Why the simple act of shopping locally is vital for regional identity

More than three quarters of surveyed regional residents said that spending money at a local business was an important way to feel a part of their town, according to new research.

It ranked ahead of community sport, attending local events, and volunteering for fostering a sense of connection.

Providing a detailed snapshot of community engagement in 2025, the annual Heartbeat of Australia study captured the sentiments of more than 7000 regional and metropolitan Australians.

The fourth annual study was jointly conducted by the University of Canberra and Australian Regional Insights, which is the research arm of this masthead's publisher, ACM.

The survey results come as shops in regional areas were struggling to compete against major retailers, amid the popularity of online sales events such as Black Friday and Cyber Monday, Wagga Business Chamber business manager Sally Manning said.

"It's always gonna be a struggle to try and keep up with the convenience of online," she said.

But the connection gained by shopping locally remained important for regional communities.

"Small businesses are generally family operated or run by husband and wife duos," she said.

"Popping into a small business, knowing the people that own it, having a catch-up and a chat - when you're in a small community, that's your way of connecting with people."

Not all age groups felt connected by shopping locally. The survey found a large generational gap when it came to supporting small businesses.

For Baby Boomers, born between 1946 and 1964, 91 per cent felt connected to their community when supporting a local business, compared to only 65 per cent of Generation Z respondents.

Be.Bendigo chief executive Hayley Tibbett said that the lack of engagement from Generation Z suggested stores were failing to appeal to a younger regional demographic.

"It's a really tough one, because If the younger generation aren't going to the stores, then shops are going to skew towards the people that are spending money," she said.

The Bendigo Chamber of Commerce chief executive said it was not a new phenomenon for people living in the country, "I remember thinking when I was younger, there are limited shops here for me".

And it was not just about stocking products for younger audiences, businesses were also using technology to advertise to Generation Z, she said.

"How many businesses now are social media savvy? If they're aimed at that younger audience, they've really got to be on TikTok, because that's where they are," she said.

The Heartbeat of Australia study found that regional Australians felt forgotten by big brands, with almost a quarter feeling that major outlets did not advertise in their local newspapers.

"Retail, like everything else, is going to change with digitisation," Ms Tibbett said.

"How do we then help our rural and regional areas remain relevant? And how do we keep that shop local attitude, keeping money in those areas?" she said.

"It's a question I don't have the answer to, but I think smaller regional businesses are really trying to do that.

"And the ones that are getting traction are working in that digital space to keep those younger people engaged."

But, with the growing popularity of Black Friday sales online, small regional businesses were struggling to keep up with competitive discounts offered by e-commerce retailers, the Chamber of Commerce CEO said.

"The pressure on the small businesses to give discounts is not realistic," she said.

But it meant that it was more important than ever for local businesses to have "a point of difference".

"Shopping habits change. Younger generations find it easy to jump online to purchase something," Ms Tibbett said.

"But there is also that generation that values an in-person experience, where the salesperson helps them find clothes that suit their shape, style or coloring," she said.

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Despite the love for local shops, there's a troubling trend of people across Australia feeling less connected than they did a year ago.

The importance of shopping locally and supporting local businesses has dropped eight percentage points in the regions, from 86 per cent in 2024 to 78 per cent.

Capital cities saw a similar drop from 83 per cent to 73 per cent.

Despite this, across regional Australia, 58 per cent felt that their community was a great place to live, giving their community a score of six to seven out of seven, the research found.

Communities were grappling with a growing sense of isolation, making it important for towns to find new, exciting ways to bring people back together, Ms Manning said.