The U.S. depends on small businesses. More than half the people in the country either own or work for a small business, and those companies create about two out of every three new jobs annually, according to the U.S. Small Business Administration. Retail is responsible for a little over 35% of small business employment. 

In recent years, large chains started to take the lessons of independent companies and apply them at scale. The most impactful of those decisions may have been bringing down the square footage of brick and mortar locations. At the same time, independent retailers started to experiment with solutions that used to only be available to mass marketers or large national chains. For example, as technology improves and becomes more affordable, small businesses are able to deploy savvy payment solutions, delivery mechanisms and other operational improvements. 

The pandemic has changed some of that, pressuring small and large businesses and particularly squeezing stores that were deemed non-essential during periods of required closures early in the crisis. Small retailers tried some of the same pivots their national competitors did in response — shifting where possible to e-commerce or piloting new delivery options — but the challenges of scale and competition that have always plagued those retailers didn’t evaporate during the pandemic. And in many cases the ongoing uncertainty pinched small retailers further by disrupting cash flow, employment and normal business. 

This trendline explores several topics facing small retailers as disruptions from the pandemic, e-commerce and broader economic trends continue to bedevil operations.

Access the Trendline here.