Why it Matters

Small business retail is under pressure from tariffs, shifting consumer behavior, and generational spending changes. A Senate Small Business hearing scheduled for June 17 will examine 250 years of this type of commerce, with a particular focus on the retail sector at a moment when data suggests it is acting as a drag on the broader small business economy.

A Main Street Alliance survey of approximately 3,000 small business members found that 81.5 percent said they may raise prices to offset tariff costs, while 41.7 percent reported they would delay business investments. The National Retail Federation (NRF) has warned that import volume at major U.S. ports was expected to see a significant year-over-year decline in the first half of 2026 due to tariff impacts, a direct hit to small retailers, given that the NRF also reports that 97 percent of U.S. companies that import goods are small businesses.

Consumer behavior is shifting at the same time. Deloitte's 2026 Retail Industry Global Outlook found that 4 in 10 Americans now demonstrate deal-driven or cost-conscious behavior. Main Street America's 2026 trends report flagged generational spending shifts, with millennials and Gen Z replacing Baby Boomers as primary consumers, alongside ongoing inflation as key challenges for Main Street retailers.

Senate Small Business Committee Focus

The June 17 hearing is not the first time the committee has turned to this theme. Sen. Joni Ernst (R-IA), who chairs the Senate Small Business and Entrepreneurship Committee, held an earlier hearing on April 29 celebrating 250 years of American entrepreneurship, and published a column titled "When Main Street Thrives, So Does America." The House Committee on Small Business held a parallel hearing titled "250 Years of American Legacy" during the same period.

The framing around "250 years" ties directly to the semiquincentennial celebration, which Main Street America has also identified as a commercial opportunity for small-scale manufacturers. The Federal Reserve's Small Business Credit Survey released a 2026 Main Street Metrics report drawing on 6,525 responses from small employer firms across all 50 states and D.C., adding an empirical backdrop to the congressional focus.

Hearing Details

The Senate Small Business Committee hearing, titled "250 Years Of Main Street: Retail To Research," is scheduled for June 17, 2026, at 2:30 PM ET in 428A Russell Senate Office Building. Sen. Ed Markey (D-MA) serves as ranking member.

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