WELSH businesses are increasingly looking to new markets and improved customer experience as key routes to recovery in 2026, according to the latest Quarterly Economic Survey from Chambers Wales South East, South West and Mid.

The survey for the final quarter of 2025 paints a challenging picture of trading conditions. Half of respondents (50%) reported a fall in UK sales over the previous three months, alongside declines in orders and advance bookings. The downturn was mirrored overseas, with 48% of businesses saying export sales had decreased, again accompanied by weaker orders.

Against this backdrop, more firms are identifying new markets as an opportunity for recovery. In Q4 2025, 55% of businesses cited new markets as a route to growth, up from 51% in the previous quarter. Interest in new international markets also rose sharply, with 39% selecting this option in Q4, compared with 32% in Q3.

Looking ahead to 2026, trade and market expansion continue to dominate business thinking. When asked about the biggest opportunities in the year ahead, firms highlighted exporting, accessing new UK markets, and expanding or consolidating their presence overseas.

Almost a third of Welsh businesses (32%) said exporting and importing would be their main focus in 2026. However, the most commonly cited priority was customer and client experience, selected by 59% of respondents as their key area of focus for the year ahead.

Gus Williams, CEO of Chambers Wales South East, South West and Mid, said the findings reflected a difficult end to the year for many firms.

“Our Q4 survey shows just how challenging the trading environment was for Welsh businesses as 2025 came to a close, with falling orders, weaker sales and continued pressure from costs, taxation and inflation,” he said. “Confidence remains fragile, particularly for SMEs.

“One bright spot is that firms are actively looking outward, identifying new markets both within the UK and internationally, and placing a renewed focus on customer and client experience as potential drivers of growth in 2026.

“With nearly seven in ten businesses lacking confidence in the Welsh Government’s ability to support growth, it is vital that policymakers listen to the lived experience of SMEs and respond with action. The private sector wants to collaborate with government, but trust needs to be re-established.”

PLANS to convert the basement of a Grade-II-listed former pub in a Pembrokeshire town’s conservation area to a flat have been submitted to the council.

In the application to Pembrokeshire County Council, Toyeb Ali Rahman, through agent Hayston Developments & Planning Ltd, seeks permission to convert the basement of the former Kings Arms Hotel, Dew Street, Haverfordwest, the building most recently used as an Indian takeaway, to a residential flat.

A supporting statement says: “The Kings Arms Public House was a public house and was formerly a coaching house with a range of former stables to the rear which have been converted to dwellings. It is a mid-terrace property fronting the western side of Dew Street close to the town centre of Haverfordwest,” adding: “Since closure the public house has been used as a takeaway restaurant and is a mixture of flats and offices.”

It goes on to say: “The application proposal only involves a small-scale conversion of a basement storage area associated with the former Kings Arms Hotel to a one bedroom residential flat. There would be no extensions with the only external alteration to the building being the replacement of a poorly detailed metal roller shutter door with conventional domestic entrance door with sidelight.

“As such, there would be no change to the impact of the building or proposal on the locality. In fact, basement area is not at all visible from the street scene along Dew Street.”

It stresses: “It is very clear from the listing description that the historic value of the building and the importance of the front array within the street scene is a major consideration when determining any application in the vicinity of a listed building.

“No alterations are planned for this and so it is deemed that no impact on the listed building is envisaged.”

The application will be considered by county planners at a later date.

PLANS for an InPost e-commerce parcel locker service at a Pembrokeshire seaside village have been submitted to the national park.

In an application to Pembrokeshire Coast National Park, InPost UK, through agent Skipton-based NL Jones Planning, seeks permission for an InPost Parcel Locker at Bay View Stores, Maes Ewan, Solva.

InPost is an affordable and easy-to-use parcel locker service throughout the UK where you can send and return parcels quickly with contact-free delivery.

A supporting statement says: “In 2024, we delivered 93.2 million parcels across the UK. We partner with a wide range of public and private landowners to host InPost Lockers – from local authorities, transport operators, supermarkets, independent retailers, small medium enterprises, and developers.”

It says e-commerce now accounts for 30 per cent of all retail UK sales, but “while this growth brings consumer convenience, the final leg of delivery – known as the ‘last-mile’ – is putting pressure on our streets and wallets, if all deliveries continue to be delivered to door,” with both more delivery vehicles on the road and “home deliveries more inconvenient and missed parcels more common” as more people return to the office post-Covid.

It adds: “InPost is committed to stimulating economic growth, having announced a further £600 million investment until 2029 bringing our total UK investment to £1 billion – supporting up to 12,000 jobs while boosting national and regional logistics capabilities.

“As a business, we also stimulate the local economy in several ways: Competitive industry leading postage rates – our latest service, Send, allows label-free parcel sending to any InPost locker or home-address from £1.99.

“This service offers substantial new business opportunities often for local small and medium businesses, such as Etsy sellers, offering a more convenient, efficient and cost-effective alternative to traditional services.”

It says the service also benefits small local businesses such as convenience stores through increased footfall, adding: “In exchange for hosting a locker, InPost pays landlords guaranteed rent, transforming unused spaces to become a popular in-demand community asset that also provides a new additional income stream.”

The application will be considered by planners at a later date.