Black Friday a “lifeline” as SMEs recover from £127bn pandemic loss
When one thinks of Black Friday, it typically conjures images of colossal corporations offering their wares and services at a reduced rate. However, industry insiders claim that SMEs are relying increasingly on the event to recoup losses suffered from the effects of the pandemic.
Online broker of business insurance Simply Business services over 600,000 clients. As such, the business has insight into the financial peaks and valleys that can occur at this time of year.
Alan Thomas, UK CEO at Simply Business, comments on Black Friday and its impact on small businesses: “Black Friday has become an increasingly popular shopping window ahead of the festive trading period. Brits are expected to spend over £9bn this Black Friday weekend and a further £2bn on Cyber Monday.
“The vast majority of consumer spending at this time is concentrated on big retailers with eye-catching discounts that small businesses simply struggle to compete with.
“Yet the festive period is so important for independent traders – particularly this December after the extreme challenges of the last two years. More than two in five SMEs still haven’t recovered financially from the pandemic, which cost SMEs a devastating £126.6bn in total.
“Christmas is, quite simply, a lifeline for many small businesses. For more than a third, the festive trading period accounts for over 20 per cent of their annual revenue. One in five say their business won’t survive 2022 without a bumper Christmas.
“So this Christmas we’re urging people to support small businesses wherever and however they can. We all need small businesses to thrive, they’re the lifeblood of our communities and economy, responsible for over 60 per cent of all jobs and contributing trillions of pounds a year.”
Ultimately, it looks as though SMEs are set for a substantial revenue uptick in comparison with recent years with both Black Friday and Christmas. However, the recovery of many of these businesses relies upon the British public’s decision to shop local and independent, which remains to be seen.
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