One in four retail staff are missing meals every month to be able to pay their bills while most report that financial worries are impacting their mental health, a retail trade union said earlier this week.
Usdaw has published statistics from their cost of living survey of over 5,500 retail staff, mainly low-paid key workers who deliver essential services which show that petrol prices and travel costs impact the ability to get to work for nearly 50 percent of respondents.
Seven in 10 have relied on insecure borrowing and 60 percent of these are struggling with repayments. One in four are missing meals every month to be able to pay their bills, this has increased from one in 20 last year. Nearly three-quarters report their mental health is being impacted as a result of financial worries, says Usdaw.
“It is heart-breaking to hear these testimonies from workers who are in the main key workers that we rely on for essential services. Usdaw’s recent cost of living survey of over 5,500 lays bare the struggle low-paid workers are experiencing just to make ends meet," Paddy Lillis – Usdaw General Secretary says.
“Many respondents talked of how increased fuel prices were leading them to cut down on shifts, to ask for a transfer to a store closer to home or even to consider leaving work altogether. Worryingly, cutting down on food and skipping meals was also a common theme, as well as taking steps to reduce non-work related travel to save on fuel costs, such as visiting family or pursuing leisure activities.
“These are the very real experiences of essential workers who were clapped during the pandemic and now seem to be forgotten. The Government has offered only sticking plasters that go nowhere near covering rising prices and bills, so there needs to be significant increases in minimum wage rates and fundamental reforms to end insecure work.
Usdaw is calling for a new deal for workers, with minimum wage rates of at least £12 per hour as a step towards £15 for all workers.
Other demands include better sick pay for all workers, from day one, at average earnings, protection at work, respect for shop workers as abuse is not a part of the job, proper social security system and job security, with day one employment rights for unfair dismissal and significant improvements to redundancy protections.
The Welsh government has been advised to increase the minimum price per unit of alcohol to at least 65p to maintain the positive impacts observed since the introduction of minimum pricing for alcohol (MPA) in 2020.
This recommendation is the key finding from an independent evaluation report published on Wednesday, which assessed the policy’s effect on alcohol-related behaviours, consumption, and retail outcomes.
Wales introduced its MPA policy on 2 March 2020, setting a minimum price of 50p per unit. The legislation aimed to reduce hazardous and harmful drinking by targeting the affordability of cheap, high-strength alcohol. The policy followed Scotland’s lead, where a similar measure at 50p had already been implemented.
The report, covering the period up to June 2024, highlighted several positive outcomes from the implementation of MPA in Wales:
Reduction in cheap alcohol products: Certain high-strength, low-cost products, such as large volumes of cheap ciders and lagers, were removed from the market.
Retail compliance: Retailers across Wales consistently adhered to the minimum pricing rules.
Consumption shifts: There was evidence of consumers switching from cheap ciders and lagers to other beverages like wine and spirits.
Reduction in overall consumption: Indicative data showed that alcohol consumption, measured through purchasing behaviour, decreased among Welsh drinkers.
Notably, the policy had a greater impact on those drinking at harmful levels, with dependent drinkers and individuals seeking treatment experiencing more significant changes. However, the report acknowledged that the financial strain on low-income, heavy drinkers led to adverse effects, such as prioritising alcohol purchases over essentials like food or bills.
The evaluation report draws heavily on insights from Scotland’s experience with MPA, where a price increase to 65p has already been implemented.
“The obvious step would be to follow the Scottish lead and renew the legislation, and thus retain the policy option,” the report recommends. “Electing not to renew the MPA legislation and letting the ‘sunset clause’ take effect has certain implications. The most obvious of these is that Wales will see the return of the availability of cheaper alcohol products and the associated increase in harms.”
Moreover, the loss of the policy could make it challenging for the Welsh government to reintroduce MPA in the future without the UK government support, it noted.
Sarah Murphy, the Welsh minister for mental health and wellbeing, welcomed the evaluations and their findings. She added that MPA is only one component of Wales’s broader alcohol policy, which includes significant investments in substance misuse treatment services.
In a written statement, Murphy confirmed that the Welsh government is initiating a 12-week consultation with relevant stakeholders to inform its report on the operation and effect of the legislation.
The minister highlighted the robust enforcement of the policy by Trading Standards Wales, which has reported just six fines following over 3,000 inspections since the legislation’s introduction. She also acknowledged the evaluation’s findings that substitution of alcohol with illegal substances or significant cross-border shopping have not been major concerns.
The report’s findings align with international research that identifies affordability as a critical component of effective alcohol policy. Minimum pricing is recognised by the World Health Organisation as a ‘best buy’ for reducing alcohol harm.
GroceryAid has announced that it will assume responsibility for the welfare funds of the former Tobacco Trade Benevolent Association from early February.
Currently overseen by the Tobacco Pipe Makers & Tobacco Trade Benevolent Fund, GroceryAid said the move will extend the charity’s reach and give current as well as former tobacco industry workers, including those from manufacturing, wholesale and retail, access to its wide range of welfare services.
“Extending our reach to include employees and former employees in the tobacco industry reflects our broader vision of supporting workers across the entire spectrum of the UK grocery sector. We want to ensure no individual is left without access to critical support when they need it most,” Kieran Hemsworth, CEO of GroceryAid, commented.
“We are committed to honouring the legacy of the Tobacco Trade Benevolent Association while bringing our more comprehensive support services to their beneficiaries.”
Jonathan Fell, chair of the Tobacco Pipe Makers & Tobacco Trade Benevolent Fund, added: “We are excited about the opportunity to provide enhanced support to our beneficiaries. GroceryAid’s comprehensive support services, including financial grants, 24/7 helpline service and counselling on a range of topics, will ensure that individuals we have supported continue to receive the care and assistance they need. Our Benevolent Fund looks forward to continuing to support a range of good causes from our General Fund.”
The transfer of responsibilities is expected to apply from 6 February this year. For more information about GroceryAid and the support available, visit groceryaid.org.uk.
Convenience retail continues to remain a robust sector despite rising crime and state intervention on unhealthy products, states leading property adviser Christie & Co today (16) in its annual report.
Christie & Co's report "Business Outlook 2025" reflects on key market activity, trends and challenges of 2024 and forecasts what 2025 might bring across the industries, including the convenience retail sector.
The report notes that in 2024 retail deal activity continued in the same strong vein as in H2 2023, and convenience retail remains a robust sector driven by need, providing solid investment opportunities. As such, Christie & Co's retail price index rose by 7.3 per cent.
Despite operational challenges from rising crime and state intervention on unhealthy products, there was a strong demand for opportunities.
According to Christie & Co 2024 data revealed in the report, there was a 20 per cent increase in the number of stores sold compared to 2023, with an average of ten viewings per sale.
Ever-increasing overheads will continue to present challenges for store owners and are causing the multiples to increase the turnover threshold for profitable stores.
Christie & Co notes that, as costs rise, continued divestment from corporate multiple retailers is expected and these divestments will inevitably present new opportunities for independent buyers in 2025.
The report also outlines Christie & Co's market predictions for the year ahead
Retailers will continue to face rising costs as a result of measures outlined in the Autumn Budget, and this will affect wages in particular.
This has the potential to cause inflation. However, as convenience stores are needs-driven, consumers will accept price rises or seek out value for money, states the report.
Retailers may be less inclined to hire more staff because of increasing wages and taxations, as announced in the Budget.
Due to increasing Government restrictions on unhealthy products, suppliers will have to adapt their offerings to fit requirements or sellers will have to evolve their product range, the report added.
It is unlikely that there will be a reduction in demand for sites, but purchasers will most likely factor cost increases into their offers while divestments from corporate multiple retailers are expected to continue as they continue to see costs go up and "tail end" stores may struggle, states the report.
Steve Rodell, Managing Director of Retail and Leisure at Christie & Co comments, “We are in the very fortunate position to be at the forefront of convenience retail business-to-business transactions, and we have worked very hard to become the market leaders.
"This is now a valuable position to be in, as other areas of retail, including much of the high street, struggle with internet shopping and multiple channels of competition.
"Convenience retail remains a needs-based sector, and as long as retailers listen to customers and satisfy local demand there is a good future for the convenience store.”
A recent study by Juul Labs researchers has revealed that adult smokers who completely switched to using the JUUL2 system achieved reductions in exposure to harmful and potentially harmful constituents (HPHCs) that were comparable to those who abstained entirely from tobacco and nicotine products.
The study, published in the journal Biomarkers, highlights the potential of JUUL2 as a harm reduction tool for smokers unable or unwilling to quit nicotine entirely.
The randomised study involved 89 adult smokers who were divided into three groups: one that switched completely to JUUL2 (using either Virginia Tobacco or Polar Menthol pods), another that continued smoking their usual cigarette brand, and a third that abstained from all tobacco and nicotine products for six days.
While nicotine exposure levels between the JUUL2 group and those continuing cigarette use remained similar, participants who switched to JUUL2 showed substantial reductions in exposure to HPHCs. Median reductions in biomarkers of exposure (BOEs) to non-nicotine HPHCs ranged from 65 per cent to 94 per cent – a statistically significant improvement compared to those who continued smoking cigarettes.
Interestingly, the reductions in non-nicotine BOEs among the JUUL2 group were comparable to those observed in participants who abstained completely from tobacco and nicotine products.
The findings suggest that adult smokers who fully transition to using JUUL2 system can significantly decrease their exposure to harmful substances found in combustible cigarettes, potentially reducing their risk of smoking-related diseases.
The study adds to the growing body of evidence supporting the role of electronic nicotine delivery systems products in tobacco harm reduction strategies, emphasising the importance of complete transition from smoking to achieve these benefits.
JUUL2 was launched in April 2022 following a successful pilot launch on Juul.co.uk. The rechargeable pod-based system was updated from previous versions with new technologies and features, including the capability to combat potentially harmful and compatible pods, striking a blow to the illicit trade market of JUUL products.
The Non-Domestic Rating (Multipliers and Private Schools) Bill, that could introduce a permanently lower business rates multiplier for convenience stores, passed its third reading in parliament on Wednesday (15) evening, with the Commons voting 341 to 171 in favour of the Bill.
The Bill seeks to make a number of changes to the way that business rates are calculated, including a permanently lower rate for retail, hospitality and leisure businesses with a rateable value of under £500,000.
The small business multiplier is currently set at 49.9p, while the standard non-domestic rating multiplier is set is 54.6p. The 75 per cent business rates discount for retail and hospitality businesses that was introduced after the pandemic is being reduced to 40 per cent in April, resulting in increased costs for thousands of retailers.
In evidence given to the Bill Committee in December, ACS urged MPs to set the new lower rate for retailers at 20p less than it is currently (utilising the full extent of the powers of the Bill) so that it can have a tangible impact and save retailers up to thousands of pounds on their rates bills.
During the Third Reading debate last night (15th January), both Government and opposition MPs praised the work of ACS in campaigning for rates reform.
In the debate, Sureena Brackenridge MP (Labour) said, “For years, high streets have been forced to compete unfairly with massive online retailers and retail parks, but the Bill will ensure that the largest online retailers, supermarket chains and distribution warehouses finally pay a fairer share.
"The Association of Convenience Stores has said that these changes will save small stores money that can be used directly to hire more staff, install new CCTV, and invest in the future.”
Convenience store body Association of Convenience Stores (ACS) has welcomed the progress of the bill.
ACS chief executive James Lowman said, “Retailers have had very little to look forward to recently, with increases in employment costs and reductions in their business rates discounts putting pressure on the viability of stores across the country.
"The progress of this Bill marks some good news for our sector, which would benefit from a lower rates multiplier and enable more stores to invest in the long term. We urge the Government to ensure the new multipliers are set at a level that would offset the cost of reduced business rates relief and unlock investment in villages, parades, and high streets.”
ACS has also submitted a response to the Government’s consultation on Transforming Business Rates, highlighting the importance of a business rates system that prioritises competitiveness for retailers.
This approach supports their vital role in serving communities while fostering investment, growth, and the continuation of essential services. The submission can be read here.