Holiday Shopping Marketing Strategy for Local Businesses

The holiday season is one of the most important times of year for small and local businesses. Between Thanksgiving, Christmas, and New Year’s, shoppers are actively seeking gifts, services, and experiences to share with their friends and families. According to the National Retail Federation, holiday sales in November and December often account for nearly 20% of annual retail sales in the U.S.—and for many businesses, this period can make or break the year.

You don’t need a massive advertising budget to capture your share of holiday spending. You need a thoughtful, community-driven strategy that combines smart promotions, local visibility, and customer connection. Shopify even reports that early seasonal promotions have become a key driver for small business success during Q4. Here’s how to craft a winning plan.

How Much Do Consumers Spend Locally During the Holidays?

Understanding consumer behavior can help you plan smarter campaigns. Deloitte’s annual holiday retail survey shows U.S. households spend over $1,600 on average during the holiday season, with much of that budget going toward gifts, dining, and experiences.

Even more encouraging: a recent survey from the U.S. Small Business Administration found that nearly 72% of shoppers make it a priority to support small and local businesses during the holidays. This means local shops, restaurants, and service providers have a huge opportunity to capture wallet share when they market strategically.

1) Start Early and Build Anticipation

Shoppers plan earlier every year, especially with online browsing and “early-bird” holiday deals starting before Thanksgiving. Local businesses can stand out by teasing promotions or events in advance.

• Send an email campaign in early November with a “Save the Date” for your holiday specials.
• Use countdowns on social (“5 days until our Holiday Kickoff Sale!”).
• Add storefront signage to let walk-in customers know something special is coming.

2) Embrace Local-Focused Advertising

National chains dominate big TV and digital campaigns, but local businesses can leverage geotargeted ads and community visibility to compete.

• Run geofencing ads targeting people shopping at nearby malls or big-box retailers, reminding them of your local alternative.
• Use Google Business Profile posts to promote holiday deals—these show up directly in local search results.
• Partner with community organizations, schools, or events to sponsor holiday activities where your logo and offer get seen.

If you’re new to geotargeting, HeyNeighbor’s local ads and geofencing process makes it simple for small businesses to launch campaigns quickly.

3) Offer Holiday Bundles and Gift Cards

Shoppers love convenience, and bundles make decision-making easy. Gift cards are consistently among the most requested presents.

• Salon: “Holiday Glow” package—cut, style, and product.
• Bakery: Dessert bundle—pie + cookies + specialty loaf.
• Service businesses: Promote gift cards as “the gift of time.”

4) Create a Festive In-Store Experience

If you have a physical location, make it feel like a destination, not just a store. A memorable visit can spark sales and repeat customers.

• Decorate with seasonal displays and lighting.
• Offer small treats like hot cocoa, cookies, or candy canes.
• Host a “Holiday Sip & Shop” event with refreshments and early access to specials.

5) Use Social Media Creatively

Shoppers are scrolling Instagram, Facebook, and TikTok for holiday inspiration. Your content can drive both foot traffic and online orders.

• Run a “12 Days of Deals” series—highlight one product or service per day.
• Share user-generated content; ask customers to tag you with their holiday finds.
• Post behind-the-scenes videos of your team preparing for the holidays to add personality and connection.

6) Highlight Local and Personal Connections

Shoppers want to support businesses that care about their community—especially during the holidays. Position your brand as the neighborly choice.

• Run a “shop for a cause” promotion with a local charity.
• Emphasize that every purchase supports local jobs and families.
• Share stories about your team, your history, or your role in the community.

7) Extend Shopping with Convenient Options

Not every customer wants to shop in-store. Offering multiple purchase methods can boost sales.

• Online ordering + curbside pickup for last-minute shoppers.
• Local delivery via courier partners or apps.
• Flexible payments like “buy now, pay later.”

8) Don’t Forget the Post-Holiday Season

The week between Christmas and New Year’s is still a high-traffic shopping period, especially for gift card redemptions. Keep promotions running into early January to capture this revenue.

• “New Year, New You” specials for gyms, wellness, and services.
• Clearance sales on holiday inventory.
• Thank-you campaigns to encourage repeat visits.

Holiday Marketing FAQs for Local Businesses

When should local businesses start holiday promotions?
Early November is ideal to capture early-bird shoppers. Many customers begin browsing before Thanksgiving, and starting early helps build anticipation.

What are the best holiday marketing strategies for small businesses?
Run geofencing ads, offer bundled gift packages and gift cards, create a festive in-store experience, and use social campaigns like “12 Days of Deals.”

How can local businesses compete with big-box retailers during the holidays?
Focus on community connection, personalized service, and convenience. Partner with charities, offer curbside pickup, and remind customers that every purchase supports local jobs and families.

Should holiday marketing continue after Christmas?
Yes. Shoppers redeem gift cards and hunt for deals between Christmas and New Year’s. Extending promotions into January helps capture that demand.

Wrapping It Up

The holidays are more than a sales opportunity—they’re a chance to strengthen your connection with your community. By planning early, promoting locally, creating memorable experiences, and embracing multiple shopping channels, your local business can thrive during the holiday rush and build momentum into the new year.

Pro tip: You don’t have to outspend the big-box stores—outsmart them with community, creativity, and convenience.