Amplifying the voices of small business owners

Episode transcript, edited for clarity

[00:00:55] Bill Thorne: Welcome to Retail Gets Real, where we hear from retail's most fascinating leaders about the industry that impacts everyone, everywhere, every day. I'm Bill Thorne from the National Retail Federation. The NRF has represented retailers large and small for over 110 years. Small retailers play an important role in helping to stimulate local prosperity, business expansion and community growth, while contributing to the overall health of our national economy, accounting for over half of all private-sector jobs in the United States.

[00:02:20] Today our small retail members are thriving with access to new technologies and platforms that help extend the reach from Main Street America to potential customers around the globe. However, today our small retailers are also grappling with political and economic uncertainty and facing rising costs due to tariffs. We're going to talk to NRF's Vice President of Advocacy and Engagement Meghan Cruz about the impact for small retailers. We're going to hear some of their stories. Meghan Cruz, welcome to Retail Gets Real.

[00:02:51] Meghan Cruz: I'm so honored to be here.

[00:02:52] Bill: It's so good to have you here. As I indicated, 110 years, we've been advocating for retail writ large, but so much of retail is small retail, or the independent operators that are in main streets across America. What are we doing to help advocate for them?

[00:03:11] Meghan: So yeah, again, thank you for being here and giving me the opportunity to share how we at NRF build up small businesses and advocate for them. Before we dive into what we're doing for small businesses, because it's a lot, I would just like to highlight for the listeners that the overwhelming majority of retailers are small businesses.

[00:03:30] I know you know the stat, but just to put a finer point on it, it's 98% of retailers are small businesses. So we share that statistic a lot when we talk to policymakers because it really shows that our industry is driven by small businesses and that small businesses power retail.

[00:03:47] As far as what we do for small retailers, we do a lot of activities to help them make their voices heard. Our mission here at NRF is, as you know, all centered around advocacy. And so what we do is just give them a voice. We host advocacy events where small businesses have the opportunity to come to Washington, D.C., and make their voices heard. We've been doing that actually this week. We also empower small businesses through some of our council and committee work.

[00:04:14] I lead our small business retail council, which is an excellent way for small businesses to connect and network and share what they're experiencing with their peers. We also have content on nrf dot com geared towards small businesses. And really, as an advocacy organization, we are their eyes and ears on the ground so they can focus on running their businesses and supporting their customers, which is, at the end of the day, what all retailers want to be spending their time doing.

[00:04:42] Bill: Yeah. It is often, I think, lost on people that Walmart didn't just become Walmart. Walmart started as a general merchandise store, one store. That's an independent retailer that has grown to be the largest retailer in the world.

[00:04:56] And you look at, somebody like Nordstrom, it was a shoe store, and now it's a department store that makes billions of dollars in profits every year, creates jobs and opportunity in communities large and small. So when you talk about helping small retail, what you're talking about is helping the future of retail as well as you're creating opportunities for these people to grow, to expand, to succeed.

[00:05:17] And I think that's part of storytelling. And a lot of what we're doing, I think in our advocacy, hearing the stories, creating the platforms, letting them tell their stories because nobody's more credible than the people that are most impacted, and making sure that the right people hear that. So what has the response been like to our advocacy efforts with the small businesses? How are those small retailers getting involved?

[00:05:39] Meghan: Small businesses are really grateful that they have us to be their voice because, again, they're so busy running their businesses. They need our help to know what's going on in Washington, and know what they can do about it. I think that there's a lot of cynicism right now, given the political landscape that people feel like they don't have a voice. And what we do at the National Retail Federation, is give them the platform to make their voices heard.

[00:06:05] Bill: It's very unique. There's not another trade association in Washington that is dedicated to helping small businesses tell their stories, to represent them to Congress, to the administration, to policymakers, and to tell their stories. And I think that's what makes us unique in that space and gives us the credibility to push those stories out to find those small businesses. So what are they saying specifically? What are they talking about?

[00:06:28] Meghan: The focus of our small business advocacy right now centers around tariffs and the impact that the broad-based universal tariffs are having on their businesses and their ability to source products. Retailers rely on a global supply chain to meet their customer's needs. Especially small businesses who don't have the ability to build factories to make their products, they import so many of their products.

[00:06:54] Even those who make their products in America still rely on imported component parts to create the products that they do sell or sell with retailers. And so right now I would say the theme, if I could sum up what I'm hearing into one word, is uncertainty. There's been a lot of on-again, off-again tariff policies and proposals that they're facing.

[00:07:16] They are wondering how they're going to afford to put products on their shelves. They're wondering about the future of their customers. Are they going to have the income to spend on some, especially discretionary, products? And just in general, are they going to be able to support their communities? Are they going to be able to hire more people?

[00:07:37] And the current environment and what I'm hearing from our folks is that they're spending a lot of time worried about the future and not able to focus on building their businesses, growing their business, the things that they — bringing joy to their customers. They're really distracted with what's going on with the political environment.

[00:07:55] Bill: I've heard some incredibly compelling stories. I remember when we had that panel of small businessmen and women, and the story of the 100-year-old bridal shop in Indiana. And this is an existential threat to their business. Nobody makes the lace at a price that they can afford to sell to their small community and the communities that surround that store. And this could mean the end of that business, a century-old business. So we have heard a lot of stories. Now, tell me about Aaron Brown in particular.

[00:08:25] Meghan: In keeping with what I mentioned on uncertainty, this week, actually, NRF brought about a dozen small businesses to D.C. to share their stories with the administration and with Congress. And one gentleman that I had the opportunity to spend a lot of time with was Aaron Brown. He owns Town Center Music in Georgia, your home state.

[00:08:44] I would describe him as an unwilling advocate. He says he does not want to be in the political realm. He just wants to run a guitar store. But the current environment is forcing him to make his voice heard. So he found us at NRF because he was looking for help, and we were able to provide him the platform to do so.

[00:09:05] We have a clip from Aaron, so I'd love to have our listeners hear in his voice what he's experiencing.

[00:09:10] Bill: Great. Let's take a listen.

[00:09:11] Aaron Brown: What I can say is that these tariffs have caused a lot of uncertainty. These tariffs have made people rethink their spending. And as somebody who owns a business, it's pretty firmly in the discretionary spending category. We've already seen a dent in sales because of it. We've already seen folks make other choices with their dollar. I would really like the policymakers to consider or reconsider the use of these tariffs as a negotiating tactic. It's creating uncertainty and making people a little more worried to spend.

[00:09:47] Bill: That is compelling, Meghan, and I know that's just one of many stories. So let's move on. Let's listen to a couple more. How about Bob Jones?

[00:09:54] Meghan: Sure, sure. Bob Jones, it's a family-owned company that's been in his family for over 65 years with several locations in the Chicago area. They do outdoor patio furniture, hot tubs, things that really make your summers enjoyable.

[00:10:09] So obviously, summer is upon us. It's a big time for his business, but they're really struggling right now. He described the current situation because of tariffs as an unprecedented hardship. He's been through many ups and downs with his family's business, started by his father, and then taken over by him.

[00:10:26] And the challenges he's facing right now due to the increased costs of tariffs on his business that relies wholly on imports from globally, even ones from some of America's strongest trading partners, these increased costs have the potential to really, maybe even cause his business to close. So let's hear from Bob.

[00:10:44] Bob Jones: We are a family business retailer in Chicagoland selling home recreation products for the outdoor backyard. We have been in business for over 65 years, and we have weathered many storms. However, this tariff storm is nothing like we've had to weather in the past. We are impacted into the tune of many millions of dollars, $4 to $5 million by these new tariffs, which will put our products out of reach for our customers and therefore will reduce our business to a dismal level.

[00:11:16] Bill: Well, that is a compelling story. And you think about it, a business that's been around for 60 years and all of the challenges that they have faced in the past, even more recent, challenges like 9/11 and what that did to the American psyche in terms of pulling back and the Great Recession, and then inflation. And now it's just a trade policy that may actually end their business. It's just hard to comprehend.

[00:11:40] Meghan: Yeah, exactly. I hear that all the time. They're like, "This is just something that we're having a hard time wrapping our heads around." And many of them, of course, support the mission to reshore American jobs. They are proud Americans, but just a lot of them, feeling like collateral damage in a trade war.

[00:11:55] Bill: Tell me about Lisa. She has a very compelling story as well.

[00:12:00] Meghan: We're talking about an American-made company. She started a business. Her name's Lisa Jae Eggert. She has an insect repellent, natural insect repellent company, out of New York. She makes her own product. She sources a lot of the components from American companies, but there's one key part of her product that cannot be sourced anywhere else in the globe, but China, and it's the spray bottle caps for this product.

[00:12:23] There's literally no other company she knows that can create and manufacture this particular product that her entire product line relies on, but China. She, again, is an American-made company, and she's still struggling being caught up in this trade war.

[00:12:37] Bill: Let's hear from Lisa.

[00:12:38] Lisa Jae Eggert: I only buy within the United States. I source everything in the United States, and I produce everything in the United States. My vendors, however, buy these tops from China because they're not made anywhere else. I have no control over where my vendors get their inventory from, so it makes it extremely hard for me to control anything, and I'm the one paying the price.

[00:13:04] Bill: Again, these are phenomenal testimonies about how a policy, what's happening here in Washington, D.C., can really have such a tremendous impact on local and small businesses. When we push these stories out, I know that we have, on our website, a page that's dedicated to telling those stories, what is the impact as you go up on the Hill and you have these people, and they sit across from their elected officials or the staff and they tell those stories?

[00:13:34] Meghan:  I think the most important reason that small businesses should become engaged in advocacy is because it's so critical to personalize the issues that are affecting their business. When you're sitting across the table from someone like we are now having a conversation, it's personal.

[00:13:51] It puts a face to the business. It makes the policymaker see the real [impact] policy is having. So really want businesses to take the time away from their businesses if they can and make as personal of a connection with the policymakers that are making the decisions every day that directly affect their business.

[00:14:09] Bill: It's one of the things I always tell people about the National Retail Federation and the industry that we represent. Every single elected official, every policymaker, everybody that's in the administration, everybody that serves in the state legislature, every governor, they come from communities that have retail.

[00:14:28] Some have a lot of retail. Some have not as much retail, more rural. And there are no other industries that can say the same thing, that every single person comes in contact with and has an interaction with retail in their homes.

[00:14:43] And so, to your point, when you give the example of the small retailer in a congressional district and that retailer sits next to that congressman or that chief of staff, or that legislative assistant, every Sunday in church, or they sit at the soccer field watching their kids play soccer, or that small retailer supports the local baseball team and that congressman or legislative director, their child plays on that team, that's what makes it real.

[00:15:12] So when they go in and they say it's not Walmart or Target or Home Depot or anybody else, it's that small retailer that means something, it has a connection, a real connection with the elected officials and the people that serve them. And I think that that is why these stories can make a difference.

[00:15:30] And especially when you say, "Look, you're going to kill the business. This policy will kill that business. And you, by supporting that policy, will be responsible." How do you feel about that?

[00:15:40] Meghan:  Right now, NRF, we're bringing small businesses to D.C. every single month over the summer, so we can continue those conversations in-person with lawmakers. Just last week, again, we had our first group in and we had one gentleman who, I would say, he was very skeptical when he came in. He was like, "I'm under the opinion that this is not really going to make any difference."

[00:16:03] And so he went to all those meetings. He went to the White House, and then at the end he sent a really long note to everyone who attended to say, "This was such a meaningful experience. I can't believe they actually listened." I think they left feeling optimistic. I'll say that when the small businesses first arrived, everyone was, of course, naturally downtrodden because a lot of them are feeling like their livelihoods are at stake.

[00:16:25] But at the end, they were feeling like their voices mattered and that they could be part of the solution and hopefully find a compromise to the situation, to bring an end result that allows for retailers to serve their customers and keep these businesses alive while also hopefully creating some fairness in the trade system.

[00:16:47] Bill: Yeah. The other thing that kills me sometimes when I think about it is, you hear these people talking about the fact that Americans, as we pursue this policy, there might be some pain in the process of creating some long-term economic benefits through trade policies that really seek to bring back manufacturing to the United States.

[00:17:06] But these tariffs have such an extreme existential threat to so many of these small businesses, if not most of them — small businesses across the country, without bias regarding their size, the products they carry, or the community that they serve. And I guess that's what's important.

[00:17:23] That's why what we're doing is so important, is, I think, that we're opening eyes and maybe, to some degree opening minds, to the fact that there are other options, and it doesn't necessarily have to include killing small business in the communities that you've been elected to serve.

[00:17:40] With all of these advocacy efforts in action, what's your message to small businesses or retailers who aren't involved yet?

[00:17:49] Meghan: My message, of course, is get involved. NRF, we have a lot of different ways that you can plug in right away. So if you visit nrf dot com slash takeaction, that's the NRF Action Center, we have a signup link for the NRF action team, which is how you can be the first to know of the policy issues that are affecting the retail industry. So I encourage everyone to do that.

[00:18:10] We also have a list of our active advocacy campaigns. Of course, right now with this conversation is on tariffs, but we're doing a lot of other advocacy work on issues like organized retail crime, excessive credit card swipe fees. So we would love to have other voices on those campaigns as well.

[00:18:27] We also do advocacy events throughout the year. So information on how to participate in those is also on the site. And we also have a Store Tour program where small businesses and really retailers of all sizes can sign up to bring their member of Congress into their store. That's obviously a great way for them to see the inner workings of your store, meet your associates, meet your customers, and show them firsthand the value that you provide to your community.

[00:18:53] Bill: Yeah. It is so important. Let me ask you a question. You're with these small businesses. You're going to these meetings. How do you not just break down and cry?

[00:19:00] Meghan: That's a good question. We've been talking lately among our team that we've almost taken on roles of therapists because the fact that I get to have these conversations very seriously, and I'm really humbled by the trust that they place in NRF, especially during times of crisis.

[00:19:18] I've been with NRF for seven years, so I was here through COVID, and of course that was an extremely serious challenge faced by our industry. But I would say what I've been hearing from small businesses now, the level of concern, uncertainty, and fear for the future rivals that of how they were feeling during COVID.

[00:19:37] Because if you remember during COVID, the communities were like, we can't let our small businesses close. We need to be there for small businesses, shop small. The government was putting in place loan programs and stimulus to keep our economy moving forward and keeping small businesses alive. Now I've heard time and time again that they're feeling like they're being forgotten by policymakers right now.

[00:20:00] Bill: So if you're listening to this episode, take note. And if you have a small business, whether it's a coffee house that you go to every day or if it's where you pick up your newspaper, whatever it is, make sure that they're aware of what's happening and that they do have a voice and that they can find their voice amplified by getting involved with the National Retail Federation. And so I would assume that the best place to go to get the start is nrf dot com.

[00:20:25] Meghan: Exactly. Yes. Please reach out. Also, for small businesses that are listening, if you want to add your voice to our efforts, we have a spokesperson signup sheet where we can plug you in with opportunities to share your story on a national scale, and really just being a resource for you during times of crisis, but also tips to help your business grow and connect with others.

[00:20:47] Bill: That's great. One of the greatest things that we do — I think there's a lot of great things that we do, but core to our mission is finding the platforms for people to tell their stories and convening, bringing people together so that they can learn from each other, so that they don't have to necessarily reinvent the wheel when it comes to solving a problem.

[00:21:04] And I think that when you bring the small businesses together, and I've been very fortunate to attend several of those programs, you leave with a just a warm, what you're doing, how you're doing it, and why you're doing it, and why it's important. So Meghan Cruz, thank you for everything that you're doing for NRF in making sure that these voices are heard, and thank you for joining us today.

[00:21:25] Meghan: Thank you for having me.

[00:21:26] Bill: And thank you all for listening to another episode of Retail Gets Real. You can find more information about this episode at retail gets real dot com. I'm Bill Thorne. This is Retail Gets Real. Until next time.