Local businesses worried about increasing costs

Independent traders in France are going through a complex period, marked by an increase in costs, a decline in purchasing power, changes in consumption habits and an increase in the cost of raw materials. It is in this context thatAnchor sizea European platform for direct sales between brands and retailers, has published the second edition of its Independent Commerce Observatory, in collaboration with the French Commerce Council (CdCF).

This shows that inflation is still at the heart of the concerns of the French, 60% of them say their purchasing power has decreased this year. Young people under 34 seem less affected, with 20% indicating an improvement. Faced with these difficulties, 80% of French people have adjusted their consumption patterns, favoring low prices and reducing their purchases. Despite this, attachment to local shops remains strong: 40% of French people visit an independent store at least once a week, and 54% prefer them to mass distribution, particularly for their geographical proximity, local supply, and the advice given there.

Despite these statements from the study’s respondents, independent businesses are suffering from inflation, and 56% of retailers note that more and more local stores in their town are closing in 2023.. So, to adapt, 56% of retailers have increased their prices and 41% plan to do so in 2024. A strategy that can cost them customers, who are sometimes ready to change their habits in a brand because of its prices.

The approach of the Olympic Games is not reassuring!

If the Olympic Games were initially seen as a lever for development, the barometer shows that they now arouse a certain general scepticism. 80% of French people fear a price increase in host cities and 15% believe that these events will have an impact on their consumption from independent businesses. Local retailers share this pessimism, with only 9% predicting a positive impact of the Olympic Games on their business.

Therefore, traders and consumers expect concrete actions from the public authorities. 84% of traders and 70% of French people believe that the current measures are insufficient. Priorities given by respondents include reducing charges, measures against rising prices and energy costs, and the possibility of opening more easily on Sundays.