While independent retailers are no stranger to complexity (hello COVID), this year has added a whole new raft of challenges. As a result of this latest round of trade and supply chain upheaval, retailers have once again had to shift their sourcing strategies — and a new survey from wholesale marketplace Faire illuminates how they’re doing it.
For retailers both small and large, holiday is the most important trading period of the year. And while consumers don’t typically start thinking about the festive season until the leaves start to turn, data from Faire shows that holiday prep has become a year-round effort for local retailers. Over the past three years, there hasn’t been a single day when retailers weren’t searching for “Christmas” on the platform, and those searches also are starting earlier each year — from June to July this year, searches for “Christmas” on Faire increased by 124%, with the numbers only going up from there.
“The holidays are such a crucial time for small businesses, and this year has been especially challenging for many independent retailers,” said Mia Sakai, owner of Ándale Market in Chicago, and a Faire user, in comments shared with Retail TouchPoints. “In terms of strategy for this holiday season, we started planning and buying earlier, but we aren’t taking as many purchasing risks as we might have in other years.”
Here’s what else Faire learned about how independent retailers have adjusted their strategies this year to keep the holidays merry (and hopefully profitable) despite all the tumult:
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Buying Closer to Need
Since June, Faire has seen a steady increase in retailers reporting they’re buying smaller quantities per order and placing orders more frequently. Backing up this trend, 35% of retailers said in the survey that they’re ordering in smaller batches, allowing small businesses to keep overhead low and respond to customer demand in real time.
Exploring New Categories
From May to September, Faire saw a nearly 40% increase in retailers expanding into new product categories or trying new brands, indicating a desire to discover fresh inventory with stronger margins.
Shifting to Duty-free Products
With all the tariff back-and-forth this year, it’s likely not surprising that 60% of retailers on Faire are searching for new products not impacted by tariffs, and nearly 50% are sourcing from domestic partners to reduce costs and shipping times.
To help with this, Faire recently introduced a new “No Import Duties” filter that tens of thousands of retailers have already used it to source products, according to the company.
“Independent retailers are some of the most resourceful entrepreneurs in the world. Every year, they find new ways to adapt, no matter what’s thrown their way,” said Jen Burke, Chief Revenue Officer of Faire in a blog post. “We’re proud that Faire can play a role in helping them stay resilient and successful during the holidays and beyond.”
