December arrives each year with a familiar blend of excitement and intensity. For small product-based businesses, it can feel like standing at the intersection of opportunity and overwhelm. Demand surges, customers are ready to spend and even the smallest brands see fresh eyes on their products. In fact, the final quarter of the year is consistently the UAE’s strongest spending period, contributing around 27% of the country’s annual retail economy spend, according to Majid Al Futtaim’s State of the UAE Retail Economy report. This means more footfall, more online browsing, and more potential for conversion, but also significantly more pressure behind the scenes, and here’s all that’s broken down in Victoria Myers’ words, Founder of Small Retailer Network.
The increasing dominance of Black Friday at the end of November and Dubai Shopping Festival in December means that many small businesses head into the final weeks of the year feeling confused, anxious, and under pressure to slash prices in a bid to stimulate sales.
But while large corporations can absorb margin cuts and play the volume game, small businesses rarely have that luxury. The temptation to discount prices “just to keep up” is strong, but for small brands, this approach is not only unsustainable, it often leads to high workloads and low returns. The truth is simple: discounts should be a strategic tool, not an obligation. Used purposefully to clear slow-moving stock, to boost short-term cash flow, to reward loyal customers, or to support conversion, they can be powerful. But blanket or panic-driven markdowns risk leaving founders exhausted, with little profit to show for their efforts.
December doesn’t have to be this way. By implementing these simple strategies, small retailers are can take full advantage of the festive boom without sacrificing their margins or their wellbeing:
1. Lead With Value, Not Discounts
Not every incentive needs to involve lowering prices. In fact, many customers are seeking quality, connection, and thoughtful details more than they are seeking bargains. Small brands can elevate perceived value without cutting into margins by enhancing the customer experience. Gift wrapping, customisation, limited-edition packaging, and festive presentation turn a simple purchase into something personal. Bundles can increase average order value while offering customers a sense of savings. Value-add incentives such as a “Gift With Purchase” are powerful too, particularly when the gift is inexpensive for the business to produce but high in perceived worth. These gestures strengthen the emotional connection customers feel with the brand and differentiate small retailers from mass-market competitors.
2. Prioritise the Right Products
It is imperative that small businesses maximise sales and minimise uncertainty during peak trade periods. Inventory, promotional energy, and operational capacity should centre around products that are already proven performers. Best-selling items, or seasonal variations of them, are safer bets than untested new products or categories, allowing you to forecast demand more accurately, maximise return on effort and investment and minimise excess inventory in the post-holiday period. Equally, emphasising the product’s unique selling points and brand story helps steer customer focus toward value over price comparison.
3. Plan Markets and Pop-Ups Strategically
Markets and pop-ups can offer incredible opportunities: visibility, community connection, immediate feedback, and real-time sales. But they can also drain time, energy, and resources if they are not selected carefully.
To maximise results from pop-ups, assess each opportunity based on:
1. Audience alignment: Will your ideal customer be there?
2. Logistics and cost: Is it feasible given your production or fulfilment schedule?
3. Historical performance: Has this (or similar) event previously driven revenue, exposure, or loyal customers?
When approached intentionally, pop-ups become powerful brand-building moments. They allow you to deepen relationships with existing customers and create memorable experiences for new ones, something online giants simply cannot replicate.
4. Protect Time and Capacity
The festive season often brings a dangerous cocktail of long hours, heightened pressure, and emotional fatigue. For founder-operated businesses, December burnout isn’t just unpleasant, it can directly affect service quality, fulfilment accuracy, customer experience, and ultimately brand reputation. Protecting your energy is a business strategy, not a luxury.
A key part of managing December without burning out is being intentional with your time. This means prioritising essential tasks rather than getting caught up in the “nice-to-have” activities that don’t move the needle. Automating what you can, such as emails, customer updates, and social scheduling, helps create breathing room during peak weeks.
Delegating or outsourcing certain tasks where possible can also free up valuable hours, while eliminating low-value activities prevents unnecessary time drains. Most importantly, setting clear boundaries around working hours and communication ensures founders can stay focused, present, and protected from festive-season overwhelm. And importantly, plan ahead for your own time off or holiday travel. Customers value consistency, so a bit of proactive communication can help manage expectations and maintain trust.
5. Review and reflect
Keeping a close eye on your numbers throughout the month will allow you to take proactive decisions and pivot your strategy if necessary, preventing leftover seasonal stock tying up cash flow and space once the holidays are over. Targeted limited-time offers, product bundles and strategic marketing campaigns can help minimise excess inventory and avoid the heavy margin loss that post-festive clearance can require. Once the month is over, review your final results, analyse the sales data, reflect on your actions and create data-driven strategies for your inventory and sales plans in the year ahead.
Thriving, not surviving
Small businesses can absolutely thrive in December when they approach the season with clarity and intention. While competing with big brands on price is rarely the answer, small retailers succeed by leaning into what makes them unique: authenticity, craftsmanship, agility, and a genuinely personalised customer experience. These are advantages that large corporations cannot easily replicate.
December decisions should be made strategically, not reactively. When you lead with value, prioritise your best products, choose markets wisely, and protect your own capacity, the festive boom becomes not just manageable but an exciting and enjoyable period of business growth and sales success.
Lastly, we asked Victoria Myers if many retailers experience record footfall in December but still struggle with margins, what are the most common margin-killers small businesses overlook, to which she said, “Without a doubt, the biggest margin-killer at this time of year is panic discounting: reducing prices without a clear objective, cost calculation or exit plan. While this can drive volume sales and support cash flow, making it feel like a beneficial decision, it often impacts profit much more than founders realise. In a rush to “not miss out” on festive demand, many small businesses also invest more heavily in product without effective stock planning or forecasting in place. This can create excess stock that later requires heavy markdowns to clear, turning strong seasonal revenue into weak profitability.”
“Increased operational costs are another serious drain on margin in December. Rush shipping, packaging upgrades, marketplace commissions, staffing cover and extended working hours all increase costs in December but are rarely built into pricing, meaning business owners end up working harder for less.”
As per her, traditional gift categories remain strong in 2025, including toys, electronics, curated gift sets and bundles, poised for the biggest December uplift. However, for small, independent retailers, December sales are driven by consumers’ desire to create festive magic and memorable experiences for their families – not to mention picture-perfect styling for their social feeds. Personalised products such as matching family pyjamas, advent calendars, Christmas Eve boxes, seasonal décor and festive-themed fashion or accessories are particularly popular choices, and small businesses which lean into these categories are set to capitalise on the growing demand for a stylish and curated Christmas.
“The most important leadership trait in December is strategic thinking,” Myers told us. “Forward planning for Q4 sets the foundation for success: it provides clarity, focus, realistic goals, and specific financial targets, ensuring that every decision drives results rather than reactive activity. For small business owners – often working alone or with very small teams – communication and visibility are vital, but this extends beyond internal team updates.”
As she concluded, she said, “Clear communication with customers, suppliers, stockists, and service partners such as fulfilment or delivery teams ensures operations run smoothly, stock is available when needed, and customer expectations are managed. Strong coordination reduces stress, prevents errors, and allows leaders to stay focused on revenue-generating activities. During December, the priority should be 100% focus on sales. Planning for the new year is most effective when done after the month ends, when final sales data is available and there is space to review results thoughtfully. This allows small businesses to make informed, data-driven decisions for the year ahead without adding pressure during peak trading weeks. By combining strategic foresight with clear communication and disciplined focus, small business leaders can maintain resilience, motivate their teams (if they have them), and ensure December delivers strong results without burnout.”
