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As the Christmas season approaches, Britain’s independents are gearing up for a make-or-break festive period. While major retailers often dominate the headlines, our research here at Capital on Tap reveals a significant opportunity for local markets: nearly 40% of Brits are open to shopping small this Christmas, provided the value proposition is right.
To find out, we surveyed 2,000 Brits about their Christmas shopping habits and attitudes toward small businesses, uncovering how cost, convenience, and creativity shape festive spending in 2025.
Despite the dominance of major retailers, the survey shows that local independents still hold a valued place in the nation’s gifting plans.
Britain’s appetite for shopping small
With 17.5% of Brits saying they plan to shop small this season, and a further 20.3% saying they always consider buying from a small business when it’s within their price range, it shows there’s a strong appetite to support small businesses when the price feels right.
This appetite differs across the generations. Gen Z shoppers (16-28) are the least likely to shop small this Christmas, with only 12.9% planning to do so. At the other end of the scale, Baby Boomers (61-79) remain the most loyal small business supporters, with 20.6% intending to buy from independents this festive season.
What’s driving the shift toward small businesses?
When it comes to why people choose to buy from small businesses, the findings show a mix of practical and emotional drivers:
|
Rank |
Reason for shopping small |
% of Brits choosing this |
|
1 |
Competitive pricing or feeling that I'm getting good value |
71.6% |
|
2 |
Making the gift more thoughtful |
69.7% |
|
3 |
Free or affordable delivery |
69.5% |
|
4 |
Making the gift more unique |
68.0% |
|
5 |
The belief that the products are of a higher quality or better made |
64.7% |
|
6 |
Seeing positive reviews from other customers |
63.9% |
|
7 |
A unique range of products that are hand-picked and not available elsewhere |
63.3% |
|
8 |
Personalised or high-quality customer service |
63.0% |
|
9 |
Ability to shop online as well as in-store |
62.9% |
|
10 |
Opportunity to support local makers or artisans |
58.1% |
Surprisingly, 'competitive pricing and value' (71.6%) topped the list of reasons Brits choose small businesses. This suggests shoppers aren't just looking for the absolute cheapest option, but are seeking genuine worth, fair costs without compromising on quality or experience.
Thoughtfulness followed closely (69.7%), proving that small businesses still hold the edge in meaningful gifting. Whether it’s a personalised touch or a handwritten note, shoppers value the sentiment behind their purchase that mass-market retailers often cannot provide.
Affordable delivery (69.5%) has become just as crucial. Shoppers say convenience, quick, affordable shipping and transparent delivery costs can make the difference between browsing and buying.
Together, these insights show that British shoppers want both value and meaning. While affordability still drives decisions, value doesn’t just mean the lowest price; it’s about getting something worth paying for.
The UK cities leading the small business charge
Some cities stand out for their commitment to local retailers this Christmas. Bristol leads the way, with 32.1% of residents planning to shop small, the highest proportion in the UK. The city’s thriving community of independent shops, creative makers, and festive markets make it a standout city for supporting local.
Cardiff (21.7%) and Brighton (18.4%) follow behind, both known for lively high streets and artisan businesses that attract shoppers looking for meaningful, handcrafted gifts.
How small businesses can make the most of the festive season
The Christmas period is a golden opportunity for small businesses, not just to boost sales but to build lasting relationships with customers.
Start by leading with value. Be clear and transparent about pricing and what shoppers get for their money. Bundle complementary items, create limited-edition gift sets, or offer small loyalty rewards that feel generous without cutting into margins. Simple touches like clear shipping details and easy returns help customers feel confident when they hit ‘buy.’
Convenience matters just as much. Streamline the online experience by keeping checkouts short and mobile-friendly, offering guest options and popular payment methods, and displaying delivery cut-offs upfront. Quick, human replies to questions can make even the smallest business feel as reliable as the biggest retailer.
Finally, spotlight what makes you unique. Whether it’s craftsmanship, customisation, or strong local roots, share the story behind your products through engaging visuals or short videos. Remember, a festive purchase should mark the start of a relationship, not the end of a transaction. A handwritten note, a care-tip card, or an invite to a VIP mailing list can all make customers feel genuinely valued.
Small businesses have a huge opportunity to turn seasonal interest into long-term loyalty. By combining value, convenience, and authenticity, they can deliver gifts that not only look good but feel good to give and receive.
Sources and methodology
All data taken from a survey of 2,000 UK adults.
