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A12 BUSINESS
Tuesday 18 OcTOber 2022
Small businesses brace for cautious

holiday shoppers

By Mae Anderson
AP Business Writer
NEW YORK (AP) — Small
businesses are stocking the
shelves early this holiday
season and waiting to see
how many gifts inflation-
weary shoppers feel like
giving.
Holiday shopping was rel-
atively strong during the
past two years as shoppers
flocked online to spend,
aided by pandemic stimu-
lus dollars. Sales in Novem- Hannah Nash places jewelry in a box that will be shipped out,
ber and December have Friday, Oct. 14, 2022, in Noblesville, Ind. Nash has her small
been averaging roughly business at her home. Small businesses are stocking the shelves
20% of annual retail sales, early this holiday season and waiting to see how many gifts
according to National Re- inflation-weary shoppers feel like giving.
tail Federation, making the Associated Press
holiday season critical for Supply Chain Manage- two years of strong growth.
many retailers. ment Professionals by glob- The main culprit: inflation.
This year, small businesses al consulting firm Kearney “There is less money go-
are bracing for a more found U.S. business logistics ing around to the average
muted season, as some costs surged 22.4% in 2021 person and we expect their
Americans spend more to $1.85 trillion. living expenses to impact
cautiously. AlixPartners, the “The one thing we’re cer- how much they can spend
global consulting firm, fore- tain of is it’s not going to on holiday shopping,” Nash
casts that holiday sales will be predictable … We really said.
rise between 4% to 7%, far don’t know what to expect Nash also expects more
below last year’s growth of and our retailers feel the people to shop in stores
16%. With inflation running same way,” Rhodes said . during these holidays. She
above 8%, retailers would Mat Pond operates The started her business, based
see a decrease in real Epicurean Trader in San in Indianapolis, during the
sales.z To prepare, owners Francisco, including four pandemic, when online
say they’re ordering inven- brick-and-mortar stores, an shopping boomed. The
tory earlier to avoid the online shop and a corpo- percentage of total retail
supply-chain snags that rate gift basket business. In sales done online jumped
frustrated them the past past years, he started build- from 11.5% in 2019 to 17.7%
two holiday seasons and to ing inventory in November, in 2020, then rose again to
draw in early birds. but this year he’s already 18.8% last year, according
They’re stepping up dis- stocking up on items such the Mastercard Spending-
counts as much as they as gourmet food, choco- Pulse, which tracks all kinds
can in the face of their own late, wine and giftware. of payments, including
higher costs. And owners He’s seeing corporations those by cash and debit
also hope more people will order holiday gift baskets card. Nash is stepping up
shop in stores and holiday earlier as well. discounts and offering bun-
markets after doing more “Everyone’s planning dles to attract shoppers:
of their shopping online ahead,” Pond said. “I think Her plans include a 15%
during the pandemic. everybody’s learning from discount for new customers
Max Rhodes, CEO of Faire, the past two years.” While this year, up from 10%, start-
an online marketplace the pandemic’s economic ing in November.
used by small businesses to impact has subsided some- And she’ll offer bundles of
sell their wares wholesale what, consumers are now products that are about
as well as buy goods for re- being tag-teamed by high 20% cheaper than buying
tail shops, said he’s seeing inflation and rising inter- items separately.
earlier ordering from mer- est rates. Overall, spend- Major retailers such as
chants who for two years ing has held up, although Amazon and Walmart are
had trouble getting enough some Americans have also offering holiday deals
holiday inventory stocked been forced to pull back to cash-strapped Ameri-
in time for Christmas. Stores on discretionary items. Any cans earlier this year. Am-
faced shortages of every- decline can be meaningful azon held a two-day dis-
thing from holiday décor because consumer spend- count event on Oct. 11-12
to gift items as COVID-19 ing makes up 70% of eco- where the average order
lockdowns forced factories nomic activity. was $46.68, $13 less than
to shut, costs rose and few- Hannah Nash, the owner what shoppers spent dur-
er shipping containers and of the online jeweler Lucy ing the company’s Prime
truckers were available all Nash, expects sales of her Day sales event in July, ac-
causing delivery snarls. earrings, bracelets and cording to the data group
A study for the Council of other jewelry to slow after Numerator.q