|• Consumers can double the amount of money that stays within their local economy by consciously choosing to shop more with independent, local businesses, finds a new report from Visa and the Cebr (Centre for Economics and Business Research).
• For every £10 spent with an independent business – from a Christmas turkey to a bottle of wine or a gift for a loved one – £3.80 is retained locally.
• Over half of Brits (54%) plan to do some of their Christmas shopping locally this year, either online or in store, while four in five (81%) are supporting local businesses as much, or more than, before the COVID-19 pandemic.
• Despite this support, three in five consumers (62%) are worried independent businesses will not survive if their local community does not back them through this time.
23rd November 2020:
Buying more of your Christmas dinner ingredients, loved ones’ presents or home decorations from a local business could double the amount of money that stays in your community, according to new research commissioned by Visa.
After a year of upheaval for independent businesses, and ahead of Black Friday weekend, Visa has released key findings from its upcoming report created in partnership with Cebr (Centre for Economic & Business Research). The socio-economic report launches alongside Visa’s Where You Shop Matters Christmas campaign, championing Britain’s local, independent businesses for a third consecutive year.
According to the research, for every £10 we spend with a local business, more than a third (£3.80) stays within the area, showing the value of shopping locally. The research also found that currently Brits spend just over a fifth of their money locally*, however they would be willing to spend half** of their money with local businesses.
By choosing to shop local this Christmas, consumers could double the amount of money that stays in their local area at a critical time for Britain’s small businesses.
Invaluable support during a challenging year
Consumer support in 2020 has been crucial for many independent businesses, proving the power of community spirit during lockdown. In fact, over half of shopkeepers (54%) admit the support of their local community has meant a lot and helped them to keep going through this difficult year.
Word of mouth recommendations were the most valued type of support (63%) followed by customers choosing to spend money with their business (46%) and support their business on social media (19%).
Fiona Cox, Senior Economist at Cebr comments: “Our research, in partnership with Visa, looked to quantify the local economic impact associated with shopping at local goods and services providers. We hypothesised that such firms would have a more localised supply chain and customer base, and indeed, the results indicate that, owing to the concentration of local suppliers and employees, almost 40% of money that is spent locally, stays locally, providing support to local merchants and to their communities.”
Visa’s Where You Shop Matters campaign is a long-term global commitment that recognises the essential role that local, independent businesses play in our communities. Throughout the year, Visa has been drawing on its network of industry, technology, and community partners to provide much needed assistance to local businesses as they rebuild for recovery. Visa has also committed to digitally enable eight million small businesses across Europe.
To celebrate what shopping locally means to independent businesses, this year’s Christmas campaign from Visa will feature real businesses from across the UK talking about what the support of their community means to them.
For more information, go to www.visa.co.uk/whereyoushopmatters