Almost half of Brits vow to 'shop local' more this Christmas - with London scooping the crown of being the most 'small business-friendly' city in the UK. The study by Nucleus Commercial Finance quizzed 2,000 Brits about their shopping plans this Christmas and revealed that 42% have vowed to drop their cash at mainly small or indy stores.
The research also revealed which UK city is 'friendliest' when it comes to supporting small businesses this festive season. To determine this, the study investigated where in the UK consumers tend to shop solely or mainly at small and/or independent stores, and will be looking to do so more for the upcoming festive season.
The capital topped the poll, scoring a whopping 89 out of a possible 100 points in Nucleus’s ranking, closely followed by Birmingham (79) and Belfast (76). Taking the unenviable bottom spots on the list were Exeter (20) and Chelmsford (22).
It seems that Scots will be focusing more on snapping up presents from bigger chains, as Aberdeen (23), Glasgow (39) and Edinburgh (40) all feature in the 'bottom 10' list. According to the study, just 9% of Brits currently shop solely or mainly at small or independent stores. But it looks like more will be looking to ‘shop small’ for their Christmas presents this year, in comparison to previous years.
The main motivating factor for Brits seems to be a conscious effort to support independent companies (12%), 9% think it will save them money, while 8% say they’re doing so for better quality. The data also seems to suggest that local and independent businesses may benefit from targeting younger age groups, with two thirds (60%) of Millennials and almost half (46%) of Gen Z-ers saying that they will be buying more from independent retailers this Christmas.
At the other end of the spectrum, those who say they'll buy more from big chains for this festive season, cost seems to be the main driver. More than a fifth (21%) say they believe they’ll save money this way, followed by convenience (16%) and faster shipping (11%).
The study also revealed that 12% of people will be tightening their purse strings and won't be dishing out gifts to friends and family this year due to the cost-of-living crisis. As part of the research, Nucleus Commercial Finance also spoke to owners of independent companies from different UK locations, to find out if they have seen an increase in support in preparation for the festive season.
Kate Tompsett, owner of Happy & Glorious in Kent, said: "Everyone is being incredibly supportive. "I am lucky to have my shop a few doors down from Canterbury Cathedral's gate and surrounded by other independent shops.
"Footfall is fantastic, and the street is starting to get a brilliant reputation for its mix of indie cafes and shops. There's a great business community here, and we work together to come up with special events and cross promotions to give us all a boost.
"Sales online for this month are up by 37% compared to the same period last year. I'm incredibly fortunate that once I get a customer, they tend to return and buy from me again. This year, 24% of my online sales have been from repeat customers. I may not be as speedy at dispatch as larger companies, but every item is gift wrapped, with a pack of wild flower seeds and a thank-you note.
"For this festive season, I have been focusing my buy on smaller items - people are conscious of spend right now, so items around the £5-15 mark are just as important as the special gifts around the £50 mark. Special offers, exclusive evenings and concentrating on making my marketing fun and uplifting are also extremely important.
"I am also looking at restarting my creative workshops, (which fell by the wayside during Covid). People are still craving shared experiences and creativity, perhaps more than products, so I am planning a host of events for the new year, so that people can gift them to others for the festive season."
Chirag Shah, Founder and CEO at Nucleus Commercial Finance, said: "It’s undeniable the past year has been hard for many small businesses with the cost of living impacting them through increased expenses, and fears they may lose customers due to many having less disposable income.
"But our research has shown that despite many across the country still favouring bigger chains, a growing number will be turning to independent shops this Christmas, often in a specific effort to support them, creating a huge opportunity for growth."
TOP 10 MOST 'SMALL BUSINESS-FRIENDLY' CITIES ( ACCORDING TO NUCLEUS’S RANKING)
1. London (89 OUT OF A POSSIBLE 100)
2. Birmingham (79/100)
3. Belfast (76/100)
4. Bristol (74/100)
5. Cardiff (69/100)
6. Plymouth (66/100)
7. Leeds (64/100)
8. Nottingham (61/100)
9. Oxford (60/100)
10. Liverpool (59/100)
BOTTOM 10 MOST 'SMALL BUSINESS-FRIENDLY' CITIES (ACCORDING TO NUCLEUS’S RANKING)
1. Exeter (20 points out of a possible 100)
2. Chelmsford (22/100)
3. Aberdeen (23/100)
4. Sheffield (35/100)
5. Glasgow (39/100)
6. Bath (40/100)
7. Edinburgh (40/100)
8. Southampton (41/100)
9. Norwich (42/100)
10. Bradford (44/100)
For more information, about Nucleus Commercial Finance, please visit https://nucleuscommercialfinance.com/
