Welsh shoppers set to spend big with small businesses this Christmas
Welsh shoppers set to spend big with small businesses this Christmas
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Small businesses across Wales are preparing for a welcome seasonal uplift as new data suggests UK consumers will spend £5.3 billion with independent firms this Christmas.
The findings, released by the Small Business Saturday campaign, indicate that this year’s festive period could deliver crucial end-of-year revenue for the sector.
Overall, UK shoppers are expected to spend more than £23 billion this Christmas, a 16% increase on last year.
Of this, around one fifth is predicted to go to small businesses, representing a 19% uplift on projected 2024 levels.
In Wales, the trend is even stronger. Households are expected to allocate just under a quarter (23%) of their festive budgets to small firms, reflecting sustained public commitment to local independent businesses.
Average household spending will reach around £820, with Welsh consumers forecast to spend the most in the UK on food (87%), gifts (82%) and alcohol (63%).
The research also shows rising confidence among Welsh shoppers, with 23% expecting to spend more this Christmas and more than half (51%) planning to increase spend on clothing and nights out, both above the national average.
As the Small Business Saturday campaign launches its 2025 push, organisers are calling on consumers to back their local independents on 6 December and throughout the crucial trading period.
“It is promising to see positive economic signs ahead of this year’s critical festive season. This bigger seasonal spending pot offers an incredible opportunity to boost the amazing small businesses across Wales and the wider UK,” says Michelle Ovens CBE, director of Small Business Saturday UK.
“Despite ongoing challenges, small businesses have experienced a period of relative stability this year. Public support can make all the difference in helping them finally turn a corner as the year ends.
“It is vital the nation gets behind our favourite small businesses so we can unleash their power in supercharging the economy next year and delivering immeasurable wider value across society and our local communities.”
Public sentiment remains strongly in favour of small businesses, with 84% of people seeing it as important to support them and 95% believing they add value to the local economy.
The new figures also come as the UK’s small business population rises to 5.6 million, the first increase since 2020 having decreases since the Covid-19 Pandemic.
Welsh independents say the campaign plays a key role in driving visibility and local spending.
Juliet Bennett, owner of Tan y Ddraig Ceramic Cafe in Conwy, said: “The Small Business Saturday campaign is great for small businesses, encouraging people to look and spend local and small.
“It’s great to see how getting such a boost helps the local community to thrive, grow and develop.”
Michael Henson, Co-Founder of Home of Nail Art (HONA) in Newport, added: “The festive season is incredibly important for small businesses, especially within the beauty industry like ours.
“It is a time when communities come together, and beauty is often at the heart of that. Public support genuinely makes a difference to our growth and our ability to keep creating jobs here in Wales.
“At HONA, we’re gearing up for a busy period with a new skincare launch and continued expansion of our manufacturing in South Wales.
“Small Business Saturday is a brilliant reminder of the impact independent businesses have on the Welsh economy. Public support doesn’t just help us grow; it helps us keep innovating, investing locally and proudly representing Wales on a global stage.”
Small Business Saturday, which launched in the UK in 2013 with support from American Express, has grown into a major event in the retail calendar.
Last year more than 10 million people shopped with small businesses on the day, spending a collective £634 million in-store and online, levels also not seen since 2020.
Dan Edelman, General Manager, UK Merchant Services at American Express, said: “It’s positive to see the attraction of spending with small businesses remains strong among the public, especially with the festive season fast approaching.
“American Express is proud of its long-standing support of Small Business Saturday, a vital campaign encouraging the nation to shop small, whatever their budget.”
Alongside shopping locally, organisers are urging consumers to champion small businesses in other ways, such as leaving positive reviews or recommending their favourite independents to friends and family.
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