Skip to content
Search
AI Powered
Latest Stories

Retailer warns shop closures unless action taken to rein in soaring costs

Retailer warns shop closures unless action taken to rein in soaring costs
Ferhan Ashiq with (left to right behind) Scottish Labour Party leader Anas Sarwar MSP, East Lothian Councillor Colin Yorkston and Martin Whitfield, MSP for South Scotland

Scottish retailer Ferhan Ashiq said will a huge rise in overheads will force store owners to shut up shop unless action is taken.

Ashiq, who owns shops in Prestonpans and Levenhall, East Lothian, said the recent hike in energy prices, coupled with forthcoming increases in the minimum wage and associated employer contributions, will have a devastating effect on small businesses.


“The renewal price for my electricity contract went up from £19,500 to £45,000, and when you add on all the other extra costs it’s becoming more and more difficult to keep trading,” he said.

“Other retailers have contacted me to say they have the same concerns. Businesses in general are going to start failing this year unless something is done about energy prices.”

Ashiq, who is the president of Scottish NFRN, recently met with Scottish Labour Party leader Anas Sarwar MSP and his local MSP Martin Whitfield to explain the problems facing retailers and other small businesses, ahead of the by-election in East Lothian.

“I’ve been having regular conversations with Martin Whitfield about the serious challenges we are facing and I wanted to air my views that unless something is done, more businesses will start to fail and eventually close,” he said.

“He explained that the Scottish government has limited powers at their disposal on the issue of rising energy prices and that it is a matter reserved for Westminster. That being said, there are other avenues we can explore that may help mitigate rising costs. He suggested raising these points at the meeting with Daniel Johnson MSP on February 24 to eke out a strategy."

Ashiq said that the cost of winding businesses down would also run into the thousands.

He explained: “On top of everything else, there is the added burden of closure costs, with penalties for early termination of other contracts.

“When someone is closing down their business due to factors beyond their control, their closing expenditure should be minimalised by legislation. It adds financial burdens and mental health issues upon that particular individual.”

More for you

Freight crime cost over £680 million

iStock image

Freight crime cost over £680 million

Freight-related crime cost the UK economy an estimated £680-700 million in 2023, when accounting for lost revenues, VAT, and insurance costs, revealed a recent report from the All-Party Parliamentary Group on Freight and Logistics.

The study, funded by the Road Haulage Association (RHA), documented 5,370 reported incidents of HGV and cargo crime across the UK last year, a 5 per cent increase on the previous year. Experts suggest that the actual figures could be significantly higher due to under-reporting. The direct value of stolen goods reached £68.3 million.

Keep ReadingShow less
 a glass jar of honey
Photo: iStock

British beekeepers urge retailers to stock local honey as imported products fail authenticity test

British Beekeepers’ Association (BBKA), which represents hobbyist beekeepers, has urged retailers to stock local honey, after a new research raised significant questions about the composition of blended honey samples imported to the UK and sold at supermarkets.

In a recent authenticity test, 96 per cent of samples of imported honey from supermarkets were found to be ‘atypical’ for honey, compared to 100 per cent of UK beekeeper samples that were deemed ‘typical’.

Keep ReadingShow less
​Illegal vapes

Illegal vapes seized in Swindon raids

Photo: Wiltshire Police

Five arrested after seizure of illegal vapes worth thousands of pounds in Swindon

Wiltshire Police have arrested five people and seized more than £55,000 worth of illicit vapes, tobacco and alcohol following a series of warrants in the Broadgreen area of Swindon.

In a joint operation HMRC and Trading Standards, officers executed four warrants in Manchester Road at three stores and a property on Tuesday as part of the force’s ongoing Clear Hold Build work within Broadgreen.

Keep ReadingShow less
Volumatic welcomes new FCA rules safeguarding access to cash

Volumatic welcomes new FCA rules safeguarding access to cash

As industry leaders is cash handling, Volumatic has long supported the use of cash and the importance of maintaining access to cash for both consumers and businesses. The company recognises the importance of the new set of rules created by the Financial Conduct Authority (FCA) two months ago, to safeguard access to cash for businesses and consumers across the UK.

Since introduction, the new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it and the outcome has already sparked the creation of 15 new banking hubs across the UK, including one in Scotland, with many more to follow.

Keep ReadingShow less
Jisp unveils new NPD service

Jisp unveils new NPD service

Retail technology company Jisp has launched an NPD service as part of its new Direct to Retailer business unit.

The new NPD service will allow brands to launch or trial new products in a guaranteed number of convenience store locations, with on the ground review of execution by Jisp’s retail growth manager team, and performance data and insights deliverable through its scanning technology and back-office systems.

Keep ReadingShow less