With the government encouraging the public to shop small this festive season, SMEs have a unique opportunity. However, making the most of the festive period can be difficult for small businesses. Figuring out the best strategies for attracting customers, no matter your business or target audience, can be daunting. Not to mention, customers' behaviour changes yearly, meaning rinse and repeat strategies can be ineffective. 

 

So, how do SMEs make the best of festive activity? Plus, why should supporting small businesses be in consumer minds as we shop for presents? Read on for festive small business insights…

Why Supporting UK Small Businesses Matters This Festive Season 

 

Did you know that small businesses employ 60% of the UK workforce? Annually, they generate £2.8 trillion in turnover in 2025, generating 51.2% of total turnover. With approximately 5.7 million small businesses in the UK, small businesses are a part of our daily life, which we can see in these UK Business Statistics from 2025. 

 

More than providing a significant contribution to the UK economy and the working life of citizens, small businesses add to local culture and community. They add vibrancy and personality to the high street. It also widens possibilities when consumers shop small, giving more options in choice of products and services.

 

Shopping small benefits the economy, strengthens communities, and expands consumer choice. 

 

However, what strategies should SMEs utilise to best prepare for the festive season, meeting customer demand in the best way possible? 

 

How Small Businesses Can Maximise Sales in December 

• Planning In Advance 

Christmas preparations should not begin in December, especially in retail. Approximately 20 to 30% of Christmas shoppers finish by early December, with around 30 to 40% having started or bought several gifts by that point. Only around 10 to 20% shop in the last week before Christmas. So, not gearing up for Christmas in November means missing out on a significant portion of your potential customers. This applies to all SMEs that actively change operations for Christmas. 

 

Research can be an excellent starting point. Look at previous Christmas trends, upcoming trends, competitor tactics, see what experts in your industry have to say, there are so many places to seek out valuable insight that can help you take your Christmas strategy to where you need it to be. 

 

Your preparation should include developing a marketing plan in advance. When your marketing plan is set in advance, you avoid reactive decision-making, saving you time and ensuring your outreach spreads as far as you want it to. Dedicate time to creating a plan for social media and email marketing, alongside any avenues you utilise, giving you a reserve of ideas and taking this off of your plate during the busiest points. 

 

If you’re looking for last minute-optimisations, make note of what has been successful this year, what could be improved, utilise this information for next year. It’s sure to help you going forward. Then, see if any of the below can help you now. 

 

• Manage Your Incoming and Outgoing 

Staying on top of your logistics and stock levels is crucial. The best way of approaching this will be different for each business. Daily checks, team meetings, end of day reports, ensuring strong communication, fast action, and rigorous inventory keeping is crucial to a successful Christmas season. 

 

• Make It Special

Lean into the season with Christmas decoration and atmosphere. If you can make time spent with you feel festive, it will add to the service you provide. It can also be a way to have fun with your branding, leaning into what Christmas looks like for your business. Are you a colourful glittery business or should your business stick to more traditional decoration? Don’t just create a Christmas atmosphere, create the right atmosphere for you. 

 

• Set Realistic Expectations

Making sure your expectations are realistic is sure to save you from stress. Set clear expectations with customers surrounding deadlines and shipping times. You don’t want to be unable to provide a promised service due to miscommunication. Clear targets and deadlines are the best ways to protect yourself and make the Christmas season the success you want.

 

Small Businesses Are Big At Christmas

 

Whilst small business goes big at Christmas, at The Business Show we celebrate SMEs throughout the year. 

 

Add a valuable addition to your Christmas strategy in 2026 by attending The Business Show, taking place on the 11th and 12th of November 2026. It’s the perfect place to develop your strategy, gain expert insight, and get advice on optimising your operations - all in time for Christmas. 

 

Attending the show is free and it’s the largest business event in the UK, entirely built as a place for SMEs to discover everything they need to know for starting or scaling their business. Register your interest for 2026 here. 

 

Be sure to shop small this Christmas!