Ravenswood-based Small Shop expanded footprint, buying client Mata Traders

Taylor McCleneghan began 2025 feeling apprehensive about tariffs but hopeful that her Ravenswood-based business, Small Shop, would expand.

Small Shop helps entrepreneurs and businesses with design services, ethical materials sourcing and overseas manufacturing.

A year later, McCleneghan, 37, is still worried about tariffs but succeeded in expanding her business.

In April, Small Shop bought Mata Traders, a fair trade clothing and jewelry brand. The two companies operate independently.

McCleneghan knew Mata Traders well, having worked there before starting Small Shop. The companies also shared an office space, and Mata Traders was a client of Small Shop. So when the owner decided to sell the business, McCleneghan was a natural buyer.

Mata Traders has two full-time and five part-time employees with about $1.1 million in annual revenue. The brand's clothing and jewelry can be found at its showroom, 5112 N. Ravenswood Ave., or at stores like Planet Access in Lincoln Square, Hazel Apparel in Ravenwood and Gather: Consciously Curated in Evanston.

Small Shop uses companies in India and Nepal that offer ethical, transparent and sustainable manufacturing.

McCleneghan said its clients and shoppers understand fair trade fashion isn't often the cheapest, but they can feel good purchasing items like a $269 women's cashmere sweater because it was made by a family business in Nepal.

The downside, though, has been tariffs — taxes importers pay to bring foreign-made goods into the U.S.

McCleneghan was hopeful that India would escape the worst of President Donald Trump's trade war but goods from India currently face 50% tariffs, which McCleneghan said is on top of the regular 28% duties.

In early 2025, Mata Traders shielded itself by importing most of its autumn and winter clothing before the higher tariffs hit, but two shipments of about 100 dresses got taxed at 78%. That happened after sales to retailers already had been negotiated, so McCleneghan had to eat the extra cost.

"We couldn’t ask [retailers] to pay it," she said.

Going forward, she built in price increases for Mata Traders' spring and summer collection. Retailers have stuck with the brand, but she said they're not buying extra merchandise right now.

"They still bought from us at higher prices — they just bought less," she said.

She hopes the tariffs will be rolled back this year. And if she can get low-cost financing or additional capital, she'd like to invest in more advertising to acquire more customers.

"We have insanely loyal customers … but finding new customers is hard for us," she said.

If she could tell the story behind Mata Traders' manufacturers to a wider audience, she thinks the brand could really lift off. Take the $269 cashmere sweater. It's made with goat's hair spun in small batches in the Kathmandu Valley of Nepal by a mother-and-son business, and it's priced in line with cashmere sold by national brands.

"We have a great story. We have a lot of heart behind us when they get to know us," McCleneghan said of Mata Traders. "We don’t have a problem converting people when they see us."

Even with last year's challenges, McCleneghan said the struggles of running two small business are worth it.

She believes local businesses that treat their suppliers fairly can be a force for good — a force that consumers will want to support.

"Emotionally, it seems that people want to connect with our brand," she said. "I'm very thankful."