Inflation is a daily reality for small retailers. 

At Carnivore Oak Park, a trusted butcher shop in Oak Park, Illinois, known for its premium locally-sourced meats, co-owner Brad Knaub has felt the squeeze of rising costs. 

Supply chain disruptions and customer questions surrounding price increases are just some of the many things he’s had to combat to ensure his shop’s survival. 

With quick thinking, transparency, and a willingness to adapt, he’s been able to navigate the inflation and retail landscape with integrity and resilience.

Read on to learn about the impact of inflation on retail and what actions you can take to navigate similar challenges.

1. The Impact of Global Events on Local Prices

The war in Ukraine sent commodity prices skyrocketing, disrupting wheat exports and doubling the cost of feed for livestock. At the same time, outbreaks like avian flu dramatically increased the price of chicken and eggs. These combined issues led to some of the highest ingredient costs that Carnivore Oak Park had ever experienced. 

To cope, Brad focused on staying nimble with ordering. By keeping direct, open communication with local farmers, he was able to anticipate price increases and make purchasing decisions more quickly. Even when costs rose, it was his close relationships that helped him keep his food stocked, avoiding gaps in availability.

If you’re nervous about how inflation will affect your business, strengthen your relationships with nearby suppliers to reduce your dependence on vulnerable global supply chains. Sourcing locally, even at a higher cost, can provide more consistency, reduce transit risks, and help maintain inventory during global disruptions. 

You’ll also fuel the local community by supporting local producers. Not to mention, many of them may be more likely to collaborate and problem-solve with you.

2. Rethink Whether to Hold Prices Steady During Inflation

When inflation hit and prices increased, Brad thought, “Well, how long could it possibly last? Let’s hold our prices a little still. Let’s just keep paying the people we pay.” That decision almost bankrupted them. 

The fixed prices could not keep up with skyrocketing operational costs, creating financial strain for them nearly overnight. This made it harder to pay employees and maintain inventory. 

The lesson was clear: delaying price changes can be a costly mistake.

It might feel like you’re betraying your customers when you raise prices, but in reality, it’s a necessary move and a great example of retail leadership. To manage this process with confidence, you should:

• Regularly review your cost structures to ensure pricing keeps pace with expenses.
• Make small, transparent adjustments instead of waiting for a single significant change that might shock your customer base.
• Use tools like cost-of-goods calculators to guarantee your margins stay healthy and grounded in data.
• Communicate changes clearly to your team and customers, helping to build understanding and trust around the why behind the shift.

Staying ahead of inflation means being proactive. Honest communication can be your best tool in managing adjustments.

3. Financial Challenges and Staffing Adaptations 

During the most intense inflation periods, the financial pressure became so severe that the Carnivore Oak Park owners stopped taking paychecks so that they could continue paying their team and vendors. It was a difficult decision, but it preserved the integrity of the business and the livelihoods it supported. This meant putting long-term sustainability over short-term income.

For retailers facing similar challenges, it’s critical to balance financial responsibility with long-term thinking. Instead of defaulting to layoffs or burnout-inducing workloads, consider how retaining experienced staff can actually protect your business. Loyal employees provide consistency, help reduce training costs, and maintain trust with customers, especially during times of uncertainty. 

Explore creative scheduling, cross-training, or temporary role adjustments to keep operations running efficiently. Investing in your team, even when it stretches your margins, is what keeps the doors open and the customer experience strong.

4. Manage Customer Perception 

At Carnivore Oak Park, staff often encounter confusion or frustration from customers seeking to understand the reasons behind rising prices. Customers didn’t realize the full journey behind each item they sold, like large feed costs, intense farm labor, and transportation. Educating the public became a necessary part of Carnivore Oak Park’s retail model. 

The team regularly took time to explain the impact of inflation on retail. When customers saw the bigger picture, they began responding with greater empathy.

If you’re struggling to explain your new higher prices to customers, you can try: 

• Training employees to speak with kindness and clarity so pricing conversations build trust instead of tension.
• Using signage to visually break down sourcing or cost trends, helping customers understand where their money is going.
• Hosting community Q&As or casual events around pricing to open up dialogue and show transparency.

When customers are aware of exactly where their money is going, they’ll be more likely to trust you and your brand, and keep coming back. 

5. The Role of Customer Service and Trust in Justifying Costs

As Carnivore Oak Park adjusted its prices, it doubled down on customer service. The team focused on creating a welcoming atmosphere, offering cooking tips, and guiding customers to the right meat cuts. This approach helped customers feel supported and helped offset the sting of higher prices.

Providing expert advice and personal touches can increase perceived value. When shoppers feel seen, heard, and helped, they’re more likely to be okay with spending more of their money. During inflationary periods, outstanding service is one of the last remaining experiences that makes spending feel worthwhile, which is something no online discount can replace.

6. The Call for Tiered Government Regulation

Brad has been vocal about his frustration that small businesses like his are held to the same regulations as massive corporations. Meeting those requirements can place a significant burden on smaller operations with limited capacity. The one-size-fits-all approach ignores the nuances of running an independent retail business. It creates obstacles that stifle innovation and limit growth.

As an independent retail owner, you, too, can advocate for scaled regulations that reflect the size and scope of your operations. By connecting with local business associations or trade groups, small shops can make their voices heard and push for more supportive, nuanced policies. Proactive advocacy can drive real change and protect the sustainability of small businesses during tough times.

Conclusion

The inflation impact on retail is real, relentless, and often outside of a retailer’s control. But the real question is: how will you respond? That’s where small businesses can reclaim their power. Carnivore Oak Park’s story is proof that even under immense pressure, retailers can adapt, educate, and build loyalty that lasts. 

The path forward involves smart pricing, honest communication, and a deep commitment to local supply and service. Inflation may be inevitable, but how a retailer responds is what defines their future. The businesses that survive are the ones that lead with transparency, value, and resilience.

Want more insights from local retail owners? Explore more stories on the We Are Retail site to discover how others are finding balance, purpose, and success in their stores.