Craig "signXman" Brown (QFP)’s Post

According to research by FRP Advisory, the biggest margin pressures from a cost perspective during the last six months have been 🔋 energy (60%) 📦 wholesale costs (40%) 💪 labour (35%) ⛴️ shipping costs (35%) 🏭 warehousing costs (22%) 💰foreign exchange (22%). They have also seen margins eroded by consumer demand (26%). You can see the full report here: https://lnkd.in/e7NanGVt). The recent budget announcements haven't cushioned the blow either... Over-C is helping customers reduce operational costs and in many instances, reduce insurance premiums thanks to claim defensibility. Are you missing out on this key opportunity? It's time to talk to the Over-C team👍

Read the letter signed by over 80 retailers today.... It shares concerns about the impact of the Budget and other policy measures in the pipeline and the economic consequences for inflation, employment and investment. The industry faces around £7bn of new costs in 2025. While we appreciate government’s focus on improving the fiscal situation, investing in public services and the role businesses have in supporting this, the sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty.  When we launched our ‘Manifesto for Retail’ earlier this year, we described retail as the ‘everywhere economy,’ because it is just that – in every city, town and village across the country. Retail contributes over £100bn per year to the economy, meaning it's strongly placed to work with the government on boosting growth. We want to ensure government's plans don't hamper growth and investment, and instead, encourage it. This would involve looking at the sequencing of measures, like the new packaging levies, and ensuring that the changes to the rates system don't merely redistribute rates within the industry and cause some retailers’ bills to significantly increase. And instead making sure they lead to a significant, permanent reduction of rates bills for all retail properties if they are to offset the effects of the extra costs above in any meaningful way.   #retail

An interesting read - follow the link to the British Retail Consortium letter to the Chancellor raising concerns over the economic consequences of the recent budget for UK Retail.💡 Signed by 81 retail CEO’s, key concerns have been raised over the prospects for inflation, employment and investment. 💡 Cost increases seem a certainty. Very interested to see how this plays out and in particular, whether the Chancellor offers up the opportunity to meet and discuss further. Clearly, there is a genuine sense of unease and strength of feeling across the industry. These issues will impact not just the retail industry but undoubtedly, business more widely. What do you think? Please share your thoughts!! 🧐 EMW Law LLP - B Corp Certified #retailandleisure #highstreet #BRC #sme https://lnkd.in/ewx4kBPi

Retail and hospitality are already two of the highest taxed sectors in the UK with c.55% of profits going to tax. The latest budget announced by the Chancellor is estimated to lump an additional tax burden of £7bn onto the retail industry alone. How do we stop retailers from putting a freeze on hiring? How will retailers continue to deliver value to customers in the face of a cost of living crisis? There is solution... if employees are the beating heart of a retail business... their physical assets are the backbone. Through smarter capital investment and better management of your fridges, HVAC units, tills and ovens, you can get more out of your assets and your people that maintain them. Cut costs, deliver better experiences for employees and better value for your customers and the communities you serve with next-gen Asset Lifecycle Management with IFS. https://lnkd.in/eVKtaKpZ

The recent UK Autumn Budget for 2024 includes a range of policies that directly impact the retail sector. While the budget includes adjustments like an increase in the minimum wage, which might boost consumer spending, the retail industry continues pushing for major business rate reforms. Retailers currently bear an outsized portion of this tax burden - contributing over 20% of business rates despite generating less than 10% of the national economy. This excessive load has caused substantial strain, leading to shop closures and potentially discouraging further retail investment. To address this, the British Retail Consortium has proposed a “Retail Rates Corrector,” suggesting a 20% reduction in business rates for retail properties. They argue that this could promote job growth and innovation across the sector. Additionally, inflation remains a pressing issue. While the budget’s focus on supporting low-income families may benefit retail spending on essentials, broader consumer sentiment remains cautious. Analysts predict that discretionary spending will remain constrained until inflation stabilizes and consumer confidence improves. Retailers must adapt to this careful spending environment by offering more value-based options to attract budget-conscious shoppers. Ultimately, while some policy updates might offer relief, the budget falls short of the comprehensive reforms the retail sector has advocated to enhance long-term sustainability and competitiveness. #UKBudget2024 #RetailIndustry #BusinessRatesReform #UKRetail #RetailChallenges #ConsumerConfidence #InflationImpact

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

80+ Retailers write to Chancellor over Budget This is a copy of the Letter to Rachel Reeves that was sent yesterday and signed by 81 retail CEOs.  Economic consequences of the Autumn Budget for UK retail We are writing to share our significant concerns about the impact of the Budget on the retail industry and the economic consequences for inflation, employment and investment. Retail is in every community and is vital to the socio-economic fabric of the UK. It is the largest private sector employer, with three million direct jobs and 2.7 million more in the supply chain, contributing over £100bn per annum to GDP. This scale and reach means the industry can be a partner to government, supporting the reinvigoration of high streets, creating jobs all over the country and supporting the government’s ambitions for growth. We appreciate government’s focus on improving the fiscal situation and investing in public services; we also recognise the role businesses have in supporting this. But, the sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty.  Cumulative cost burden The estimated additional costs arising in 2025 are set out below. The impact of the Budget NIC threshold change is particularly acute given retail employs large numbers of people in entry-level and part-time roles. Costs from the Budget sit alongside other incoming regulations, including implementation of new packaging levies.

👏 🛒 🌹 𝐑𝐞𝐭𝐚𝐢𝐥 𝐥𝐞𝐚𝐝𝐞𝐫𝐬 𝐩𝐮𝐬𝐡 𝐋𝐚𝐛𝐨𝐮𝐫 𝐟𝐨𝐫 𝐫𝐞𝐟𝐨𝐫𝐦 𝐨𝐟 𝐭𝐡𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐫𝐚𝐭𝐞𝐬 𝐥𝐞𝐯𝐲 𝐭𝐨 𝐛𝐨𝐨𝐬𝐭 𝐣𝐨𝐛𝐬 & 𝐠𝐫𝐨𝐰𝐭𝐡 Sainsbury's CEO Simon Roberts and Usdaw Union general secretary Paddy Lillis raise warning of the 10,000s of jobs at risk and 17,000 stores facing closure, holding the outmoded business rates system accountable as the number one barrier to growth. Development Economics found that a 20% drop in headline #businessrates would save #retailers £1bn during the first year, while saving or creating over 17,000 new jobs. Whilst a rate reduction of this scale would initially lower tax incomes, after a decade, the corresponding rise in economic activity would create £70m of annual net positive returns for UK government. Read in full ⬇️ https://lnkd.in/eeZe5mgA

Budget 2024 overview - what's in it for Retail? 500 additional frontline police officers and $425m to support frontline policing – positive for the retail sector which has been hit hard by crime. The tax bracket readjustment announced today will be welcomed by retail business leaders, who will hope this leads to a lift in consumer confidence and a loosening of purse strings. However, while the tax cuts may lead to more discretionary spending, retail leaders may have hoped for more from this Budget. Inflation, insurance costs and wage increases are creating strain on the sector, and it will take time for any improvement in the country’s economy to trickle down to retail. The investment in policing is good news for retail leaders. Retail crime costs $2.6bn a year, according to Retail NZ, and poses a significant health and safety threat to employees and customers. We all deserve to feel safe and secure when we go to work and retail leaders will hope to see an improvement in this area. For further overview on retail sector - https://lnkd.in/gE7bDtnq

📖 What's the real story behind the proposed changes to retail business rates ❓ Perspective 1: “This cut will be sustainably funded, not by increasing taxes on working people, but through a higher tax rate on the most valuable 1% of business properties in the country." Perspective 2: Nearly three times the amount of retail, leisure and hospitality premises will pay the new high street levy in 2026 compared to large distribution warehouses. Perspective 1: “This will capture the majority of large distribution warehouses, including those used by online giants, as well as other out-of-town businesses that draw footfall away from high streets. This not only shifts the tax burden away from the high street, but will help make sure online giants pay a fairer share.” Perspective 2: Only 17% of the 100 largest distribution warehouses are reportedly occupied by online-only retailers. Our Head of Rating, John Webber told The Grocer that, “As well as impacting the distribution and warehouse sector, this will also impact the larger businesses in the retail. The bigger businesses - the ones that actually create the jobs - will be hit for six.” https://lnkd.in/e3PbnfAq #businessrates #retail #warehouses #onlineretail #leisure #hospitality