It is estimated that 98 per cent of the 2.4 million businesses in Australia are small businesses and family enterprises. Yet in September alone, business insolvencies rose by 11 per cent and defaults increased by 23 per cent.
Now, new research by CouriersPlease (CP) reveals nearly four in five Australian shoppers (79 per cent) will proactively support small businesses in their recovery in the next 12 months, by spending with them rather than with big businesses.
The survey reveals that consumers plan to not only shop small, but shop local: 87 per cent said they will proactivity spend with local rather than global businesses in the next year to help with economic recovery in Australia.
CP also analysed the behavioural differences across the major states. In NSW, 90 per cent of consumers said they will spend with local businesses and 81 per cent will proactively spend with small businesses over the next 12 months. The states’ economies were hit particularly hard this year. In NSW, State Final Demand―the total value of goods and services sold in a state―declined by 8.6 per cent.
In Victoria, the economy is set to shrink by $23.5 billion compared with pre-Covid-19 forecast and it’s expected there will be 79,000 fewer jobs over the next five years. Eighty-five per cent of Victorians plan to shop locally and 77 per cent will shop with small businesses to help the state recover.
Queensland is facing an $8.1 billion deficit and the state government’s debt is set to rise to $101.9 billion by next June. A higher proportion of Queenslanders (87 per cent) will shop with local businesses over the next year, while 78 per cent plan to shop with small businesses.
“The lockdowns, social restrictions, closed borders and travel bans have directly and indirectly impacted the majority of small businesses,” Paul Roper, chief commercial officer at CP, says.
“This month’s shopping events present multiple opportunities for local and small retailers to drive consumer spend and repeat purchases, particularly given the public’s willingness to change their spending habits in support of the small business retail sector’s recovery. Last year, Australian shoppers spent nearly $4 billion on Black Friday and Cyber Monday and, with this year’s significant and continuing increase in parcel volumes, we expect online transactions to continue growing up to Christmas.”
Local retailers should also focus on enhancing their ecommerce platforms including ensuring their online transaction process is seamless.
“This includes managing stock levels, providing a quality customer service experience, offering multiple delivery options and ensuring their delivery partner maintains a smooth and efficient delivery process. This will help encourage shoppers to purchase with them over global brands,” he adds.
