Consumer caution worries businesses
Dec 21 2011
Consumers are feeling the squeeze
Three quarters of small companies are concerned that cautious consumer spending this Christmas will negatively impact their business.
Almost nine in ten business owners (89 per cent) are worried that shoppers will have difficulty managing their finances during the holiday period, and 83 per cent expect their customers will have to rely on credit cards for purchasing, according to a survey by Streamline.
Small business owners are also feeling increasingly pressured by their competitors, with 77 per cent of those surveyed predicting greater levels of competition this Christmas than last. A further 86 per cent of respondents predict that shoppers will go online to avoid crowds this festive season.
Jayadeep Nair, vice president of small business for Streamline says, ‘Christmas is always seen as a profitable time of year but with recent reports of a double-dip recession, it's no surprise that many small business owners have concerns about their customers' willingness to spend this holiday season.
‘However, Christmas can still offer many opportunities, small businesses just need to adapt. Offering consumers preferred methods of payment, competitive pricing, increased promotional spend and a good atmosphere can all help to drive sales.’
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