Talking Retail Grocery and product news for independent retailers
The quarterly Barometer from Barclaycard Payments shows small and medium firms predict an 8.1% rise in revenue in 2021, while 39% say they are optimistic about their prospects. Although the future still looks uncertain for many, 24% say their output has already surpassed or returned to the pre-pandemic levels of January 2020.
However, small and medium businesses are still weary of continued upheaval, and are braced for further short-term losses, anticipating an initial revenue drop of 7.5% over the first three months of this year.
The quarterly report also finds that 42% of smaller firms think the current lockdown will be the final ‘strict’ or national lockdown and, of these, 70% are optimistic or cautiously optimistic for what’s next.
The research shows small businesses are preparing for the economic recovery by: increasing marketing spend (62%), saving cash (42%); or changing their offering to cater to customers once life opens back up to a ‘new normal’ (42%).
The survey reveals businesses have increased their investment in technology to stay operational during the pandemic and are committed to this investment even after lockdown ends. In the fourth quarter of 2020, 50% of smaller firms said they invested in digital upskilling for themselves or their staff, and in the first quarter of the year 24% plan to continue this investment even if restrictions ease, while a further 23% also intend to continue increasing activity on social media.
In addition, 29% of small firms say they will invest in new equipment and technology in 2021, and 13% of firms view technology as the top opportunity for growth over the next year.
SMEs expect the greatest growth opportunities in recovery will be increased consumer footfall (21%), and supply chains returning to normal (17%).
Rob Cameron, chief executive of Barclaycard Payments, said: “While 2021 offers all of us hope for a national recovery, small businesses especially are looking forward to emerging from coronavirus uncertainty.
“SMEs have proven their agility, adapting quickly to get online, catering to a nation stuck at home and changing how their teams get the job done. While the world may be returning to some form of normal this year, small businesses have realised the benefits of flexible working and digital skills, with many already looking at what improvements they can take forward into 2021.”
In addition, small businesses are also optimistic about their employment ability as lockdown eases, with 30% expecting their number of full-time employees to increase over the course of 2021.
The research finds firms plan to keep flexible working once they bring their staff back to work after lockdown, with 41% saying they will continue offering flexible working and don’t mind where their staff are based.
