Retail sales data - October 22

This is the golden quarter for retail and for the third year in a row it is going to be difficult. Talk of long recessions does nothing to boost consumer confidence and neither does the crippling uncertainty we have experienced over the past few months. Whilst the Autumn Statement provided some much needed rate relief, small independent retailers are still swimming upstream, something made worse by the online giants promoting Black Friday deals like a grinch stealing local shop sales this Christmas. A recent poll we ran found that three quarters (73%) of small independent retailers say Black Friday is bad for business and loses them sales, as people are drawn to global or UK retail giants promising significant discounts. The joint survey with Newspage, of 1000 small retailers based around the UK, also revealed that eight in 10 (81%) respondents say Black Friday is putting pressure on them to lower their prices to remain competitive, at a time when margins and profits are already down due to the cost of living crisis and soaring inflation and energy bills. Unsurprisingly, nine in 10 (89%) survey respondents said they would like to see the annual shopping event removed from the UK calendar altogether, with one describing it as an ‘annual kick in the teeth for small independent retail businesses”. This year, we are calling on employers who care about their local communities to give their staff an extra hour on Black Friday to spend with local shops and markets instead of the global giants. That will be better for wellbeing, local communities and the planet. It will also help many of the family businesses that line our high streets to feel a little more optimistic about this Christmas and 2023.

As a small manufacturing and e-commerce jewellery business, the economic situation we find ourselves in at present is nothing short of horrific. Interest rates are rising, inflation and the cost of raw materials are sky high, and the news of the UK entering the longest ever recession has decimated consumer confidence. Our sales over the past quarter have been diabolical, down nearly 40% year on year. Rising metal costs, coupled with consumer confidence being at an all time low, means the outlook is bleak to put it mildly for the Christmas trading period. This period is vitally important to us as over 70% of our annual turnover happens between now and Christmas day. Retail armageddon is now on the cards for many small retailers and very troubled waters lie ahead for us if buying behaviour does not improve over the Christmas season.