How small retailers can boost sales during the holidays

If you’re a small business owner, December usually brings two things: ample opportunity followed by chaos. Once Thanksgiving ends, you’re suddenly thrust right into the heart of gift-giving season. 

The holidays are a particularly important time for retail shop owners—especially amid ongoing economic uncertainty in the United States. Although analysts predict a slower season due to tighter budgets and tariffs, holiday sales are still expected to grow by 4.4% this year, with total sales expected to reach $1.05 trillion.

Below, industry experts and fellow retailers share everything shop owners need to know to boost sales during the holiday season.

Photo from Kayle Kaupanger

Digital presence is a necessity 

Online shopping is now a permanent fixture of the holiday rush. Ecommerce sales in 2026 are expected to make up 21.1% of total retail sales, according to a 2025 report from Shopify. And with holiday shoppers planning to spend 56% of their retail budget online this year (compared to 44% in stores), it’s imperative that retailers facilitate an easy transition from in-person shopping to digital. 

“E-commerce capability is no longer a luxury. It is a necessity,” said retail and small business expert Bob Negen. With more than two decades of retail experience running an award-winning kite shop, Negen later founded WhizBang! Retail Training, which offers training programs to retailers of all sizes. 

Photo of Bob Negen

Bob encourages business owners to update their websites ahead of the holiday season, starting with one question: What can you do in a two-week time span to make your website as good as it can be? 

Whether it’s building a website from scratch or revamping your current one, the idea of perfection shouldn’t discourage progress. “The beautiful thing is that the cost of technology and the ease of use of technology has really made [digital marketing] accessible,” Bob said. 

Your online presence doesn’t stop with your website, however. Customers are increasingly finding small businesses via social media and platforms like Yelp. According to Deloitte’s 2025 Holiday Retail Survey, 74% of Gen Z shoppers say they’re using influencers and social media for product discovery this year, while 43% are relying on AI tools.

If younger generations are a key demographic for your business, consider reaching these customers where they are. Build excitement by working with local micro-influencers, experimenting with short-form video on TikTok or Instagram, or giving your Yelp Page a holiday refresh.

Early, early, early

The phrase “early bird gets the worm” is truer than ever during the holiday season. With the influx of online orders comes delivery delays and product shortages—two of the top five frustrations for online shoppers. To stay ahead of the game, it’s crucial to order and advertise your holiday inventory early.

Luckily, consumers are also primed to shop early this year: Deloitte predicts holiday shopping will peak between late November and early December, as budget-conscious shoppers search for better deals and value. 

While managing supply chain disruptions can be tricky, sorting through the kinks now provides an opportunity to create an even smoother system in the future (something known as supply chain continuity).

According to Bob, the key is remaining agile. Rather than sticking with the same methods and vendors every year, retailers who respond to shifting capacities by changing suppliers have a better chance of surviving an unprecedented event, like the COVID-19 pandemic or this year’s tariff volatility. “[D]isruptions really create opportunities,” he said. “When we talk about disrupting the supply chain and margins—the two of them go together.”

Negotiating vendor contracts and improving your margins also allows you to sell products at a more attractive price for the customer. “Our best clients are proactively scouring not only their best vendors, but all vendors who are even remotely compatible for closeouts,” Bob said.

Another way Bob suggests achieving supply chain flexibility is to think outside of the box of your typical merchandise offerings and get creative. This is called a scattered merchandise mix and was a popular tactic during the pandemic.

Photo from Marcus Loke

Creating an omni-channel experience

One of the most important ways to achieve—and even exceed—your sales goals this holiday season is to provide customers with an omnichannel shopping experience. 

An omnichannel retail strategy is an approach to sales and marketing that combines the brick-and-mortar shopping experience with your digital channels. For example, selling by phone, FaceTime, or Instagram Live can unlock new opportunities for growth in the holiday season, especially when 68% of customers plan to use digital tools for holiday shopping, according to Deloitte.

Photo of Santa’s mailbox at Gino’s Deli Stop N Buy from Michelle K. on Yelp

With an omnichannel retail strategy, every single interaction with your brand should enhance the customer’s experience. In fact, Bob believes customers should be able to experience your business fully without ever stepping foot inside—something he’s termed “omniexperiential.” 

Whereas omnichannel refers to using multiple distribution channels and strategies to sell your product, omniexperiential involves distributing your brand—not just your physical product. Every touchpoint, from your packaging to your emails, is an opportunity to convey an immersive brand experience to the customer. 

To achieve this effect, Bob emphasizes maintaining brand consistency across all new and existing experiences. Aim for a never-ending, sensory overload of your brand. “The important thing is that they all support each other,” he said. 

Goldilocks syndrome: bundle deals and gift guides

Nothing says “happy holidays” more than good, old-fashioned discounts. While pricing strategies have always provided value during high-traffic seasons like the holidays, retailers are getting increasingly creative as customer budgets tighten.

For example, Jen Komaromi, owner of Jenny K. Gifts in El Cerrito, California, created a new revenue stream for her store during the pandemic by selling pre-packaged and customized gift bundles.

“People love it,” she said. “We include a gift message for the order, and it’s just fun for others to receive something unexpected. We’re getting a lot of companies doing this—corporate gifts, but even nicer because it’s not branded merchandise… It’s much more of an authentic gift experience.”

According to Bob, the secret behind bundle deals has a lot to do with consumer psychology. “When I teach bundles, it’s this whole idea of having price points: good, better, best,” he said. “If people see good, better, best, they tend to choose the bundle in the middle. It’s called Goldilocks Syndrome. Not too big or too small. The one in the middle is just right. This will increase the average ticket.”

Creative marketing strategies can also help your deals stand out. Jen developed gift guides for different customer profiles, like “crazy cat lovers” and “the guy who has everything.” For the 58% of consumers who say holiday shopping is stressful, curated gift ideas and wish lists can bring back comfort and joy to the experience, Deloitte found.

Editorial contributions by Emily Moon