Retailers running independent stores have raised their concern about the rise of energy costs. C-stores anticipate that it would be difficult to manage their business cost with what they earn from the margins they get on the products. They are trying to implement all the ways through which they can bring down the business cost but they want the government to look into this matter and help them in running their business.
Soft drinks, chilled products, and confectionery are the three best-selling categories in Pritina Patel's Nisa Local store in Birmingham. She says, "Electricity bill has gone up beyond the normal costs associated with running a shop. You don't necessarily see this but the frontline base or the sort of background costs have started to increase quite a lot. Suddenly, the bill in a quarter goes from about three, four grand to about six, seven grand. So that's quite a big chunk cutting (the profit)."
She informs, "I had my electricity contract just run out recently and the suppliers are telling me that you could either have a short contract and wait, and hope that prices come down, but there's no guarantee of that. So, it's, sometimes you have to bite the bullet therein and just go with the best case scenario at the moment."
"I think some retailers are waiting, but who knows in 12 months the prices could have shot up or maybe could have come down but we just don't know at the moment, there's not much information out there either about it."
"So not much can be done about things like that, we can only try cost saving as possible as in the shop. But at the end of the day, then the lights still need to be on, the fridges still need to be running.
Pritina Patel
"Something needs to be done about that, especially for us retailers, because obviously, we're working on fine margins as it is and then we suddenly have that cost going up and you can't run a store without the electricity. Maybe the government needs to have a look in issue contracts, and prices are being done at the moment," she opines.
Amish Shingadia of Londis Caterways and Post Office says the electricity bill has so far doubled in cost
"It cost us the same as a 30-hour member of staff. We are planning a refit and extra chillers in our store, but now considering the current situation, we are looking at the most energy-efficient chillers," he explains.
Amish Shingadia of Londis Caterways and Post Office
"At this moment, [we’re] looking at costs savings through credit providers, reducing staff hours and wages. Also looking at increasing store margins by stocking high-profit goods."
Blantyre retailer Shahid Razzaq who runs Premier Mo's store is also looking at margins and taking lower margin products off the shelves.
"We're all struggling with rising costs more than anything else. We are trying to reduce our costs as much as possible. We're also trying to reduce our energy costs by switching off extra lights, putting timers on stretchers," he says.
Shahid Razzaq
"Unfortunately, another thing we are doing to deal with the rising cost is shuffling our product line and lowering down the products with low margins because we can't afford low margins at this moment. It's not feasible."
Personal toll
The increase in energy costs is also taking a personal toll on shop workers. The retail trade union, Usdaw recently conducted a survey with its 3,000 members and found that 75 per cent have already relied on unsecured borrowing to pay bills, with 57 per cent now struggling to keep up with repayments.
When asked how they would cope with a price cap hike, 30 per cent said they would not use heating; 62 per cent would significantly cut down on heating; 40 per cent would cut out other essentials, such as food and 80 per cent reported that financial worries are impacting their mental health.
"It is heart-breaking to hear that so many low-paid essential workers, who kept the country going during the pandemic, are already struggling to pay their energy bills. That's before the energy price cap is increased by what is expected to be around 50 per cent," Paddy Lillis, Usdaw General Secretary said.
"Surely ministers cannot fail to be moved by the evidence from our survey showing that three-quarters are forced to borrow to pay bills and over half are struggling with repayments. 40 per cent are having to choose between heating or eating. Almost all will have to significantly reduce heating use or switch it off altogether if the price cap is significantly raised, as expected.
"This cost of living crisis is also a mental health crisis. Prices are rocketing, wages are barely growing and the government is distracted by parties. It is no surprise, but deeply worrying, that stress, anxiety and mental health concerns are increasing.
USdaw , in a statement, quoted a retail worker from Scotland, "The cost of living is increasing drastically and the working wages are not, so it's leaving us with less money each month. Energy bills are a real struggle and with the price hike in April we will all struggle to pay these and have cash for essentials."
Another retail worker from Midlands says, "Financial struggles have been impacting my mental health tremendously and have also been impacting my performance at work. With food prices, energy bills, and national insurance on the rise, I find it worrying that someone in a management position is still living pay cheque to pay cheque.
"Essential food items and energy bills are going up. It's hard to keep up. Have to borrow expensive loans to pay rent, bills, travel expenses on credit cards. Looks like we will drown in debt if it keeps going like this and cannot see any light at the end of the tunnel," a Retail worker from South East said.
‘Don’t ignore businesses’
Yesterday (February 3), Chancellor Rishi Sunak announced a payment of £350 to help UK households cope with a rise in energy bills. The Federation of Independent Retailers (NFRN) welcomed the government's decision but also urged the government on behalf of independent retailers to help small businesses struggling amid rocketing costs.
NFRN National President Narinder Randhawa said, "Our 11,000 members are facing a string of cost hikes in April, with increases to minimum wage rates and national insurance contributions, the reintroduction of business rates, and now rocketing gas and electricity bills.
"To satisfy customer demand and to keep everyone safe, our members' stores contain chillers, freezers, EPoS, bright lighting, and CCTV. As each year passes, it becomes increasingly difficult to cut these costs.
"Members in town and city centre locations have also seen footfall drop during the lockdown and as workers continue to resist calls to go back to the office."
Randhawa said he will be writing to Sunak to ask him not to turn his back on independent retailers and to give them help and support as their bills rocket.
Scottish NFRN president Ferhan Ashiq worries that the huge rise in overheads will force local stores out of business unless action is taken to protect them.
He said: "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.
"Other retailers have contacted me to say they have the same concerns. Businesses, in general, are going to start falling this year unless something is done about energy prices."
Ferhan also 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.
Ashiq said, "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 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."
"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."
Employees from cash handling experts Volumatic have taken part in a special "Wear It Pink" day to raise money for cancer charity, Breast Cancer Now.
Around 40 staff members based at Volumatic’s Head Office in Coventry donned something pink – from socks, scarves and wigs to full head-to-toe outfits in pink, to raise funds for a charity very close to their hearts.
Having been affected by breast cancer both within her own family and team at work, Volumatic Customer Service Representative Mandy House organised the charity day, which took place on 18 October to help raise money for the 600,000 people currently living with breast cancer in the UK.
Not only did Mandy encourage her colleagues to wear something pink for the day and decorate the staff canteen in pink, but she also arranged a pink bake sale, held games and sweepstakes for everyone to take part in throughout the day, all themed around the charity.
Mandy also made an impassioned speech at the start of the day, encouraging everyone to check themselves regularly for signs of cancer and to seek medical help for even the slightest concern – highlighting that prompt action really can make a difference and save lives.
Thanks to the generosity of everyone throughout the day, the Volumatic team raised £656, a sum that was then doubled by the Volumatic Board, to make a fantastic final total of £1,312.
Breast Cancer Now is the UK’s largest breast cancer charity with the aim of changing the lives of anyone affected by breast cancer with both research and support. As well as funding world-class researchers to develop better treatments, preventable measures and earlier diagnoses, they also provide a helpline, health information and support services for those affected and their loved ones.
Mandy, who has worked for Volumatic for over 25 years, was thrilled with the amount of money raised and praised her colleagues for their fundraising efforts. “A huge thanks to everyone at Volumatic for taking part in ‘Wear It Pink’ day. It was so amazing to see so many in pink – especially our Sales Manager Tom, who wore pink shorts for the day! I personally laughed a lot on Friday and the spirit of Volumatic and the coming together was fantastic!”
James Harris, Managing Director at Volumatic, said: “We always choose a different charity to support every year, and when Mandy suggested raising money for Breast Cancer Now, we all wanted to get behind the ‘Wear It Pink’ day for this extremely worthy cause.
“Cancer is a terrible disease in all its forms and several members of the Volumatic team are dealing with it right now, either personally or through their immediate family. I would like to thank Mandy for leading this fundraiser to help treatment continue to get better for all concerned,” he added.
Following the initial response condemning the Budget as 'the most damaging for independent retailers in recent memory' from the British Independent Retailers Association (Bira), members have shared their stark reactions to the triple burden of doubled business rates, increased National Insurance, and higher minimum wage costs.
Multiple retailers have calculated specific impacts on their businesses, with costs ranging from £90,000 to £150,000 per year.
"This budget was horrendous for us as a company. Estimated costs to be around £110,000 - £120,000 per year," said Andrew Massey of Masseys DIY in Swadlincote, Derbyshire.
The immediate impact on employment is already evident. Peter Massey of R Massey & Son Ltd, employing 38 staff, said: "We decided last night that we will not replace the next two members of staff that leave. We are also considering what to do with our coffee shop that employs quite a few youngsters."
Kevin Arthur of Pewsey RadioVision in Wiltshire highlighted the broader staffing implications: "The minimum wage rising to £25.5k per year (40hr week) is scandalous. Having to pay this type of salary for your most basic of employees will mean less employees, resentment amongst 'more valuable' staff who believe they are 'worth' far more than a basic employee, and less ability to pay staff bonuses. I am now looking to reduce staff hours, reduce staff numbers, and Christmas bonuses will be curtailed and any other 'perks' reduced."
A store owner in the South West, whose business has traded for over a century, revealed: "Prior to the budget we were looking at taking on a new store and creating 12 new jobs. The colossal impact that Labour has imposed on our business means that not only will this new store not happen, but we will be reviewing our sites and having to make redundancies in order to survive."
William Coe, of Coes in Ipswich, highlighted the challenge facing customer-focused businesses: "We all want the same thing – Growth – however for growth businesses need to make a profit to enable them to invest. With the cost rises put upon them yesterday this gets harder and harder especially for the retail and leisure sectors where the ability to make savings through technology is limited."
John Jones, Managing Partner of Philip Morris Direct in Hereford, warned: "We've been saying for months that the issue for small business is the cumulative effect of so many extra costs. These add up to a level of costs that just aren't sustainable, and I fear there will be a blood bath of small business on the high street."
The impact threatens the very existence of some long-established businesses.
A West Midlands clothing retailer with over 100 years of trading history confirmed they are "closing the doors in the near future," adding that "the cumulative effect of the rate hike, NI increase and the Minimum Living Wage increases mean that already emptying towns will become wastelands."
For smaller independents, the situation is particularly acute. Tracey Clark of Albert's Hardware in Somerset revealed: "I work in excess of 70 hrs a week with little to no personal financial gain. I can't see myself surviving the next six months."
The disparity between high street retailers and online competition was highlighted by several members, with concerns raised about UK-based businesses bearing the cost burden while international competitors selling cheap imported clothing operate with minimal tax liability.
A Greater Manchester fashion retailer emphasised the disconnect between policy makers and small business reality: "They are completely detached from reality. They need someone advising that has lived and breathed a small business. There should at least have been a threshold where businesses below a certain turnover aren't hit by these things."
The impact extends beyond retail to related sectors.
A West Midlands builders' merchant warned of broader economic consequences. The owner said: "The Government has put the boot in to small business. We are paying for everything. Farmers are in real trouble now and the economy will suffer. They went round telling businesses rates were unfair and would sort it out, then just put them up. They lied to us all and now jobs will go and inflation will rise."
Many retailers expressed frustration at what they see as broken promises. A Birmingham-based jewellery store owner said: "High Streets are the cash cow for Governments and when most have disappeared, they will scratch their heads and wonder why."
The combined impact of these measures threatens not just individual businesses but entire local economies. With many retailers already reporting worse trading conditions - Bira's recent survey showed 46% reported worse trading in early 2024 compared to 2023 - these additional costs could prove the final straw for many independent businesses.
Andrew Goodacre, CEO of Bira said: "For some, the Budget has forced immediate operational decisions. Several retailers mentioned reviewing staffing levels, reconsidering expansion plans, and in some cases, accelerating closure plans. The impact on future generations is particularly concerning, with multiple family businesses questioning their long-term viability."
A Midlands hardware store owner summed up the common challenge: "This will make trading near impossible with wage increases and the business rates, and no one wants to pay any more for goods."
Brocks at Rockwell Green, a Premier-branded convenience store near Wellington, Somerset is on the market as owners Simon and Rachel Brock are now looking to retire - after running the store for nearly 25 years.
Selling a wide range of products and everyday essentials, the store is “well-established and popular” among both the local communities.
“It has been a pleasure running the store for the last 23 years and serving the local community. It has been a tough decision to sell but we felt now was the best time to retire,” Simon said.
Specialist business property adviser Christie & Co has been instructed to market the property, which also features a variety of storage spaces, offices and independently accessed three-bedroom accommodation.
Matthew McFarlane, business agent at Christie & Co who is managing the sale, commented: “This is a fabulous store and property, offering a large sales area, great storeroom and residential accommodation. The sales figures are very strong which represents an excellent opportunity for corporate buyers or established multi operators.”
Wrexham Lager Beer Co Ltd, the oldest lager brewery still existing in Britain that has been brewing in Wales since 1882, has announced Rob McElhenney and Ryan Reynolds as new co-owners of the company alongside the Roberts family.
The acquisition was made by Red Dragon Ventures, a joint venture formed by The R.R. McReynolds Company, majority owner of Wrexham AFC, and the Allyn family of Skaneateles, New York. Red Dragon Ventures was created to drive growth in the Wrexham community and Wrexham AFC.
This transaction represents another landmark deal for the Welsh town and will considerably scale up Wrexham Lager’s infrastructure and international production, distribution, and marketing efforts.
“As co-chairmen of Wrexham AFC we have learned a lot,” said Rob McElhenney and Ryan Reynolds. “The connection between club and community, the intricacies of the offsides rule and the occasional need for beer – especially after finance meetings. Wrexham Lager has a 140-year-old recipe and a storied history and we’re excited to help write its next chapter.”
The Roberts family, who have owned and operated the business since 2011, will maintain an active role within the business, continuing to oversee quality control across all markets, local brewery operations, and community engagement projects.
Recently appointed chief executive James Wright will continue to lead the business after already overseeing rapid UK growth, as well as international expansion into Australia, Japan, and Scandinavia. Distribution in the US and Canada is set to go live in the coming months.
“This is a brand with great heritage – the oldest lager brewery in Great Britain, once enjoyed across the world,” Wright said. “So, to have Rob and Ryan onboard as we embark on international expansion is huge for us. They have been doing wonders for the town of Wrexham and strongly share our passion for once again seeing Wrexham Lager enjoyed in all the far-flung corners of the globe.”
Wrexham Lager Beer Co currently produces the 4% ABV Wrexham Lager, 5% ABV Wrexham Lager Export, and recently introduced 4.6% ABV Pilsener. The 4% Wrexham Lager is produced using an original recipe from 140 years ago that was once available in the world-famous Harrods luxury department store in London, as well as chosen as the only lager to be served on the White Star Line’s Titanic.
Ten global beverage companies have joined forces under a new industry-wide consortium, called REfresh Alliance, which is designed to help accelerate renewable energy adoption across the industry’s supply chain.
The new initiative invites additional companies from across the beverage industry to pool and scale their resources to remove barriers to renewable energy adoption in the supply chain, provide education on best market practices and support the industry’s transition to Net Zero.
Companies currently part of the REfresh Alliance include: Bacardi, Carlsberg Group, Constellation Brands, Diageo, Heineken, Molson Coors Beverage Company, Pernod Ricard, The Coca-Cola Company and Whyte & Mackay.
The programme is managed by leading energy solution provider, Enel X. Through its Advisory Services division, Enel X connects the participants with renewable energy providers and supports renewable energy transactions, aiming to accelerate renewable energy adoption.
The programe also features a dedicated educational platform to help program participants prepare for renewable energy adoption.
Scope 3 emissions, which are not directly produced by a company but from its supply chain, often account for approximately 90 per cent of a beverage company’s carbon footprint. As suppliers continue to face a number of barriers to decarbonisation, REfresh has already engaged with more than 300 suppliers to discuss their involvement in the programme as it aims to support their adoption of renewable energy solutions.
“We have long recognised the need for industry collaboration to deliver the most impact and to accelerate the transition across our supply chains,” Ralf Peters, chief procurement officer of Coca-Cola Europacific Partners (CCEP), and chairman, Coca-Cola Cross Enterprise Procurement Group (CEPG), said.
“I know from my experience across the Coca-Cola system that supporting our supply partners is a key part of our sustainability action – and that encouraging them to transition to renewables is one of the most impactful things we can do to help decarbonise their businesses, and to do the same in ours.”
Hervé Le Faou, chief procurement officer of Heineken, said: “Scope 3 emissions are one of the biggest challenges that the industry faces in delivering on our Net Zero ambitions. We must work together to identify areas of our supply chains where we can pool our resources to accelerate this transition for our suppliers. We look forward to working with other beverage companies to achieve this and accelerate the decarbonization of our industry.”
Jane Liang, chief procurement officer of Diageo, said: “The climate crisis is the most pressing issue of our time and the transition to Net Zero is becoming increasingly important. However, there is only so much we can do as individual businesses. The REfresh Alliance will drive collective action within the industry to accelerate the adoption of renewable energy. We are calling on all companies and suppliers within the industry to join us and support the industry in its transition to Net Zero.”
REfresh intends to initially launch in the mature renewable energy markets of Europe and North America, where it will be able to use existing networks to accelerate impact in support of the industry’s decarbonization efforts. As it continues to grow, the consortium will look to expand to other markets and welcome businesses from across the beverage industry to join it in supporting suppliers in their decarbonization journeys.