Work together to boost bottom line

Independent retailers and small merchants that work together enjoy a significant sales boost, finds The Value of Collaboration report released today by American Express. The report, carried out by retail experts Conlumino, finds that by collaborating via activities such as joint marketing campaigns, loyalty schemes, local events, and joint promotions, small merchants can boost their sales by an average of up to £30,000 each annually, representing an average potential sales uplift for independent businesses of almost £900 million nationally. As well as evaluating the positive impact formal collaboration can have on sales, the report also explores the day-to-day cost savings small merchants can benefit from by lending each other a helping hand. Through things like minding each other’s shops, taking in deliveries, doing a bank run or providing loose change, independent businesses can save an average of £3,000 each per year in labour costs, equating to an average value of over £75 million nationally. In total, nearly three quarters (73%) of respondents said they are supporting each other in some way. This includes other activities such as discussing business challenges with their peers, comparing performance or discussing the trading environment. Mark Roper, Head of UK Merchant Services at American Express, said: “Small merchants across the UK are clubbing together to improve their collective lot. It makes strong business sense, delivering tangible returns in terms of boosted sales and saved labour costs and it is a trend that is increasing. One in six respondents said they plan to collaborate more in the next year or so.”