Independent news and convenience retailers play a vital role in communities throughout the UK. We help to raise much-needed funds for local causes, we give young people their first jobs, we keep a watchful eye out for our elderly and vulnerable customers and we provide key services including home news delivery and parcels. In short, we are the hearts that keep our local communities beating.
Yes, it’s true the environment we operate in gets ever more challenging each year, with rising operational costs, especially wages and employment costs, and red tape.
Of late, the Autumn Budget had been the word on everyone’s lips and as usual it was a case of some you win, some you lose.
Having campaigned long and hard for the government to get tough on those who trade in illicit goods and for more resources to be provided for Trading Standards to carry out enforcement, it was pleasing to see action being promised.
However, the introduction of licenses to sell tobacco products and vapes will need to be carefully applied so it doesn’t just cause more red tape for honest and responsible retailers like our members.
Having previously written to the Chancellor warning that higher wage bills, added to other increasing costs, will lead to some staff having their hours reduced or even losing their jobs, a big negative was the above inflation increases to minimum wage rates. For many long suffering shopkeepers this will mean making up the shortfall by working longer hours for less than the minimum hourly rate, in some cases.
Equally disappointing was the lack of measures to stem the rising tide of retail crime. The £5million previously pledged over three years to continue funding the national policing intelligence unit is a step in the right direction. However, more needs to be done in this area and we will continue to lobby the government to provide grants to help retailers improve their security.
On the subject of business rates, the Fed is concerned that although the government is providing reduced small business rates multipliers and additional transitional rates relief that could benefit its members, there is continued uncertainty for small shops, with a revaluation for businesses due in April 2026.
On the horizon is the Employment Rights Bill and while the government’s U-turn on day-1 rights for unfair dismissal was welcome, the Fed remains concerned about other various and well-intentioned measures such as sick pay and parental leave from day 1, reasonable notice of charge of shift and protecting staff from third-party harassment.
So yes, there will be challenges that independent news and convenience retailers will be expected to navigate over the coming year.
But this could also provide opportunities.
Running a successful business means providing shoppers with the highest levels of customer service along with the products, technology and services that they want. Here at the Fed, we will help members embrace new tools, trends and product categories while continuing to campaign against injustices and poor service levels.
After all, independent retailers make up around 70 per cent of the convenience sector, serving well over 400,000 people. And when the local shop thrives, the community benefits.
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