Nationwide, consumers spent more this holiday season than last year, and despite a continuous increase in online shopping, some independent, local retailers have only seen a growing number of customers.
According to a MasterCard spending report, consumers in the United States spent about 7% more online shopping this season versus last year. In-store sales increased by about 3%, and the overall 3.8% spending increase since 2023 slightly surpassed forecasts.
Paulette Munroe, who has owned the Burlingame clothing boutique Morning Glory for 52 years, said this holiday season was better than last year, and she has noticed many people are more interested in getting back to traditional, personalized shopping experiences, especially in the last few years.
“This year was definitely better than last year. Ever since COVID, we’ve seen this reaction to shopping, where people don’t want to go to the malls anymore and online shopping for clothing is less too,” she said. “Things have to fit, they want to feel things, and we are the kind of store that helps.”
Many of the clothing lines that Munroe bought inventory from shuttered during the pandemic. While there are still not as many to source from since 2019, they are starting to gradually come back, she added.
Munroe said the store is ideally situated in an area with a mix of businesses, and it often attracts customers from San Mateo County and San Francisco, many of whom prefer the shopping experience in the Peninsula city versus crowded malls that offer the similar styles.
“It’s hard to go to a mall and find a pair of pants and then get them done with alterations and everything. We usually do them quickly and we are very hands on,” she said. “And we get a lot of people from the city who say it's faster to try and park here than to find something in the city.”
Downtown San Mateo also has a variety of businesses, most of which are restaurants. But Mackenzie Jakoubek, executive director of the Downtown San Mateo Association, said the DSMA has made an effort to incorporate more local artists, artisans and retailers to the area recently.
“Previously, decades ago, downtown had some huge retailers like Talbot’s and brick-and-mortar retailers,” Jakoubek said. “But it’s not as popular as it used to be with online sales. We love our restaurants, so [more retail] is not something that DSMA is specifically pushing for, but it would always be great to have a variety of merchants.”
On Dec. 8 and Dec. 22, San Mateo’s downtown participated for the first time in Head West, a pop-up style marketplace held in different cities throughout the Bay Area featuring independent small business owners. Jakoubek said the events, which were the first time they were hosted on the Peninsula, highlighted the demand for locally sourced and crafted goods.
“Our concern with something like this is always, will this help existing merchants or will it take away from their business? … but the feedback was very positive,” she said. “We’re not necessarily known as a shopping location, so it was really nice to have an added reason to be a destination during the holiday season.”
In addition to wanting a better shopping experience, Munroe said there has also been more awareness from consumers on the pros and cons of local, sustainable retailers versus what she calls disposable fashion.
“They like to support the local independent store, and they know if they do everything online then we won't be able to survive,” Munroe said. “And customers don't want something that’s everywhere.”
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