SALT LAKE CITY — Local businesses are feeling the effects of inflation as the holiday shopping season approaches.
With inflation soaring and the economy struggling right now many businesses are worried about their bottom line.
“That is definitely something that is forefront on our minds as managers and owners,” said Liz Smith, the manager of Salt & Honey Market in Salt Lake City.
This is the first week of Salt & Honey's “Holiday Market” — a time of year when they bring in handmade items from over 50 local sellers and small businesses to display in the store.
While the turnout has not been bad so far, Smith said it's "not quite as busy as maybe it has been in the past.”
With booming inflation, the bottom line is top of mind for Smith.
“Fortunately, with really small businesses, typically, you're maybe the only person who works there, so you don't have to worry about layoffs," she said. But on the other hand, she added: “You also bear the brunt of all of that financial stress.”
Getting foot traffic in the door isn’t so much of their worry, but rather the production costs to get things in the store in the first place.
“A lot of what we hear is how they've been having to raise their prices because the cost of their materials has gone way up. I mean, I've heard a lot of people it's three times as much,” Smith said. "It's a little bit harder for small businesses trying to kind of make those margins and make ends meet.”
That being said, Smith said she's seen people shopping earlier before financial hardships hit, which is good for the business — especially as their heater just went out and is 33 weeks on backorder.
"But that gives us time, I guess, to raise money," Smith said. "So we're doing a gift card sale to try to raise funds for that, and we're hoping to raise 60 to 70 grand."
She hopes Utahns will shop locally as big retailers are already seeing a downturn in business with the economy slumping.
“The small businesses are really just putting everything that they have into it, and I just feel like you can feel better about a purchase like that," she said. “I mean, that's what I tell myself, anyway. I'm like, 'I'm buying this for me, but I'm also buying this for you, right? Help me help you.' It's one of those things."
