Holiday shopping season crucial for small, local retailers

The shelves at the Hose Co. No. 4 fire station no longer hold firefighting equipment. Instead, paper goods and gift items are on display for Scribe Stationer, the stationary store in the New Bohemia District that’s now located in the historic building.

Scribe’s owner Nikki Kettelkamp leans into the desire to slow down and communicate with paper and pen. The inventory includes simple but elegant gifts, perfect for holiday giving.

The holiday shopping season is a crucial time for small, local retailers.

“A lot of businesses will do 40 percent of their volume in four to five weeks,” Kettelkamp said. “It is a critical time.”

For many local shoppers, visiting small businesses is a given at this time of year. These small businesses can offer unique items that are hard to find elsewhere. Scribe Stationer features high-end, quality giftable items from around the world: Kaweco fountain pens from Germany, Marjolein Delhaas planners from the Netherlands, Craft Design Technology pens and pencil cases from Japan.

While shoppers like the option to purchase imported items like these, tariffs imposed by President Donald Trump and his administration on imported goods are likely to make them more expensive.

Tariffs are taxes on imported goods and have been in flux the past 10 months. Currently, they range from 15 percent on items imported from the European Union and Japan, and up to 50 percent on items from India and Brazil. U.S. importers pay these fees, which are then often passed on to retailers and consumers.

What does this mean for shoppers? If the U.S. government assigns a 15 percent tariff on a fountain pen from Germany that costs the local shop $50, the new cost to the shop will be $57.50.

Tariff fees have already impacted Scribe’s business.

“We started to stock up on things before the tariffs went into effect,” Kettelkamp said. Some of her overseas sources are covering some of the cost of tariffs, and Scribe is covering some of the cost so they can offer goods without having to raise prices.

“We are hoping that things will change,” she says.

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Other local businesses are using different strategies to deal with the financial hit of tariffs.

Anne Armitage, owner of Moss in the Czech Village, is carefully selecting sources for her inventory of plants and plant-related gifts.

“Tariffs have made me steer clear of purchasing anything that might be made in Canada,” she said. Canadian imports are subject to a 35 percent tariff. Instead, she’s focusing on domestic artisans who make one-of-a-kind planters and ceramics, as well as books, candles and other gift items. Moss also offers workshops to create a terrarium or wall art — experiential gifts that are local.

In Iowa City, Revival sells women’s and men’s clothing and accessories. Most clothing sold in the U.S. is currently made in countries with high tariff rates, such as China and India, which face tariffs of up to 50 percent.

“Last spring when we were planning for fall and holiday, a handful of companies did a 15 percent increase across the board to give us all a little certainty,” said Sheila Davisson, owner and founder of Revival.

Besides this early warning from their sources, Revival has some protection against these price hikes: they also feature resale and secondhand items at their shop. Dresses, tops and accessories by designers such as Diane von Furstenberg, Everlane, Philip Lim and more can be found for a fraction of the cost of new items.

Plus, there’s the delight of finding a unique vintage treasure at a local shop.

“Reports say that there’s a higher demand for resale luxury items. More than new luxury items,” Davisson said. “People crave having something more sustainable these days.”

With all the uncertainty in the economy — from tariffs, inflation and job insecurity —many holiday shoppers are feeling nervous about spending money. According to reports by nonprofit economic think tank The Conference Board, consumers are expected to spend less this year on gifts.

The report says consumers intend to spend $650 on gifts this year, down 3.9 percent from $677 last year and the lowest since 2022. Consumer budgets for non-gift items like food, decorations and wrapping paper are down 12 percent at $340.

“After adjusting for inflation, these figures are even lower at $513 for gifts and $268 for non-gift items in constant 2017 dollars, both multiyear lows,” the report says.

Local retailers have already noticed this trend.

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“People shop a little less frequently,” Davisson said. But she’s noticed a countertrend. “When they do shop, they’re spending a little more.”

Kettelkamp has also noticed these trends.

“People are maybe being a little bit more selective,” she noted. “Instead of buying three things, they are getting two. Or they’re coming in and making a wish list. They’re waiting to see if things are going to change.”

One thing all three retailers have noticed is that if people come in to the store, they are likely to find something unique to purchase, even if it’s just something small.

“Any purchase matters for us. Little purchases really, really matter,” Armitage said. “People don’t have to think they have to come in and do all of their gift shopping or drop a bunch of money.

“If people take the time to come in, they will shop,” Davisson said. “If you come visit us, we’ll show you things that you’re going to want.”

Shopping at small, locally-owned shops isn’t just an exchange of money for most customers — it’s an experience often done with friends or family.

Many communities sponsor holiday events to enhance the experience of shopping local. Revival in Iowa City will benefit from Iowa City Downtown District’s Festive Friday programming when shops will be open late and shoppers can enjoy holiday music and other activities. The NewBo and Czech Village Districts in Cedar Rapids also will feature promotions and celebrations throughout the holiday season.

There’s also Small Business Weekend, this Friday and Saturday, that offers an alternative to Black Friday shopping at online chain retailers and malls.

Local retailers are often disproportionately affected by weather during the holiday season, too. Last year, a big storm arrived on the second Saturday of December; many businesses had to close their shops out of a concern for safety.

But there are ways to support local shops in the event of inclement weather. Most local retailers have an online presence on the web and social media.

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“I have had people go to my Instagram and ask ‘can I buy that?’” Kettelkamp said. “We’ll set it aside from when they can come in, or we can arrange a way to mail it to you or the recipient.”

For those who say they enjoy experiences as gifts, the experience of local shopping, especially during the holidays, can be a gift to themselves.

Shoppers can be assured that spending money at small businesses supports the entire local economy. According to research by CapitalOne Shopping, for every $100 spent at a local business, more than $68 stays right in the community as retailers hire staff, buy local supplies and support local charities.

“If you come down here and shop local, you’re not only supporting a small business, you’re supporting a whole ecosystem,” Armitage said. “If you like walkable neighborhoods, you can support this vibrant place with your purchases.”