Two-thirds of US Main Street Businesses are Bullish on 2022 Sales

Despite the damage, disappointment and disruption caused by the latest surge of COVID-19, Main Street business owners in the United States look forward to the year ahead and hold out hope that it will bring better luck.

According to The Main Street Index, a PYMNTS and Melio collaboration that surveyed 765 U.S. business owners, approximately two-thirds of Main Street business owners expect solid sales growth in 2022, although they also worry about inflation and economic uncertainty.

Get the report: The Main Street Index: Optimism Amid Inflation Edition

As 2021 ended, 53% of Main Street business owners expected their 2021 sales to show an increase. Looking ahead to the new year, 64% of them were optimistic that the economic recovery that took hold in 2021 would continue gathering momentum in 2022.

Just 26% of businesses expected their revenue to be unchanged in 2022, and 10% anticipate a decrease.

Despite the overall bullish outlook among many companies, about half of Main Street businesses say inflation and economic uncertainty are key business challenges.

Worries about inflation and economic uncertainty are more pronounced among businesses that are not entirely online — those that sell primarily through their storefronts and those that rely on an even mix of online and physical sales.

Inflation is a challenge expected by 60% of businesses that sell primarily in physical stores and 59% of those with an even share, but only 49% of those that sell primarily online.

Similarly, uncertainty about economic conditions is a challenge expected by 59% of those that sell primarily in physical stores and 59% of those with an even share of online and physical sales, but only 42% of those that sell primarily online.

Inflation is the challenge that represents the biggest threat to Main Street businesses’ survival. Among businesses that fear that their survival is threatened, 65% say the biggest threat to their survival is increasing costs. That is the problem most cited by Main Street businesses that think they will not survive.