Detroit — Small Business Saturday was hit and miss in Detroit’s New Center area Saturday, with some entrepreneurs serving a steady flow of customers while others saw only light — or zero — traffic.
The Peacock Room female apparel shop in the Fisher Building lobby did a brisk business, with customers steadily drifting in and out of the store — and walking past the Detroit Handmades Shop table without stopping.
A few feet from the table, photographers snapped pictures of brides and grooms from multiple wedding parties, using the lobby’s ornate, art deco architecture as a backdrop.
“I guess some small business owners are doing OK, but it’s been a tough year for me,” said Yolanda Burgess, who started the pop-up venture selling hand-knitted apparel five years ago. “This will be the last (Small Business Saturday) event for me; I’ve got to retool and figure out what I’m going to do next.”
This year’s Small Business Saturday, which was initiated in 2011 to drive more customers to independently owned shops and restaurants, was clouded by concerns about the economy, and tariffs imposed by President Donald Trump.
According to the U.S. Treasury Department, tariffs in Fiscal Year 2025 (October 2024–September 2025) generated $215.2 billion in gross customs duties, a record high that represented a 250% increase from the $77 billion generated the previous fiscal year.
Trump has claimed the tariffs will protect domestic businesses by making imported goods more expensive and boost U.S. manufacturing while reducing foreign competition. But many small business owners report higher material costs and supply chain disruptions.
“Business is great, but the tariffs are eating into profit margins,” Peacock Room owner Rachel Lutz said. “We have tried hard not to pass on the increased prices to customers, which mean less profit. We carry a lot of U.S.-made products, but we import jewelry and some clothing. We’ve had to find other vendors, and some vendors are absorbing part of the costs, while we absorb some as well.
“The upside is, by finding new vendors, we’ve updated our collection,” said Lutz, who has been in business since 2011. “These up and down cycles are inevitable; small business owners just have to find out a way to weather them. It’s not easy; just this week, I found out three of my shop owner friends are closing their doors.”
Lutz said she expected to rake in “five-figure sales” during the weekend, “which is critical for a small company like ours.”
Business wasn’t as lively a few blocks away at the Urbanum Detroit home goods store on Woodward.
“It’s been real rough,” said owner Susan Brice, who purchased the store in 2023. “Because of the tariffs, prices have gone up on orders — 20% to 30% extra. I’ve been trying to order locally to try to offset that.”
Burgess said while the tariffs are hurting some small businesses, others have been aided.
“I used to buy my yarn from Demark, but prices went up 30% to 40% because of the tariffs, so now I get my yarn from Michigan Fine Yarns (in Ann Arbor),” Burgess said. “I guess they’re doing more business now.”
The owner of Michigan Fine Yarns was not in the store Saturday to comment, an employee said.
A man drifted past Burgess’ table at about 11:30 a.m. Saturday and pointed at a hand-knitted hat.
“Does this come in a scarf?” the man asked.
When Burgess said a scarf in that pattern wasn’t available, the man turned away.
“I can make a scarf, though,” Burgess said, although the man kept walking.
Trump announced in April his intention to use tariffs to enact “fair trade policies that will restore our workforce, rebuild our economy, and finally put America First.”
In a release announcing the tariffs, U.S. Small Business Administration Administrator Kelly Loeffler said small companies would reap the benefits of the initiative.
“Small businesses will no longer be crushed by foreign governments and unfair trade deals,” she Loeffler said in a statement. “Instead, we will put American industry, workers, and strength FIRST.”
However, many small businesses have reported being harmed by the tariffs, with higher material costs supply chain interruptions.
According to a July survey of 200,000 businesses by the U.S. Chamber of Commerce, small firms reported they faced higher input prices from tariffs and passed those costs to customers.
A survey of 1,048 small businesses conducted by Small Business for America’s Future found 71% of small business owners expect tariffs to negatively affect consumer spending this holiday season, while 44% expect a very negative impact. About 44% of the respondents reported raising prices due to tariffs, with 74% saying they are worried their firms might not survive beyond a year.
While some U.S.-based manufacturers have said they’ve benefited from the tariffs cutting foreign competition, surveys this year from the National Federation of Independent Business, U.S. Chamber of Commerce and Small Business for America’s Future report they’ve taken measures to mitigate the expected negative effects of the tariffs, including freezing hiring, cutting investment in their companies.
Small Business Saturday, which falls between Black Friday and Cyber Monday, started in 2010 as a marketing initiative for American Express, and the day was officially adopted the following year by both the U.S. Senate and the U.S. Small Business Administration.
Brigid Beaubien said she drove from her home Downriver to shop at the Peacock Room Saturday, “because it’s important to support small businesses.
“It’s about building connections,” Beaubien said. “When you shop at a small business, you know who you’re dealing with, and you have confidence that they’re going to be there for you.”
Peacock Room customer Martie Manning of Grosse Ile said she’s concerned about the economy, but added: “That’s why I wanted to come out today to support small business, so they can stay afloat, and we can have those options.”
ghunter@detroitnews.com
(313) 222-2134
@GeorgeHunter_DN
The Associated Press contributed.
