prabhu
Amazon has had staggering sales growth in the UK over the past decade, taking net sales from roughly four billion to almost 33.6 billion U.S. dollars in 2023, making it the undisputed giant of online retail. But it’s not the same story for everyone. Building it and expecting customers to come is just not how it works out for many online traders. On the other end of the spectrum, The Telegraph reported statistics that show that 20% of new businesses fail in their first year and 60% within three years.
However, for Designer-Carpet.co.uk, an online luxury carpet store based here in Derbyshire, their appointment-only showroom in Ilkeston tells a different story. And it’s one that’s being replicated by innovative regional businesses across the Midlands.
The David vs Goliath Reality
According to government statistics, the UK now has a record 5.5 million active businesses, with 99.8% classified as small to medium-sized enterprises. These businesses face an uphill battle against online giants in a market where Statistica reports that in 2025, nearly 85% of UK retail sales take place online.
According to Ben Herbert, a director at Designer-Carpet, this is a trend they’ve witnessed firsthand. “Five years ago, customers would drive to multiple showrooms, comparing prices and quality. Today, they arrive having already researched everything online, often with screenshots of products they’ve already seen online.”
Market Forces Working in SME’s Favour?
The home improvement sector shows particularly strong regional resilience. The UK home improvement market reached £29.7 billion in 2024, with an annual growth of 5.1% year on year forecast. The industry remains highly fragmented, with most retailers running stores with fewer than 10 employees.
This fragmentation isn’t a weakness. When small businesses leverage their close relationships with local artisans, crafters, or niche suppliers to bring unique and exclusive items to their customers, they create something marketplace giants struggle to replicate: authentic local expertise.
The Appointment Economy
“Having a showroom that’s appointment-only model reflects a broader trend reshaping retail,” says Herbert. Customers can book specific times for personalised consultations, knowing they can get talking to an expert that online algorithms simply cannot match.
Those businesses winning against online giants have one thing in common: they are using technology strategically. For them, the real growth is in omnichannel experiences where customers browse online, consult in-person, and complete purchases wherever they feel most comfortable.
The Numbers Behind Regional Success
Despite the challenging landscape, for every one SME that decreases its headcount in 2025, 2.5 will be hiring. Aviva, a leading, diversified insurer polled a sample of UK SMEs and found that 89% of small business owners are confident their businesses will grow in the five years to 2030. Overall, 91% of SMEs believe access to the right local skills is important for their future success.
Other benefits of being part of a local community include high customer loyalty among local people (38%) and working with other businesses in the area (33%).
These statistics uncovered by Aviva reflect a fundamental shift in how regional businesses approach competition with online giants, not by trying to beat them at their own game, but by playing an entirely different game.
