Despite high inflation, rising energy prices and a tighter labour market,18% of East of England businesses expect this Christmas trading period to be merry and bright compared to last year, according to the latest insight from the Lloyds Bank Business Barometer.
Those predicting a bumper festive period cited an ease in restrictions on trade (15%) as they felt less affected by Covid restrictions due to the Omicron variant last year, while 13% cited having more time to prepare this year. Those expecting a worse Christmas trading period said they were struggling due to less customer demand (18%).
More than half of businesses in the East of England surveyed (57%) said that Christmas was important for their future prospects, with almost a quarter (23%) of firms reporting to be Christmas ready. However, over half (57%) said they are not yet fully prepared for the festive period.
When asked what could help firms prepare more effectively, 28% said they wanted more support with rising costs, and the same proportion said that better technology to improve efficiency would help. Faster payment terms with suppliers were also high on businesses’ wish list, with 26% saying this would boost Christmas trading.
One East of England business that’s expecting a boost to trade thanks to the festive period is Bishop’s Stortford-headquartered Alcohols Ltd, which is one of the UK’s largest manufacturers of gin. It recently received an eight-figure funding package from Lloyds Bank to help it invest in a brand-new, expanded facility that will be responsible for producing up to 120 million bottles of gin a year worldwide once operational.
Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said: “This Christmas marks the first without significant restrictions on trading since the start of the pandemic. From food and drink manufacturers to retail and hospitality, it’s clear that a number of firms in the East of England intend on capitalising on the seasonal boost to revenue that we may see as family and friends come together to celebrate this season.
“Effectively responding to customer demand will mean keeping a close eye on cashflow and managing working capital so that businesses have the headroom to invest in the staff and tech they need to meet demand and carry the Christmas momentum into the New Year. We’ll remain by their side over the festive period and beyond, as firms look to build resilience heading into 2023.”
