New research commissioned by Faire, the online wholesale marketplace, has found that despite wanting to support the sector, 20% of British consumers have cut back on shopping at independent retailers as a result of the cost of living crisis – but there are significant opportunities if independent retailers adopt digital innovation.
The research is based on a survey of 2,000 consumers and 100 independent UK retail leaders conducted by Opinium on behalf of Faire.
Key take-aways include:
- Consumers feel protective of independent shops and want to support them for their ‘social good’…
- 30% of British consumers say they feel responsible for supporting independent retailers
- 32% of those surveyed said shopping at independents allows them to reduce their carbon footprint and 20% said they think indies provide more sustainable products
- Despite this, 48% of British consumers still think independent shops are too expensive when compared to larger chains and online marketplaces
- …but independent retail is under pressure in adverse economic conditions…
- 20% of British consumers are cutting back on shopping with independent retailers as a result of the cost of living crisis
- 48% of British consumers think independent shops are too expensive when compared to larger chains and online marketplaces
- The independent businesses thriving at the moment are the ones innovating with digital technologies:
- Among independent retailers, 66% felt their businesses were thriving thanks to digital transformation and 48% said that embracing technology has increased revenues.
- 61% of the small-to-medium-sized independent retailers surveyed who operate both in-store and digitally report that their business is thriving
- The number of independent retailers using Faire in the UK has now hit 45,000: four times the number of stores than the four largest supermarket chains combined.
- In fact, digital innovation represents a major opportunity for independent retailers to thrive
- 92% of the retail leaders agreed offering consumers the ability to browse goods online would enhance the shopping experience
- 73% of consumers said that integrating some form of digital retail service would encourage them to shop at their local retailers more
Within Faire’s own global customer base of 700,000 retailers, less than 20% had an online presence before the pandemic. By 2021, more than 70% took their businesses online through new websites, social media marketing, or live shopping on FaceTime. Faire’s early adopters also demonstrate how leveraging online tools for more efficient and effective sourcing, has helped retail businesses grow.
An independent retailer and Faire customer, Helena Chow, owner, and co-founder of AIDA Shoreditch, said: “The cost-of-living crisis has made us all rethink the way we shop, but my hope is for people to see that buying cheaper products isn’t the way forward and that independent shops like ours can help them slow down their consumption by buying better quality goods.
“Through Faire, we discover and connect with like-minded businesses producing unique and beautiful products without the need to attend expensive trade shows. It has helped us to stay agile as we continue to navigate the huge challenges currently facing independent retail and has helped us feel more confident about our future.”
Commenting on the report, Olivier Buffon, Head of International at Faire, said: “Small and independent businesses are the backbone of our economy and our local communities. What this report shows is that consumers turn to them to provide products that are quality, which reflect their values, and which are thoughtfully curated.
“Combine this with the promise of digital innovation, both in how retailers source goods but also in offering digital ecommerce options to consumers, and it’s clear that despite some challenges, independent retail has a bright future.”
