Brits plan to spend 8.4 billion pounds at independents this Christmas

UK shoppers plan to spend 8.4 billion pounds this festive season with independent retailers, according to new research from Direct Line business insurance.

This is an increase of almost 2 billion pounds on last Christmas, adds Direct Line, when shoppers were planning to spend 6.5 billion pounds at independent retailers, and will come as a much-needed boost for small and mid-size enterprises (SMEs) after more than 18-months of uncertainty due to the pandemic.

The research reveals that British consumers anticipate buying nearly a third (28 percent) of their Christmas shopping from independent retailers this year, and on average will spend 204 pounds at these shops, compared with 157 pounds in 2020.

Nearly half (44 percent), report that the quality of goods at independent stores is superior to those of major retail chains, while 57 percent find the customer service better than at larger businesses, and almost three-in-five shoppers (59 percent), believe that smaller retailers are also the best places for finding unique and unusual gifts.

Of those Brits who plan on buying their presents from small independent retailers, over a quarter (29 percent) stated that they will be buying mostly online. While 26 percent said they prefer to shop in-store, with six-in-ten saying it is because they like to see the items in person, with 27 percent adding they like the social interactions involved in shopping locally and 22 percent like to meet the business owners they are buying from.

Pandemic shifts Christmas shopping habits towards independent retailers

Direct Line also adds that the pandemic has impacted shopping habits this Christmas, with many shoppers (44 percent) trying to get their festive shopping done earlier this year due to concern about the pandemic. With 29 percent stating that they will do this between two and four weeks earlier and nearly 39 percent saying they’ll do it a month or more in advance.

Additionally, almost three quarters (72 percent) of Brits feel it is important to support their local businesses, with seven-in-ten (70 percent) wanting to help independent retailers bounce back from Covid difficulties, and almost the same proportion wanting to support local employment (68 percent).

According to Direct Line, the top five independent retailer categories set to benefit from Christmas spending this festive season will be arts and crafters, clothing, chocolatiers, bookshops and children’s toy shops.

Jane Morgan, SME product manager at Direct Line business insurance, said in a statement: “The last two years have been turbulent for small independent businesses, so it’s great to see the British public supporting them this Christmas, recognising that they offer unique gifts, first-class customer service and an excellent quality of goods.

“While it’s exciting that independent retailers are set to benefit from a spending boom, it is important that SMEs have the right insurance in place to help protect their business should something go wrong. At Direct Line, we can cover the majority of risks associated with running a business.”

Direct Line’s survey was conducted by Opinium, who surveyed 2,000 UK adults in November.