Small business prospects hanging on strong Christmas sales
By Richard Wright | 24th November 2021
Almost one in five (16%) small business owners say their business won't survive 2022 unless they have a successful Christmas sales period.
The study by small business insurer Simply Business is published ahead of Black Friday - a key Christmas shopping window dominated by retail giants. It also revealed that more than a third (36%) say they make over 20% of their annual revenue in this period.
More than a quarter (27%) are 'not confident' about their chances of a successful festive period. One in 10 (10%) even expect it to be worse than last year, when restrictions and localised lockdowns were commonplace.
Alan Thomas, UK CEO at Simply Business, said: "While much of the UK prepares for a period of well-earned festive cheer, the feeling among small business owners is likely to be rather more sombre this Christmas."
At the same time, two thirds (60%) of small business owners state a good festive season would be a lifeline for their business - with many still looking to recover from the devastating impact of Covid-19.
Poor festive trading could prove fatal for many small businesses with Covid-19 already reckoned to have cost SMEs £126.6bn.
The study revealed that well over two in five (43%) are still struggling to recover financially from the impact of Covid-19.
Business owners say their biggest challenges this Christmas will be attracting enough customers (21%) and earning enough to keep their operation alive into 2022 (17%).
What's more, one in five (21%) believe current supply chain issues will hit them hard - with ongoing challenges in getting goods to customers or sourcing the stock they need.
Meanwhile, more than half (52%) live in fear of future lockdowns and tighter restrictions, and the impact that would have on their businesses.
Over a quarter (28%) have taken more time to promote their business or spent more money on advertising, while others have experimented with new or additional product lines or bought more stock (15% and 14% respectively).
One in 10 (10%) have also set up an online store for the first time - helping them reach new customers and capitalise on the growth in online demand.
Alan Thomas, Simply Business, said: "Without a bumper Christmas trading period, one in five small businesses will permanently close in 2022."
Related Articles
Copyright 2024 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.