Independent retailers and small businesses 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: “Whether it’s the local deli and off licence putting on a joint cheese and wine night, or an entire high street running a seasonal promotion, 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.”

Neil Saunders, Managing Director at Conlumino, said: “Collaboration between independent businesses can have huge financial benefits. This inevitably has a very positive impact on the economics of running an independent high street business. At a time when so much of retail is highly competitive it is fantastic to see how cooperation is creating sustainable success.”

Underpinning the evident supportive culture on high streets up and down the country is the fact that owners of small merchants make the effort to get to know other traders in the area. The report finds that 59% of small business owners know at least half of their fellow local traders and close to a quarter (23%) know almost all of them, and are reaping the rewards for mutual benefit by recommending each other to their customers too.

Toby Archer, owner of award winning cheesemongers, The Cheese Plate in Buntingford, Hertfordshire said of the report findings, “I definitely believe it’s important for owners of independent shops to support each other. In Buntingford, we regularly organise joint events and myself and other local traders are always happy to recommend each other. To me, it’s obvious that by working together we can effectively attract more customers, with a good selection of thriving shops and a sense of community that makes our high street a nicer place to be.”