Harpers Wine & Spirit Magazine’s Post

Retailers are facing a tough road ahead with rising National Insurance and wage costs adding billions to their bills. For a low-margin industry, these hikes risk stifling growth, investment, and jobs – and could ultimately lead to higher prices at the till. How can the sector navigate these challenges while supporting workers and customers alike? Will the rates reform help counter the other cost increases...? #RetailChallenges #CostManagement #SupportForWorkers

How exactly is that lastest UK budget putting a squeeze on Food & Drink industry? - Higher Costs 💲: Minimum wage hikes, NI increases, and tighter regulations mean rising costs across supermarkets, suppliers, and hospitality. - Food Inflation 📈 : These costs will likely trickle down to consumers, pushing food prices even higher. - Sector Pressures 👩🌾 : Extra tax burdens on hospitality, wholesale, and farming mean more pressure across the entire supply chain. It's looking like the industry will be bracing for a push towards cost management and innovation to stay competitive! Check out a more in-depth overlook in this The Grocer article below: https://lnkd.in/gKRCnEgj #budget #food #inflation #industry #uk

UK retail bosses have written to the Chancellor to warn of the wide-ranging damage from the Autumn Budget on their sector, including “inevitable” job losses and price rises. In a letter coordinated by the British Retail Consortium (BRC), 79 signatories, including bluechip retailers Tesco, Next, and Greggs, said they had “significant concerns” about the impact of the Budget on the retail industry and its knock-on effect “for inflation, employment and investment”. The BRC estimated that the retail sector will pay an extra £7bn in costs next year, with an additional £2.73bn spent on the minimum wage increase, £2bn on the packaging levy, and £2.33 on higher NICs. The retailers join hospitality bosses and farmers in warning that cost hikes in the Budget – including the minimum wage, inheritance tax and employer’s national insurance contributions (NICs) – will decimate family businesses and labour-intensive sectors. Continue reading 👇 https://bit.ly/4hNn698

https://lnkd.in/dm7D-Rf5 Now watch what will happen, FOR the 2 month's, ....shop owner's, retail will up prices accordingly,....why ?... simply because they can , and remember, these item's you buy , the retail market has the upper hand over the government savings...they simply add the presumed savings , to any item . Am I making the retail sector sound greedy ?....why wouldn't they...it gives them a 2 month window to profit . Justin's plan will cost Canadians 6 billion dollars , 1.6 on PST savings, the checks will cost another 4 BILLION with a B...,then the cost for ads , and government workers to send the love our way lol...it could cost 6.5 Billion after the smoke clears. Theirs a 40 BILLION DOLLAR DEFICIT...and they are ballooning PAST that simply for a political gimmick....and buying votes and popularity, using TAXPAYERS money,.... simply can't work. Do Canadian's need help ?..yes , but not by creating HUGE costs for later...one is just pushing the devil down the road for our kids. One has to RE-PROGRAM, retail tills throughout Canada, and that cost is offset to the store owner....OF COURSE , they will try to recover their costs...think I'm wrong ?....I'll bet you my winning Lotto ticket I got today...if I'm wrong you could win 75 mill off my ticket I lost to you ,...or you could get a free play lol...the odds are in my favor in me winning the debate.... Retail sector will up prices the day this is implemented....and your savings ?...are for not lol

📣 This month's #Budget must reverse the damage done to the spirits industry by last year's duty hike, writes Diageo GB managing director Nuno Teles in The Grocer. Last year’s 10.1% rise in excise duty on alcohol, the largest increase in 40 years, has had "a devastating impact on the spirits industry in the UK", Nuno says, adding the hike has put the entire category into decline and undermined the growth of "iconic British gin and whisky brands". Not only has the increase in booze duty hurt British businesses like Diageo, it's also hit Treasury coffers, with the increase in spirits duty contributing to a £300m shortfall in revenue to the government, and helped contribute to an increase in the prevalence of alcohol theft from UK supermarkets and convenience stores. The spirits industry provides over 446,000 jobs, contributes £13bn to the UK economy, and accounts for £4.4bn of retail sales across grocery every year. If the government is serious about putting growth at the centre of its agenda, it must undo the damage done by last year's duty rise. You can read Nuno's piece in The Grocer here.

The Hidden Cost of Recent Budget Measures: Implications for UK Retail and Consumers The British Retail Consortium’s warning about “inevitable price rises” following recent budget measures highlights significant challenges for UK retailers and consumers. Increases in national insurance contributions, the national minimum wage, and a new packaging levy are projected to add £7 billion in costs for retailers next year. Major retailers, including Tesco, Sainsbury’s, and Marks & Spencer, have expressed concerns about the potential for price inflation, store closures, and job losses as a result of these measures. Rising food and product prices are expected to contribute to higher inflation rates. The Office for National Statistics reported that consumer price inflation rose to 2.3% in October, driven by increasing household energy costs. Higher prices for essential goods and services reduce consumers’ purchasing power, leading to decreased disposable incomes and living standards. The British Retail Consortium noted that economic pressures have led to a decline in disposable income for British households, averaging £247 per week. The retail sector, a cornerstone of the UK economy, is facing significant challenges. Increased operational costs may lead to higher prices for consumers, potential job losses, and store closures. A report noted that over one in ten restaurants are at imminent risk of closing due to rising costs. The recent budget measures, while aiming to address broader economic challenges, pose significant risks to the retail sector and consumers. Balancing fiscal responsibility with the economic realities of the high street is crucial to protect jobs, maintain consumer purchasing power, and ensure the sustainability of the retail industry.

Economy of scale must be something unknown to the Greens in parliament? Suggesting to break up our key supermarket chains…..really!🫣 All that would do is drive grocery costs up. Nobody seems to be concerned why IGA stores are always come with higher grocery costs and if the government and the Greens are genuinely concerned about reducing grocery costs, supermarkets should be exempt from Landtax. A rough estimate that there are around 5000 supermarkets within metro areas and all of the Woolworth and Coles stores will be paying the land tax, as the rule applies that land tax must be paid by a public company regardless of rent. At least 100k per store per year would be the land tax, which adds up to 500 Million dollars paid by Woolworth and Coles each year in land tax, but ultimately paid by us the consumer. Insurance, Council Rates, increased electricity costs are all adding to the cost structure of supermarkets offering in many cases 24 hrs shopping with an unparalleled range and employing 100’s of thousands of Australians all earning a living. #greens #landtax #risingcosts #factsmatter

I quite agree with Tom Kerridge on this one, hospitality isn't only restaurants but kiosks, coffee shop, small take away or catering business. Every single operator got hit with COVID, now its price hike, but what loads of people dont know, another one is tax hike for imported goods, including cheese, a maximum charge of £145 will apply on imports of plant and animal products, such as cheese and fish, entering the UK through the Port of Dover and Eurotunnel from 30 April. This month will be very important to all operators, how they will work out their margins, not only food costings but also staff salary increase which went up just few days ago. Another one is ordinary people who were hit by price increase, now have less money, so less money will be spend, operators must be very active in running offers which still makes profit to every business but not to upset customers. Its a tough one and only strongest will survive, we are going through this battle since 202 and it doesn't look it will finish soon, until markets will settle and go back to normal spending habits. https://lnkd.in/e3Ts9K68

The latest Budget brings some major changes for retail that will impact us all. With National Insurance and wage hikes set to add billions in costs, it’s a tough hit for an industry already facing tight margins. As Helen Dickinson from the BRC highlights, retail plays a vital role in providing jobs and investing in communities across the UK—this added strain could limit growth, hiring, and even increase prices at the checkout. There’s some good news with the promise of business rates reform, a long-awaited shift retailers have been calling for. However, with changes only expected in 2026-27, many businesses will feel the squeeze long before then. It’s crucial that these reforms are managed thoughtfully to avoid penalising larger stores or distribution centres that support high street footfall. Retail is a resilient sector, but meaningful, timely support is essential if we want to keep our high streets and local communities thriving. How do you think these changes will affect the future of our high streets? #UKRetail #RetailProfessionals #BusinessRatesReform #RetailCommunity #SupportLocal

📉 UK Budget 2024: Retail Sector Challenges & Opportunities 📉 The recent budget announcement has sparked mixed reactions across the retail sector, impacting everything from business rates to retail crime and workforce costs. While larger retailers might adapt more easily, many smaller retailers are voicing concerns about these shifts. Here’s our take: 💼 Business Rates Relief: The government has introduced a business rates freeze specifically targeting companies eligible for small business rates relief. Although this provides temporary respite retailers feel it only scratches the surface of what’s needed. Meanwhile, larger retail businesses will continue to face high rates. The promise of permanently lower business rates for retail, hospitality, and leisure properties, set to start in 2026-27, is positive news—but the delay leaves retailers grappling with high costs in the interim. 🔒 Retail Crime: Rising crime is an ongoing concern, with calls for more government support. Chancellor Rachel Reeves said the government is taking action to deal with the shoplifting epidemic. The budget introduces tougher penalties for repeat offenders, a move welcomed by many, but will it translate into real protection for shop workers on the ground? 💰 Minimum Wage Increase: While a wage boost benefits some members of the workforce, many smaller retailers worry about the added strain this will place on their operating costs. Balancing fair pay and financial viability is increasingly complex. ⚙️ Cost Management: Amid rising operational expenses, embracing efficiency and tech-driven solutions becomes even more critical. With these challenges in mind, we remain committed to helping retailers navigate this complex landscape 📈 🔗 Read more about the sector’s response here 👉  https://lnkd.in/eXPH9qA9 https://lnkd.in/eEwDubMx #UKBudget2024 #RetailStrategy #Efficiency #BusinessTransformation #retailcrime