Local small business owners face challenges this holiday season due to inflation
This week is huge for retailers as we kick off the holiday season.
“It’s the beginning of our ramp up to holiday pandemonium,” said Will Groves, sales director for Maggie’s Farm Rum.
For Maggie’s Farm Rum, this season of shopping accounts for 40% of their yearly business. So they spend the whole year getting ready for Black Friday and Small Business Saturday.
“We start preparing for OND in like June July and it’s stock piling products, packaging. We had to shop around for our eggnog in June this year,” Groves said.
But this year brings new challenges.
“Things are so different this year part of the thing the Grinch that stole Christmas well inflation stole Christmas, people are concerned, and they started shopping much earlier,” said Dr. Audrey Guskey, a professor at Duquesne University.
Dr. Guskey studies consumer trends. She said 40% of people will spend significantly less this year trying to shop more at discount stores.
“And believe it or not the national retail federation is predicting that sales are going to increase by 6 to 8 percent however with inflation we are going to be paying more for less,” said Dr. Guskey.
So where do small businesses land when it comes to inflation?
“We’ve defiantly been paying more for some of the raw materials and a lot of packaging has hit our industry hard we’ve really tried hard not to raise prices,” Groves said.
Because of that effort, Groves said the business hasn’t seen a dip in shoppers due to inflation. He’s hopeful people will still be willing to support them this weekend even with less money in their pockets.
“We don’t have the economies of scale if you are buying 15 truck loads of cans or bottles or anything you get the breaks but we don’t get that as much so having people willing to come out right now has been really awesome,” Groves said.
Guskey anticipates a good turnout for independent stores as she finds shoppers are more willing to spend money in their own communities.
“People are supporting them and this is such a big holiday that people know and a lot of communities are doing various events to get people on board,” Guskey said.
When you look at the data, it’s not just independent shops that benefit from Small Business Saturday, but restaurants too.
Across the country last year, 54% of people dined or ordered takeout from a local restaurant compared to the 48% the year before.
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