70% of retailers are affected by reduced consumer purchasing power

Ankorstore has recently released its report on independent trade at the European level. In the current economic context, the marketplace analyzes the panorama of the sector, with data from over 570 independent retailers from Spain, UK, France, Germany and Italy. The main objective of the surveys is to understand the points of interest of retailers for Black Friday and Christmas sales in the current economic context and highlight their needs.

The study shows that the outlook for independent retailers across Europe is uncertain as the end of the year approaches, with 25% of respondents unable to define whether or not they are optimistic for the final quarter of 2022. contrasts between European retailers are very evident, being the Spanish (70%) the most optimistic compared to year-end sales.

Following them are the British (69%), who believe that consumers will continue to support them and their local stores, while less than half of Italian (47%) and German (42%) independent retailers remain hopeful with compared to year-end sales. Lastly are the French with 30%, being the least optimistic in all of Europe. Furthermore, 77% of retailers across Europe believe that consumers will spend the same amount or less than last year during the festive period.

The report also shows that although Spanish retailers are the most motivated in terms of sales this year, they are also the ones that are most affected by the reduction in purchasing power of consumers (70%), competition from large chains and e-commerce websites (70%), and rising energy prices (41%) like their European counterparts.

However, if there is something that defines independent businesses, it is the adaptation to adversity, since after the last two years marked by Covid-19, galloping inflation and the cost of living crisis are added. For this reason, the following months will be more important than ever to try to reduce its impact.

In fact, for 87% of European independent retailers, year-end sales represent the most important shopping event of the year, followed by summer (40%) and Mother’s Day (32%). This trend is also confirmed by Spanish retailers, since for almost 31% of them, the end of the year parties represent the most important milestone in terms of sales.

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biggest challenges

80% of the retailers surveyed face the reduction in the purchasing power of consumers, competition from large chains and e-commerce websites (43%) and rising energy prices (46%).

Interestingly, when asked how they combat their biggest challenges, it shows that whether it is a UK retailer, Germany, France, Spain or Italy, most refer to the same strategies to combat them. 63% will reduce their energy consumption, such as heating and lighting in stores at night, more than half (54%) will strengthen their communication through social networks and flyers, and 47% will choose to limit stocks and replenish them at the last minute.

Trends that will mark the end of the year gifts

Another key fact is that consumers go to physical stores to touch and feel the products they want to buy. The observed trend indicates that the most popular products purchased by European retailers before the holidays are regional (49%) and organic (47%).

These results confirm that consumers seek unique products that are not found in superstores and that have sustainable credentials or support local brands. On the other hand, these data stand out compared to the results at the national level, since almost 24% of Spanish retailers look for low prices as a second option, only after artisanal products with 28%.

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