Can your customers do your store's marketing?

Are your customers also your fans? They could be, given the popularity of store-branded merch of late. Part revenue stream and awareness engine, items like hats and pins are also creating a following, much like bands do with concert merch. We dig into this as well as what else small businesses are doing to take control in an uncertain economic and labor climate.

Before we get into it, check out the small business that saved an 88-year-old candy bar company.

Walk this way: Banker builds community with small business walks 

Facelift: Cheap’n’chic retailers are renovating their stores 

Starting small: “Shark Tank” menswear brand opens a local store 

Side hustle: Financial advisor on ways to start a small biz

Obsessed: How young startup founders are becoming influencers

Hats, hoodies and pins: What stores learned from fashion brands about “world-building”

Is store merch the new band tee? That’s what some observers opine as customer loyalty has evolved into fandom for some small businesses.   

“World building” has been in the fashion parlance for years, describing what brands do to create a 360-degree experience for customers that touches on everything from logos and packaging to in-store experiences and fashion shows. Small businesses have followed suit by getting creative about how to reach customers without traditional advertising.

In many cases, selling hats or posting BTS footage on social media has created additional revenue and “free” brand awareness that’s authentic. Other strategies include leaning into nostalgia with archival images or reissues and doing giveaways at local music festivals.

Why this matters: You don’t need a huge marketing budget or a million followers to create brand awareness. Sometimes all it takes is a cool product, engaging content and a few hundred really engaged customers-slash-fans. (Axios)

How SMBs take action against inflation, labor pressures

When it seems like economic headwinds are becoming the new normal, what's a small business owner to do? For many, the time has come to pivot away from crisis mode and take decisive action.

Nearly nine in 10 small business owners have adopted new strategies against inflation and labor pressures, up 10% from 2024, according to a Wakefield Research survey of 500 U.S. businesses conducted for ShareBuilder 401K. The tactics range from raising prices and cutting vendor costs to offering flexible schedules and using AI for efficiency — and 72% see AI as a tool to support staff, not replace them.

The more telling shift is in where owners are focused. More than 60% cited retirement planning as a top stressor, beating out AI. It looks like instead of bracing for the next disruption, more owners are starting to plan past it.

Why this matters: While 63% of respondents are still concerned about market volatility, the intensity of their fear has decreased, with only 19% saying they’re "very" or "extremely concerned" versus 41% in 2020. Perhaps it’s a sign that instead of fearing the worst, owners have decided to roll with the punches and adapt. (Morningstar)

Opinion: Small businesses need access to cybersecurity leaders

Consumer Financial Protection Bureau finalizes rule regulating SMB lending

Six small business grants to apply for in May

Local businesses shifting from cash to digital payments

Retail hiring surges while consumers send warning signals

Retail hype vs. reality and the one idea to steal now

The most over- and under-hyped retail concepts got a full breakdown on the Reimagining Retail podcast recently, and the findings are worth paying attention to. 

Key takeaways: loyalty programs that offer simple, tangible benefits are underrated; DTC is overhyped as a sole sales channel because being on a marketplace with faster, cheaper shipping can also get you more customers, being in a physical store can deepen relationships and being on TikTok Shop can grab attention; agentic AI commerce is overrated for transactions and underrated for discovery, because you're now able to talk to your computer in a more conversational way, leading to better product searches and suggestions.

“I think [loyalty programs] are overrated, especially in this new avatar of loyalty programs, where it's all about experiences and special tickets to our openings… I think offer customers a discount and keep it simple, especially in this age where everything is about value, everything's expensive and people are trying to cut corners." - Sonal Gandhi, Chief Content Officer of The Lead

Why this matters: It’s easy to buy into the hype and just as easy to be a naysayer for every new concept. What The Lead’s Gandhi and retail analyst Arielle Feger argue is that if something is overhyped, it’s probably oversimplified. Find the nuance in each retail concept that works for your specific business.  (Behind the Numbers, Reimagining Retail)

Buyer beware: What to know before using AI images

AI-generated images can be a boon to small businesses looking to add visuals to marketing materials, signage and logos or online menus. But cybercriminals are now targeting them by impersonating reputable tools like ChatGPT, CapCut and Gemini, often offering free downloads as a way to capture sensitive information and passwords.

Beware if a social media ad promises a “free premium” AI tool or if you’re asked to download software from Dropbox or Google Drive right away. Also, look out for fake-sounding web domains or comments/reviews. Practice good web hygiene by using only official AI websites and platforms, enabling two-factor authentication, separating business and personal accounts, avoiding saving passwords in web browsers, keeping all your devices updated with the latest software and using security software. 

Why this matters: You’re especially vulnerable if you run your business from a single device and browser that has access to business email accounts, social media pages, ecommerce platforms, banking sessions and client information. A compromised device could lead to hacked social media pages, phishing emails sent from your business account, financial fraud or reputational damage that takes months or even years to recover from. (Bitdefender)

Thanks for reading this week's edition!

You can reach the newsletter team at theskupe@mynewsletter.co. We enjoy hearing from you. 

Interested in advertising? Email us at newslettersales@mvfglobal.com 

The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.