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Are you overlooking your most valuable customers? This week we look at what the data says about value-conscious shoppers, and why they may be more willing to spend than you think. We're also sharing what robust earnings reports at big box off-pricers are telling us about value proposition.
But before we get into it, check out the small businesses trying to keep tandem bikes alive.
[ FIRST GLANCE ]
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[ THE TOP LINE ]
The underestimated shoppers
The customer who lives paycheck-to-paycheck isn’t necessarily the one who won’t spend money. That’s the takeaway from a May 2026 PYMNTS report: the growing gap between how confident consumers feel and what they can afford. But instead of translating into a shopping freeze, it means they want assurance that a purchase is worthwhile and that payment installments are predictable so they retain a financial cushion. Installment platforms such as Afterpay or Klarna can instill confidence and make a purchase more likely.
Why this matters: The opportunity here lies in the persuadable customer. You can offer a “worth it” product, but to close the deal, you need to make customers feel confident and certain it’s within their means. (PYMNTS)
What off-pricers know about value
The latest earnings reports from big box off-pricers like Dollar Tree, Burlington and Kohl’s showed a lift in comps, indicating that shoppers are still spending while being choosier. While consumers now think twice about discretionary purchases, they treat themselves to affordable indulgences and splurge on the latest tech. Small retailers can grab a piece of the pie by offering bundles or extra services with purchase that make customers feel special and like they’re getting a good deal.
Why this matters: Retailers of any size that are winning right now are the ones that give shoppers value, convenience or a reason to spend. You may not be able to compete on price, but you can offer added value and personalized experiences. (Axios)
[ THE LOWDOWN ]
[ THE THINK TANK ]
Why visual storytelling is a physical store’s best asset
“Some retail leaders think of visual merchandising as decoration. In reality, it functions more like infrastructure for product discovery. Effective displays don’t simply present products — they guide attention, influence movement and shape customers' behavior.
Michael Duggal, CEO of Duggal Visual Solutions, reasons that visual merchandising is one of retail’s most powerful influencers. Starting with your store window, which shapes a first impression and can increase foot traffic by 23%. Nearly three-quarters of shoppers say they would return to a store with good visual merchandising and the NRF reports that shoppers spend 20% more time in these stores. Specialized displays result in 30% more sales, while products displayed near checkout increase sales by 79-400% (yes, 400).
Why this matters: Getting customers in your store and enticing them to stay longer gives you more opportunities to drive product discovery, increase their purchase amounts and improve conversion. Strong visuals can slow a hurried shopper down, highlight a product they might have missed or create a memorable experience. (Retail Touchpoints)
[ THE DOWNLOAD ]
The cybersecurity risks targeting small retailers
Cybersecurity expert Joseph Steinberg breaks down the 11 top risks that small businesses face, and phishing and AI-aided social impersonation lead the list. Ransomware, compromised business emails, weak identity security, glitches in the cloud, third-party vendor risk, data breaches and unpatched and unsupported software are others. But two of the most dangerous are far closer to home: remote/hybrid work vulnerabilities and insider risk, both intentional and accidental. The first step is being aware of the issues, the next is fixing them before it’s too late.
Why this matters: Small businesses are especially vulnerable because capacity and staff are limited, and cybercriminals know that. Nearly half of all attacks are directed at small businesses and catastrophic breaches can lead them to close down in six months. (JosephSteinberg)
[ POLL ]
Do your customers use installment plans to make purchases?
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.
