Scottish independent retailers are urging the Scottish Government to provide crucial business rates relief in its upcoming budget, as the disparity in support between Scotland and the rest of the UK continues to grow.
ONS data reveals that retail insolvencies in Scotland have increased at a faster rate than in England and Wales over the past two years, since the retail discount was abandoned in Scotland. This trend suggests the Scottish government's policy is actively damaging the high street.
The situation looks set to worsen as retailers in England prepare to receive 40 per cent business rates relief from April 2025, while Scottish high street businesses have received no comparable support for the past two years, despite facing identical challenges with rising costs and economic pressures.
Karen Forret, Owner and Managing Director of Wilkies and Member Director for the British Independent Retailers Association (Bira), said, "Scottish retailers will be up against it come April with the new National Insurance and wage costs. We need the Scottish Government's support more than ever."
She added: "For the last two years, Scottish high streets have had no support from the Scottish Government, while our counterparts south of the border and in Wales have received vital assistance. Retail is not just an essential part of our communities but also critical for Scottish tourism."
Bira is highlighting that the lack of comparable support puts Scottish retailers at a significant competitive disadvantage, particularly as they face increasing operational costs and economic challenges in 2025.
The organisation awaits the Scottish Government's budget announcement, hoping for measures that will help protect and sustain Scotland's vital high street retail sector.
Andrew Goodacre, CEO of Bira said: "The future of our high streets hangs in the balance. We urge the Scottish Government to recognise the crucial role independent retailers play in Scotland's economy and communities by providing comparable support to that offered elsewhere in the UK."
Supreme plc, a leading manufacturer and distributor of consumer goods, has reported strong financial performance for the half-year ended 30 September,
The company recorded an 8 per cent increase in revenue, reaching £113 million compared to £105.1m in the same period last year. Adjusted EBITDA rose 22 per cent to £18.5m, reflecting higher gross margins and tight overhead control.
Despite challenges in the vaping market, the company continues to demonstrate resilience, particularly in its non-disposable vaping products.
Revenue in the vaping category stood at £36.6m, a 13 per cent decline from £42.1m in the previous year, largely due to a strategic de-emphasis on disposable vapes ahead of the forthcoming ban in June 2025. Sales of disposables fell by 56 per cent, to £4.4m, while revenues from non-disposable products remained stable at £32.2 million.
Supreme has shifted focus to rechargeable pod systems, 10ml e-liquid refills, and nicotine pouches under its 88Nic brand. These initiatives align with the anticipated regulatory changes and reinforce Supreme’s long-term commitment to supporting vaping as a smoking cessation tool.
“The strength of our strategy and the proactivity of our teams means we are well-positioned for upcoming changes in the UK vaping sector. Non-disposable vapes account for the majority of our vaping revenue, and we continue to report growth in 10ml e-liquid refills,” said Sandy Chadha, Supreme's chief executive
The revenue for third-party disposable vapes ElfBar and Lost Mary, reported separately in Supreme’s Branded Distribution category, totalled £30.3m for the period, an increase of 15 per cent as a result of having this distribution for the entirety of the period versus only three months last year.
The acquisition of Clearly Drinks has further diversified Supreme’s portfolio, adding £3.5m in annualised EBITDA. The acquisition reflects the company’s strategy to leverage its distribution network for cross-selling opportunities, particularly in its Sports Nutrition & Wellness division.
As a result, non-vape annualised revenue of the company now exceeds £100m or around 45 per cent of group revenue.
“We have experienced steady growth across our categories whilst seamlessly diversifying our portfolio through the acquisition of Clearly Drinks,” Chadha added.
“Adding well-recognised and trusted brands into Supreme's unrivalled distribution network across UK retail is central to our long-term growth strategy, and this acquisition reaffirms our ability to identify and execute quickly on M&A opportunities.”
Supreme anticipates revenue of around £240m and adjusted EBITDA of at least £40m for FY 2025, driven by continued strength in its core categories and ongoing market adaptation.
Some of the prominent food and drink wholesalers have written to the Prime Minister to express deep concern about the impact of the recent budget, which threatens the long-term sustainability of the UK’s food and drink supply chain
Coordinated by the Federation of Wholesale Distributors (FWD), the letter highlights that the National Living Wage increase will add an estimated £110 million in direct wage costs, while the increase in employer National Insurance will add additional costs of £31 million a year to an already embattled sector.
FWD warned that the budget will compound spiralling costs and undermine the wholesale sector – at a time when it should be encouraged to play a pivotal role in driving growth. The viability of regional food distributors is now also threatened, while there is additional pressure on the sector’s ability to fulfil public sector contracts to schools, care homes, prisons and hospitals with nutritious food.
The letter also highlights concerns about reforms to business rates which threaten to plunge hard-working wholesalers into paying a higher multiplier on properties with a rateable value of £500,000 and above.
While the rationale behind this change may be to tax the warehouses of online giants, it is essential to ensure there is a way of differentiating them from business-to-business food and drink wholesalers who were not the intended targets of this change and play a vital role in feeding the nation.
Commenting on the letter’s publication, FWD Chief Executive James Bielby said, “Our members contribute significantly to the UK economy, with annual revenues reaching £36 billion. They also directly employ 60,000 people and add an impressive £3 billion of gross value to the UK economy each year.
"The scale of our sector’s contribution highlights its significance in powering the government’s mission to kickstart economic growth – which we wholeheartedly support.
“However, the tax increases announced in the budget will have the opposite effect, compounding spiralling costs and undermining our critical sector. I would welcome the opportunity to meet with the government to discuss our concerns so that we may identify solutions to mitigate the damaging impact the budget’s measures will have on the critical supply of high-quality food and drink across our country.”
Bestway Wholesale Managing Director Dawood Pervez said, “The planned increase in employer National Insurance contributions alongside the National Living Wage increases will wipe off 10 per cent of our profitability, significantly hindering our ability to reinvest in jobs and the wider supply chain.
"At a time when many wholesalers are already faced with rising prices, these added costs will cause further inflation across the board and will not drive economic growth in our sector or country as a whole.”
Families are set to splash out on Christmas this year as expected spending hits a three year high as the cost-of-living pressure eases, according to RSM UK’s latest Consumer Outlook.
Families expect to spend an average of £760 on Christmas this year, up £158 or 26 per cent on £602 last year; and £694 in 2022. Last year consumers spent on average around a third more than expected, so 2024 average spend could break the £1,000 mark if the same overspend happens again this year.
A third of families (33%) plan on using some form of credit, including a credit card, buy now pay later arrangements, a loan or using overdraft, to fund Christmas this year. Half of all families (50%) plan on bringing forward their Christmas spending to spread the cost of purchases and take advantage of discounts such as Black Friday and Cyber Monday.
The EY Holiday Shopping Survey has also found that the consumers have started their holiday shopping earlier this year, driven by a desire to spread out their spending.
The top three categories that families plan on spending more on include Christmas presents (33%), Christmas dinner (33%) and food and drink at home (32%). Whereas the biggest cutbacks will be homeware (42%), eating and drinking out (40%) and adult fashion (37%).
“Expected Christmas spending hitting a three year high will be welcome news to retailers as families look set to splurge on Christmas presents and food and drink at home. Consumer confidence improved for the first time in three months in November, but it remains fragile and any further dips in confidence could derail expected spending,” Jacqui Baker, partner and head of retail at RSM UK, commented.
“Many retailers will be hoping that Black Friday deals can kickstart sales throughout the Golden Quarter to ensure they are in the best possible financial position going into 2025 to help offset the looming uplift in costs post-budget.”
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Smithfield Market (Photo by Carl Court/Getty Images)
The UK local authority on Tuesday (26) voted to close the city's historic wholesale meat market from 2028, ushering the ending of the trading era that started back in the 1100s.
Smithfield Market, near St Paul's Cathedral, has endured years of uncertainty and was facing an £800-million move to a new purpose-built site in the eastern suburb of Dagenham. But members of the City of London Corporation approved a decision to shelve the project, ending 900 years of history.
Smithfield Market is the largest wholesale meat market in the UK and one of the biggest in Europe. The current iteration of the market has been trading at the site since the 1860s. Prior to that it was a livestock market, which dated back to the medieval period.
Work has already begun on turning this site into a new cultural and commercial hub, which includes the new London Museum, BBC reported.
The Billingsgate fish market had also been slated to move from its home near the Canary Wharf development in east London to Dagenham.
Billingsgate is the largest inland fish market in the UK, with an average of 25,000 tonnes of fish and fish products sold there every year. The original market first traded in Lower Thames Street in the City in 1327, before moving to its current site in Poplar, east London, in 1982.
This site has now been earmarked to provide thousands of new homes.
In a statement, the corporation said traders, who work through the night to supply butchers, hotels and restaurants across the capital, could continue operations until "at least 2028".
"The decision reflects a careful balance between respecting the history of Smithfield and Billingsgate Markets and managing resources for this project responsibly," the local authority said.
"Project costs have risen due to a number of external factors, including inflation and the increasing cost of construction which have made the move unaffordable."
Speaking to BBC London before the decision was announced, one trader, whose family has sold fish at the site for 70 years, said he had been forced to take the compensation offer or "leave with nothing", adding, "For what we’ve been offered to vacate the premises, I can’t go and reinstate myself somewhere else.
The trader also warned that the decision will leave London "without a fish supplier" unless another fish market of the same scale comes up.
The Competition and Markets Authority (CMA) today (27) declared that people who are members of a loyalty scheme can almost always make a genuine saving on the usual price by buying loyalty priced products.
Having analysed around 50,000 grocery products on a loyalty price promotion, the CMA found very little evidence of supermarkets inflating their "usual" prices to make loyalty promotions seem like a better deal.
George Lusty, Interim Executive Director of Consumer Protection, said: "We know many people don’t trust loyalty card prices, which is why we did a deep dive to get to the bottom of whether supermarkets were treating shoppers fairly. After analysing tens of thousands of products, we found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK.
"While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key. By checking a few shops, you can continue to stretch your hard-earned cash.
As part of the CMA’s work to help people facing cost of living pressures, it conducted a rigorous investigation of loyalty pricing. This sought to get to the bottom of a number of potential concerns, including whether loyalty prices can be trusted, how they compare to prices at other supermarkets and how accessible they are.
The CMA conducted a consumer survey to understand what shoppers specifically think about loyalty pricing, for example: do they trust it, do they think it’s fair, and does it change where people choose to shop. The CMA also examined supermarkets’ behaviour – including, importantly, their use of customers’ data.
The evidence shows that almost all products scrutinised – 92 per cent of around 50,000 items – offered a genuine saving against the ‘usual’ price in the same store. While loyalty prices are generally some of the cheapest available, this wasn’t always the case meaning it’s worth shopping around.
The survey also found that people can make an average saving of 17-25 per cent buying loyalty priced products at the 5 supermarkets examined: Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons. 76 per cent of shoppers say loyalty pricing has not changed where they shop, but 24 per cent now compare prices more due to the introduction of loyalty pricing.
55 per cent of those surveyed think the price for non-members is inflated during loyalty price promotions while 43 per cent of those surveyed think it is unfair that loyalty scheme members pay lower prices for some products than those without a membership.
Another key finding of the survey was that people’s concerns about how their personal data is used is not stopping them from joining a loyalty scheme – only 7 per cent of those surveyed said they hadn’t signed up to a scheme due to personal data concerns. Some supermarkets could do more to make sure that certain shoppers – such as those without smart phones and the elderly – are able to join and make use of loyalty schemes
As part of its wide-ranging review, the CMA also looked at the way supermarkets collect and use people’s data when they sign up to a loyalty scheme. It did not see evidence of consumer law concerns in relation to this.
However, the CMA did find that there was room for improvement regarding people’s ability to access loyalty schemes.
Some supermarkets could do more to ensure people without smart phones or under 18s, for example, can access – and know how to access – loyalty prices. This could include introducing offline sign-up, in-store or via the telephone for example, and lowering the minimum age for joining a scheme.