'Pingdemic' bigger threat than pandemic to small independent stores' business
In this photo illustration a smartphone using the NHS Covid-19 app alerts the user "You need to self-isolate" on July 18, 2021 in Knutsford, England. (Photo illustration by Christopher Furlong/Getty Images)
After the Pandemic, the “Pingdemic” is the next challenge faced by UK businesses and its impact on small independent stores is massive. During lockdown, the government categorised the grocery sector as essential and allowed stores to remain open. It was a huge opportunity for them as many shops and businesses had been forced to close their doors.
But opportunity also brings challenges, and from a shortage of lorry drivers to multiple staff absences, retailers are dealing with them all. Although their sales have increased – originally due to panic buying and later to changed shopping habits – issues related to lack of stock and staff-shortages continue to impact their business.
For the past few weeks, many shopworkers have been “pinged” by the NHS Track and Trace app. Amish Shingadia runs Londis Caterways and Post Office in Horsham, Sussex, and two of his staff were pinged last week. “We had members of staff who have been pinged,” he said. “We had to redo a whole week's work rotas. All the staff have to move around. There's no surplus in the business at the moment.”
Amish explained how he has been trying to cope: “As retail stores, we keep our staffing levels to a minimum naturally trying to save on staffing costs. So, when you have someone who just goes off for 10 days, or even multiple staff, it has huge ramifications. And, at the moment with limited resources, current shortages with the stock coming through, and more panic buying at the moment, all these have a massive impact on the store. The last two years as a retail store, we've been flat out, no one has really rested in the whole Covid period. You can’t expect much more from your staff. I've got a few staff who are on a holiday this week and two are pinged. Therefore, I've got only two members of staff right now, so if they leave us it will be very tight.”
Londis Caterways witnessed a 30 per cent increase in sales last week, because of renewed panic buying. "The numbers aren't too bad, obviously, compared to the first panic buying [last year]. We have 120 per cent now and our place is nothing like the previous levels," Shingadia said.
“In a small shop, if one member of staff tests positive it is likely that nearly all that team will be deemed to be in close contact, including the owner," comments Andrew Goodacre, British Independent Retailers Association (BIRA) CEO. “And this comes at a time when they are in a process of rebuilding their business after many months of closure, with little or no income.
“In addition, high street confidence is at its most fragile as shoppers navigate post-lockdown retail and an end to compulsory mask-wearing in England.”
Sunita Aggarwal, Director at Spar in Wigston, Leicestershire said, “This situation is a constant worry because we need contingency plans if there are staff shortages caused by this. There are also mixed messages regarding what a person needs to do.”
Sharing her experience on the pingdemic, Aggarwal said, “We have experienced a person attending an interview, who was then pinged on the same day and advised us of their situation. As the interviewee had come into contact with us, this was obviously quite worrying and impacted on us to resolve this straight away. We have also had a staff member who was pinged and experienced the symptoms of covid but was advised not to go to the test centre for the test. How do we as employers then know if the staff member is being truthful if they have been pinged if they are not able to take a test?” Aggarwal asked.
“At present, we have no option but to let the staff isolate, because our hands are tied; but as a small independent family business, we are hugely impacted by even one staff member not attending work.”
Bharti Chavda of Westminster Grocery is not concerned by the staff shortage as their store is only run by herself and her husband, but the shortage of drivers is the major issue facing them.
“Myself and my husband are the only ones working very hard at our store,” Chavda said. “Only from last week, I am facing this crisis, as there is a shortage of delivery drivers. My usual delivery comes to us every Tuesday, and now I have to wait till Friday. I hope they will resolve this issue soon.”
Trade bodies have asked the government to exempt shopworkers from self-isolation. In response, the government, in a bid to keep the supply chain moving, announced they would be exempt if they had received both doses of the coronavirus vaccine.
Responding to the announcement of a daily contact testing scheme for food supply chain workers, Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), said: “We welcome the government's rapid response to this unfolding ‘pingdemic’, which has impacted shops and distribution centres. Retailers are working closely with the government to identify hundreds of key distribution sites that will benefit from the new daily contact testing scheme.”
Dickinson believes that it is absolutely vital that government makes up for lost time and rolls out this new scheme as fast as possible.
Similarly, Goodacre said, “BIRA recommends the money still sat in the bank accounts of local authorities, which was supposed to be allocated in Restart Grants – some £800 million – is redistributed to help indie businesses facing further closures. For if the government does not step in now there will be yet more high street casualties – is that something we really want to see when the focus is meant to be on economic recovery?”
Aggarwal, meanwhile hopes the government will reiterate that everyone must take a test as soon as possible and that if it is negative, it will not be mandatory to self-isolate.
“The government needs to work quickly and around the clock to ensure everyone has guidance in place. I understand that where covid is concerned, it's an ever-changing situation,” She added. “However, we rely on the guidance to ensure people are protected and can work together to get out of this difficult situation.”
Shingadia added, “I know, lots of retailers are saying they should be exempted. But I don't agree with that. Because there are so many retail workers out there in the food. There is more risk of Covid spreading in your store, for example, if someone gets Covid in your store, you lose more staff, there's a big risk factor to it on the flip side.”
"As the government has announced that people in the food chain can be exempt. When it comes down to staffing, I might be wrong on this, but it will change on the 16th of August, if shopworkers had a second jab more than two weeks ago, you only self-isolate if you have previous symptoms or test for test positive."
“Disruption is limited at the moment, and retailers are monitoring the situation closely. The government will need to continue to listen to the concerns of the retail industry in the coming days and must be prepared to take further action if necessary," concluded BRC’s Dickinson.
SPAR UK has announced the appointment of Michael Fletcher as its new managing director.
Fletcher spent 22 years at Tesco plc, where he held numerous senior commercial roles in the UK, Ireland and Asia. He joined Co-op Retail in 2013 where he held the position of chief commercial officer before moving on to become CEO of Nisa Wholesale, a role he held until 2022.
Since leaving Nisa, Fletcher has taken on several non-executive director and board advisory roles. He is also the founder and chief executive of Sleet Brush Limited, where he focuses on designing and implementing innovative solutions to complex retail and wholesale challenges.
“Michael has outstanding credentials in commercial, retail and FMCG sectors, with experience across various trading environments,” Nick Bunker, non-executive chair, SPAR Food Distributors Ltd, said.
“His professional capabilities and high standards consistently drive excellent business performance and operational resilience. We are delighted with his appointment and look forward his lasting and positive contribution to the SPAR business.”
Fletcher added: “SPAR is a globally recognised and respected brand, and I am thrilled to join the team. I look forward to supporting the ongoing strengthening and development of the SPAR proposition in the UK.”
October saw shop prices fall marginally further into deflation for the third consecutive month with food inflation eased, particularly for meat, fish and tea along with chocolate and sweets as retailers treated customers to spooky season deals, shows industry data released today (29).
According to British Retail Consortium (BRC), shop price deflation was at 0.8 per cent in October, down from deflation of 0.6 per cent in the previous month. This is below the 3-month average rate of -0.6 per cent. Shop price annual growth was at its lowest rate since August 2021.
Food inflation slowed to 1.9 per cent in October, down from 2.3% in September. This is above the 3-month average rate of 2.1 per cent . The annual rate continues to ease in this category and inflation remained at its lowest rate since November 2021.
Fresh Food inflation decelerated in October, to 1.0 per cent , down from 1.5 per cent in September. This is below the 3-month average rate of 1.2 per cent . Inflation was its lowest since October 2021.
Ambient Food inflation decelerated to 3.1 per cent in October, down from 3.3 per cent in September. This is below the 3-month average rate of 3.3 per cent and remained at its lowest since March 2022.
Helen Dickinson OBE, Chief Executive of the BRC, said, “October saw shop prices fall marginally further into deflation for the third consecutive month. Food inflation eased, particularly for meat, fish and tea as well as chocolate and sweets as retailers treated customers to spooky season deals. In non-food, discounting meant prices fell for electricals such as mobile phones, and DIY as retailers capitalised on the recent pick-up in the housing market.
“With fashion sales finally turning a corner this Autumn, prices edged up slightly for the first time since January as retailers started to unwind the heavy discounting seen over the past year.”
“Households will welcome the continued easing of price inflation, but this downward trajectory is vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies, and costs from planned and trailed Government regulation. Retail is already paying more than its fair share of taxes compared to other industries.
“The Chancellor using tomorrow’s Budget to introduce a Retail Rates Corrector, a 20 per cent downwards adjustment, to the business rates bills of all retail properties will allow retailers to continue to offer the best possible prices to customers while also opening shops, protecting jobs and unlocking investment.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said, “Inflation in the food supply chain continues to ease and this helped slow the upward pressure of shop price inflation in October, however other cost pressures remain.
“Consumers remain uncertain about when and where to spend and with Christmas promotions now kicking in, competition for discretionary spend will intensify in both food and non-food retailing.”
Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.
A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.
Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.
Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.
Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.
The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.
According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.
The ONS added that this figure was the highest since records began – in March 2003.
“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.
“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.
“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”
Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”
According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.
PayPoint has announced a new partnership with Leeds Credit Union (‘LCU’), a financial cooperative with 37,000 members, enabling them access to its CashOut service, effective immediately.
The partnership will mean that LCU customers can access their cash and savings across any of PayPoint’s UK network of 29,000 retailer partners. This represents an unprecedented growth in accessibility and the first partnership of its kind for LCU. Historically customers have needed to visit one of LCU’s four branches to withdraw money.
Leeds Credit Union provides straightforward, affordable financial services. As a mutual there are no shareholders, so it is owned by its members and always has the interests of the members at the heart of everything it does. The credit union prides itself on providing members with the most appropriate services based on their circumstances.
“Our partnership with Leeds Credit Union will enable its customers to access their funds more easily than ever before," said Jo Toolan, Managing Director of Payments at PayPoint. "We’re committed to pursuing these kinds of partnerships, which enable credit unions to offer a more competitive and technologically advanced service, while simultaneously making the lives of customers that little bit easier through enhanced access.”
Greg Potter, Head of Marketing & Member Experience at Leeds Credit Union, said: “Increasingly, we’re looking at ways that we can apply technological solutions and partnerships to add value to the experience of our members using Leeds Credit Union. This partnership is demonstrative of our determination to grow in their best interests and will make access to funds something that can be done at any of a number of PayPoint locations in the UK.”
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A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS/Denis Balibouse/File Photo
Marlboro-maker Philip Morris said Tuesday it planned to close down its two production sites in Germany, citing falling demand for cigarettes among Europeans.
"In recent years, demand for cigarettes in Europe has fallen significantly," the company said in a statement, adding that it saw the same trend for roll-your-own tobacco.
"This trend is expected to continue in the coming years," the company said.
Many smokers have been shifting to e-cigarettes, or vapes, and heated-tobacco devices.
Philip Morris employs 372 workers at its factories in Berlin and Dresden. Both sites are scheduled for closure next year.
The tobacco giant said it would begin discussions with labour representatives to find "fair and socially responsible solutions" for staff.