LOS ANGELES, Nov. 17, 2021
/PRNewswire/ -- Despite consumers prioritizing small business
shopping to support their local communities in 2020, this year's
higher costs, limited supplies and challenging labor shortages are
weighing more on shopping decisions this holiday season. According
to new research by Union Bank, a leading West Coast bank, consumers
are now just as likely to shop in-person at small businesses (77%)
as large retailers (77%). However, roughly half of consumers are
willing to spend up to $10 more on an
item to support a small or local business, while about three in
four plan to spend up to 50% of their budget with small
businesses.
The Union Bank Small Business Holiday Spending 2021
Survey reveals hurdles consumers are facing this holiday season
– avoiding crowds, navigating shipping delays and concerns over
inventory shortages are reasons nearly half of consumers planning
to shop earlier than normal this year (45%).
Overall, consumers are expecting a different type of holiday
shopping season, with many saying they've begun experiencing some
of the pain points - insufficient stocking of inventory (39%),
reduced hours/staffing (35%) and long checkout lines (29%).
Furthermore, nearly a quarter say inflation is likely to – or
already has – had an impact on their ability to spend on the
holidays this year (24%). Other financial factors that will play a
role in consumer holiday spending include trying to save more (22%)
and increased expenses this year (21%).
To remain competitive, small businesses can offer a
differentiated experience to encourage consumers to shop locally.
More specifically, when asked what would make them more likely to
spend at a small business this season, U.S. consumers cited the
following drivers as most important:
- 59% said offering unique, exclusive gifts
- 48% said offering online ordering
- 46% said providing a cheery, holiday experience
And while 64% said offering holiday sales, discounts and
promotions would make them more likely to spend at a small
business, only 47% of small business owners plan to offer such
price breaks. Similarly, 46% of consumers said providing a cheery
holiday experience/ambiance would make them more likely to spend at
small businesses, and only 32% of small business owners said they
plan to incorporate decorations this holiday season. Finally, 49%
of consumers said free local delivery would be a reason to shop
small, while only 28% of small business owners plan to offer the
service.
"Now more than ever, small business owners need to be creative
and consider prioritizing low-cost, easy strategies to help
motivate consumers to shop with them this holiday season," said
Todd Hollander, Head of Business
Banking and Small Business for Union Bank. "Fortunately, it's not
too late – something as simple as creating a spirited ambiance with
holiday décor and music, or offering free local delivery, could go
a long way in motivating customers to choose a small business over
a major retailer."
Additionally, to prepare for the holiday season, small
businesses can better promote themselves, as consumers reported
they rely on word of mouth (56%) and search engines (38%) when
considering which small businesses to shop.
About the Union Bank Small Business Holiday Spending
2021 Survey
Research was gathered through an online survey
commissioned by Union Bank and conducted by global independent
research firm Edelman DxI. The survey was completed by 1,000 U.S.
consumers (age 18+) and 200 U.S. small business owners, sampled to
be nationally representative. Data was collected between Oct. 5 and Oct. 13, 2021. 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 June 30, 2021, MUFG Union Bank, N.A. operated 305
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 $133.2 billion, as of June
30, 2021, 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 ¥362.1 trillion
(JPY) or $3.3 trillion (USD)¹, as of
June 30, 2021. 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=¥110.6 (JPY) as of June 30,
2021
©2021 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
T: (213) 236-5329
E: sierra.wilson@unionbank.com
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SOURCE Union Bank