More than 17,000 shops are at risk of closure over the next decade unless the Labour government overhauls the business rates regime, supermarket Sainsbury’s boss and the general secretary of the biggest retail union have warned.
Simon Roberts, the chief executive of Sainsbury’s, and Paddy Lillis, the general secretary of the Union of Shop, Distributive and Allied Workers, have called on the Labour government to do away with "outmoded business rates" system.
"Retail has been transformed over the past ten years, with online sales tripling to 27 per cent of total retail sales last year. But the business rates system is unchanged, reflecting an era when virtually all shopping was done in stores. This is why since 2018 more than 6,000 stores have closed, from small independent retailers to decades-long household names. Two thirds of closed stores cite business rates as a key factor in shutting up shop."
Writing for The Times, Roberts and Lillis further added that a headline cut to business rates of 20 per cent could safeguard and create more than 17,000 jobs and deliver an extra £70 million per annum to the Treasury after ten years.
"It could also boost GVA (gross value added) — the value of the goods and services produced, minus the value of the intermediate inputs that were used to produce those goods and services — by £400 million per year.
"A 20 per cent cut to business rates would create jobs, protect government funding and unlock the much-needed growth we all want to see," wrote the two retail figures.
Supporting the 20 per cent cut, a recent research by Development Economics states that a headline rate cut of such a magnitude would initially reduce tax revenues for the Treasury, but after ten years, the corresponding increase in economic activity would generate net positive returns of £70 million per year for the government.
Labour Party had promised in its election manifesto that if it comes to power, it will overhaul the business rates system to create a more level playing field between digital and bricks-and-mortar retailers as digital retailers often have lower business rate bills owing to their minimal property footprint.
Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.
A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.
Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.
Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.
Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.
The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.
According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.
The ONS added that this figure was the highest since records began – in March 2003.
“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.
“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.
“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”
Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”
According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.
PayPoint has announced a new partnership with Leeds Credit Union (‘LCU’), a financial cooperative with 37,000 members, enabling them access to its CashOut service, effective immediately.
The partnership will mean that LCU customers can access their cash and savings across any of PayPoint’s UK network of 29,000 retailer partners. This represents an unprecedented growth in accessibility and the first partnership of its kind for LCU. Historically customers have needed to visit one of LCU’s four branches to withdraw money.
Leeds Credit Union provides straightforward, affordable financial services. As a mutual there are no shareholders, so it is owned by its members and always has the interests of the members at the heart of everything it does. The credit union prides itself on providing members with the most appropriate services based on their circumstances.
“Our partnership with Leeds Credit Union will enable its customers to access their funds more easily than ever before," said Jo Toolan, Managing Director of Payments at PayPoint. "We’re committed to pursuing these kinds of partnerships, which enable credit unions to offer a more competitive and technologically advanced service, while simultaneously making the lives of customers that little bit easier through enhanced access.”
Greg Potter, Head of Marketing & Member Experience at Leeds Credit Union, said: “Increasingly, we’re looking at ways that we can apply technological solutions and partnerships to add value to the experience of our members using Leeds Credit Union. This partnership is demonstrative of our determination to grow in their best interests and will make access to funds something that can be done at any of a number of PayPoint locations in the UK.”
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A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS/Denis Balibouse/File Photo
Marlboro-maker Philip Morris said Tuesday it planned to close down its two production sites in Germany, citing falling demand for cigarettes among Europeans.
"In recent years, demand for cigarettes in Europe has fallen significantly," the company said in a statement, adding that it saw the same trend for roll-your-own tobacco.
"This trend is expected to continue in the coming years," the company said.
Many smokers have been shifting to e-cigarettes, or vapes, and heated-tobacco devices.
Philip Morris employs 372 workers at its factories in Berlin and Dresden. Both sites are scheduled for closure next year.
The tobacco giant said it would begin discussions with labour representatives to find "fair and socially responsible solutions" for staff.
Nisa retailer Prem Uthayakumaran has made significant donations totalling £3,500 to two local community organisations through Nisa’s Making a Difference Locally (MADL) charity.
The funds will provide essential support to groups within the communities that his stores serve, helping them continue their invaluable work.
The first of these generous donations was a £1,000 contribution from Broxbourne Service Station in Hertfordshire, directed to the Lea Valley Karate Academy. The funds will enable the academy to purchase much-needed equipment, ensuring that young people and adults in the local area have access to high-quality resources as they develop their skills in martial arts.
Additionally, a £2,500 donation was made by Eastfield and Cross Road Service Stations to the Mansfield Town Ability Counts Football Club. The club, which provides opportunities for individuals with disabilities to participate in football, will use the funds to support their programs, enhancing the experience for current players and making it possible for even more participants to join.
In July 2024, Prem donated £1,000 to Voice of the Vale – a group of young performers at Nottingham Trent University. This followed further self-donations from Prem to Broxbourne Organisation for Disabled and to Mansfield Under 12s Football Club in 2023.
Prem Uthayakumaran said: “Supporting the communities around my stores has always been important to me, and through Nisa’s Making a Difference Locally charity, we’re able to make a real, tangible difference. The Lea Valley Karate Academy and Mansfield Town Ability Counts Football Club both play vital roles in their respective communities, and I’m thrilled to be able to contribute to their success.”
Nisa’s Making a Difference Locally charity enables retailers to donate to local good causes through the sale of Co-op own brand products in their stores. A percentage of sales from these products goes into a MADL fund, which retailers can then use to make donations to charities, schools, sports clubs, and other community groups.Kate Carroll, Head of Charity at Nisa, said, “We are delighted to see retailers like Prem using their MADL funds to support such worthwhile local causes. Both the Lea Valley Karate Academy and Mansfield Town Ability Counts Football Club provide vital services to their communities, and donations like these enable them to continue their important work. At Nisa, we are incredibly proud of our retailers’ commitment to making a difference locally.”
Nisa’s Making a Difference Locally charity has been helping retailers like Prem Uthayakumaran give back to their communities for over 15 years, and with each donation, they help foster stronger, more Connected local areas.
Northern Ireland family-run Nisa convenience store has come under Spar NI after 27 years following its acquisition by Henderson Retail. Nisa Circle K Silverwood store in Lurgan was operated by local retailer Patrick Hughes for the past 27 years.
Nisa Silverwood was acquired by Patrick Hughes in 1997. In the past 27 years the store has undergone significant developments due to Hughes' investments to help the business grow and provide more local jobs over the years.
Speaking of his decision to sell to Henderson Retail, Mr Hughes, said: “Henderson Retail taking over ownership and operations of the store is a great opportunity for the staff and the business itself.
“As a local grocer, I have seen how the company has accelerated the growth of convenience in Northern Ireland, investing in their properties to bring even more jobs, services and locally sourced products to communities.
"I have worked closely with the team to ensure the transition goes smoothly and our shoppers feel no disruption whatsoever. I have complete trust that the future of this store, future job creation for the local area and the opportunities surrounding that are vast and I’m delighted to leave this business in such capable hands.”
Under the new ownership, Henderson Retail will further develop and invest in the site, building on an already strong business model to enhance the services offered to shoppers in the local area. The company will soon submit a planning application that will further underpin their commitments towards improving the store for shoppers and staff through accessibility, sustainability, product range and modernisation of the store’s facilities.
Henderson Retail, which is part of the Mallusk-based Henderson Group, has invested £30 million in new stores, developments and renovations throughout its estate in 2024.
Henderson Retail now owns and operates 109 Spar and Eurospar stores in Northern Ireland. The company has recently opened an impressive new-build development at Eurospar Gilford and will open another at Eurospar Doury Road in Ballymena before the end of the year as part of the wider multi-million investment.