Be it pandemic or the current inflation, there are very few aisles in a store that continue to remain more or less unaffected. The frozen and chilled food section is one such category that promises to be resilient, as it is well positioned to service the change in shopping and consumer behaviour as well as changing tastes, needs and nutritional requirements.
Figures show that over the last two years, frozen has attracted over 400,000 more shoppers. The retail frozen food market is now worth £7.1 billion and has added nearly £850 million worth of sales since 2019- that’s value growth of +13.5 percent and volume growth of +9.2 percent. With the total grocery market broadly flat, frozen sales have significantly outperformed the market, indicating that Britons have truly fallen back in love with their freezers.
A 19.8 percent growth rate has been recorded in sales of savoury frozen foods since 2019, with plant-based products up 16.8 percent. Ice cream is the largest single category in frozen, worth £1.3bn to retailers and accounting for 18.6 percent of their overall frozen food sales, which is up from 17.3 percent in 2019. Frozen fish broke through the £1bn barrier in 2020, and 2021’s sales represent a 16.4 percent (£141.2 million) gain in just two years.
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However, lifestyle changes are driving the sale of meat-free frozen ranges as well. Vegan and vegetarian frozen products have generated a 16.8 percent growth rate since 2019, contributing to a £237.4 million growth in sales of savory foods in the same period.
There has been incredible innovation in the frozen plant-based category, says a recent report by British Frozen Food Federations. It is no surprise that consumers with all kinds of dietary needs and preferences are adding these types of products to their baskets.
Another factor that is and will drive frozen sales is food waste. The majority of shoppers (62 percent) are now influenced in their food and drink purchases by sustainability issues and frozen food, with its proven ability to cut food waste, is perfectly positioned to help, says the report.
Ice Cream and Meals
Ice cream is the undisputed leader in frozen section- no arguments there. And with newer, healthier, vegan and flexible options available in the market, ice cream is no longer just a summer thing.
In convenience, ice cream sales are currently worth £416 million, with handheld multipacks proving to be the strongest category with sales worth £174 million.
Michelle Frost, General Manager at Mars Chocolate Drinks and Treats, recommends retailers to stay well stocked all year round to meet this demand in a mix of formats such as singles, multipacks, and tubs.
“Consumers are seeking a wider choice of vegan and dairy-free products. Nostalgic flavour is another current trend where consumers seek out familiar flavours that bring back good memories,” Frost tells Asian Trader, adding that Skittles Stix and Starburst Ice Lolly are prominent in this category.
Skittle Stix is a fruity flavoured ice cream with a secret pearl centre while Starburst Ice Lolly is available for the first time ever in the UK in delicious lime, orange, and strawberry flavoured lolly with jelly base.
Other top-most selling brands that should be available in stores are Magnum, Ben & Jerry’s, Cornetto, Haagen Dazs, Cadbury’s, Twister and Solero.
Apart from ice creams, chilled Ready Meals category too holds a major presence in the chiller of convenience stores, meeting demand for hot, tasty and easy meal solutions for every occasion.
“With 91 percent of shoppers buying Chilled Ready Meals and one in three regularly buying branded options, brands such as Rustlers are helping retailers cater to demand for convenient solutions that cater to Food to Go (eat now), Top-up and meal for tonight (eat later) missions,” Alex Pickering, Category & Shopper Marketing Controller at Kepak- the home of Rustlers, tells Asian Trader.
Rustlers’ Cook in Box range offers a compelling on-the-go hot eat solution which can sit within the FTG fixture as part of offering shoppers strong choice and value.
Stocking Rustlers’ Core4 range of best-selling products is an easy way to leverage the key consumption occasions of breakfast and lunch.
Launched in 1999, the Quarter Pounder is Rustlers’ another leading product worth over £7.2m within the Impulse Channel, and one of the brands ‘Core 4’ products – alongside the All-Day Breakfast Muffin, Southern Fried Chicken Sub and BBQ Rib. The latest product to join this range is Rustlers Hotdog.
Another staple in the freezer is pizza. Frozen pizza brand Dr. Oetker Ristorante recently announced the launch of five price marked pack (PMP) variants for retailers in the convenience and independents channel.
The pizzas, which comprise Pepp-Salame, Funghi, Pollo, Mozzarella and Speciale, will all feature the price flash of £3.50 each or two for £5, and launch this month. Dr. Oetker Ristorante already accounts for a third of the total branded thin and crispy pizza sales in the Symbols and Independents channel.
The frozen aisle is still incomplete if it does not have salads and greens. Martin Purdy, Commercial and Marketing Director at Florette UK, too feels that retailers who are overlooking salads are missing out on a major sales opportunity in the chiller.
“The leafy prepared salads market is worth over £600m annually and continues to see big sales uplift. More shoppers are purchasing the category year on year too, with half a million more shoppers than in 2021,” Purdy tells Asian Trader.
Florette is taken home in six million households as “shoppers recognise its quality and health credentials when seeking meal solutions”, says Purdy, reiterating that by stocking a beacon brand like Florette, retailers are making a statement about their commitment to driving a fresh produce presence into their stores.
Florette recently launched a major on-pack partnership with the world’s biggest animated franchise to coincide with the much-anticipated film release ‘Minions: The Rise of Gru’. The mischievous, iconic characters are embellishing over 13 million packs of Florette as part of an on-pack promotion until the end of September.
Apart from bestselling cold and fuzzy drinks, retailers should also make space in their chillers for new-age energy drinks as well. C4 Energy is one such product that might entice shoppers to as it is one of the fastest growing energy drink brand with a mission to maximise human potential through high quality science.
C4 Energy Drinks are available in four explosive flavours- Twisted Limeade, Orange Slice, Cosmic Rainbow and Frozen Bombsicle. It contains “BetaPower”, and other key ingredients that support explosive energy, alertness, and performance. C4's other offerings are C4 Ripped and C4 Ultimate, apart from popular C4 Original.
Daily Dairy
A focus on leading healthier lifestyles is a major factor that works in the favour of cheese snacks.
Within the cheese market, processed cheese is growing at 2.8 percent, and brands are playing a huge part in this. In fact, Mondelēz International’s contribution to the category is growing ahead of the market at four percent.
With an established heritage and a wide portfolio, both Dairylea and Philadelphia are household favourites. Philadelphia’s core range has a distinctive creamy taste, meeting the needs of shoppers for more than 100 years, with a whole range of flavours and fat levels, as well as a snacks range.
Dairylea has been an iconic staple since 1950 and is present on “one out of two” families’ shopping lists.
“Dairylea’s iconic triangles, made with milk and cheese, provide a good source of calcium with no artificial colours, flavours or preservatives. At 33kcals per triangle, this tasty snack is perfect for the shoppers looking for portion control for their families,” Susan Nash, Trade Communications Manager at Mondelēz International, told Asian Trader.
Many of the Dairylea snacking products, including the portable format of Dairylea Filled Crackers, moved to under 100kcal in line with its commitment to bring snacks that are typically bought for families under this threshold.
Other than Mondelez, another leader in cheese snacks is Lactalis whose brands- Seriously Spreadable, President, Galbani, and Leerdamer- have been seeing growth in the convenience channel.
Heloise Le Norcy-Trott, Group Marketing Director for Lactalis UK & Ireland, states that snacking is the pushing the value growth of cheese market and interestingly that too, mainly driven by kids snacking products!
“Grated is the second highest contributor to growth driven by Cheddar and Mixes,” Norcy-Trott tells Asian Trader, adding that slice comes third growing, mainly driven by sliced mature cheddar and mozzarella.
“There are also signs of premiumisation within Continental and Recipe cheese with Burrata being the second largest contributor to volume growth.”
With lives returning to normal, consumers are once again expected to gravitate towards quick and easy to use formats. Leerdammer, which joined the Lactalis Group portfolio in September 2021, is sold mainly in a sliced format. Leerdammer Light, with 52 calories a slice, offers options for those looking for healthier choices.
Apart from cheese, flavoured milks and drinkable yoghurt are other popular products which are sought by adults as well as children.
Ewa Moxham, Head of Marketing- Yoplait, states that as a result of the increase in at-home snacking occasions, the flavoured milk market grew over the course of the pandemic, particularly in terms of spend per shopper and frequency.
In fact, demand for convenient snacks and the increased focus on health have given a major push to yoghurt brand Yop.
“Well-placed to leverage the trend towards ‘better-for-you’ drinks, Yop is a source of calcium and vitamin D which are important for healthy bone development,” Moxham says.
Yoplait’s kid range is another interesting product to stock to induce impulse purchase. In fact, Kids’ yoghurt drinks are a particularly fast-growing sector since parents are increasingly drawn to the Vitamin D fortification.
Moxham recommends stocking Yoplait’s Petits Filous’ Mess Free drinkable format comes with a convenient sports cap, meaning kids can enjoy delicious and nutritious yogurt without any spillages.
Mess Free range has been extended with two ‘No Added Sugar’ options – Raspberry & Apple and Banana & Apricot.
Petits Filous is another offering by Yoplait in kids’ yogurts range. Its ‘No Added Sugar’ variant is made with naturally sourced ingredients and has 4.9g of sugar per 100g, often deemed as bestselling no added sugar product in the market.
Petits Filous recently launched its latest marketing campaign ‘Mischief Makes Us’, which champions the fact that the iconic French brand name “Petits Filous” translates to ‘Little Rascals’. The campaign aims to reframe mischief as a force for good that can help kids go further in life.
Plant-Based
Meat free eating is at an all-time high, with almost 50 percent of the UK population buying into the category - that’s more than 28 million households choosing meat free.
“Shoppers have never been more aware of their environmental impact and how their everyday choices can have a positive effect. This has created a sustained interest in meat free diets, whether that’s vegetarian, vegan or flexitarian,” Gill Riley, Marketing Director at Quorn Foods UK, tells Asian Trader.
Quorn’s chilled and frozen products are extremely versatile and provide delicious meat free meals for every mood, making them an accessible choice for the whole family. Quorn expanded its popular frozen vegan Takeaway range earlier this year, with the launch of Sticky BBQ Wings and Sticky Sriracha Wings.
The meat-free leader has also recently expanded its popular chilled deli range with four new premium products- Quorn Yorkshire Ham, Roast Beef, Finely Sliced Ham and Roast Chicken Style Slices, developed to bring even more meat reducers into the category and boost sales.
Stocking a wide range of meat-free products is an effective way of gaining long-term loyal vegan customers.
Quorn’s Deli range is already the most popular with loyal meat free shoppers, helping retailers drive chilled sales. These delicious new vegan additions have been developed to drive incremental category growth, appealing to a new flexitarian shopper.
“We’re confident that our products are a crucial penetration and frequency driver for retailers and wholesalers and would advise them to stock NPD alongside Quorn’s best-known products, such as Mince, Sausages and Pieces, to make the most of meat free sales,” adds Riley.
Additionally, one in three Britons now drink plant-based milk, so it becomes essential for a store owner to offer a vegan option as well.
“In recent years, we’ve seen an increase in families seeking dairy free alternatives, either due to intolerances or simply as a lifestyle choice,” Moxham says.
Last year, Yoplait introduced Petits Filous- the first ever plant-based SKU. The almond-based variant comes in the much-loved brand’s bestselling raspberry flavour while iconic Apricot core-brand flavour is the newest NPD.
Lactalis too is banking on the popularity of plant-based products through its new launches- Président Brie Bakes and Seriously Cheese Nuggets- which are designed to appeal to non-vegan consumers who are trying to reduce their meat intake.
Plant-based meat alternative brand This has also launched its frozen range that includes a range of hyper-realistic frozen products including Southern Fried Chicken Tenders, Chicken Nuggets and Sausages.
Frozen will flourish
As demand is increasing, especially among Generation Z consumers, frozen food aisle holds a promising avenue for convenience stores.
The rising preference for fresh and natural food products and constant temperature monitoring requirements for frozen food products threatened to hinder the growth of this market to a notable extent at one point in time. However, back-to-back events of the last two years have once again altered consumer buying behaviour in the favour of frozen section.
While Britons being confined to their homes for more than two years and at-home snacking becoming a necessity, frozen snacking items became sought after thing. And now that the world is resuming normalcy, inflation is once again sending shoppers rushing to the freezer cabinets in search of value and quality, continuing the boost of frozen products sale.
Sainsbury’s boss Simon Roberts too revealed recently how shoppers are turning to cheaper frozen foods as they watch “every penny and every pound”. Customers were changing their behaviour in response to the rising cost of living, making more shopping trips but buying less on each visit.
“There is some evidence of customers shopping [more] to own-brand and also areas like frozen are increasing,” Roberts said during a tour of a Sainsbury’s store in Richmond, south-west London. To further encourage the trend, the British Frozen Food Federation is launching a food waste-themed campaign to raise awareness among consumers struggling with rising living costs. The BFFF said it hoped the campaign would play an important role in educating younger shoppers about the “the very real benefits of buying frozen” amid hiking bills.
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However, higher energy bills now pose a threat to this aisle in terms of cost. Retailers across the country are trying to minimise the number of freezers used as they reel under higher bills and overall higher costs.
To ignite shopper interest and maximize revenues, retailers must find the right merchandising balance of ice-creams, dairy and meals in both plant-based and conventional forms. With the rise in popularity of vegan eating, it is crucial that a shopper who is interested in plant-based meat alternatives should not leave empty-handed.
The right promotional offers, marketing and informatory signages can work in this section. Signage is particularly critical — perhaps more so than in any other part of the store — because consumers can’t always see what’s behind the glass.
Keeping a well-stocked chiller with fuzzy and energy drinks is another effective way to drive impulse purchase.
There was a time when frozen foods were considered “not as healthy as fresh alternatives”. However, as Britons stockpiled for lockdown and days after, they apparently have fallen head over heels in love with this category, all over again. Innovations are running high in this segment. So is customers’ appetite for trying new products and tastes.
It is time retailers too make the best of this wave and cash in some revenue.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”
Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.
FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.
The proposed merger is subject to approval by FrieslandCampina’s members’ council, Milcobel’s extraordinary meeting of shareholders, and antitrust authorities. The companies said member dairy farmers, employees, works councils and trade unions have been informed about the merger proposal.
Both companies, owned by dairy farmers for many generations, complement each other well in market positions and product portfolios. The merger offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability.
“The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market,” said Sybren Attema, chair of the board of Zuivelcoöperatie FrieslandCampina.
“This strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers, now and in the future.”
Betty Eeckhaut, chair of the board of Milcobel, said: “The cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger. Our goal remains to create added value for our member dairy farmers.
“Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future. For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further professionalisation of our services.”
Based on the combined 2023 annual figures of FrieslandCampina and Milcobel - excluding Milcobel's Ysco business, which is in the process of being divested - the new, combined organisation has a pro forma revenue of more than €14 billion (£11.6bn) , operates in 30 countries, employs nearly 22,000 staff worldwide, and processes a total volume of approximately 10 billion kilograms of milk.
The boards of the cooperatives and executive management of the two parties have signed a framework agreement regarding the proposed merger. The companies aim to finalise a detailed merger proposal in the first half of 2025, which will then be discussed with the members of FrieslandCampina and the shareholders of Milcobel.
The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.
Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.
“Anti-social behaviour and shop theft are not minor crimes. They cause disruption in our communities,” Lord Hanson stated.
“Shop theft in particular costs retailers across the nation millions of pounds, which is passed on to us as customers, and it is not acceptable. That is why, on shop theft, we are going to end the £200 effective immunity. For shop workers, we will protect them by introducing a new offence, because they are very often upholding the law in their shops on alcohol, tobacco and other sales.”
He also emphasised the government’s commitment to restoring visible neighbourhood policing, with 13,000 additional officers and Police Community Support Officers (PCSOs) planned, as well as piloting new “respect orders” to ban repeat offenders from town centres.
Later on Wednesday, the home secretary announced a £1 billion funding boost for police across England and Wales to restore neighbourhood policing. The money will include new funding of £100 million to kickstart the recruitment of 13,000 additional neighbourhood officers, community support officers and special constables.
The debate was initiated by Labour peer Baroness Ayesha Hazarika, who painted a vivid picture of the toll anti-social behaviour takes on workers and communities. “Many people who work in shops feel like they are living in a war zone,” she said. “Anti-social behaviour can so often be the canary down the coal mine and tell a wider story about what kind of society we are living in.”
Baroness Hazarika also urged the use of technology such as facial recognition to target hardened criminals responsible for terrorising shops and local residents.
Lord Hanson agreed, adding that the government is equipping police with the resources to better address persistent offenders, including funding initiatives like Operation Pegasus, which targets organised retail crime.
Retail trade union Usdaw has welcomed the Lords debate tackling anti-social behaviour and shoplifting.
“We very much welcome that Baroness Hazarika has raised this hugely important issue for our members. It is shocking that over two-thirds of our members working in retail are suffering abuse from customers, with far too many experiencing threats and violence,” Paddy Lillis, Usdaw general secretary, said.
“After 14 years of successive Tory governments not delivering the change we need on retail crime, we are pleased that the new Labour government announced a Crime and Policing Bill in the King’s Speech and all the measures that it contains, as set out by Lord Hanson.
“The chancellor announced in the Budget funding to tackle the organised criminals responsible for the increase in shoplifting, and the government has promised more uniformed officer patrols in shopping areas. It is our hope that these new measures will help give shop workers the respect they deserve.”
In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.
Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.
With shoplifting on the rise year-on-year since 2021, and the Christmas trading period presenting heightened risks due to increased footfall and stock levels, the wellbeing of postmasters has become a pressing concern.
The new wellbeing platform, accessible via the Branch Hub app, provides a single point of access to a range of resources designed to meet Postmasters' immediate and ongoing needs. It is divided into three sections:
‘I Need Help Right Now’: Offers urgent support, including access to emergency services, mental health first aiders, , area and business support managers and organisations like Samaritans.
‘More Support and Guidance’: Provides practical tools such as security advice, social media abuse resources, and connections to organisations like Citizens Advice and Mind.
‘Access Community Support’: Encourages peer connections through WhatsApp and Facebook groups, as well as in-person meetings.
The initiative, a collaboration between the Post Office, the National Federation of Sub-Postmasters (NFSP), and Voice of the Postmaster, underscores a shift towards a more cooperative approach between historically independent groups, and creates a shared wellbeing network that is accessible to all postmasters, regardless of affiliation.
Mark Eldridge, postmaster experience director at Post Office, said the initiative will ensure that anyone who needs help can find it quickly and easily.
“It’s about creating a culture of care and resilience in the face of the challenges our postmasters face every day. If the initiative means helping just one postmaster, then we have done our job successfully,” Eldridge added.
Tony Fleming, postmaster at Thorne Post Office, shared how the initiative provided vital support following a traumatic armed robbery at his branch.
“It was incredibly difficult for the person faced with this violent threat, as well as the wider team. It’s a traumatic experience to go through as part of your day job and having the immediate support of the Wellbeing resource was invaluable – it really was wellbeing personified and gave me and everyone in the branch the support to get back to doing what we do best, serving our fantastic community in Thorne,” Fleming said.
Paul Patel, a Hampshire-based postmaster, echoed this sentiment, highlighting the platform’s ability to combat isolation and foster collaboration:
“It has been a difficult time for all postmasters who continue to serve their communities every day often feeling alone in their daily work life. It’s such a privilege to collaborate across the network to support Postmasters wellbeing from forming friendships to guiding for more professional support.”
Christine Donnelly of the NFSP highlighted the initiative’s accessibility and symbolic value.
“From a postmaster perspective this works on several levels. It is an easily accessible resource that offers advice and facts, but it also says by implication that we care, that participants from different areas of the business recognised a need and worked together to make it the best it could be,” Donnelly noted.
“It says you are not alone or the only one - how can you be if there is a whole site available?”
The Post Office plans to evolve the platform based on postmaster feedback, ensuring it remains relevant to emerging challenges.
Earlier this week, Post Office has announced a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.
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.
Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).
With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.
"2024 has presented unprecedented challenges for independent retailers,” said Andrew Goodacre, CEO of Bira. “Consumer spending on non-food items has declined significantly, while persistent footfall problems and fragile consumer confidence have impacted high streets nationwide. Despite inflation coming under control, interest rates are falling slowly, affecting both business and consumer spending."
"The retail landscape has become increasingly competitive, with large chains implementing deeper and longer discount periods. The rise of ultra-fast fashion retailers like Shein and Temu has created additional pressure on margins, whilst deflation on non-food items has further squeezed profits," he added.
The sector has also grappled with retail crime, with Bira's latest survey showing 78.79 per cent of businesses reporting increased frequency or severity of theft incidents.
Research from PwC earlier this year also highlighted the scale of the challenge, with 6,945 outlets shutting – equating to 38 store closures per day, up from 36 per day in 2023. The figure outnumbered the rate of new store openings, which rose modestly to 4,661, averaging 25 openings each day.
Mr Goodacre said: "The key difficulties independent retailers are grappling with include low consumer demand, as consumer confidence remains fragile and shoppers are highly value-focused. Independent shops struggle to compete on price as large chains are able to discount more deeply and for longer periods."
Looking ahead to 2025, retailers face new challenges. He added: "Medium-sized retailers will see a significant increase in employment costs, while thousands of smaller retailers will be hit with higher business rates as relief drops from 75per cent to 40 per cent."
However, Mr Goodacre said he sees reasons for optimism and added: "We expect 2025 to bring some positive changes. Wages are set to rise faster than inflation, which should boost consumer spending. Both inflation and interest rates should continue to fall, helping to rebuild consumer confidence."
"The circular economy presents a growing opportunity for independent retailers, and with economic growth set to improve, we anticipate better trading conditions. While challenges remain, independent retailers who stay adaptable and resilient will find opportunities in the year ahead."