Further criticisms have been levelled at Scottish Government plans to introduce food price caps.
The Scottish Grocers Federation (SGF) has warned that the proposals, which are aimed at ‘large supermarkets’, could also impact convenience stores operating under a symbol group or franchise model.
In the consultation document, businesses that meet the following conditions for the business as a whole would be impacted by the legislation:
- more than 50% of its annual turnover is from the sale of grocery items, and
- it has more than 250 employees, and
- it has a total annual turnover of more than £250 million per annum.
SGF chief executive Pete Cheema said this could “decimate hundreds small local businesses operating under a symbol group”.
“It would be deeply damaging and entirely perverse if a policy intended to help consumers instead contributed to the closure of the very businesses their communities rely upon.
“Even for out-of-scope retailers, price caps on selected products will inevitably distort competition and have serious consequences for independent local businesses. Risking pulling customers away from local shops and encouraging them to travel further to out-of-town supermarkets for everyday essentials.
“Local stores are not simply another place to shop. They are the backbone of many communities — providing essential and often lifeline goods and services, supporting local jobs, keeping money within the local economy and, crucially, serving people within walking distance of their homes.
“Independent retailers are already facing unprecedented pressure from rising costs, additional government regulation and global economic uncertainty. They must not become collateral damage in a policy intended to target ‘large’ businesses.”
The consultation is open for submissions here, with a deadline of 24 November.
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