Most owners rely on holiday sales to survive
You can help keep your local shop open for another year by shopping small during the holiday season.
According to 523 small business owners surveyed by American ExpressIn October 78% said their holiday sales would determine whether or not they will be able to stay afloat by 2022. To make matters worse, they will need to deal with challenges such as empty shelves or staff shortages.
Saturday is the 12th anniversary of American Express’ Small Business Saturday campaign. This helps shoppers find small businesses during one of the most busy holiday shopping weekends. Many of your favourite local businesses are still reeling from the last year’s Covid closures and supply chain disruptions.
CNBC Make It: Ali Rose VanOverbeke of Genusee in Flint, Michigan, says that “this year specifically there’s lots of uncertainty.”
The number of closed businesses in the past year was 33% higher than normal. according to a studyThe U.S. Federal Reserve. Even though the economy has seen a positive shift in 2021’s economic outlook, many small retailers still face a number of challenges. new obstaclesFrom rising inflation to continuing labor shortages.
VanOverbeke said that Genusee’s supplier labor shortages and inflation combined forced her to raise prices. It’s unclear if customers will continue to be willing to spend more.
Fortunately for her — and others like her — this holiday shopping season is expected to be one for the record books. According to The Associated Press, Americans will spend $843 billion in holiday shopping this November and December. This would represent a new record and an 8.5% increase over 2020. National Retail Federation.
The expected increase in small business could be a significant portion. Last year, U.S. shoppers spent a total of $19.8 billion with independent retailers and restaurants on Small Business Saturday, according to an American Express estimate — up slightly from $19.6 billion in 2019.
American Express polls October’s survey 1,013 U.S. adultsWe found that 88% of respondents said they are likely to shop small at least once this holiday season. Other 42% stated that they intend to buy at small businesses on Small Business Saturday.
Ashley Rouse (owner of Brooklyn’s vegan jam company Trade Street Jams) says that she expects to make money. We will see an uptick in sales every year. [in sales]With holidays and gifting. It’s an important season. [and]We’re preparing for it.”