Small US retailers face holiday supply chaos due to Trump tariffs

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2. Operating margins for small retailers with total assets less than $50 million have plunged to negative 20.7%,

Operating margins for small retailers with total assets less than $50 million have plunged to negative 20.7%, according to business analytics provider RapidRatings, leaving 36% of them at a high risk of bankruptcy compared to 12% of large retailers.

"For the first time since the pandemic, average profit has dipped into negative territory... disproportionately impacting smaller companies that lack the scale and resources to absorb these pressures," said James Gellert, executive chairman of RapidRatings.

. . . Uncertainty from tariffs resulted in some businesses placing big holiday orders to get ahead of duties, but they risk getting stuck with unsold items due to an increasingly fragile consumer confidence.