British Independent Retailers Association (BIRA) has raised concerns over the spiralling costs faced by independent retailers.
BIRA’s chief executive Andrew Goodacree has warned that increased costs in almost all areas of businesses could pile further pressure on hard-pressed independents.
He was speaking in a radio interview when he spoke about the sharp rise in energy costs for both businesses and homes this winter.
"Smaller retailers are not the largest energy users, but this is a cumulative effect on their business having seen costs increase due to Covid, debt, Brexit, cost of shipping, delays in stock, supplier price increases, etc,” Goodacre said.
"We hope independent retailers will have a great festive period as it is the most important one ever. Despite all these current pressures, business rates are still the single biggest cost to retail and there are great concerns about rates returning at the full level in 2022,” he said.
BIRA has been lobbying for the Chancellor to reduce business rates in his forthcoming Autumn Statement.
Apart from rise in energy costs and supply chain crises, small independent retailers may have to battle labour shortage as well in the coming days.
The Food and Drink Federation says there is a “battle for labour” in the run-up to Christmas, with Amazon trying to recruit 20,000 temporary staff by offering signing-up bonuses of up to £3,000 in areas of Britain with labour shortages, to attract workers just in time for the Christmas surge.
“There isn’t a vast reservoir of British workers just waiting to be fought over. It’s incredibly difficult to get Christmas staff labour in many areas,” Ian Wright, chief executive of the Food and Drink Federation, said.
“It will mean higher prices and fewer choices on shelves. Suppliers will almost certainly produce shorter runs of product and if they can, they will look at higher prices.”
