Small Biz Saturday: retailers expected to see significant consumer spending spike
Celebrating its eleventh year in the UK, Small Business Saturday has become a well-established fixture in the business calendar. New analysis conducted by Clover in the UK indicates that the marketing initiative is yielding positive results for small and medium enterprises (SMEs).
Analysis of spending in recent years shows that consumer spending has increased by an average of 59% on the first Saturday of December compared to the preceding Saturday. In 2021 spending rose 53% and in 2022 the increase was 65.
Commenting on the analysis, Jon Boland, general manager at Clover in the UK, said: “Small Business Saturday capitalizes on a window of ideal timing for consumers to direct their focus toward supporting smaller businesses. As the initial Black Friday fervor subsides and before the frantic rush of last-minute shopping ensues, consumers seem more inclined to explore and invest in local businesses.
“Our data paints a compelling picture of Small Business Saturday’s increasing significance. According to an analysis of data across our client base of more than 80,000 small and medium enterprises (SMEs) in the UK, it is clear that the initiative gives SMEs a much-needed boost.
“Business is likely to blossom for florists, as consumers on average spend 160% more on Small Business Saturday compared to the previous week. With Christmas approaching, individuals on the hunt for distinctive wreaths and centerpieces for their holiday tables may be drawn in by florists participating in promotions during Small Business Saturday.
“The handicraft sector also is likely to see a boost with sales increasing as much as 200%, driven by consumers’ preferences for unique, handmade products that stand out from mass-produced items.
“Our data also indicates that spending on women’s clothing could increase more than 130% during Small Business Saturday. Fatigued by the lack of unique pieces sold by the high street during Black Friday, shoppers may seek out smaller, specialised businesses known for their one-of-a-kind selections.
“At the same time, industries where consumers routinely splash the cash are also likely to see an uptick in spending. The beauty and barber industry on average sees a fourfold increase in consumer spending on the first Saturday of December. The increase is likely to be connected to the proactive initiatives businesses undertake. Many of these establishments enthusiastically promote Small Business Saturday on social media, enticing customers with compelling offers, encouraging greater spending.
“Heightened spending over a day may not seem hugely impactful, but it can serve as a lifeline for many smaller businesses and determine their ability to sustain operations over time. With the ongoing increase in consumer spending power in the UK, we anticipate this trend of supporting smaller businesses to persist and even grow in the coming years.”