Business Strategy: 2025 State of Retail Report shows high productivity in small shops

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The holidays are here, and as you start checking things off your gift list, consider shopping small, even beyond Small Business Saturday. Oklahoma City is home to a diverse and vibrant network of local retailers, whose inventory will certainly include great gifts for the people in your life. The holidays are a critical time for small businesses; reports have repeatedly shown that the holidays account for up to half of annual sales for up to 60% of small business owners.

Oklahoma’s recent 2025 State of Retail Report, put together by the Independent Shopkeepers Association, recaps how the ups and downs of the past year have impacted retailers, highlighting just how crucial it is to support individual businesses this December.

Like most industries this year, retailers felt the impacts of inflation and tariffs—three quarters of shops reported negative impacts from tariffs and inflation. Yet, our local businesses remain resilient, strong and productive. Despite the hard times, Oklahoma City shops increased their productivity from the previous year, up to $334.10 per square foot from the previous year’s $286.80. Their productivity even surpassed the national average of $325 per square foot. Having such strong productivity directly improves the economic strength of the city, as that revenue is immediately reinvested back into the community through local taxes or organizational costs (like payroll or operational needs).

Additionally, Oklahoma City’s retailers play a significant role in providing workforce opportunities for residents. An estimated 27% of Oklahoma residents work in retail, and nearly 43% of retailers are planning on expanding staff next year, according to the State of Retail report. Retail jobs not only support the individual shops, but they also help workers develop skills transferable to other industries, lifting up the entire network of industries in the city.

The State of Retail report also highlighted several bright opportunities ahead for local retailers. Over a quarter of metro shoppers are tourists, and with the upcoming Route 66 Centennial Anniversary drawing an influx of new out-of-town, even out-of-state tourists, to Oklahoma City, the city’s retailers are projected to see a reciprocal boon to sales next year.

Everything is interconnected: a strong local business network makes Oklahoma City even more attractive to potential residents and helps entice large corporations to invest in our city. Shopping at local retailers actively makes Oklahoma City’s economy stronger and more prosperous. So support local entrepreneurs this December, and shop local.

Kenton Tsoodle is the president of The Alliance for Economic Development of Oklahoma City.