Research indicates small retailers face post-Christmas closures
A new study released from Notonthehighstreet has revealed that 22 per cent of smaller businesses say they ‘will close in the next 12 months’ if they have a ‘below average’ Christmas trading season.
Eight per cent of small retailers responded saying they would shut up shop in a matter of weeks, and an additional 12 per cent said they could close if they don’t hit their targets.
The research found that when it comes to the all-important Christmas trading season, just 26p in every pound will be spent with small businesses this year, with the lions share going to big corporations and chains. This is based on the average UK consumer saying they will spend £362 on ‘products’ this Christmas, just £92 of which will be with small businesses.
The study also showed that 30 per cent of Brits know someone who owns a small business that relies on Christmas trade.
Claire Davenport, CEO, notonthehighstreet commented: “The research figures show that whilst Brits love to shop with small businesses and believe they support them, they aren’t quite putting their money where their mouth is. It’s clear that many smaller businesses are heavily reliant on the Christmas trading period and a below average Christmas could put them in a precarious situation when it comes to the long term viability of their company. The figures stated are the impact on companies who have a ‘below average’ Christmas, demonstrating that the impact of a very poor Christmas could be far more severe.”