Consumers are preferring to do their shopping at big stores rather than visiting their local small business, which could have an adverse efect on employment
A growing number of consumers are shunning family-run local shops in favour of large businesses, a situation the Small Business Minister, Kelly O’Dwyer, warns could put jobs at risk.
Attending the official launch of ‘Shop Small’ in Melbourne on Monday, O’Dwyer says without small businesses half of the private sector workforce could find themselves unemployed.
‘As consumers, it’s our job to step up and show support to the small businesses which give us so much, because they are the heart of our community,’ O’Dwyer says.
New research commissioned by American Express found Australians admit that over the last year they have increased their frequency of shopping at large businesses, compared to visits to small businesses.
Over half of the consumers surveyed say they now prefer to shop with big businesses.
The survey also contacted 700 small-business owners and found nearly two in five intend to sell up in the future.
Over two-thirds said they would sell to individuals or businesses outside the family.
Reasons for selling include concerns around financial stability (73%), increasing costs (82%), attracting new customers (79%) and retaining existing ones (78%).
Yet two-thirds of consumers said they would miss their local small businesses if they were to close.
American Express Global Merchants Senior Vice President Melanie Cochrane said consumers needed to turn their affection for small business into action to ensure they continue to have a positive impact on their local community.
‘When it comes to delivering a great customer experience it’s the little things that count, and no-one does this better than small-business owners,’ she said.
As part of the month-long ‘Shop Small’ promotion American Express will credit registered card members $10 each time they spend $20 or more – to a limit of 10 times – in participating businesses.
AAP
