The last few years have been brutal for many businesses around the world. Those that have managed to survive through the Covid lockdowns have experienced staggering losses.
Now, those financially weakened establishments are battling inflation, high labor costs, harsh competition, and changes in customer behavior driven by economic pressures.
Small businesses are having a harder time than large corporations, which are better equipped to deal with aggressive competition. An article from Harvard Business Review in 2019 busts the myth of smaller companies eventually beating larger businesses.
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According to the report, bigger companies spend more on innovation, technology, branding, and knowledge. This is how they are staying ahead of the curve. Smaller businesses usually can’t do the same.
In fact, 18% of small businesses fail in their first year, 50% fail after five years, and around 65% fail by their 10th year of operation, writes the Chamber of Commerce citing data from Bureau of Labour Statistics.
Factors for success of small businesses include geographic location (states with highest success rates include Massachusetts, Louisiana, and California) and the type of industry.
Small businesses in the health care industry have the best success rate, while construction, transportation, and warehousing are on the other end of the spectrum.
However, there are no rules, and these days, even small businesses with a successful run of several decades may be closing down.
Image source: Paskhalidi Galina/Shutterstock
Iconic home decor shop, Thads in Old Town Spring, closes its doors
A beloved Thads shop in Old Town Spring, a historic district in Spring, Texas, has officially closed its doors on August 1, after 40 years in business.
Thads has been largely popular for its wonderful holiday displays; it was considered a staple of the historic district, writes the Houston Chronicle.
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Like many successful American businesses that have started from a garage or a basement, Thads has a similar one-man vision story.
It all started a long time ago, when Thad Abbot (then 27) visited Old Town Spring and thought “I can do that.” Abbot launched the businesses out of his dad’s garage and eventually moved to a 3,100-square-foot store.
He ran the store with love and devotion, carefully servicing every customer, until he died in May 2013 at the age of 55. After his death, his partner Jesse Arreola took over the store until its closing.
“It is with deep gratitude and a full heart that we announce the closing of Thads, “ reads the blog post on the store website. “The decision to close our doors hasn’t been easy, but we’re proud of what we’ve accomplished and grateful for every customer who made it possible.”
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Thads warmly thanked the community for its successful run.
“We are deeply grateful for the support, loyalty and friendships that have sustained us over the decades. Thads will always be a part of this town’s story — and we’re so grateful you were part of ours.”
Fans remember Thads’ fairytale Christmas land, and “the way it smelled”
Thads was praised by customers for offering unique gifts for various occasions. There you could find everything from cabinets and chalkboard to mini cloches, lamp fragrances, candles, seasonal decor, and antique pieces often hand-picked by the owner.
According to The Courier of Montgomery County, the major attraction was Thads’ elaborate Christmas displays. It would draw many families to come and take their Christmas photos each year.
The store itself was an inspiration for professional photographers, who would use it as a background for bridal and other portraits. It was also a popular destination for ghost tours.
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“We worked hard to make (Thads) this fairytale Christmas land when you walked in,” Mikel Roberts, who spent eight years working there, told the Houston Chronicle.
Roberts added that Thads served customers from all around the world, especially during the holidays. “It has left a huge void and took with it a lot of traditions.”
According to Roberts, the pandemic took its toll on the Old Town Spring shops, and he believes the community has not completely recovered.
Closure of these beloved small businesses, with a long history and special connection with the community, may be even more sad than store closures among large corporations.
On the news of Thads closing, one customer wrote, “Thad’s was always my first stop when I used to visit Old Town Spring. I love the way it smelled when you walked in the door and the way it made me feel. I’m so sad that it’s gone, but so grateful for all of those years.”
It is not yet confirmed what will happen to the space where Thads had warmly welcomed customers for the past 40 years.
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