CHICAGO — Small business owners across Chicago said they are sounding the alarm about their future as sales slow and the busy holiday shopping season begins.
Black Friday and Small Business Saturday represent crucial weekends for local store owners, who rely on the surge in sales and the national focus on independent businesses to make ends meet.
But store owners said many stores are still reeling from pandemic closures that began nearly four years ago. High inflation is not helping, making it more expensive to run a business with fewer clients, businessmen said.
Haley Borden, who owns Andersonville's Milk Handmade, 5137 N. Clark St., posted about these challenges on Instagram last month, saying this holiday season is “make or break for a lot of local businesses.”
Many fellow business owners responded to this post with their own experiences of slow business.
Borden and other small business owners say it's more important than ever to shop neighborhood stores, take advantage of deals at local stores and promote locally owned businesses on social media — not just this weekend, but all year long.
“Everyone wants to live in a nice little neighborhood full of shops and restaurants, but we're not decorations,” Borden said. “If you want to live in a place like this, you have to get out and support these places, otherwise they won't be here anymore.”
Local stores struggle to compete with low prices and tight budgets
Continuing to grapple with the effects of the pandemic makes declines in business difficult to endure, said Merle Kinsey, owner of The SHUDIO, 1152 W. 18th St., in Pilsen.
“A lot of us have had a very difficult couple of years, but this year seems to be the hardest yet,” said Kinsey, who sells plants, locally made jewelry and vintage clothing. “A group of small business owners are having a group conversation together, and we've all seen this slowdown. It's not something we're doing wrong or can change.
Charlie Wynn, communications director for the Andersonville Chamber of Commerce, said he's heard similar concerns from small business owners who say they're seeing fewer shoppers than usual this time of year. The nonprofit works one-on-one with small business owners to help them address challenges.
“In the past, we'd see most people finish their holiday shopping by the end of October, but that's not the case this year,” Wen said. “I could come up with a thousand reasons for this, but trends seem to be changing and people are behaving differently this year.”
Recently, more people seem to be shopping online or at big-box stores to save money, Wen said. Small businesses struggle to compete with big-box store prices, selections and free shipping offers.
“I don't think there's one reason,” Kinsey said. “It's student loan debt coming due again, there's been a lot of inflation, and everything seems very expensive. You can't blame people for trying to save money.”
Even small businesses that sell food and other necessities have struggled recently, said Mia Sakai, who owns Bodega Andel Curated Market, 5232 N. Clark St., in Andersonville.
“Sometimes people stop and look at what we have on the shelves, take pictures and see if they can find it somewhere else for less,” Sakai said. “It's hard for you as a small person, because you can't really compete with the prices of larger companies.”
Although shopping at local businesses may be a little more expensive, studies have shown that the money you spend at a local store is more likely to directly benefit the community you live in, Wen said.
For every $100 spent at a local business, $68 stays within the Chicago economy, according to the 2004 Andersonville study that inspired American Express to launch Small Business Saturday.
“A lot of local companies go to great lengths to source their materials from other local companies,” Wayne said. “They promote local artists who may not have their own stores, and they actually create more jobs.”
Borden and other local business owners said doing holiday shopping at local stores is one of the easiest ways to support small businesses, but they also need help with advertising.
Many big brands work with online influencers and can spend more money on online advertising, which shifts people's attention away from small businesses, Kinsey said.
“We're so grateful when we see customers praising us on social media because that's really what helps us stand out,” Kinsey said. “Working with algorithms can be very difficult, so the more local businesses we can see, the better.”
After Borden posted about slow business on Instagram, more people came into the store and purchased items online, Borden said.
“It made me optimistic about people's ability to change,” Borden said. “I don't think anyone has bad intentions when they choose not to support local businesses. I think they don't really think about what they stand to lose when they try to save time and money.”
Exploring your neighborhood, making small purchases, and sending group chat recommendations can go a long way, Kinsey said.
“I think it's just about getting back in front of people's eyes and helping them reconnect with small businesses in their area,” Kinsey said.
The Andersonville Chamber of Commerce launched a social media campaign called “Love It Like A Local” to help people reconnect with neighboring areas, Wayne said. Each post highlights a local business and its impact on the community in a dating profile format with hand-drawn photos.
“These places are not just retail businesses,” Wayne said. “The idea is to identify the history of your neighborhood, build a relationship with these businesses and learn more about them. They're not faceless businesses. They're run by everyday people who are opening businesses to do what they love and provide opportunities for people in the city.”
The chamber also hosts events with the goal of introducing people to local businesses and attracting more shoppers to the neighborhood.
For small businesses on Saturday, Chamber of Commerce organizers will distribute “small business passports” at The Understudy, 5531 N. Clark St.
People can use the passport to track their spending at small businesses around the neighborhood, then return it for a chance to win gift cards to local stores.
Want to shop local this holiday season? Check out over 130 local businesses in the Block Club Gift Guide.
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