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The Lingering Impact of the Pandemic on Sacramento’s Small Businesses

Ongoing Struggles Five Years After the Pandemic

SACRAMENTO – Even five years after the onset of the pandemic, many small businesses in Sacramento continue to grapple with its ongoing effects. The difficulties they face today serve as a stark reminder of how far-reaching the pandemic’s impact has been on the local economy.

In response to the hardships, Susan Stewart, the owner of the Strapping Store in Sacramento, took to Instagram to express her struggles. In a heartfelt video plea, she announced an urgent warehouse sale, offering 70% off on items this Thursday, highlighting the dire situation her store is facing. Stewart articulated her frustration and determination, stating, "I’m not trying to be a dramatic person; I love my business and I am fighting tooth and nail to keep it."

A Declining Workforce and Increased Costs

The challenges facing Strapping Store are evident; the streets are lined with less inventory than in previous years, and the workforce has been significantly reduced, plummeting from 17 employees to just six. Stewart expressed concern, revealing that "90% of my suppliers have sent me letters telling me we are going to see an increase in price because of all the tariffs we are seeing." This drastic rise in operational costs is a significant blow to small business viability.

Stewart isn’t just running one store; she owns three gift shops and has opened Licked Ice Cream in the past year. Despite her entrepreneurial spirit, she is deeply concerned about fulfilling her rent obligations and keeping her remaining employees on payroll, particularly at her midtown locations, which she feels are most at risk.

Changing Consumer Habits Amid Economic Uncertainty

Marie King, a local resident, shared her commitment to supporting independent businesses, stating, "I just live in the neighborhood so I walk a lot and try to do independent businesses as much as I can." However, many shoppers have adopted different spending habits since the pandemic began, increasingly favoring online shopping over local retail experiences.

Statistics reveal that within the Downtown Sacramento Partnership’s jurisdiction, encompassing 66 blocks, the landscape of small businesses continues to shift. In 2025, 10 new businesses have opened, 6 businesses have closed, and 8 have signed new leases. The previous year saw even more variation, with 41 new small businesses opening alongside 20 closures.

A Broader Perspective on Economic Growth

Even though Stewart’s stores are situated in the Midtown and Oak Park areas, her challenges resonate with many brick-and-mortar businesses throughout Sacramento. This is despite existing data indicating that the city is outperforming California as a whole, boasting a 2 to 1 ratio of small business formations. Barry Broome, President and CEO of the Greater Economic Council, emphasized the crucial need for a cultural shift within the community to treat businesses as integral clients of the city.

Broome pointed out that a significant obstacle small businesses currently encounter is the complexity of state regulations. He explained that "our labor laws are designed more for large organizations like Tesla or Amazon rather than small enterprises." Additionally, he highlighted the necessity for local adjustments to permitting processes that would better accommodate small businesses.

Community Engagement and Support for Local Businesses

As King noted, "I look at Small Business Saturday and I think, wow, why do they only have one a year?" This statement encapsulates the sentiment among some advocates that increased opportunities for local businesses could bolster community engagement and support. While Sacramento’s overall economic landscape appears to be thriving, the reality for many small businesses is one of struggle, and they are reaching out for the community’s help.

Stewart poignantly stated, "Sometimes you have to choose between supporting a local small business and feeding your family, and I totally get that. It’s a really hard time right now." Nevertheless, there are resources available to support small businesses, including the U.S. Small Business Administration in Sacramento. The organization advises businesses to explore online sales avenues, including Amazon, encouraging consumers to filter their purchases to support local enterprises whenever possible.

Leveraging AI legalese decoder for Support

In such challenging times, small business owners like Susan Stewart may benefit significantly from tools like the AI legalese decoder. This platform can help decode complex legal language, making it easier for small business owners to navigate the labyrinth of regulations and contracts they must deal with daily. Whether it’s understanding lease agreements, labor laws, or supplier contracts, the AI legalese decoder aids in reducing the confusion surrounding legal texts. This amplifier of comprehension empowers small business owners to make informed decisions, potentially saving time and resources, which are crucial during such unprecedented times.

Overall, while some small businesses in Sacramento continue to flourish, many others remain in critical straits, continually asking for community support and seeking resources to help weather the storm.

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