Almost a quarter of small businesses in the North West "will close in the next 12 months" if they have a "below average" Christmas trading season, a new study has revealed.
The figures have shown how damaging a bad festive period can be for smaller firms, with 21% raising those fears, and 5% of them going so far as to say it would mean shutting in a "matter of weeks". An additional 15% said they "could" close if targets are not met.
The research has been released by online curated marketplace Notonthehighstreet, a firm that says these businesses need consumers to shop independent this Christmas in order to survive.
In Liverpool, the figure of those who would close within a year in the event of a "below average" Christmas was even higher - at 35%.
A spokesman said the study also revealed 47% in the North West said the period was important, with 26% adding that it was ‘very important/vital’.
Faye Williams, founder of Studio Thirty Two which is based in Chester, said: “When shopping small, you are not only gifting something truly thoughtful and unique, you are helping to support the immensely talented creatives and the economy in this country.
"Christmas trade equates to a huge percentage of a small business’ yearly income, and without this, the extra special gifts you seek, that are as individual as your loved ones, will simply not be available.
"For those who want to break away from gifting the throw-away and mass produced, it is vital that consumers shop small to support the creative community and actively help to keep time-honoured skills and techniques alive.”
Notonthehighstreet works with 5,000 of the UK’s best small creative businesses and its research found that while 84% of shoppers in the North West consider themselves to be someone who supports small businesses, 16% have not purchased anything from a small business in the North West in the past six months, while 9% have not in the past year.
The research found that when it comes to Christmas, just 16p in every pound will be spent with small businesses this year, with the majority going to big corporations and chains.
The study shows that 32% of those in the North West know someone who owns a small business that relies on Christmas trade. When asked about the impact on that person and their family should the businesses have a poor Christmas trading season, 23% said that it means they will struggle financially next year, 20% say it will impact their wellbeing and/or mental health, and 14% say it will ruin them financially and lead to bankruptcy.
Claire Davenport, CEO of Notonthehighstreet, added: “The research figures show that whilst most people in the North West love to shop with small businesses and believe they support them, they aren’t quite putting their money where their mouth is.
"It’s clear that many smaller businesses in the North West are heavily reliant on the Christmas trading period and a below average Christmas could put them in a precarious situation when it comes to the long term viability of their company.
"The figures stated are the impact on companies who have a ‘below average’ Christmas, demonstrating that the impact of a very poor Christmas could be far more severe.”
