The state of retail, small businesses this holiday season

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With the upcoming holiday season, consider shopping locally. A recent survey by AMEX Small Business Trendex highlighted that nearly 90% of small retail businesses nationwide find the holiday season revenue critical to their yearly bottom line, comprising over 33% of their yearly revenue. Yet despite being one of the hardest hit industries by the COVID-19 pandemic, Oklahoma’s retail industry is seeing sustainable growth and recovery as seen in the recent State of Retail 2024 report, which outlines how small businesses directly impact our local economy.

Even compared to larger retailers, locally-owned retailers have a larger local economic impact. Spending at local businesses is invested more directly into the fabric of the local economy—smaller businesses have a smaller circuit between consumer spending and investing that revenue back into the local economy through taxes or organizational needs (payroll, organizational needs, etc.). According to the State of Retail report, OKC shops even generate more sales per square foot than larger retailers in the metro, with local shops earning $286.76 versus larger retailers like Dillards ($143 per square foot) and Macy’s ($210 per square foot).

In addition, local businesses are integral to building up the local workforce. According to the report, 67.4% of small retail shops expanded their staff in 2024 and 48% expect to expand again next year, up from last year when only 40% of small retail shops expected to see staff growth. Not only did staff sizes grow, but so did wages. This year, metro employees working in small retail shops made an average of $16.32, up almost 12% from last year.

A rising tide lifts all boats. Building up the network of locally-owned businesses helps create a healthier business environment that entices larger corporations to enter the regional marketplace, encourages tourism, and potentially draws families to relocate to the region. For example, upcoming additions to OKC like the OKANA Resort & Waterpark or the new City of OKC arena will bring more foot traffic to local businesses, equating to more sales. The potential impact for metro small businesses is drastic, as most see a 72% conversion rate of people entering their stores and making a purchase. Everything is interconnected within the economic ecosystem and must work together. So this season, uplift small entrepreneurs and help create a stronger economic environment.

Kenton Tsoodle is the president of The Alliance for Economic Development of Oklahoma City.