What Does Shopping Locally Mean Today?

Consumers value supporting local businesses, but often have to decide between the convenience and affordability of national retail chains and eCommerce sites, or shopping with independent local retailers who offer unique products at higher prices. Amidst the pandemic, eCommerce played a crucial role in enabling retailers, whether they were small independents or major national chains, to survive. Simultaneously, many communities emphasized the need to support local businesses to ensure their resilience through the challenges posed by the pandemic.

I’m interested in knowing if US consumers are still giving priority to local businesses while deciding where to shop post-pandemic. I also studied how consumers define the term “local” when making shopping decisions. In this context, I would like to share some essential findings from a proprietary study conducted by PDG Insights, which surveyed over 300 US consumers to explore their attitudes and perceptions towards shopping local retailers.

What is “shop local”?

Short answer – shopping within 15 miles of home. When thinking specifically about shopping at local businesses, the answer is clear:

1. According to a survey, when shoppers say “shopping local,” 13% of them specifically mean shopping at businesses located in their immediate neighborhood.
2. 44% of shoppers believe that “shopping local” refers to shopping at stores located in their own city or town.
3. Another 30% of the people surveyed said that shopping within a 10-15 mile radius of their hometown is what the statement means.

It is important to note that 9 out of 10 shoppers define “shopping local” as shopping within their neighborhoods, cities, or within a 15-mile radius of their homes.

What is a “locally owned” business?

It is clear that consumers define locally owned businesses as independent merchants or retailers who reside within the community. An interesting fact to note is that as these independent merchants or retailers grow larger, they become less likely to be perceived as locally owned.As a company expands its presence beyond the local region, fewer consumers perceive it as a locally owned business, even though it may still be viewed more favorably in this regard than a national chain.

What do you consider locally owned?

It is important to have a physical presence in the community for businesses. Local companies that only operate online do not receive the same recognition as those with brick-and-mortar locations. Shoppers can differentiate between corporately owned national chains and locally owned businesses. Unfortunately, even locally owned franchisees of national chains are often viewed similarly to the larger corporations they represent.

What types of merchants are most important to shop locally?

Shoppers emphasized the importance of visiting locally owned restaurants, grocery stores, and certain service providers like health and beauty services and automotive repair when asked about the significance of supporting local retailers and merchants in different areas.

Although it’s important to prioritize visiting local independent merchants in some sectors, it’s equally important to do so in all the sectors explored. Over 50% of consumers agree with this and appreciate reminders about the unique offerings of local stores. Consumers want to support local businesses but may not be aware of all the alternatives available to them.

Why does shopping locally matter to consumers?

Although consumers may have varying reasons, there are some common themes that explain why people prioritize shopping at locally owned businesses. These themes tend to vary according to the type of retailer or merchant.

1. Community support and growth: Consumers understand that shopping locally keeps money in their local economy and creates job opportunities and other benefits for people in the community. They like that they know the people that work at the stores but also have the chance to make new connections. At the most basic level, 82% of consumers said they like supporting their local economy.
2. Unique products and assortment: People believe they can find unique products that they can’t find anywhere else when they shop locally. More than half of consumers (56%) feel a personal connection to the brands they are buying, and can’t always get that from other places.
3. Convenient for a cause: Two-thirds of consumers believe it’s more convenient to shop locally, and 56% feel there is a smaller environmental impact when they shop locally. Staying close to home, with retailers that source close to home, should lead to a smaller carbon footprint.

After the pandemic, people are still committed to supporting their local merchants and retailers. In upcoming posts, we will explore how consumers prioritize local brands in various retail outlets. We will also examine how these attitudes may vary among different demographics.