Thought we would share this with our Chamber members.
We take a stroll down Main Street to see how small- and medium-sized businesses (SMBs) are doing in 2022:
- As of 2021, there were 28 million SMBs operating in the US, which make up 99.9% of all US businesses, per the Small Business Administration.
- According to the Main Street Index by Pymnts (which looks at the number of establishments and employees and total wages paid), retail SMBs are still 1.8% below pre-pandemic levels. However, the sector did see a 5.4% increase in Q1 2022 as compared to a year ago.
- Similarly, total visits to independent restaurants are still 7% below pre-pandemic levels, though there was a 12% increase between 2021 and 2022, per NPD Group.
- One of the challenges small and medium-sized retailers are facing is rising vendor costs, per the National Retail Federation (NRF). Sarah McDonald of Out There Outfitters in Wayne, Pennsylvania, told the NRF, “We've seen 10% to 25% price increases across the board from our vendors and expect a second wave of increases this summer… Now I’m anticipating [customers] feeling the sticker shock at my store since I have no choice but to raise my prices.”
- McDonald isn’t alone. Almost half of retail SMBs aren’t able to meet their vendor’s minimum order sizes, and 42% can’t pay premium prices, per Software Advice. In all, 46% of retail SMBs reported that at least one vendor has dropped them for reasons related to them being a small business.
- About half of all Main Street businesses across all sectors say inflation and economic uncertainty are key business challenges this year, per Pymnts. Despite that, about two-thirds expect sales growth in 2022.