In early 2023, Moriarty’s Gem Art, a jewelry shop in Crown Point, Indiana, made the strategic decision to prioritize online sales after reviewing the numbers from the 2022 holiday season. Jeff Moriarty, the company’s marketing director, explained that they reduced their physical store’s open days to two days a week from five to focus more on their online presence due to its significant growth.
This shift towards e-commerce is not unique to Moriarty’s Gem Art. According to the Small Retailer Report, a survey of 500 small-business retail decision makers, 53% of small businesses have seen most of their sales growth through online or e-commerce channels in the past six months, up from 49% the previous year. This trend highlights the increasing importance of online sales for small retailers.
Social media platforms like Instagram and Pinterest have played a significant role in driving sales for small retailers. The report revealed that 80% of businesses are selling through Instagram, compared to 51% in 2022, and 32% are selling on Pinterest, up from 11% the previous year. Amy Landino, founder of Amy Landino & Co, emphasized the impact of Instagram on her business, noting that shoppable links in Instagram Stories have significantly increased sales.
Loyalty programs have also proven to be essential for small retailers, with 59% of revenues coming from repeat customers in 2023. Many businesses are focusing on creating engaging in-store experiences to connect with customers on a deeper level. Moriarty’s Gem Art, for example, plans to host a ‘Guy’s Night Out’ event to encourage men to shop for jewelry items before the holiday season.
However, small retailers are facing challenges such as inflation, rising production costs, and labor shortages. The need to increase prices has become a top concern for 68% of small business owners in 2023, compared to 36% in 2022. Finding the right employees is also a struggle for many small businesses, with 40% investing in cash-flow management tools to offset labor shortages.
As the holiday season approaches, small retailers are gearing up for Black Friday, Cyber Monday, and Small Business Saturday. Moriarty is particularly excited about Small Business Saturday, as it provides an opportunity for his company to collaborate with other high-end stores in the community and attract more shoppers.
Overall, the Small Retailer Report highlights the evolving landscape of small retail businesses and the importance of adapting to changing consumer behaviors and market trends. By embracing e-commerce, social media selling, loyalty programs, and engaging in-store experiences, small retailers can navigate challenges and capitalize on opportunities for growth in the competitive retail industry.
