As you read this, millions of Americans are getting ready to spend money—hopefully in your stores and restaurants and on your websites. According to a new survey from the National Retail Federation (NRF) and Prosper Insights & Analytics, a record-breaking 186.9 million people plan to shop from Thanksgiving Day through Cyber Monday. That’s more than three million more shoppers than last year’s record number.
Given the state of the consumer mindset, businesses plan to offer numerous promotions this shopping weekend. The survey says Black Friday is still the most popular day of the holiday weekend, with 70% of shoppers (130.4 million) ready to shop, followed by Cyber Monday (40% or 73.9 million).
In good news for small business owners, 53.6 million consumers are “considering shopping” on Small Business Saturday to support local businesses. As I mentioned earlier this month, the NRF expects holiday spending to reach between $1.01 trillion and $1.02 trillion, the first time sales will break the $1 trillion mark.
Reaching Holiday Customers
Since we’re at the “go” mark, you must reach the ready-to-spend, but still cautious holiday shoppers. The Small Business Holiday Outlook from Constant Contact shows how crucial holiday sales are for most business owners. Smita Wadhawan, Constant Contact’s Chief Marketing Officer, says, “The holiday season is the most critical time of the year for small businesses, accounting for up to half of annual sales for 60% of businesses.”
And, of course, marketing plays a vital role in attracting customers. The Small Business Holiday Outlook reveals that 60% of business owners had planned to increase their marketing communication frequency during this period. And 33% of businesses launched entirely new marketing campaigns for the holiday period.
The Top Marketing Channel
According to the Outlook, social media marketing is considered the “most impactful channel for holiday success by 40% of SMBs, significantly outpacing email marketing at 18%.” And discounts and sales lead the business owner’s promotional strategies, used by 51% of the businesses offering holiday promotions.
Business owners eagerly embraced these marketing efforts, with 81% reporting they were successful last year, leading to increased sales and new customers.
Holiday Challenges Remain
Despite the NRF’s positive outlook, Constant Contact reports, “SMBs are grappling with significant internal and external challenges:
- Economic Headwinds: Primary external concerns are inflation/rising costs (32%) and weak customer spending (22%).
- Operational Strain: Key internal challenges include customer engagement (39%), budget limitations (36%), and generating new ideas or content (34%).
- Tariff Impact: 46% of businesses report being negatively impacted by recent tariff policies, leading many to cut expenses (46%) or raise prices (43%).
Holiday Spending Trends
The BMO Real Financial Progress Index reports Americans will spend, on average, $2,800 this holiday season, up $1,000 from last year. But millennials plan to spend a lot more—$4,400, followed by Gen X ($2,500), Gen Z ($2,200), and boomers ($1,600). How are they affording this level of spending? The Index shows 45% of Americans spent less during the year so they could afford to spend more during the holidays. But 24% trimmed their list of people they’re giving gifts to.
This survey, similar to the one from Constant Contact, revealed consumers were impacted by rising costs due to tariffs, and 62% said they’ve become more concerned about the cost of living over the past three months.
Holiday Savings
Since so many consumers are financially stressed right now, due to the tumultuous economy, you might make sure your stores and restaurants are inviting respites from everyday stresses. Holiday music and festive decorations help set a more relaxed mood.
To address their financial worries, only 31% of consumers plan to pay for holiday gifts in cash, and 62% are “adjusting for tariffs.” Almost half (49%) plan to source gifts “minimally affected by tariffs.”
Their saving strategies include:
- Shopping for sale and clearance items (40%)
- Buying less expensive gifts (37%)
- Choosing more affordable brands (33%)
Bringing It All Together
As we head into the biggest shopping stretch of the year, the message is clear: consumers want to buy, but they’re being thoughtful about where and how they spend. That’s an advantage for small businesses that lean into what makes them special—personal service, community connection, curated products, and authentic holiday spirit. Whether you’re pushing out last-minute social posts, highlighting can’t-miss deals, or simply making your business feel welcoming and joyful, every touchpoint counts right now.
Make the Most of the Momentum
Remember, this is also the moment to strengthen customer relationships that last long after the ornaments come down. The shoppers you attract this weekend can become your most loyal patrons in 2026—if you nurture them. Keep communicating, showing value, and offering experiences your bigger competitors can’t replicate. It’s officially go-time for holiday sales, but it’s also go-time for building the kind of customer loyalty that sustains small businesses all year long.
Rieva Lesonsky is President of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo Courtesy Getty Images for Unsplash+
