UK’s largest independent cash-and-carry Bestway Wholesale has announced the closure of the depot in Plymouth and concentrate the South West, putting several jobs at risk.
Despite performing well during the coronavirus pandemic and an increased turnover of 13% in 2019, the company is planning on increasing its direct delivery service to customers.
The depot in Honicknowle, Plymouth, first opened in 2005 where independent retailers across the region could purchase food, tobacco and alcohol products.
The warehouse will officially close on Wednesday, 2nd September, leaving the depot in Matford Park, Exeter the next closest site for customers to use.
A total of 41 staff at Plymouth’s Bestway are now facing a consultation process to redeploy as many workers as possible but noted “some redundancies will be inevitable.”
Bestway has 64 depots across the UK, serving around 125,000 customers while also operating warehouses in Pakistan.
UK annual inflation climbed further above the Bank of England's target rate in November, official data showed Wednesday, firming expectations that it will avoid cutting interest rates this week.
The Consumer Prices Index reached 2.6 per cent in the 12 months to November, up from 2.3 per cent for October, the Office for National Statistics (ONS) said in a statement. This is the highest rate since March this year.
The BoE, which decides on rates Thursday, has an inflation target of 2.0 per cent.
The data is a blow to the Labour government, which has found efforts to grow the economy come unstuck since winning power in July.
"I know families are still struggling with the cost of living and today's figures are a reminder that for too long the economy has not worked for working people," chancellor Rachel Reeves said in reaction to the inflation data.
On a monthly basis, CPI rose by 0.1 per cent in November compared with a fall of 0.2 per cent a year earlier, the ONS added.
The largest upward contribution to the monthly change came from transport, it said.
Core CPI - excluding energy, food, alcohol and tobacco - rose 3.5 percent in the 12 months to November, up from 3.3 per cent in October.
"The further rebound in CPI inflation... could have been worse," noted Paul Dales, chief UK economist at Capital Economics research group.
"But coming on the back of the stronger-than-expected rebound in wage growth in yesterday's release, there is almost no chance of the Bank of England delivering an early Christmas present with another interest rate cut tomorrow."
The central bank last month trimmed borrowing costs by 25 basis points to 4.75 per cent.
That came after the BoE reduced its key rate in August for the first time since early 2020, from a 16-year high of 5.25 per cent as UK inflation returned to normal levels.
“Although the public may feel Andrew Bailey and co are channelling their inner Scrooge, prudence on the BoE’s part seems sensible as no one wants to see the inflationary ghosts of Christmas past return,” Isaac Stell, investment manager at Wealth Club said.
“This latest inflationary spike adds to the New Year challenges facing the BoE. With businesses shouldering the chancellor’s National Insurance rises, the indication of prices hikes from companies have been coming thick and fast. There may be cuts to jobs and less generous pay rises to boot. Those hoping to see a continuous stream of rate cuts in 2025 will likely be disappointed.”
Residents in the Laira area of Plymouth got an extra Christmas present this year – the reopening of the SPAR Gilletts store on Old Laira Road – which is bigger and better than before.
The popular local store burnt down on Boxing Day 2023, after an accidental fire led to severe smoke damage across the building. Since then, the store has been nicknamed "the phoenix" as SPAR team members and local shoppers anticipated what would rise from the ashes.
Thirteen people worked at the Old Laira Road site. During the closure and redevelopment, they were all deployed to either Pike Road SPAR or Reservoir North Hill SPAR. However, they are back after SPAR wholesaler Appleby Westward invested £250,000 in rebuilding the store with it re-opening on Friday, December 6.
The company has extended the store, making it 45 per cent bigger than before, by using the unit next door to the shop, which was empty but had previously been a hairdressers.
Some of the extra capacity has been used to double the space given to promotions and seasonal products – to offer a larger range of great value products for customers.
The biggest change though is the space allocated to grocery lines, with this tripling in size to ensure shoppers can get everything they need at Old Laira Road.
There is also more space for fresh food and for chilled beer, cider and wine.
The hot food-to-go range has improved too – moving from the counter to a self-serve unit with a wider range for both breakfast and lunchtime. The new full hot food range includes breakfast baps, sausage rolls, pasties, burgers and hash browns. Customers will still be able to purchase from Costa Coffee.
The aim of the bigger, better store is to offer a significantly enhanced range of products for local customers, making the store a true hub in the community. Customers will be able to use SPAR Old Laira on a daily basis for breakfast, lunch and evening meal solutions as well as for all their previous services such as Lottery and Collect+ parcels.
“The ‘phoenix’ has risen, and it is truly a big moment for us," said store Manager Gary Hawes. "It’s so exciting to have the store back open again. Not only that, but a huge investment means it’s even bigger and better than before. I’m sure our customers will be delighted with the improvements that have been made and our store team are thrilled to be back serving the community.”
Charles Duthie, Head of Operations, from Appleby Westward added: “The fire was a big blow to the local community resulting in the closure of the store and staff having to transfer to other SPAR stores.
“It was important for us to acknowledge Old Laira’s place in the local community and invest in that community. Our team has worked really hard to give the neighbourhood a bigger, better SPAR store. We were fortunate in being able to acquire the unit next door to do just that.
“It’s great to have the original store team back in place and they are eager to get back to what they know – giving shoppers at Old Laira the best possible local shopping experience.
“Old Laira is a great store, run by brilliant staff, in a lovely residential community and its redevelopment means it is ready to serve that community for years to come.”
Today (17), ACS (the Association of Convenience Stores) gave evidence to a Treasury Committee on the acceptance of cash and whether current regulations are fit for purpose.
Cash remains crucial for the convenience sector, providing financial flexibility for consumers and a reliable fallback when card payment facilities aren’t available. Almost half of all transactions in the convenience sector are conducted by cash, over 99 per cent of the UK’s 50,387 stores accept cash.
Speaking during the evidence session, ACS chief executive James Lowman said: “The cost-of-living crisis saw an increase in the use of cash, particularly as people used that as a way of managing cashflow and finances in their own household. We see cash as being a very important part of a number of payment methods that consumers are going to be using for a long period of time.”
Through the session, Mr Lowman discussed the operational costs of card transactions, comparing them to the handling costs of cash. Where convenience retailers are required to accept cash, they may face increased operational costs regarding securing, transporting, and handling cash, but card payments also come with operational costs, especially if they are built up of many small transactions. He also highlighted the importance of banking services, particularly in secondary and tertiary areas where customers may be more likely to use a convenience store to access their money.
ACS submitted evidence prior to the session, highlighting the vital role that convenience stores play in ensuring cash access within their communities, especially where traditional banking services are absent. During the CrowdStrike outage, many consumers struggled to pay for their items as card transactions were unavailable in some retail businesses. The availability of cash as an alternative showed how it is vital to retain flexibility and a mix of payment methods.
Mr Lowman continued: “If we’re serious about keeping these services available to local communities, part of that has to be allowing retailers to accept payment for that on a viable economic basis, but retailers are reporting increasing card costs that are inadequately monitored and regulated. The Payment Systems Regulator must do more to ensure that transaction and processing fees aren’t allowed to spiral out of control.”
The session heard from Ross Borkett from Post Office Limited, Carrie Aspin from USDAW, Graham Wilson from National Association of British Market Authorities, and James Lowman from ACS.
A new study by the British Retail Consortium (BRC) has revealed that cash usage in shops has risen for the second consecutive year, as more consumers turn to coins and notes amid the ongoing cost-of-living crisis. The research found that one in five transactions last year were made using cash, as shoppers cite it as an effective budgeting tool.
The rise in cash usage follows recent data from major surveys, including one from payments platform Paysafe, which confirms that payment choice remains a key factor for UK shoppers, with many valuing the availability of cash. This is further supported by new laws introduced by the Financial Conduct Authority (FCA) to protect access to cash through an increase in banking hubs and Post Office facilities.
“The latest BRC findings highlight the surge in cash usage over the past two years," said Mike Severs, Sales & Marketing Director at Volumatic, who supply cash-handling technology. "It’s a trend that businesses need to pay attention to. Despite tough times, cash remains a vital payment option for many consumers, and we can help businesses process it more efficiently.
“Cash is universal, easy to accept, and doesn't come with the risks of data breaches or cybercrime. Retailers, restaurants, and leisure venues are encouraged to continue accepting cash to offer customers choice ensure they are accepting cash as a valid form of payment, offering customers the choice of how to pay. The growing trend of cash usage is something that can’t be ignored, especially as cash remains the second most used payment method after cards.
“Businesses that stop accepting cash risk excluding a significant portion of customers, including vulnerable groups, who may be dependent on cash for various reasons,” said Severs. "The benefits of cash are clear: it doesn’t rely on technology, can be more secure for certain demographics, and helps businesses avoid data breaches."
A recent study by Which? found that the refusal of cash in retail stores left many customers unable to purchase basic necessities. While larger retailers have mostly reintroduced cash payment options, smaller businesses that refuse cash are losing out on important trade.
One of the primary concerns businesses have regarding cash is the time it takes to process. However, Volumatic offers intelligent cash handling solutions that streamline the process, ensuring cash is counted, stored, and reconciled quickly and securely.
Severs concluded: “Investing in Volumatic’s cash handling solutions means businesses can continue to offer cash payments with ease, boosting customer satisfaction and efficiency.”
The government has on Tuesday officially recognised Capture, the software which preceded Horizon, could have created shortfalls affecting postmasters.
It has asked the Post Office to urgently review its files and evidence so the Criminal Cases Review Commission (CCRC) and the Scottish Criminal Cases Review Commission (SCCRC) can ensure no one was wrongfully convicted of a Horizon-style injustice.
Responding to the independent Kroll report into the software, the business secretary has promised to provide redress for postmasters who suffered losses as a result of Capture. The government said it will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.
The Capture accounting system was rolled out across some Post Office branches from 1992 before it was replaced by Horizon in 1999. The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.
The response comes as the government marks £500 million paid to more than 3,300 Horizon victims.
“It is thanks to testimony of postmasters that this has been brought to light and failings have been discovered,” business and trade secretary Jonathan Reynolds said.
“We must now work quickly to provide redress and justice to those who have suffered greatly after being wrongly accused. I’d like to encourage anyone who believes they have been affected by Capture to share their story with us so we can put wrongs to right once and for all.”
Post office minister Gareth Thomas added: “It’s taken a long time to reach this point which is why my priority now is to deliver justice and redress to postmasters as swiftly as possible. We will do everything we can to correct the mistakes of the past and ensure they are not repeated.
“Postmasters have raised concerns with me that their income has not kept up with inflation over the past decade. The government therefore welcomes that the Post Office is going to make a one-off payment to postmasters to increase their remuneration.”
Due to the length of time which has passed since the Capture system was in use several issues have complicated the investigation including:
Far greater timescales, meaning a greater population of the users may have sadly died
Loss or destruction of relevant evidence for example relating to shortfalls, suspensions, terminations, prosecutions, and convictions
At least 19 different operational versions of the Capture software during the period
Ambiguous number of users during this period
Unlike Horizon, it is currently uncertain how many criminal prosecutions were based on Capture evidence. These challenges also mean it will be difficult for claimants to corroborate their claims with evidence.
The Post Office has indicated it holds further information on convictions and prosecutions during the Capture period. The government has asked them to carry out their review of these records urgently and send information to the CCRC and SCCRC.
£20 million boost to postmasters
Minister Thomas has also announced the government will support the Post Office network with a further £37.5 million subsidy. It comes as the Post Office today announced a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.
“This government is committed to strengthening the Post Office and making sure postmasters receive the income they deserve for the vital services they provide for communities across the country,” Thomas said.
“That’s why we are providing a further £37.5 million of network subsidy this financial year which is essential to stabilise the organisation. I welcome the Post Office’s one-off payment this month to postmasters, which will go a long way in easing the burden they face ahead of Christmas.”
The £20 million boost to postmaster remuneration comes as the Post Office moves quickly to deliver on its ‘New Deal for Postmasters’ following its Transformation Plan announcement on 13 November.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
“As we implement our ‘New Deal for Postmasters’ we are fast-tracking payments to postmasters in recognition of the challenging trading conditions they are currently experiencing. Our customers want services in the run-up to Christmas that are convenient and in-person, and that’s what our postmasters and retail partners offer. We want our postmasters to focus on what they do best, serving their communities, and not to be worried about making ends meet,” Neil Brocklehurst, Post Office acting chief executive, said.
Calum Greenhow, chief executive for the National Federation of SubPostmasters, welcomed the announcement.
“The NFSP has long campaigned for a significant increase in postmasters’ remuneration to reflect the value of the vital public services that postmasters deliver to communities. We know that right now many of our postmasters are struggling and are very worried about their ability to pay bills and provide for their families,” Greenhow said.
“This £20m as a one-off payment in December is not only well timed but very much required. We look forward to working with the government and Post Office to deliver a further £100m uplift in annual remuneration by March 2026.”
Subject to the government funding, the Post Office’s Transformation Plan provides a route to adding an additional quarter of a billion pounds annually to total postmaster remuneration by 2030 by dramatically increasing postmasters’ share of revenues.
As part of the plan, postmasters can expect up to £120m in additional remuneration by the end of the first year of the Plan, representing a 30 per cent increase in revenue share. The ambition is to double average annual branch remuneration by 2030 with the right market and regulatory landscape.