New research finds that shoppers are gearing up to spend more with small businesses rather than big retailers during the Black Friday weekend.
Black Friday traditionally sees many UK shoppers take advantage of discounts to do their Christmas shopping. In good news for small businesses, research by GoDaddy has found that seven in ten shoppers report that they're willing to spend more with smaller retailers over larger competitors.
Competition for consumer spending is hotting up, in particular around the key sales dates in the festive calendar. One in ten consumers do the bulk of their gift buying on Black Friday, rising to nearly a quarter (23%) amongst 18-24 year-olds. Over half (54%) of shoppers aim to have their gift shopping for the festive season completed ahead of December.
Online festive deals
With 20% of Brits now buying gifts for between six and ten friends and family members each Christmas, four in ten say they are finding out about the best shopping deals through social media ads. Online cut-through is key for retailers, with nearly two-thirds of those under 24 (62%) and over half of millennials (52%) finding their best festive shopping deals online.
This chimes with the focus of many small business owners, with 18% saying they have prioritised investment in social media, ads and online promotion in recent months. Competing for customers is also one of the biggest sources of stress for small business owners, with 21% of entrepreneurs saying that remaining competitive on pricing, marketing and attracting customers is one of their biggest headaches.
It's a good time to start a business
GoDaddy data from 2023 found that 41% of Brits planned to launch a festive side hustle as a means of bringing in extra income during the holiday season. The new findings suggest that AI is a key tool, with three in ten UK entrepreneurs using AI to support their small business. Three-quarters (76%) of entrepreneurs are using AI for marketing, using tools to help with content creation for social media posts, with a further 45% using AI to help with marketing and 13% using it to boost sales.
"With consumers increasingly making purchasing decisions based on what they see on their daily scroll of social media, it's never been more important for small businesses to be front of mind and top of the screen. A small business doesn't mean small ambitions. With these factors in place, we're keen to help make this the 'smallest' Black Friday of all time, with micro-businesses at the epicentre of festive shopping. Times are changing and it is now easier than ever for businesses to put their best foot forward." Andrew Gradon, head of GoDaddy UK & Ireland.
Small retailers reluctant to discount
Despite the opportunities that Black Friday brings, many small retailers are reluctant to slash prices, according to the latest survey by the British Independent Retailers Association (Bira).
Its findings show that seven in ten independent retailers across the UK are boycotting Black Friday this year, as rising operational costs and economic pressures continue to impact small businesses.
The annual survey reveals that 70.5% of independent retailers are refusing to participate in the pre-Christmas sales event, continuing a strong trend of resistance seen over the past four years. This year's figures show that while some retailers are testing the waters with Black Friday promotions, the majority remain steadfast in their opposition.
Andrew Goodacre, ceo of Bira, said: "With increased staffing costs and squeezed margins, many of our members are already operating on tight margins while offering competitive prices year-round. The pressure to slash prices further during Black Friday simply isn't viable for small businesses.
"Independent retailers are the backbone of our high streets. Rather than competing in an unsustainable race to the bottom on pricing, especially during these economically challenging times, our members focus on providing quality products, exceptional service and genuine value throughout the year. We encourage shoppers to support these local businesses that contribute so much to our communities."
Written by Rachel Miller.