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Small businesses increasingly are adopting shrinkflation to cope with rising production costs and supply chain issues: They’re reducing product sizes while keeping prices steady. A Clarify Capital survey revealed that 12% of small businesses have implemented shrinkflation and another 20% plan to, primarily to remain profitable, offset supply costs, stay operational, manage price competition and navigate material shortages. However, this strategy carries the risk of alienating price-sensitive customers.
To read more about the impact of shrinkflation on small businesses, check out this story from The Motley Fool’s Ascent.
By Rebecca Meiser
Contributor, Commerce + Communities Today and Small Business Center
ICSC champions small and emerging businesses in getting from business plan to brick-and-mortar.
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