SMALL BUSINESS NOW REPORT: HOLIDAY 2026

Your holiday marketing doesn’t end in December

More consumers are intentionally shopping small, small businesses are confident, and AI is helping them deliver. But the real opportunity comes after December.

Read the key takeaways
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Key takeaways

THE HOLIDAY LANDSCAPE

Inflation is on everyone's mind, and so are discounts

  • 32% of consumers say rising prices are their top holiday concern

  • 30% of small businesses say the same

  • 53% of shoppers look for sales and discounts as their main reason to shop small, while 38% of small businesses plan to lead with discounts

Man with curly blonde hair in a red sweater typing on a laptop near a window with lush green plants.
A tattooed female barista with red hair steams milk at an espresso machine in a café, wearing a black shirt.
HOLIDAY CONFIDENCE

Despite economic worries, small businesses feel confident

  • 77% of small businesses worldwide are confident they'll hit their 2026 holiday revenue goals, including 81% in the U.S.

  • That confidence has a track record: 71% rated last year's holiday marketing as effective

BIGGER NUMBERS SHOP SMALL

Supporting local merchants is the single biggest reason (56%) consumers prefer shopping small

  • Nearly 2x more customers plan to spend more at small businesses this holiday season than in 2024 (20% vs. 11%)

  • Supporting local merchants is the single biggest reason (56%) consumers prefer shopping small

  • 75% of customers say they're likely to shop with a small business they've never bought from this holiday season

A smiling female shopkeeper in black assists a customer at a checkout counter with plants and a salt lamp nearby.
A smiling bald man with a gray beard stands arms crossed in a café, wearing a black t-shirt and a smartwatch.
WHAT SHOPPERS WANT

Small businesses outshine big chains, but have competitive opportunities

  • 48.5% choose small businesses for original or more exciting gifts

  • 43.9% prefer the more enjoyable shopping experience, and 26.2% value personalized service

  • 44.1% value flexible pickup, returns, and free shipping, but only 21.9% of small businesses prioritize them

AN OVERLOOKED OPPORTUNITY

Your holiday season marketing doesn't have to end in December

  • 39.0% of small businesses plan New Year follow-up emails, and 33.9% plan January and February product launches

  • However, 22.1% have no follow-up plan, and 70.8% won't invite holiday shoppers to join their email list or rewards program

  • With 53.4% of small businesses saying over a quarter of their holiday customers are repeat buyers, start inviting shoppers to join your email list now, and plan a New Year offer to bring them back

View infographic
Two men stand over a wooden table set with blue napkins, menus, and candles. One holds a wine glass, the other a can.
Woman in black outfit holds a tablet and writes notes at a desk in a vibrant orange home office with plants.
AI ATTITUDES

Small businesses use AI where shoppers are most comfortable with it

  • 68.2% of small businesses plan to use AI tools to streamline holiday operations

  • Top AI uses include: drafting marketing content (33.6%), creating product imagery (32.2%), and forecasting inventory demand (30.9%)

  • 56.3% of consumers are comfortable with small businesses using AI for marketing assets

More resources for SMBs

Data Sources & Methodology: The statistics and claims featured across this page are compiled from a mix of proprietary survey research and internal data.

  • Survey Research: Specific user sentiment and behavior data is derived from our 2026 Small Business Now Q2 2026 Survey, which polled 5,595 participants (3,340 SMBs and 2,255 consumers) across small business owners and consumers in the United States, United Kingdom, Canada, and Australia/New Zealand.  The survey was fielded in April 2026.

  • Internal Data: Performance metrics, usage stats, and benchmarks on this page are derived directly from our own internal platform data and operational systems.

  • AI tools cut email production time by up to 23% (Based on internal Constant Contact customer analytics for 2025)