One fifth of the UK’s Christmas spending could go to small businesses this year, an estimated 19% uplift on 2024, new research predicts.
Over £23 billion could be spent in total across the festive season, according to the report by Small Business Saturday, with £5.3 billion going to small firms.
The support for independents is strong, the study said, with 84% of people thinking it’s important to support small businesses and 95% believing they add value to the local economy.
Over a quarter of Brits expect to spend more on Christmas this year, with the top areas including food (78%), gifts (71%), alcohol (53%), clothing (47%) and nights out (46%).
One fifth of households plan to treat themselves to holidays. Younger people aged between 25-34 will be spending the most, at an average of £1,083.
Small Business Saturday takes place on 6 December and organisers are calling for the nation to support and spend with small businesses on the day and throughout the crucial peak trading season.
Michelle Ovens CBE, director of Small Business Saturday UK:
“It is 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 – especially with Black Friday and Cyber Monday on the horizon, as small firms can really struggle to keep up with deep discounting events.
“It is 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.”
Jeevan Punj, founder of luxury gifting business Elite Hampers, said:
“Over the past few years our sales during the festive season have increased year-on-year. This year, we are already delivering for Christmas! It’s nice to see people spend on others during this time of year, and we are excited to deliver hundreds of hampers over the next few weeks.”
Hepsie Goddin, co-founder of independent homeware design brand Martha and 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.”
Small Business Saturday
Small Business Saturday, supported by American Express, launched in the UK in 2013 after starting in the US in 2010.
Last year over 10 million Brits shopped small on Small Business Saturday, with a collective £634 million spent on the day itself in-store and online, and average spend per person on the day rising to the highest level since 2020.
As well as bricks-and-mortar stores, people are encouraged to use the day to support all types of small businesses, including online firms and B2B service providers like accountants, plumbers and digital marketers.
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.”