Retail sales have recently been one of the more promising aspects of the economy, showing a 2.1% increase from the previous year in August.
This positive trend in sales emerges against a backdrop where job growth is slowing and unemployment is climbing.
However, small businesses are cautious as they head into the holiday season, a crucial period for reaching their annual financial goals.
According to a recent survey by Constant Contact, many small businesses across the U.S., Australia, Canada, and the U.K. face challenges as consumers reduce spending amid rising inflation.
Business owners are adapting their approaches, but there is uncertainty about their effectiveness.
This situation is especially pressing for retail and service-oriented small businesses, who are most affected by economic discrepancies that aren’t always reflected in broader statistics.
Lessons from 2023: The Struggles of Holiday Shopping
Almost 80% of small businesses that keep track of their marketing efforts felt unsure about whether their holiday strategies were successful in 2023.
This uncertainty left many businesses feeling like they were in the dark.
On the flip side, there’s some good news.
A report from Affirm showed that even with financial worries, 70% of Americans feel just as confident, if not more, about managing their holiday spending this year compared to last.
This suggests that people are ready to spend, even in challenging times.
Moreover, data from Constant Contact highlighted that 78% of shoppers plan to make purchases from small businesses they haven’t bought from before.
This trend offers a fresh opportunity for small businesses to reach new customers, which could ease some concerns about their holiday performance.
Jordan pointed out that these trends should encourage small business owners.
Despite fears and doubts, people are turning their attention to small businesses, which reflects a broader focus on supporting local enterprises, especially after the impacts of COVID-19.
This shift in consumer behavior could be a key driver for small businesses to seize in upcoming holiday seasons.
