One fifth of the nation’s festive spending pot could go to small businesses this year, according to new data from the Small Business Saturday campaign. The figures show that more than £23 billion could be spent across the festive season overall, representing a nominal 16% year-on-year increase. UK households are set to spend an average of £824 on celebrations, up 8% from last year.
Over a quarter (28%) of Brits expect to spend more this Christmas. Top priorities include food (78%), gifts (71%), alcohol (53%), clothing (47%), and nights out (46%). Younger shoppers aged 25-34 are planning the biggest budgets, with an average spend of £1,083.
As the Small Business Saturday campaign kicks off, organisers are issuing their annual call for the nation to support and spend with small businesses on December 6 and throughout the peak trading season.
Michelle Ovens CBE, director of Small Business Saturday UK, commented: “It’s promising to see positive economic signs ahead of this year’s critical festive season. This bigger seasonal spending pot offers an incredible opportunity to boost the UK’s amazing businesses.
“Despite ongoing challenges, small businesses have experienced a period of relative stability this year. Public support can make all the difference in helping them finally turn a corner as the year ends. It’s vital the nation gets behind our favourite small businesses so we can unleash their power in supercharging the economy next year and delivering immeasurable wider value across society and our local communities.”
Public support for small businesses remains strong, with 84% of people saying it’s important to support small businesses and 95% believing they add value to the local economy.
Jeevan Punj, founder of luxury gifting business Elite Hampers in Shropshire, said: “Over the past few years, our sales during the festive season have increased year-on-year. This year, we’re already delivering for Christmas! It’s nice to see people spend on others during this time of year, and we’re excited to deliver hundreds of hampers over the next few weeks.”
Independent homeware design brand Martha and Hepsie, run by sisters Martha Copinger Sneddon and Hepsie Goddin in Sheffield and Devon, is also hoping for a festive boost. Hepsie said: “Christmas is a key season for our business, and it’s really hard to judge how it’s going to be this year. With the squeeze on household budgets, we hope people will be looking to invest in smaller, quality products designed with purpose.”
On Small Business Saturday customers across the UK go out to support all types of small businesses, from bricks-and-mortar and online retailers to service-based and B2B firms such as restaurants, accountants, plumbers and digital marketeers. Many small businesses get involved by hosting events, offering promotions, and collaborating with other local traders.
As well as encouraging the public to spend with small firms across the festive season and beyond, the campaign organisers suggest supporting favourite independents in other ways, such as leaving positive reviews or spreading the word among friends and family.
Small Business Saturday launched in the UK in 2013 and is backed by principal supporter American Express. Dan Edelman, general manager, UK Merchant Services at American Express, said: “It’s positive to see the attraction of spending with small businesses remains strong among the public, especially with the festive season fast approaching. American Express is proud of its long-standing support of Small Business Saturday: a vital campaign encouraging the nation to shop small, whatever their budget.”