFJ Financial Group (MUFG), one of the world's largest
financial institutions, Union Bank holds our clients' best
interests to heart and remains committed to investing in their
success.
About MUFG Union Bank, N.A.
As of September 30, 2020, MUFG Union Bank, N.A.
operated 348 branches, consisting primarily of retail banking
branches in the West Coast states, along with commercial branches
in Texas, Illinois, New
York, and Georgia. We
provide a wide spectrum of corporate, commercial, and retail
banking and wealth management solutions to meet the needs of our
clients. We also offer an extensive portfolio of value-added
solutions for clients, including investment banking, personal and
corporate trust, global custody, transaction banking, capital
markets, and other services. With assets of $132.5 billion, as of September 30, 2020, MUFG Union Bank has strong
capital reserves, credit ratings, and capital ratios relative to
peer banks. MUFG Union Bank is a proud member of the Mitsubishi UFJ
Financial Group (NYSE: MUFG), one of the world's largest financial
institutions with total assets of approximately ¥348.4 trillion
(JPY) or $3.3 trillion (USD)¹, as of
September 30, 2020. The corporate
headquarters (principal executive office) for MUFG Americas
Holdings Corporation, which is the financial holding company, and
MUFG Union Bank, is in New York
City. The main banking office of MUFG Union Bank is in
San Francisco, California.
1 Exchange rate of 1
USD=¥105.8 (JPY) as of September 30,
2020
©2020 MUFG Union Bank, N.A. All rights reserved. Member FDIC.
Union Bank is a registered trademark and brand name of MUFG Union
Bank, N.A.
Press contact:
Sierra Wilson
(213) 236-5329
sierra.wilson@unionbank.com
Edelman PR
unionbank@edelman.com
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SOURCE Union Bank