‘My biggest battle’

Area retailers see online shopping their biggest challenge as holiday season approaches

MARSHALL -- The holiday season tends to be a busier time for retail, Marshall business owners said. However, local shops are facing competition from online vendors, especially in the years since the COVID pandemic.

"My biggest battle is always online shopping," said Sarah Kesteloot, owner of the Rustic Hideaway on Third Street.

Kesteloot and other Marshall businesspeople said they're making efforts to encourage people to shop locally this season. This week, a few different stores downtown were offering coupons or special sales for "Pink Friday."

"It's like a small-business Black Friday," Kesteloot said. Pink Friday events, held the week before Thanksgiving, are promoted by boutique retailers around the country. But it's fairly new in Marshall, Kesteloot said. "They came up with it to help people shop local and small first."

"It's definitely brought more people in than a regular Friday," said Terrie Lendt, in between helping customers at Nessa's Naturals in Marshall. As part of the event, Nessa's had a special coupon deal for shoppers on Friday."It's been steady since we opened."

Downtown businesspeople said that the holiday shopping season does bring in business, but they still face challenges.

"The true test will probably be after Christmas," said Rachel Deutz, owner of Treasured Times in Marshall.

Deutz said online shopping has posed a challenge as competition for her business. She said she can also feel the effects of the economy, as customers have had to become more selective about what they buy.

Earlier this month, the National Retail Federation forecast that holiday sales nationwide are expected to increase between 3 and 4% this year, compared to 2022, said Marshall Area Chamber of Commerce president Brad Gruhot. That means holiday spending would reach levels between $957 billion and $966 billion, an NRF news release said.

Nationwide, online shopping is also expected to increase, the NRF said.

One way to look at commercial activity on a more local level is through the amount of local sales and use, and prepared food and beverage taxes collected in the city of Marshall. Marshall currently has sales tax data from legislative sales tax reports running up through August 2023, said Marshall Economic Development Authority Director Lauren Deutz.

From January through August, sales and use taxes collected in 2023 were up 1.3% from 2022, Deutz said. Food and beverage taxes were up 3.2% from 2022.

The amount of local sales tax collected in Marshall varies from month to month. In August 2023, food and beverage taxes were up 5.2% compared to August 2022. Sales and use taxes were down 6.4% compared to August 2022.

One way that small businesses in the Marshall area are trying to encourage customers to shop local first is by offering unique products or services. Deutz said one way she has branched out is by buying Character Plus, a custom laser engraving business.

Kesteloot said she also tried to bring something different to Rustic Hideaway. The store offers personalized gifts and apparel supporting local sports teams.

"You really want to try and find unique things," she said.

"I think now, three years past the worst of COVID, people are branching out more and more," Gruhot said. "Marshall has almost everything you need. "

Kristi Miller, owner of Kristi's Kloset, said shopping in person at local stores was also a better experience for customers.

"Basically, we have really good quality and service, and those are things they don't get at a department store or online," Miller said.

Gruhot said the Marshall Area Chamber of Commerce promotes shopping local through a variety of media, from radio to social media.

"We try to hit all age groups," he said.

Special events are another way that area businesses are encouraging customers to shop local for the holiday season. One example was the Pink Friday events at some downtown stores. A holiday open house is also planned for Small Business Saturday in Marshall on Nov. 25. Shoppers are encouraged to check out downtown Marshall businesses, and also to stop at Terrace 1872 to meet Santa and his holiday friends. The event at the terrace is planned for 1-3 p.m.

One important message that Gruhot and local businesspeople said they're trying to emphasize is that small businesses contribute to the community.

"The money stays in town, and supports a lot of community activities, and school programs," Miller said.

Shopping local has a big financial impact, Gruhot said. For every dollar spent at a local small business, 60 cents stays in the Marshall area, he said.

"That's a pretty big number," he said.

Local businesses are also active when it comes to supporting local charities and fundraisers.

"These are the people working for you," Gruhot said.

As they gear up for the holiday season, downtown businesspeople said they hoped shoppers would check out their area stores before making shopping trips or going online.

"We really want the community to understand how important it is to pick us over a big box," Deutz said.

"We definitely want to keep the money within our local area," Kesteloot said.