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Small Business Strategy Inquiry 2025 - ACT and Bira call for members to share their voice

20 Jun 2025

The House of Commons Business and Trade Committee has asked the ACT, and its parent company Bira, to help them reach out to small business retailers across the country, for their quick input on... Read more…

Beyond the discount: Restoring integrity to the cycle supply chain

18 Jun 2025

The Association of Cycle Traders believes the time has come for greater accountability throughout our supply chain, writes ACT Director Jonathan Harrison in an article published for BikeBiz.
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Bira welcomes Wales' business rates proposals but calls for key improvements

11 Jun 2025

Bira has welcomed the Welsh Government's consultation on business rate reforms for retail shops, whilst calling for significant improvements to ensure the proposals truly support high street... Read more…

New awards launch to champion Britain's independent high street heroes

9 Jun 2025

Retailers on Britain's high streets are being encouraged to put themselves forward for the first-ever Love Your High Street Awards, designed to celebrate the small businesses that bring... Read more…

"Tectonic shift" in employment law threatens independent retailer viability, warns Bira podcast

6 Jun 2025

Independent retailers are facing a "generational" transformation of employment law that could fundamentally change how small businesses operate, according to the final episode of Bira's first... Read more…

Retailers hope warm weather and bank holidays will boost high street sales

16 May 2025

ACT parent company Bira has said that members are hopeful the warm weather, Easter weekend and upcoming bank holidays will provide a much-needed boost to high street sales.
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Economic growth surges to 0.7%, but "April reality check" looms for high street retailers

15 May 2025

UK economy delivers strongest quarterly performance in a year despite forecasts of business downturn.
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Communities come together for Local Bike Shop Day 2025 celebrations

13 May 2025

Local Bike Shop Day 2025 brought a wave of... Read more…

ACT parent company Bira welcomes Bank of England's latest interest rate cut

8 May 2025

ACT parent company Bira has welcomed the Bank of England's decision to reduce interest rates from 4.5% to 4.25%, calling it a "much-needed boost" for the retail sector, including for cycling... Read more…

ACT parent company Bira responds to Beales' "Rachel Reeves Closing Down Sale" as iconic store makes final protest

8 May 2025

ACT parent company Bira has responded to the news that the 144-year-old Beales department store is staging a "Rachel Reeves Closing Down Sale" in its final weeks of trading, with giant yellow... Read more…

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Study highlights impact of rising staff costs for convenience retailers.

Posted on in Business News

Research by the University of Stirling and the Scottish Grocers’ Federation has shed light on the impact of rising staff costs on the convenience retail sector in Scotland.

Grocery store

On 1 April, the UK National Living Wage rose to £11.44 per hour, a 9.8% increase on 2023/24.

However, a collaboration between SGF and University of Stirling has revealed that the true cost for retail employers will be as much as £15.39 per hour, a jump of £1.39 on the previous year and the highest increase for at least the past eight years.

As reported by Talking Retail, the study considers statutory costs, such as National Insurance and Holiday Pay, as well as additional employment expenses such as uniforms and administration costs.

Meanwhile, a recent survey of SGF members shows that more than 90% of respondents were less likely to hire more staff, due to the wage increases.

Three quarters of owners/managers reported working over 65 hours per week, just to keep costs down.

As a result, additional staff costs will inevitably be passed onto customers, many of whom are also struggling to manage their household budgets.

Professor Leigh Sparks, University of Stirling, said: 

“Convenience and independent retailers find it harder to cope with large increases in the National Living Wage, despite their recognition of the need to reward staff for the jobs they do.

“This is the ninth year that we have looked at the true cost of employment and again we see the pressures on the sector. 

“There does come a point when the cost and management of labour, plus the extreme challenges of actually operating local convenience stores ceases to be viable as a commercial or a lifestyle proposition. If we value the ‘glue’ that local convenience stores provide to communities then we need to show this value to them.”

SGF chief executive, Dr Pete Cheema OBE, added: “Convenience stores are at the very heart of their communities.

“Providing valuable local employment, with flexible hours, but the significant increase to wages year on year means that some stores will need to cut staff hours. Impacting local jobs and overall harming the economy.

“The pressure of absorbing all the additional costs, both external factors and those implemented by government, is putting businesses at risk. Many simply can’t cope.

“Government must start to recognise that local stores are economic drivers and provide many benefits for their communities.

“Without doing more to alleviate the growing pressure on our sector, and accounting for the total cost of employment on top of new regulation, government are damaging the viability of these essential local business.”

The True Cost of Employment 2024 paper will form part of SGF’s annual submission to the Low Pay Commission, for inclusion in its report and recommendations to the Prime Minister later this year.

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