Small businesses concerned over recovery

Consumers are also having similar worries. Seven in 10 (73%) surveyed worried about small businesses reopening. One in two shoppers (54%) will only return to bricks & mortar stores if strict social distancing is in place, while nearly one in five (18%) will not return until a vaccine is developed.

Over a third (39%) of small businesses surveyed have adapted their business model to keep trading during lockdown. This has led to the emergence of a new type of seller- the ‘AKA businesses’ that have diversified their offering with new products and services.

This trend has been well-received, as 81% of consumers say these changes have encouraged them to shop with small businesses, while 85% who have noticed small businesses adapt would like to see measures continue after lockdown has ended.

Two thirds (65%) of consumers shopping online are buying more than before lockdown, creating a lifeline for small businesses who have a digital presence. With 61% of consumers now feeling less comfortable shopping in store than before the pandemic, balancing online and offline measures will be an important part of the recovery process for small businesses. However, many have yet to take advantage of online selling with a third (31%) of small businesses not having a digital storefront.

Loyalty to small independent businesses remains high, with over half (51%) of consumers shopping with small businesses at least once a week since late March. Meanwhile, 82% of consumers intend to shop as frequently or more frequently with small businesses once restrictions are eased than before lockdown.

Hairdressers top the list of the most-missed small businesses during lockdown, while upon reopening the hospitality sector should also see a boom with restaurants, pubs and cafés also greatly missed by consumers.

Jeni Mundy, Managing Director, UK and Ireland at Visa said “Even in the face of extraordinary challenges, British businesses are gearing up for recovery by finding new ways to serve their consumers. However, we know that many lack the time and resource to rebuild at this critical time so Visa is enlisting the help of its partners to offer small firms the tools, advice and expertise so they can adapt their business ready for a new normal. We’re also calling on consumers to shop local. By supporting small businesses- both on and offline – all of us can do our bit to help our communities recover and get back to their best.”