“We’re seeing a lot more of that already, with Monday being the day to close,” he said.

Zahra said many smaller operators had survived pandemic lockdowns only to be faced with a perfect storm of challenging business conditions.

“The consumer is now behaving similarly to the GFC [global financial crisis], except back then, there wasn’t a ‘cost of doing business crisis’,” he said.

“[Businesses] are being hit exceptionally hard.”

Vice president and general manager of consumer and commercial services at American Express, Emily Roberts, said it was heartening that the research showed businesses were prioritising investment in acquiring new customers and driving loyalty in the current environment.

Smaller operators were excelling at providing a personalised service, and consumers were still willing to shop in their local communities, she said.

“Australians have a lot of heart for supporting their local businesses – COVID only did more to dial that up.”

Manager at footwear business McCloud Shoes Paul Parkinson said that while foot traffic into the Melbourne CBD store had been less predictable than it was last year, the business was seeing a growing number of clients from interstate as consumers travel domestically.

However, the company was also feeling rising costs.

“Electricity, fuel, that all adds up – and you’ve got to carry that on. You try to wear it where you can.”

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Monthly data from credit reporting agency CreditorWatch suggests businesses across all sectors are feeling increasing cost pressures.

The group’s monthly business risk indicator for May showed business-to-business payment defaults were up and have risen by 52 per cent over the past year, in a sign that companies are under increasing economic stress.

“The beginning of the new financial year is likely to bring increasing pessimism among Australian business owners, particularly those reliant on discretionary spending,” the CreditorWatch team said in a report on Wednesday.