What Does It Really Mean to Shop Locally?

When you shop at independent or locally owned businesses, your money doesn’t just disappear into a corporate system. It stays close to home. Local businesses tend to support other local suppliers, farms, and services, helping your entire community grow stronger together.

“Shop local!” is a rallying cry that resonates year-round, especially among eco-conscious shoppers. And it gets even louder as the holiday season approaches.

But what does “buy local” mean, exactly?

• If a big box store is just down the road, does that mean I’m shopping locally?
• Does buying from my neighborhood supermarket count as local?
• Is shopping small on Etsy the same as shopping local?

And perhaps the biggest question of all, especially during tough economic times:

• Why should I shop locally when I could get something cheaper from a major retailer or online?

What Does it Really Mean to Shop Locally?

Simply put, shopping locally means choosing independently owned businesses in your community over big-box chains or online mega-retailers. It’s about supporting the people who live and work where you do.

• Buying seasonal foods, handmade jewelry, and soaps at your farmers market
• Eating at independently owned restaurants instead of fast food or national chains
• Visiting your local hardware store rather than a big box store
• Supporting local artisans who craft candles, jewelry, furniture, etc.
• Buying from independent book sellers instead of a mass online retailer
• Hiring local craftspeople to repair or refurbish furniture or broken items you otherwise might have thrown away

The Shop Local/Shop Small trend helps cultivate relationships within the community. Especially during tough economic times, it’s a win for everyone involved. And it’s a lovely feeling to know you’re supporting your neighbors.

When buying from people and businesses you trust, shopping becomes more meaningful because you know the people behind the products.

The Benefits of Shopping Locally

Not only does buying local help your community… it’s also kinder to the planet. Many mass-produced items may come with a cheap price tag, but their hidden costs add up quickly. Long-distance shipping, excessive packaging, and increased carbon emissions all contribute to environmental harm.

Here are more ways buying local is good for everyone:

• Keeps more money in your community – On average, 68 cents of every dollar spent at a local business stays local, compared to just 13–15 cents at national chains.
• Boosts the local economy – Local purchases fuel job creation, local entrepreneurship, and regional development. This generates ripples through what’s called the multiplier effect.
• Supports unique and handmade goods – Local artisans often create one-of-a-kind items you won’t find on big-box shelves. Giving a thoughtful gift involves stories, meaning, and personal touches.
• Builds community connections – Knowing the people behind the products creates trust, deepens relationships, and makes shopping feel personal and meaningful.
• Reduces environmental impact – Local goods typically require less packaging and transportation, leading to lower carbon emissions and less waste.
• Supports better labor practices – Local businesses are more likely to pay fair wages and offer humane working conditions, unlike many overseas factories.
• Keeps neighborhoods vibrant – Independent businesses help define the character of a town. Their presence increases foot traffic, preserves historic buildings, and enhances community identity.
• Provides better customer service – Small business owners care about repeat customers and can offer product expertise or custom service you won’t find at a chain.
• Encourages local philanthropy – Local businesses are more likely to support nearby schools, charities, and events by donating money, goods, or services.
• Promotes entrepreneurship and innovation – Supporting local gives space for fresh ideas, niche products, and diverse offerings that might not survive in mass markets.
• Improves food quality and safety – When you buy from local farms, you often get fresher, seasonal food that hasn’t traveled thousands of miles or sat in storage.
• Increases local resilience – A diverse, locally rooted economy is better equipped to weather economic downturns and supply chain disruptions.
• Provides tax benefits to your city – Local businesses pay local property and sales taxes, helping fund public services like parks, libraries, and emergency services.

And if we’re being honest, do we really need to put more money into the pockets of billionaires?

How to Buy Local

The Buy Local movement can really be summarized in four simple steps:

Shop Small

Think INDEPENDENT businesses when you think of shopping small. Boutique or consignment clothing stores, toy stores, gift shops, hardware stores, salons/spas, restaurants, and sports equipment stores are just a few examples of owner-run businesses where you can find great gifts.

Maybe you don’t live in a metro area with many options, in which case, local craft fairs and Etsy are perfect places to look for something special. To use Etsy for local shopping, simply do a search for sellers in your area. I once found a soap maker in my town who made the most beautifully-scented body products inspired by local attractions. A double local win!

Spend Locally

When you spend money at a locally owned business, you’re doing more than just buying a product—you’re investing in your community. According to the American Independent Business Alliance (AIBA), this is known as the “Multiplier Effect.”

“The multiplier effect is the boost to your local economy that results from locally-owned independent businesses, owners, and employees spending business revenue within the region.”

What the Research Shows

• A 2025 Capital One study found that $68 of every $100 spent at local stores stays in the community – supporting jobs, schools, services, and other small businesses.
• In 2024, U.S. shoppers spent $3.74 trillion at local retailers – representing over 51% of all retail sales.
• Of America’s 34.8 million small businesses, about 3 million (8.67%) are independent retailers – meaning your support has a direct impact on millions of owners, employees, and families.

The Ripple Effect of Local Spending

The Michigan Retailers Association, along with Public Sector Consultants, found that a 10% increase in local shopping could:

• Create more than 15,000 new jobs
• Generate $690 million in new labor income

In other words, your money doesn’t stop at the cash register. It moves through your town, supporting dozens of other transactions and livelihoods.

Local Shopping Wins the Season

According to the National Federation of Independent Businesses, 36% of independent retailers say Small Business Saturday is their most important shopping day of the year—outpacing even Black Friday (24%).

And in a study by Civic Economics for Independent We Stand, buying home improvement products from local stores returned seven times more money to the local economy than making the same purchase through Amazon.

Eat Locally

Don’t underestimate the amount of dollars spent on food, beverages, and restaurant visits during the holidays. Those dollars can be viewed as an investment in your community!

From the farmers who grow your produce to the chefs who know your name, every bite you buy locally helps keep your community thriving. In fact, studies show that 65.4% of each dollar spent at a locally owned restaurant stays in the community, compared to just a fraction at national chains.

Not sure where to start? Try these easy ways to eat more locally this season:

• Visit your local farmers market for fresh, seasonal produce and handmade goods
• Look for signs or labels that indicate locally sourced items in grocery stores
• Choose small wine shops, independent bakeries, or neighborhood delis over big-box options
• Dine at locally owned restaurants, cafés, and coffee shops. Many offer holiday menus or gift cards that make perfect presents

Eating local doesn’t have to be all or nothing. Even shifting a few of your weekly food purchases to local businesses can have a meaningful impact.

Enjoy Your Local Surroundings

Sometimes the best way to appreciate where you live is to explore it with fresh eyes. Think like a tourist! If you were visiting your area for the holidays, what would you want to experience?

Chances are, there’s plenty happening right in your backyard. Look to your local Chamber of Commerce, city website, or community social media pages for holiday happenings. Check school calendars, library events, seasonal craft fairs, and performances hosted by civic groups or local clubs.

Rediscovering the charm of your own community might be one of the most rewarding “local investments” you can make this season.

Keeping these basics in mind during the holidays will guarantee you’re doing your part to support your community, and that you’ll see the benefits of that support in the coming year!

This article was originally published in 2013 and updated in 2025.