It seems there is only ever bad news about the future of retail, but year after year our independent retailers tell a different story. Locally run shops continue to beat the odds despite the many, often novel, obstacles they face. This spring, we ran a study to seek the truth and understand what people around the country think of their Main Streets. The results tell a hopeful story about local retail’s strength—and its unique superpowers. We found that despite the impacts of inflation and the aftermath of the pandemic, nearly 80% of consumers saw their Main Street as stable or growing compared to pre-pandemic. How are local retailers doing this? The answer is community.
In-store experiences drive sales
Through our research at Faire, we discovered a compelling trend: A focus on personalized and community-centered strategies is helping independent retailers drive foot traffic and boost their sales. By embracing these highly local and tailored approaches, they offer their customers experiences that much larger retailers can’t replicate, and their customers are responding.
Calli Swofford, the owner of Denver-based home goods store Miller Lane Mercantile, said they are focusing on highly curated and thoughtful in-store experiences, like artist demonstrations, now more than ever before. “Our community continues to show up for them time and time again. The camaraderie that forms on these occasions is a big part of what keeps our momentum going as an independent brick-and-mortar shop. These kinds of gatherings can’t be replicated on a large scale, and that’s the true beauty of it,” she told us.
The impact of these experiences comes through in their checkout data as well. Despite the majority of retailers offering online or social media purchasing options, 97% of retailers say in-store is still the most popular way customers shop. The most common factor driving this experience: personalized customer service—something that nine out of 10 of surveyed retailers offer. Community engagement initiatives, championed by 65% of retailers, also play a key role, as do in-store events and local partnerships.
Customers are connected to their shop owners
Our research also revealed that leaning into personalized connection establishes long-term relationships, which in turn drive customer loyalty.
Customers who have a relationship with their local shops don’t always need a reason to stop in. According to our survey, more than 80% of retailers report that customers come into their shops just to socialize with their staff because they have built relationships with them over the years. The same majority of consumers reported they would be willing to travel up to 30 minutes just to visit their favorite Main Street shops. Consumers are purposefully choosing to spend time in these stores even without the intention or necessity of making a purchase.
“My desire to contribute and give back to my community is authentic and clear,” said Chandler Tang, founder and owner of post.script, a gift shop in San Francisco’s Pacific Heights neighborhood. “I’m at the store almost every day. Customers enjoy coming in and seeing a familiar face, and they want to support us.”
In spite of an online retail landscape dominated by convenience and algorithms, consumers find close-knit and trusted relationships with their local shops, and even see them as their personal shopping curators. A large majority of retailers report that customers come into their shops to ask for recommendations on what to buy or for help picking out a gift. Main Street stores also respond best to local trends, with 60% saying their customers request certain products or brands to be stocked, helping them further tailor their offering to what their community wants.
Consumers are willing to spend more in their communities
Community’s influence on consumer behavior can’t be overstated. It is such a driving force for consumers that they would actually spend more to see their local shops thrive. Our survey uncovered an inspiring commitment: On average, consumers are personally willing to spend nearly $2,000 more in 2024 at their local shops. This support extends beyond personal budgets, even shaping voting decisions: 85% of consumers say a candidate’s support of small businesses will influence who they decide to vote for in elections this year. This is promising news for the record-breaking number of new retail business openings in 2023, as they are likely to be met with an outpouring of consumer enthusiasm.
In an era often characterized by digital saturation and homogenized trends, Main Street’s resurgence emerges as a beacon of authenticity and the enduring nature of local character. These small businesses are meeting a growing demand for cultural connection and community by providing personalized experiences that stand out in a landscape dominated by impersonal shopping. As independent retail continues to reclaim market share and consumer support, they signal a profound and exciting shift for the future of retail.
Max Rhodes is cofounder and CEO of Faire.