According to a recent study conducted by Direct Line business insurance, Britons are projected to spend £8.4 billion on Christmas gifts from independent retailers this year. This marks a substantial increase of £2 billion compared to the previous year, providing a much-needed boost to small and medium-sized enterprises (SMEs) following a challenging 18 months.
Fashion is expected to be the top priority for shoppers, with 10% of their budget allocated to clothing and accessories. On average, individuals are planning to spend £204 on Christmas presents, a significant increase from the £157 spent in 2020.
The research further highlighted the reasons why consumers are choosing to support independent retailers. Key factors include an appreciation for the service provided by SMEs, a desire to aid them in recovering from the impact of Covid-19, the superior quality of products, and the convenience of their services. A majority of Britons (72%) believe it is important to support local businesses, with 70% intending to assist independent retailers in bouncing back from pandemic-related challenges and 68% aiming to support local employment.
Moreover, 44% of respondents stated that the quality of goods offered by independent stores surpasses that of major retail chains. Additionally, 57% find the customer service at smaller retailers to be superior. Furthermore, 59% of shoppers believe that smaller retailers are the best places to find unique and unusual gifts.
When it comes to shopping preferences, 29% of those planning to buy from small independent retailers will make their purchases online. This can be attributed to the convenience of online shopping, particularly amidst the ongoing pandemic, as well as the digital progress made by smaller retailers. Additionally, 35% of consumers opt for digital purchases to avoid crowded stores during the busy Christmas shopping season, with 22% expressing concerns about the risk of catching Covid-19 and therefore preferring to stay away from physical stores.
Among those who prefer to shop in-store, 60% enjoy the experience of seeing the items in person, 27% appreciate the social interactions involved in shopping locally, and 22% value the opportunity to meet and support the business owners they are purchasing from. This highlights the vital role independent retailers play in maintaining the vibrancy of the high street.
The study also revealed that 44% of consumers are attempting to complete their festive shopping earlier than usual this year due to concerns about the pandemic. Of these early shoppers, 29% plan to start two to four weeks earlier, while nearly 39% intend to finish their shopping a month or more in advance. Reasons for early shopping include worries about supply chain issues and stock shortages (38%) and fears of Covid-related restrictions on non-essential retail being reinstated (33%). Interestingly, 24% of early shoppers stated that their increased enthusiasm for Christmas this year, following last year’s restricted celebrations, is driving them to start shopping earlier.
In conclusion, the study highlights the significant support and appreciation for independent retailers among British consumers. The surge in spending on Christmas gifts from SMEs emphasizes the pivotal role these businesses play in both the economy and local communities. As the festive season approaches, it is evident that fashion, along with other unique and high-quality products offered by independent retailers, will be at the top of shoppers’ wish lists.
Useful links:
– Government guidance on setting up a business
– Government resources for small businesses
