Member Article

Yorkshire small businesses missing a trick on Christmas trading

Small businesses across Yorkshire could be missing out on opportunities in the final run up to Christmas, because they do not have any plans in place to boost sales, according to new research from Lloyds Bank Commercial Banking.

The study shows that just over a third (37 per cent) of small and medium sized businesses in Yorkshire have introduced a strategy to boost trade and attract customers, despite recognising that rising consumer confidence and better economic prospects mean they could reap significant benefits by doing so.

Additionally, many have a number of concerns for their businesses over the holiday season.

Of those businesses that do not have a specific plan in place, over eight out of ten (86 per cent) Yorkshire SMEs said it is because they do not feel their business needs are affected by the Christmas period; under one in ten (7 per cent) targeted their spend on other periods of the year and one in twenty (5 per cent) said that they had budget and time limitations.

Martyn Kendrick, area director SME banking in Yorkshire, Lloyds Bank Commercial Banking, said: “It is surprising that so few Yorkshire SMEs invest or plan ahead for the busy Christmas period despite the clear business benefits.

“As the economy shows signs of improvement and consumers feel more confident, now is the time for businesses to engage with their customers to understand their business needs and how best to prepare for 2014.”

Although not all businesses have a specific sales plan in place for Christmas, three fifths of all Yorkshire SMEs (60 per cent) have concerns in the run up to the holiday season.

Nearly a third of businesses (30 per cent) are concerned that the bad weather will have an impact on sales; almost a fifth (18 per cent) are concerned about postal delays; and a near equal number (16 per cent) are concerned that they will not be used as much by their customers over the Christmas period.

A further two fifths of Yorkshire businesses (42 per cent) have concerns about the post Christmas period; over a fifth (22 per cent) have concerns about an increase in utility bills; a similar number (19 per cent) fear a drop in post Christmas trade; and just over one in ten (15 per cent) are worried about consumer behaviour.

Kendrick added: “Businesses in Yorkshire clearly have certain concerns both in the run up to Christmas and in the post Christmas period. Whilst it is true that businesses cannot act to prevent many of these situations, the fact is that some advance planning can help to mitigate some of these challenges.”

This was posted in Bdaily's Members' News section by Mark Lane .