Small businesses hail Platinum Jubilee weekend for ‘much-needed positivity’ boost

UK small businesses have been thrown a lifeline in the cost of living crisis, with many reporting a boom in sales as a result of the Platinum Jubilee weekend.

The four-day bank holiday weekend came just weeks after UK inflation hit a 40-year high of 9%. A sharp increase in high street footfall saw a steep rise in consumer spending – despite the current squeeze on incomes.

Hospitality and retail businesses were the biggest winners. According to the British Retail Consortium (BRC), the number of people visiting shops in the Jubilee week was up more than 17% on the average for May.

This is welcome news for hospitality businesses that are already feeling inflationary pressure. Earlier this week, Startups consumer survey revealed that 35% of customers plan to spend less at bars, restaurants, cinemas, and theatres as a result of rising energy bills.

Below, we speak to UK small business owners for their opinions on the long weekend and the opportunities it has brought.

Savvy decision-making brings success

Many of the shrewd firms we spoke to had prepared for the platinum weekend by designing specialist Jubilee-themed product lines designed to more closely target customer wallets.

Decorated with Union Jacks and images of the Queen, they provided excellent marketing and PR opportunities.

Some firms also benefited from a surge in media attention.

“Well-earned rest” for employees

For those businesses that closed during the bank holiday, the long weekend was an opportunity for rest and recuperation following a stressful few months of working.

Data from Lifeworks Mental Health Index highlights the mental health crisis the UK is facing due to the current financial turmoil.

In it, 43% of Britons say they are feeling more sensitive to stress compared to before the pandemic. Similarly, our small business respondents judged the Jubilee weekend as being important for employee wellbeing.

Signs of recovery for UK tourism

One of the hardest-hit industries by the cost of living crisis is domestic tourism.

Households with less money to spend have cut back on weekends away, causing concerns about cash flow for leisure and recreation businesses.

In fact, in our recent survey, 25% of consumers said they were most likely to spend less on holidays as a result of rising inflation and energy costs.

However, Platinum Jubilee festivities held up and down the country helped to show consumers that the UK tourism industry is open for business.

According to a survey by VisitEngland, 5.3 million people in the UK were planning to take an overnight break last weekend.

Jubilee marketing helps swell customer ranks

The Jubilee celebrations didn’t necessarily boost sales for everyone. Client service companies were less likely to see an uplift in profits.

Still, as consumers had more down-time to scroll through the internet, the majority of SMEs we spoke to noted an increase in customer engagement on their online channels.

All seemed satisfied that the surge in interactions will translate into a larger client base further down the line.

Conclusion

Amongst the ongoing economic turmoil caused by record-high inflation rates, the Platinum Jubilee has brought a glimmer of hope to SMEs.

Consumers turned out in their droves to support their local businesses. This heightened footfall, combined with savvy marketing strategies, has given high street firms a much-needed confidence boost.

However, the challenges facing SMEs are far from over. Managers now need to concentrate on maintaining momentum.

If you’re a small business owner, any extra capital you’ve earned from the past weekend should be used to make strategic financial decisions that can help you to budget for increased prices across the supply chain.

Our guide for how to budget in the cost of living crisis has more information on the steps you can take – both big and small – to conserve cash flow.