I run a business in London. We’re not a giant. No boardroom. No corporate lifeboat. Just a small team doing the work and staying sharp. So when prices go up, bills stack, and customers pull back, I feel it same as the local florist, the pharmacy on the corner, and the woman running a boutique near Shepherd’s Bush.

If you’re a small retailer right now, you know exactly what I’m talking about. Inflation hasn’t just made things expensive. It’s made things uncertain. And uncertainty, as any shop owner knows, is what kills momentum.

Here’s what I’ve learnt about surviving it.

The Margin Squeeze Is Real

Let’s not sugar-coat this. Rent is up. Wages are up. Packaging costs more. Couriers cost more. And to top it off, customers are spending less.

According to the British Retail Consortium, shop price inflation peaked at 9% last year. Electricity and gas bills for small businesses rose nearly four times compared to pre-2021 rates (source: FSB).

Margins are evaporating. Some shops have already shut their doors.

But not everyone is giving up.

What Smart Retailers Are Doing Differently

1. Slashing What Doesn’t Sell One of our partner stores culled over 35% of its SKUs. “If it doesn’t move, it’s not worth the shelf space.” Harsh, but right. Dead stock ties up cash. Keep the winners. Drop the noise.

2. Getting Ruthless About Overheads A fashion shop in Notting Hill moved from a commercial unit to a shared pop-up space. They halved their rent and doubled walk-in traffic. Sometimes survival means swallowing pride and adapting.

3. Making Local Work Harder Customers still want things fast. But they also want to support local, if it’s convenient. That’s where we come in. Some of our stores now offer 60-minute delivery with zero upfront costs. They sell more and spend less. Win-win.

4. Taking Back Control from Middlemen Big marketplaces charge hefty cuts. Smart retailers are pushing customers to shop directly. QR codes at the till, loyalty via WhatsApp, newsletter discounts, anything to build a direct line to the customer.

What Not to Do Right Now

Don’t wait it out. This isn’t temporary.

Don’t chase trends you don’t understand.

Don’t ignore the numbers. If a product, service, or channel is losing you money every month, change it or cut it.

My Message to Fellow Owners

This is not the time for bravado. It’s time for clarity.

If you’re a small retailer in London and your costs are biting harder than ever, you’re not alone. We work with businesses like yours every day: florists, pharmacies, artists, and even tech accessory shops. They all face the same pressure.

But some are staying open and even growing, because they’re changing how they operate. Smarter delivery, leaner stock, and fewer dependencies.

That’s what survival looks like in 2025.

If you’re ready to adjust, we can help. Let’s talk.

Want to hear how our partners are navigating the squeeze? Reach out. We’ll show you what’s working without the fluff.