The Christmas trading period, which kicks off with Black Friday, is crucial for small firms across the UK. With rising costs, some shops are even counting on a successful festive season for their survival.
Research from Simply Business has highlighted just how important the Christmas shopping season is for many small firms. Its findings show that 60% of SMEs say a good festive season would be a lifeline for their business, helping them to survive the year ahead. Over one-third of small businesses make over 20% of their annual income in this period.
Alan Thomas, Simply Business UK ceo, is urging people to shop local this Christmas. "While spending is expected to reduce slightly amidst the cost of living crisis, Brits are still expected to spend over £2 billion this Black Friday weekend and a further £2 billion on Cyber Monday.
"The timing could not be more critical for small business owners, many of whom will be banking on the upcoming Christmas trading period for a much-needed boost … as Black Friday approaches, we're urging people to spend their money with small businesses."
Online shopping continues to grow
According to a new survey from Criteo, 74% of UK shoppers said they are likely to shop online on or around Black Friday this year, up from 63% in 2021. Of those, 88% are thinking about the deals they will purchase already, with just 12% making decisions on the day.
Sam Benkel, Criteo managing director, Retail Media, said, "UK consumers are understandably eager to find out exactly what Black Friday has in store this year, but it does appear Cyber Month will continue to steal its thunder … We might not see the sensational growth figures associated with Black Friday itself, but the overall opportunity remains an essential part of the retail calendar."
"79% of Brits plan to spend the same or more on Black Friday"
A poll of 2,000 consumers from Emarsys has found that 60% of Brits will make the most of the 2022 Black Friday sales, with the average shopper set to spend £282.89. Reassuringly, 79% say they won't decrease their spending this year. Of those, 53% say they'll shop online, 29% will shop in-store and the remaining 28% will do a bit of both.
Meghann York, global head of product marketing & solution management at Emarsys, says that shoppers are likely to be more careful this year due to the cost of living crisis. "Customers are having to do more with less, so they know how to maximise value for themselves - navigating deals and brands with greater speed and precision - and are less likely to pull the trigger on impulse buys."
However, research by Ello Group has found that one-third of Brits say they can't afford to shop on Black Friday this year due to the rising cost of living, with almost half (45%) saying they'll be spending less. Its survey of 1,000 UK consumers has found that 47% of respondents say they will be prioritising Christmas gifts over buying items for themselves this year in a bid to make Christmas more affordable.
What are shoppers looking for on Black Friday?
Analysis of online shopping data by software provider Intact has highlighted some of the key issues for shoppers around Black Friday. It has found that:
- 71% of shoppers are reassured by secure payments;
- 58% said they look at comments and reviews;
- 53% value high star ratings;
- 57% are swayed by fast delivery options and free deliveries;
- 36% are put off if there are higher postage fees;
- 76% of shoppers would rather pay more money on a familiar website than get a discount from an unknown supplier.
Supporting small businesses at Christmas
2022 marks ten years since the American Express Shop Small campaign launched in the UK and the tenth year of Small Business Saturday which takes place on 3 December this year.
A survey of retail and hospitality sector business owners on behalf of American Express and Small Business Saturday has found that the vast majority (90%) agree it is important to support other local, independent businesses, with 85% saying they actively promote other local suppliers and small businesses. While 56% of these small business owners said the outlook for their business over the next six months would be "challenging", 36% said they were "optimistic" and 27% were "excited".
Michelle Ovens, director of Small Business Saturday UK, said: "While small businesses are undoubtedly facing a host of challenges currently, this research underlines that being an entrepreneur is also still a hugely fulfilling thing to do and the UK is still a great place to start your own business. The strength of collaboration bubbling away across the small business community is a big reason for this. But as well as support from each other, business owners need support from everyone around them, including the public."
Written by Rachel Miller.