31/10/2016 - 14:26

Big business winning out over local stores

31/10/2016 - 14:26

Bookmark

Save articles for future reference.

Australian consumers are increasingly spending their money with big businesses rather than supporting local stores, despite professing their affection for small business, a new survey has found.

Australian consumers are increasingly spending their money with big businesses rather than supporting local stores, despite professing their affection for small business, a new survey has found.

The American Express-commissioned ‘Economy of Shopping Small: Customer Counts’ report has revealed a two-year declining trend, with 78 per cent of respondents saying small businesses have had a positive impact on their lives, but only 37 per cent increased the number of times they shopped at small businesses in the past 12 months.

At the same time, 61 per cent expanded their custom with large businesses.

Compared with 10 years ago, the report found 83 per cent of consumers were under the impression that small businesses were not lasting as long, while 71 per cent felt there were fewer small businesses around.

However, the survey appears to be in stark contrast to the small business sector’s actual performance, with the report also revealing 85 per cent of organisations are in a better or similar financial position as they were last year.

That’s backed up by findings that one in five Australians is planning to set up a small business.

“With more than 2.1 million small businesses employing more than 5 million Australians, the sector accounts for 97 per cent of all Australian businesses,” Small Business Minister Michael McCormack said.

“It just makes good sense to have a thriving small business scene in our country and to ensure governments, consumers and Australians support it as best we can.”

The report was released on the same day Shop Small 2016 kicked off in Sydney.

“Each day, every Australian should ask ourselves what we can get from our local stores or the latest online boutique,” Mr McCormack said.

“There’s no better time than Shop Small month to start that movement, making our intentions and support crystal clear, particularly as the retail sector picks up in the lead-in to Christmas.”

American Express vice-president small merchant, global merchant services, Katrina Konstas, said Australians needed to convert affection into action when it comes to small businesses.

“This year’s research unveils a ‘custom conundrum’ in how Australians view and engage with small businesses; we acknowledge that we’ll miss small businesses when they’re gone, but we don’t always see them when they’re there,” Ms Konstas said.

“Small businesses are no longer just bricks and mortar stores on the high street, but new digital startups, online boutique stores, and internet-based services.

“We all have a stake in their success, whether it’s preserving a sense of community or providing a family member or friend with employment.

“Investing in their future is investing in your own and Australia’s, whether you want to run your own small business, work in one, or shop at many.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options