Small business worries about effect of inflation on holiday shopping

WATCH | Small business worries about effect of inflation on holiday shopping
Published: Nov. 17, 2022 at 5:28 PM EST
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GEORGETOWN, Ky. (WKYT) - Mom-and-pop stores in the bluegrass are wishing for strong sales on Black Friday and Small Business Saturday.

However, some of those small businesses have threats against their profit margins that include inflation and supply chain issues.

Inside a downtown, Georgetown boutique called, All That and More, you’ll find shoppers ready for the holiday season.

For the business owner Tina Peffer, two big shopping days are on the horizon.

“Black Friday and Small business saturday are absolutely retail Superbowl,” Peffer said. “and I need those two days to be enormous.”

why? Peffer says the fourth quarter boost sustains her budget for 2022 and into the first quarter of next year. However, there are concerns. The 63-year-old says she had a Christmas open house and sales were down 25% from last year.

Peffer says companies are selling products, once exclusive to boutiques, to big-box stores and straight to the consumer.

Other threats to the store include online shopping, inflation and supply chain issues.

However, Steve McClain with the Kentucky Retail Federation says small businesses are seeing solid years.

“And they think that some of that is due to the fact that people are wanting to get back into the stores,” Steve McClaine said.

Reports, from other small businesses in downtown Georgetown, indicate strong sales.

Peffer says, one thing that will make or break a clothing store, is a loyal customer. Ramona Kalia, a new customer, says shopping local is important and believes we can’t let these stores die out.

“We need to hold on to some of our roots, we really do and this is one of those things we do not want to lose,” Kalia said.