Despite high inflation, rising energy prices and a tighter labour market, 21% of firms 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 increased demand (17%), while easing of trading was cited by 11% of firms as they felt less affected by Covid restrictions due to the Omicron variant last year. Those expecting a worse Christmas trading period said they were struggling with increased costs of doing business (18%).
Over two-thirds of businesses surveyed said that Christmas was important for their future prospects (68%), with almost a third of firms reporting to be Christmas ready (28%). However, a fifth (19%) said they are not yet fully prepared for the festive period.
When asked what could help firms prepare more effectively, 34% said they wanted better supply chains, with 31% also wanting more support with rising costs. Skilled workers were also high on businesses’ wish lists, with 27% saying access to more skilled staff would boost Christmas trading. Steve Harris, regional director for Yorkshire & Humber at Lloyds Bank Commercial Banking, said: “After a turbulent year, it’s encouraging to see that so many businesses expect higher revenues as we head towards the final weeks of 2022. Of course, this is partly due to no restrictions being in place this year, which many hope will drive higher footfall.
“For those not quite ready for the festive trading period, it’s important to ensure they have a healthy cashflow and the right staff in place to deal with increased demand. We’ll continue to be by the side of firms across Yorkshire and the Humber and look forward to ending the year on a high.”
