Consumers, especially Millennials and Gen Z, are spending more at local businesses, with groceries and dining leading the way.
The top reason is supporting the local economy—but costs can add up quickly if you’re not careful.
A few simple strategies can help you shop local without blowing your monthly budget.
New data from OnDeck shows that Americans are making more purchases at independent businesses, with the average shopper spending a meaningful portion of their budget locally. This is especially the case with local grocers, which accounts for about 37% of local spending.
Younger shoppers are leading the charge, with Millennials and Gen Z making 25% more purchases from independent stores than older generations. Also, nearly half of consumers say they shop local primarily to support their local economy.
While shopping local can feel good, and often delivers better quality, it can also get expensive if you’re not careful. The key is knowing where it makes sense to spend local and where to pull back. Here’s how to do it smarter.
Focus on the categories where local gives you the most value
If you’re interested in trying to buy more local, consider not shifting everything overnight, as your costs will likely jump quite a bit. Instead, start with categories where local businesses tend to compete well on quality and price.
Your best places to start:
- Fresh produce
- Meat and dairy
- Local restaurants
- Specialty or handmade items
These are areas where you’re often getting:
- Fresher products
- Less supply chain issues
- More unique options
It’s a good idea to start by shifting just one category, and see how it works for you, before expanding to others.
Mix local shopping with big-box stores
The smartest approach isn’t "all local" or nothing at all. You don’t need to choose between local shops and major retailers. Instead, you can use both strategically.
Try this split:
- Buy staples (paper goods, pantry items) at larger stores
- Buy fresh or specialty items locally
This will help you:
- Keep overall costs down
- Still support local businesses
- Get better quality where it matters most
Plan ahead (this is where most savings come from)
Convenience is where big retailers win, as they have more selection and sometimes lower prices.
If you don’t have a plan when shopping local, you’re more likely to:
- Make extra trips
- Overspend on impulse items
- Fall back on expensive last-minute options
What to do instead:
- Try to plan meals a few days (or a week) in advance
- Make a shopping list before heading out
- Allow some extra time to shop local
Treat local shopping like a scheduled trip, not necessarily a last-minute stop where you’re likely to overspend.
Watch for hidden markups
Some items, especially at local boutiques, restaurants, and artisan shops, can carry a premium price.
Watch for the following:
- Smaller portions at higher prices
- “Specialty” labels with big markups
- Impulse buys you wouldn’t normally make
When possible, the smart move is to compare unit prices just like you would at a grocery store.
Take advantage of the side benefits
Many shoppers tend to overlook that shopping local isn’t just about price, it’s also about the value created.
You’re often getting:
- Better customer service
- Higher-quality or fresher products
- Unique items you can’t find elsewhere
And perhaps, even more importantly, the money you spend local tends to stay within your community.