Christmas shopping rush vital for small firms' survival.

Lincoln's small businesses could face imminent closure if they do not get the support of shoppers in the run-up to Christmas, according to groups who represent them.

The Federation of Small Businesses said local, independent businesses rely on a busy Christmas period to compensate for any losses made in the remainder of the financial year.

If smaller businesses and retailers do not have a profitable Christmas this year, then they face the risk of closure.

Regional Chairman of the Federation of Small Business David Dexter said many local traders rely on the Christmas period to help pay for any future overheads or costs.

“It looks as though everyone is going to have less to spend this year,” he said.

“Shoppers are, quite naturally, being cautious. Unfortunately, this is going to affect a lot of the smaller retailers, who will not have the level of takings that are necessary to ensure a good Christmas.

“Many small retailers rely on the Christmas period, as it’s a time when takings are supposed to increase. If some businesses have faced difficult times, and if they don’t have a profitable Christmas, they might find that things are so difficult they cannot continue.”

Mr Dexter also explained the key to survival for small businesses in the run-up to Christmas was to continue to offer a unique brand of personal service, while cutting expenditure.

“The majority of small businesses will endeavour to cut their costs and improve their products and service ranges, giving better value for money,” he said.

“Small businesses will continue to diversify wherever possible, and look at improving the range of products and services available.”

Many retailers in Lincoln have reported that their shops have been much busier this year in contrast to 2008, but have noticed that shoppers are being more cautious with their spending.

Sue Gadsby, manager of Gadsby’s on Lincoln High Street, said that money and redundancy worries were effecting spending habits.

“People are still worried about losing their jobs, so they’re not spending as much money when they come in to browse,” she said.

“Despite that though, we’ve still been busy.

“We’ve definitely been busier than last year, especially over the Christmas market.”