Arizona small businesses squeezed as costs rise, customers pull back

MESA, AZ — Economists say consumer spending drives roughly three-quarters of the U.S. economy. Right now, that engine is straining as Arizona small-business owners grapple with rising costs and more cautious shoppers.

About 25 vendors were expected to set up at Sunset Mesa Market on Friday, selling handmade goods and other items from small, independent merchants. But several vendors said the cost of doing business has never been higher — and they fear it could get worse.

Imani Varker, who has spent four years making handmade cold-process soaps under the name Grandeur Lathers, said she takes pride in her products but is watching expenses climb.

“The cheapest thing I’ve got — these are like $2.50,” Varker said, gesturing to a display of soap.

Varker cited higher gas prices and foreign tariffs among the pressures that have forced her to raise prices at Grandeur Lathers two or three times over the past four years. Varker said some costs are up 400 percent in the past few months.

“Everyone is a little more cautious about where to spend their money,” Varker said. “I was very nervous each time I raised prices. I was like — what if people won’t want to buy anymore?”

Denise Golden, who opened The Artisan’s Compass last year after selling at the Sunset Mesa Market, said she faces similar challenges. High tariffs have made it impossible to reorder some items, she said, and overall foot traffic has slowed.

“(Some items) I can’t reorder again because of the high tariffs,” Golden said.

Golden added that rising gas prices and dwindling customer traffic are leaving both shoppers and merchants hesitant. “When people come in, there is a reluctance to buy right now.”

Both women said they are trying to remain patient, but the word that kept returning in their conversations was “fear” — fear that conditions for small business owners will worsen before they improve.

Mesa Sunset Market meets near the city’s downtown on the second Friday of every month.