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A simple comparison of the General Election manifestos

24 Jun 2024

With less than three weeks to go until the General Election, Bira has produced a simple table comparing manifestos for Labour, Conservatives, Liberal Democrats, Green Party and Reform UK, and... Read more…

Independents Day message - supporting independent shops boosts local jobs and economies.

24 Jun 2024

With the annual Independents’ Day weekend coming up on July 6th and 7th, independent retailers have been reinforcing the message that supporting independent shops boosts... Read more…

Euro 2024 predicted to deliver multi-million-pound boost for independent retailers

24 Jun 2024

Research from the British Retail Consortium (BRC) has suggested 6% of shoppers will buy a new TV or electronic device during the Euros, 4% will purchase official merchandise and nearly 10% will... Read more…

Bira leads £1 billion damages claim against Amazon by UK retailers in landmark collective action

12 Jun 2024

A £1 billion damages claim has been filed against Amazon on behalf of retailers selling on Amazon’s UK marketplace for illegally misusing their data and manipulating the Amazon Buy... Read more…

Bira responds to KPMG Retail Sales Monitor report

10 Jun 2024

The British Independent Retailers Association (Bira) has responded to the BRC-KPMG Retail Sales Monitor for May 2024.
Read more…

Small independent Harrogate shop does it again at the national level with new awards glory

10 Jun 2024

Independent Harrogate computer shop Phase 4 Computers has been named as a finalist in the Tech Awards 2024.
Read more…

Knutsford fashion show highlights town's 'amazing independent shops'

10 Jun 2024

Independent boutiques in Knutsford have teamed up once again to showcase their new designs at the third Flash Fashion.
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Increasing numbers of UK consumers limiting their spending to goods on promotion

10 Jun 2024

Research of over 1,000 UK shoppers by Pricer shows 27% now only buy grocery items which are on offer – a +6 percentage increase compared to 2023. 
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Taunton book shop to host three talks from climate specialists ahead of election

10 Jun 2024

Independent Taunton book shop Brendon Books is to host talks from climate specialists ahead of the general election.
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Bira releases new podcast exploring accessibility on the High Street

3 Jun 2024

The British Independent Retailers Association has released the second episode of its 'High Street Matters' podcast series, this time tackling the important issue of accessibility for independent... 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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