Shopping locally for gifts has benefits and limitations

— -- Susan Fusaro of Jupiter, Fla., finds her local gourmet market, Carmine's, reminiscent of her former home in Long Island, N.Y. She often buys gift baskets at the Italian gourmet market for friends and clients.

"The people that I give these to know the reputation of the shop and love the presents," says Fusaro, who is a Realtor.

Doing holiday shopping at independent, local stores has benefits, including a wide selection of often-unique gifts and the chance to boost your area's economy, small retailers say.

Privately held stores that sell electronics, appliances, office supplies, stationery and gifts had more sales growth than their publicly traded counterparts in the last year, according to data from financial information company Sageworks.

"This movement reflects an increased sentiment towards supporting the local business community, more personal interaction and more comfort in a smaller shopping environment," says Mike Lubansky, Sageworks' senior financial analyst and product manager.

But local shopping can also cost more, reduce your options for returns and restrict how early or late you can shop.

"Larger stores are able to leverage their buying power, which helps them to significantly lower costs and improve margins," says Janet Shim, a retail analyst with the independent industry research firm IBISWorld. "Smaller stores are not able to compete with their larger counterparts in terms of scale and savings."

Local stores are "not typically open the marathon hours the national chains are," says Dan Butler, vice president of retail operations at the National Retail Federation.

While local store owners often have a unique array of gifts, they aren't likely to have any one item in bulk. They manage their ordering more carefully and can't typically afford the luxury of overstocking, Butler says.

"You want to buy it while it's available," Butler says. "It's more likely than not that it might have sold in the size you need or the color you want when you go back."

Here are some ways to make the most of local holiday shopping:

•Find out about markdowns. Check out stores' social-media profiles. Three-quarters of 615 retailers surveyed this fall by the online small-business community Manta said they'll be touting deals and other announcements that way.

Because local shops selling items such as art and jewelry often have a selection unique to their area, they're unlikely to have established a price-matching policy. But it's worth asking what they can do for you when it comes to deals, says Jody Rohlena, senior editor of ShopSmart magazine, published by Consumer Reports.

Haggling could get you discounts or perks such as repairs and services further down the line, she says.

"If you ask for what you want at a local retailer, your chances of getting it may be really good," Rohlena says. "It can pay off even if you spend more at the outset."

While some smaller retailers may join in on the post-Thanksgiving sales, local stores' markdowns will more likely come at the end of the holiday season, says Kurt Salmon retail strategist Alison Jatlow Levy. That makes gift certificates to a local shop a good option.

•Ask for special service. Local store owners and employees know a lot about what's sitting on their shelves, so pick their brains for recommendations and product information. Alex Andon, who owns an online jellyfish and aquarium store, says the same people answering your questions when you call a local store might even have had a role in developing the product.

"They absolutely know the product front to back." says Andon, who owns Jellyfish Art, based in San Francisco.

•Check return policies. National chains often tweak their return policies to better fit the holiday shopping season, but don't assume local retailers will do the same. Local stores' policies typically start the moment an item is purchased, not when it is actually given, so look for a generous one, Rohlena says. She suggests shopping at stores with a return period of at least 30 days.

A receipt may not get you as far at independent shops as it will at chain stores. Some boutiques only offer exchanges or store credit for returned merchandise, Rohlena says. So it's especially important to know in advance what's required for a return in terms of original packaging, intact price tags and receipts. And Rohlena recommends trying to negotiate better return terms for gifts purchased for people out of state.

So weigh the benefits of shopping local with the drawbacks.

For Fusaro, the benefits include knowing that she can always find someone to help her at her local gourmet shop. Besides, friends who are also from New York say it reminds them of home, too.