Small UK businesses hoping for a share of potential £20.4 billion Christmas spend

Research from the Small Business Saturday campaign has found more than £20 billion could be spent by British consumers in the lead up to Christmas this year, with independents preparing to target a fifth of this figure – equating to approximately £4.4 billion.

This would deliver, it says, a critical boost to the nation’s 5.5 million small businesses as they tackle extended economic difficulties. 

The ‘peak’ Christmas shopping season begins on Black Friday (today, 29th November), followed by Cyber Monday (2nd December), with the Small Business Saturday campaign taking place from 7th December – a clarion call for the public to get out and spend with smaller retailers to ensure their survival.

“Public support is absolutely vital for small businesses across the UK, with many still fighting to recover from the cost-of-living crisis and deal with continued challenges like high costs and flat growth,” said Michelle Ovens CBE, director of Small Business Saturday UK. 

“With a major festive spending pot up for grabs this year, there is huge opportunity out there for small businesses. And it is really encouraging to see such positive public sentiment. We need this to continue as it really will make all the difference to helping small firms across the UK stay in business and keep delivering their incredible value across our economy, society and local communities.”

The new research found women tend to control Christmas spending, with 60% being in charge of the household budget. Of those asked, 26% said they intended to spend more on Christmas this year.

Encouragingly, public support for small businesses is already riding high with four in five people (86%) thinking it is important to support small businesses and two thirds (66%) spending on goods or services with small firms multiple times a month.

Dan Edelman, general manager of UK Merchant Services at American Express, which is helping Small Business Saturday, said, “With the festive period fast approaching, it’s heartening that public support for small businesses remains strong. Small Business Saturday is a campaign which remains as important now as when it first began. That’s why American Express is proud to champion the nation’s much-loved independent businesses as principal supporter, encouraging the nation to shop small.”

As well as encouraging the public to make a conscious effort to spend with small firms across the festive season and beyond, campaign organisers also suggest supporting favourite independents in other ways, such as leaving positive reviews or spreading the word amongst friends and family.

How to attract shoppers to your independent business this Christmas

1. Ramp up your efforts on social media across all platforms. Quality, not quantity, matters. Brainstorm with the team and come up with content you feel will really showcase what you have to offer. Have fun with it. Be engaging, make shoppers want to get into the festive spirit with you.

2. Dazzle with your window display. Don’t underestimate the power of using your windows as a selling tool. They’re an eye into your shop, and the first thing potential shoppers will see. Be bold in your design, and use as many ambient goods as you can from your Christmas range within your window display to reflect just what’s on offer. Continental sweets and baked goods like panettone, stollen, lebkuchen, glace fruits and chocolate-covered nuts are all winners. And nostalgia is huge this year. Maximise your displays and showcase your range of traditional goods that evoke a sense of comfort and yesterday, from tins of toffees, to shortbread biscuits and fruit cakes.

3. Tastings work wonders. But don’t limit them to the counter. If space (and local council regulations) allows, set up a mini stall outside, inviting would-be customers to try some of your biggest hits - be it a sliver of cheese and chutney on a cracker, pieces of cake, or nibbles of biscuits and chocolate. Mini paper cups of warm spiced apple juice given away alongside will bring over cold shoppers, and create a sense of goodwill. Walking tastings, sending festively dressed staff with trays of delights out onto the high street, are a nice idea too.

4. Ensure your staff are clued up on everything Christmas, from opening and closing days and times, to hampers, deliveries, and seasonal stock. Service really is king in independent retail, playing a massive part in return visits and word-of-mouth recommendations. Make sure you and the team go out of your way to demonstrate your expertise, while being as welcoming as possible.

5. Well publicised ad hoc events in these few weeks to Christmas are a fantastic way to encourage engagement, show off your festive wares, and create a buzz. Hits this year have included unique cheese and wine pairings, crisp and drink pairings, and mocktail parties.