Convenience store body ACS has outlined the challenges faced by the convenience sector this year, pledging to lead the sector’s response to helping retailers navigate and tackle these challenges.
The sector has been facing increases in NIC contributions, higher business rates relief and an increased National Living wage, all announced at the Autumn Budget last year. These costs are making it more difficult for local shops to invest in serving their communities.
Speaking to over 500 retailers, suppliers and industry experts at ACS’ Conference25, chief executive James Lowman outlined the effects of these rising costs on retailers.
ACS chief executive James Lowman said, “Our sector’s response will include cutting investment, cutting out staff hours, cutting back community services where they aren’t making a big cash return for the business.
"These necessary decisions could take our sector backwards and move us away from playing the role consumers want us to play in their communities, and of course, damage economic growth.”
Lowman told the Conference that tackling crime is ACS’ top priority, with the ACS 2025 Crime Report estimating a total of 6.2million incidents of shop theft and crime costing retailers an estimated £316m over the past year.
"He challenged the government to support business investment and to tackle crime and to focus on better enforcement of the illegal market in some of the products convenience stores sell.
Lowman continued: “This is a test for the Government: how much do they value local shops and what we bring to communities.
"We need incentives to invest, support on offering community services, mitigations against rising costs, effective enforcement against illegal operators who re-sell stolen products and deal in illegal products.
“Of course we need action on crime - the Crime & Policing Bill is a big step forward, with new powers for the police and courts. It remains our top priority, among a very busy policy agenda, to work with the Home Office, and everyone else who is committed to changing the way that retail crime is tackled.
Lowman also highlighted the benefits of ACS’ Assured Advice, which has helped thousands of retailers by giving them certainty and practical guidance on how to navigate compliance and regulation.
ACS also launched at Conference25 new resources for retailers to engage with the whole of their community in its Everyone Welcome campaign. These include a poster that retailers can complete online showing all the community services and support features they are offering.
