A new Simply Business survey reveals that local shops and businesses are expecting a significant hit to their earnings this Christmas, with one in 10 businesses even fearing closure.
This data emerges as England’s national lockdown ends and the country reverts to a stricter version of the previous ‘tier’ system.
We surveyed small businesses (including cafes, coffee shops, retail shops and pubs) to understand what their plans are for the festive period.
The findings are a stark reminder of the challenges that small businesses continue to face.
With those surveyed telling us that Christmas accounts for 28 per cent of their annual earnings on average, it’s worrying that local shops and businesses expect, on average, to take £2,164 less than usual this Christmas.
Almost one in 10 (9 per cent) expect to take between £3,000 and £5,000 less than usual.
Money was also the biggest fear going into the festive period:
|Business worry this Christmas||% of businesses|
|Future lockdowns and being able to open||50%|
|Number of sales and customers||47%|
|Ensuring social distancing||18%|
|Keeping employees on||13%|
These money worries are contributing to a general lack of confidence about Christmas. Our survey found:
Unsurprisingly, confidence levels differ depending on which tier businesses are in, despite additional government support.
77 per cent of businesses in tier three don’t feel confident, with the strictest tier meaning lockdown in all but name.
Compare this to 57 per cent of businesses in tier two lacking confidence and 24 per cent in tier one, and it’s clear to see how government policy will continue to decide the fate of many small businesses.
Because of the most recent restrictions experienced all over the UK, shops and businesses aren’t as prepared for Christmas as usual:
But even though businesses haven’t been able to plan, they’ve pivoted and made changes to put themselves in better stead for the period:
|Business pivot||% of businesses|
|Increase in advertising||28%|
|Set up an online delivery service||18%|
|Set up an online store||14%|
|Offering a takeaway service||13%|
|Offering click and collect services||11%|
This Christmas, we’re encouraging as many people as possible to shop with local small businesses.
That’s why we’re giving away three £100 Not On The High Street Vouchers – all you need to do is share your support for local businesses on social media before 14 December.
Here's how to be in with a chance of winning:
1. Head over to any of our #SBShopsLocal posts on Facebook, Twitter or Instagram
2. Follow the simple instructions set out in each post!
The giveaways are open to UK residents (except N.I) aged 18 and over, with internet access and an active account on the relevant social media platform.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
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