Department stores are integral to the British high street, but there's no denying that small businesses have their place too.
Over the last year, the Federation of Small Businesses revealed that SMEs account for at least 99% of the businesses in every main industry sector.
While the glamour and intrigue of Selfridges may have faded to become a staple high street name, a new curiosity has wormed its way into the consumer mindset - the small business. Whether it’s a for that feeling of community, or hunting down a unique find, that consumers enjoy, small businesses have proven to have a home in their hearts.
So what is it that makes them so treasured by millions of shoppers?
Local economy
According to a recent survey by finance provider Liberis, 48% of consumers choose to shop at small businesses to boost local economy.
“Our findings show that consumers share the importance of growing this sector and the value that it brings everyone,” said Liberis.
The Federation of Small Businesses has lobbied the Government for years, reminding them of small retailers' importance.
Which makes sense as the combined annual turnover of SMEs was £1.8 trillion, 47% of all private sector turnover in the UK.
Treasure hunts
Small shops offer consumers the chance to spend a lazy weekend looking for unique finds and a third of shoppers argue this is the reason why they use small businesses.
Clothing, jewellery, books, music and gift retailers were the second most utilised businesses at 45%, after convenience stores, followed by cafes, bars, pubs and eateries at 44%, suggesting that consumers spend the majority of their disposable income at smaller, leisure focused establishments.
Convenience, convenience
Time-poor consumers are often looking for quick and easy buys.
In fact, 58% of respondents saying they use a grocery and convenience store the most of all smaller stores and older generations (55 to 64-year-olds) selecting this as their most used type of independent store.
The shopping mall is the main rival to small retailers, due to their convenient nature, suggesting that locality is still advantageous for many purchases.
However, almost 50% of those polled said that they shop small to support independent establishments, indicating that this plays an important role in purchasing decisions.
Great customer service
Amazing customer service can often clinch business and it's here that independent stores often win over their larger rivals.
51% of those polled said there is a noticeable difference between the quality of customer service offered in small businesses compared to larger stores.
One respondent to Liberis’ survey said “small stores seem more genuine and go out their way to help you” and another said at “smaller stores the service is more personal”, suggesting that in order to be competitive against bigger brands, small businesses must continue to provide a memorable and tailored customer service.
What the customer wants
Limited product selection and price range are a major challenge for small businesses.
A ’limited product range’ is the number one drawback of a small business for half of consumers. Almost half (48%) said that smaller stores tend to be more expensive, which was their second highest concern.
"A more varied marketplace for consumers is dependent on the UK’s small business sector, having another major chain retailer doesn’t increase choice, in fact it reduces the choice,” said Liberis.