Consumer Behavior

Small retailers anticipating a profitable holiday season

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November 9, 2022

A good majority, 80%, of small retailers targeting Gen Z and Gen Alpha consumers via social media efforts are optimistic about higher profits this holiday season.

That's a prime finding of Capterra's SMB Holiday Retail report.

In contrast, big box retailers are expecting profit losses due to excessive inventory.

Most small retailers (85%) are increasing holiday marketing spend on one or more channels, including social media, e-commerce marketplaces and search engine optimization, according to a press release on the study's findings. Over 60% of small retailers that will advertise for the holidays intend to increase their spending on social media marketing, including 73% of those targeting Gen Z and Gen Alpha and 67% targeting Millennials.

"From proactive inventory management to social media marketing, SMBs are pulling out all the stops to get clicks and foot traffic this holiday season," Molly Burke, senior retail analyst at Capterra, said in the release. "Whether consumer spending supports SMBs' projections is an open question, though most retailers remain confident that they'll enter 2023 with healthy holiday profit growth compared to big-box retailers."