ARLINGTON, Va.–(BUSINESS THREAD)–Small and medium-sized businesses (SMBs) are upbeat about the holiday shopping season, a stark contrast to their larger counterparts who have scaled back hiring and braced for excess inventory along with expected profit losses. Capterra SMB Holiday Retail Report reveals that more than half of SMB retailers predict higher profits this year due to an increase in marketing spend to target younger audiences through social media, advanced supply chain planning and the adoption of hybrid store models.
Gen Z and Gen Alpha are driving strong holiday sales for small retailers. Retail leaders surveyed expect that while some older shoppers may forego holiday spending, spending by children, teens and young adults will continue. To that end, 80% of SMB retailers with primarily Gen Z or Gen Alpha audiences expect higher seasonal profits this year, compared to 63% of those targeting millennials and 54% targeting audiences of Gen X and boomers.
Most small retailers (85%) are increasing their holiday marketing spend in one or more channels, including social media, e-commerce marketplaces and search engine optimization. More than 60% of small retailers advertising for the holidays intend to increase their social media marketing spend, including 73% of those targeting Gen Z and Generation Alpha and 67% of millennials lenaries
Capterra’s report also reveals that retailers who ordered holiday inventory earlier this year are reaping the benefits, sometimes outpacing big box stores. Major retailers have canceled billions of dollars worth of stock orders due to poor forecasting. In contrast, three-quarters (75%) of SMB retailers say they will have the right amount of inventory for the holiday season. Almost half (45%) of retailers surveyed got an early jump on ordering their supplies this year.
“From proactive inventory management to social media marketing, SMBs are pulling out all the stops to get clicks and foot traffic this holiday season,” says Molly Burke, senior retail analyst at Capterra. “Whether consumer spending supports SMB projections is an open question, although most retailers are confident they will enter 2023 with healthy holiday profit growth compared to large retailers.”
Retailers looking to grow their business and retain customers over the coming seasons need to start with the basics, such as safeguarding their inventory and offering an affordable price, fast shipping. Being creative with offers and social media marketing to relevant audiences can make or break the profitability of any growing retailer. Visit Capterra.com to read the full reportand learn more about how growing retailers can prepare for the holidays.
About Capterra
Capterra is the leading software selection and review platform that connects businesses with the right technology. Compare software, read and leave reviews, and access objective information that supports business growth. For more information, visit Capterra.com.
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