The ACS is calling for a freeze in the minimum wage after a survey of local shop owners found 80% of respondents had to cut back on staff hours this year, compared to 50% in 2010.
ACS chief executive James Lowman said: “Unaffordable increases in the minimum wage are holding retailers back from making the investments necessary to grow their businesses.”
The survey of 600 shop owners also found that 74% reported that the recent rise in the minimum wage had had a negative impact on store expansion plans, while 85% reported a negative impact on pay structures.
Some 81% of respondents believe the increase has made their business less competitive, compared to 50% in 2010.
The LPC will hold hearings throughout October and November and will make a recommendation to ministers in the spring of2012.
Lowman added: “There is no doubt that the recent increases in the minimum wage have come at a bad time for retailers as they struggle with increasing costs and squeezes on profitability. We are urging the Low Pay Commission not to add to that burden.”