Upbeat small businesses are making investment in retail technology a top priority for 2024

The UK’s small retailers plan to invest in new technology in the year ahead as part of strategies to drive business growth and improve customer experience, according to research from American Express.

This involved 253 UK small business owners (<49 employees) in the retail or hospitality sector with a physical location.

 Asked about how they planned to safeguard their business this year, the survey found that spending on new technology topped the list (30%).

26% plan to ramp up sales and marketing activity, while a similar amount (24%) said they would bolster their online sales capabilities, as they look to unlock additional consumer spending.

Overall, 28% stated that attracting new customers is a challenge.

 The research also highlighted that 34% will be sharpening their focus on customer experience in 2024, with the goal of building loyalty and further boosting sales.

Technology spend could play an important role in achieving this, with 43% of retailers indicating that they had bolstered their business tech ahead of the festive peak period in order to create a better experience for customers.

Previously released data from the research found that these small business owners are remarkably upbeat about their growth prospects in 2024; 89% expect to grow over the next 12 months, and 93% feel confident about the future of their business.

Dan Edelman, General Manager, UK Merchant Services at American Express, says: “It’s encouraging to see so many of the UK’s small retailers entering 2024 with an optimistic outlook.”

“However, they know that they can’t stand still if they want to grow their business. Investing in new technology unlocks operational efficiencies, frees up valuable resource and ultimately improves the customer experience.”

“With more small merchants on our network than ever before, our focus at American Express is backing these businesses to help drive sales now and in the future.”

A fresh focus on collaboration

As well as being clear about investment priorities to drive business growth, respondents also revealed a renewed spirit of fraternity, with 79% of the small business owners surveyed agreeing that collaboration between local community businesses had increased over the past year.

74% always try to work with local, independent suppliers where possible, and the same proportion agreed it was important that small businesses team up to navigate the current uncertain economic climate.