Sounding The Alarm: Merchants Need You Now
Our Small Biz Saturday Poll last weekend was eye-opening, to say the least. Canadians and U.S. small business owners alike had a lot to tell us about their experiences.
Let's start with some good news: 75% of the poll respondents said they participated in Small Biz Saturday.
- Of those retailers who promoted it, 22% said their brick-and-mortar sales were way up and the day was a success
- Another 8% said their online sales were terrific, and
- 18% said the day was "okay" and they made enough to get by.
However, 52% of retailers were disappointed by Small Biz Saturday, saying they did not meet their sales goals.
So, yes, there was some good news, but given how the rest of the quarter has been going for retailers, Small Biz Saturday really needed to be much better for the majority of them.
And that situation has us concerned during the final weeks of the 2022 holiday shopping season.
Another reason we're worried comes from related statistics generated from our November 19-22, 2022 poll of 6,326 small business owners.
In this survey, 41% of all small business owners told us they couldn't pay their November rent in full and on time. This is the highest SMB rent delinquency rate we've seen all year.
44% of Retailers Couldn't Pay November Rent In Full
And for retailers, the figure was even worse, where 44% of Mom and Pop Shops couldn't afford their full rent.
The reasons cited included the ongoing effects of high inflation, supply chain issues, labor costs, increasing crime, and escalating rent, as well as reduced consumer spending in their stores.
In fact, 73% said consumers spent less over the past month than they did previously. In October, that figure was only 59%.
And 58% said they were at least somewhat concerned about the possibility of shutting down for good in the next six months if inflation doesn't improve substantially.
31% Are Highly Concerned About Shutdowns
Of that group, 31% of small retailers are "highly concerned" about potentially closing, with 3% saying they've already shut down or plan to by the end of 2022.
If you can't pay your rent after a few months, eventually you end up closing your store, leaving more empty storefronts on Main Street.
Personally, I already see too many of those vacant spaces, that were once beautiful, bustling stores in small towns across North America. Some of these storefronts have been empty now for two years or longer.
Beyond just mourning the stores we've lost, we have to keep this in mind, too. As more stores close, (without others moving in to replace them), the more the tax base in the affected towns will erode, making these communities less appealing places to live.
Property values will decrease, and a town's economy can continue to spiral. No one wants that -- and no one wants to live next to a Main Street that resembles a ghost town.
Reverse This Problem & Help Small Retailers Rebound
But there are still a few weeks left this year, where we can help our local merchants recoup some of their losses.
So, join us in pledging to spend at least 60% of your holiday spending with your locally owned stores. If we all chip in and make a concerted effort, we can help save some of these shops.
And if you can post below, identifying your favorite local establishment(s) where you plan to shop this week, we can show all of our retailers that we're behind them and want them to succeed, despite economic challenges.
Let's face it, we're stronger together -- and it would be nice to show our collective strength in the coming weeks.
Thanks in advance for pitching in! See you on Main Street.
Comments (1-10)
I prefer to shop locally and do so as much as possible, but it can be a challenge.
Small business in our downtown currently open at 10 (most of them) and close at 5. Saturdays they close at 4. Some open at 11. Some are open on Sunday. There is no concensus among the merchants to have consistent hours. What is it with being open shorter than most office hours?
With every business having individual hours for their own convenience, it's an aggravation to head downtown, only to find that a number of the stores are not open. Women do most of the shopping. People work. When are they supposed to shop? They go to the big box retailers who are open longer hours or shop on line. Waiting until a week before Christmas is too late to open evenings. Anyone who has to travel for Christmas, or ship gifts, does so before the end of November. Others spread the gift budget out and do some each week often starting as early as September.
I know that some small businesses are open exceptionally long hours and it is appreciated.
It would be helpful if the "downtown" merchants all had the same hours, stayed open a bit later, and stuck to them.
If you are to operate a successful retail business you have to be available to your customers, greet them with a smile, and a "thank you for your business" when they leave with a purchase.
We need to stop using Amazon!!! Put down your phone or laptop, get out of your couch and go shop your local or not so local stores. Use service companies “ hair, nail's and massages from small biz owners. These companies were shut down completely during covid in California for over 8 months!!
bozo has enough of our money already. Go out and meet new biz owners and tell them you want to support them!! You will be surprised the customer service you will receive!!
wishing the best to all small biz owners,
Cary Johnston
These numbers are so disappointing. Small business, the mom & pop merchants and eateries located in every town (over 2.1mil just in the US alone!) everywhere around the world, have products and services for every conceivable need and desire. Yes, it's up to local communities to recognize what they want, is probably just around the corner. But it's also up to local business to realize, no one is going to visit them just because they exist. Customers need to be brought it! 87% of the global populace prefers to personally buy (as opposed to just 13% on-line). 87%!
Think about this. Now, take advantage of it!
Help all of us ! Massage envy and Elements have huge advertising dollars . Many small shops do not . Please consider to visit your hair dresser and Massage therapists too . Buy from gift certificates too
Great article. We live in a quaint small town without chain stores and it would be very sad if they all went away. It is what makes our town so special. I do see lots of Amazon trucks. I know the convenience is alluring, Amazon trucks have been to my house too. But, I am appreciative of a small town feel and that includes local stores to shop in. We need the local stores to stay in business.
Yes. Those of us that make six figures should go shopping in the neighborhood with their partners that also make six figures! Why not?
But I'm not so sure that those that don't make six figures are going to be too enthusiastic about doing that? Especially those that are having a hard time paying their bills.
Maybe next year after pritzkers' 43.5 cents per gallon gasoline tax is added to the price of gasoline.
Oh well. It's what the people voted for!
Small businesses are the backbone of our economy. Online shopping is here to stay but we all need to support small businesses more than ever before. We are seeing this firsthand with our business during open enrollment for health insurance. The plan rates are the same if people buy through healthcare.gov or from us or another small business insurance broker. In fact, local brokers will often save people money (knowledge about taxes, savings and expenses etc). This is just one example; the same holds true for many other small businesses. Have a great New Year and the next time a decision needs to be made, support small business.
How can start a marketing plan with action to focus on small business rather than amazon and wallmart? Where it is to locate what you need and discover new things? i don't think there is enough organized web site on this?
It is usually a little more expensive to shop local but the "government" will never go broke because local businesses have gone broke. They just raise your taxes. So.. shop local reduce your tax liability and keep most of the $$$ in the community.
As a small business owner in Calgary, I feel this, along with many! I urge Calgarians to support their local small businesses this season🙏