RALEIGH, NC (WTVD) — As the holiday sales rush comes to a close, small businesses are summarizing both the pros and cons of what 2022 presents.
“2021 we had a record year, and that carried over into the first half of 2022. Obviously our customers are much more comfortable (returning) to the store to shop,” said Kayla Brewer-Cheek, owner of Voda. Boutique in North Hills.
Brewer-Cheek, an NC State graduate, worked for Belk before opening her downtown Raleigh store in 2017.
“In those first two and a half years I had to be really creative, I had to be really nimble and quick on my feet and nimble. Like very nimble. Because there were days where sales didn’t exist,” she explains.
Brewer-Cheek said a move from her original North Hills location in 2019 made a big difference, fearing possible bankruptcy if the new space didn’t open. She said they were able to take advantage of increased traffic ahead of pandemic-induced disruptions in 2020, which her business was well-positioned to deal with.
“I was very thankful that our online store was real and I didn’t have to struggle like many of my peers who also own retailers, juggling during that time. It helped us a lot. We have connected with our customers a lot through social media from the beginning, and having the website was also a huge tool in helping us keep the lights on,” Brewer-Cheek said.
Brewer-Cheek said the initial struggles she encountered helped prepare her for the ups and downs stemming from the pandemic, as she continues to take a hands-on approach to all sectors of her business.
“When someone feels good about what they’re wearing, it just shines through their confidence level,” she said.
While overall sales this year are up, Brewer-Cheek said the holiday season, a key part of the final quarter of the year, is down compared to 2021.
“The cost of living has gone up, so it’s really hard for people to justify going out and spending on clothes that maybe they don’t necessarily need, or jewelry or accessories or whatever we offer here at Voda when eggs are $4 when they used them. to be $1.99,” Brewer-Cheek explained.
Rising wholesale product fees have also forced it to raise prices, another hurdle small businesses are facing as they work to meet consumers where they are.
“If anything, we’re a little bit overinventory because we were projected to continue at the same rate we were at the end of 2021, and that just hasn’t been the case,” Brewer-Cheek noted.
A report this month from the U.S. Department of Commerce found that manufacturers and merchandise inventories for October rose nearly 17% year-over-year, with Brewer-Cheek joining other retailers that are also offering discounts to clear space.
“When I was planning to start the business, I obviously had no idea that the economy was going to be down. And it affects everything. It affects the supply chain, it affects business decisions. It really has a massive effect on what it’s your company. what will your company be, how will you change. you have to be flexible, you have to be fluid. if you’re too rigid, especially at a time like this economically, then you might run into some problems ,” added Casey Klugman, who launched his Les Monts eyewear company in April.
Klugman, who is currently the sole employee, partnered with a marketing company to generate buzz and awareness.
“In terms of retailers, my B2B business, it’s been pretty much me going around New York City with a suitcase and the collection and going from store to store and seeing if anyone is interested in seeing the collection ,” Klugman explained.
He has found success with social media pushes, noting increases in web traffic when campaigns are underway. Understanding consumer habits, as well as what works and what doesn’t, has been a learning experience.
“I’m a designer by trade, I’m an artist by trade,” said Klugman, who was excited to gain experience in all aspects of running a company.
Visits to brick-and-mortar locations have provided an opportunity to gather direct feedback and increase sales as he learns more about consumer habits.
“When you’re talking to an optician or a buyer who knows their glasses and they’re willing to put them in their store with other brands that you know are reputable, that’s a really good indicator of be taken,” Klugman said.
October was its best month, although sales fell in November, before recovering in recent weeks. It hopes to carry that momentum into 2023, its first anniversary, a feat the Bureau of Labor Statistics reports about 20% of businesses fall short of.
“It’s challenging to weather that storm. There’s a lot of ups and downs and I think you have to celebrate the little wins, when you have a good week, you have to be really happy about it,” Klugman said.
As he works to grow his business, he has pledged a portion of the proceeds to Mental Health America, with a goal toward destigmatization.
“There are people, friends, family, mentors throughout my life, people who have dealt with mental health issues, not being in the best head space at one point or another, and it’s something that I’ve always thought that you don’t get. the recognition it deserves maybe because it’s not something you see all the time,” Klugman said, adding that more brands have made efforts to highlight their social missions.
According to the National Retail Federation, November sales rose 6.5% year over year, although they fell slightly from October; December results will be out in January.
A report released earlier this month by the National Retail Federation and Appriss Retail found that the average return rate remained flat at 16.5%.
“Timing will be key. A lot of stores will change their return policies around the holidays. So you’ll have to be up to date on those. It could be 45 days, it could be 10, it could be as little as a week . So before you make a return, make sure you’re knowledgeable about return policies,” said Nick Hill, a Communications Specialist with the Better Business Bureau.
Some products and stores only offer store credit instead of a return in the original form of payment; be sure to keep receipts for any items purchased.
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