Small retailers brace for 'huge hit' this holiday season as shipping costs spike

Small and mid-sized U.S. retailers are bracing for a costly holiday season as spiking shipping and fuel costs squeeze margins they can ill afford to lose. The surge in freight expenses hits smaller merchants hardest because they lack the volume discounts and dedicated logistics networks that large chains use to absorb such increases. With the holiday period typically accounting for a disproportionate share of annual sales, many of these businesses face a choice between raising prices and sacrificing already thin profits. The dynamic threatens to widen the competitive gap with big-box rivals just as the year's most important selling season begins. How these retailers balance pricing against volume in the coming weeks will shape both their holiday results and the broader outlook for small-business profitability.