“With the incredibly underwhelming Spring Statement which was revealed towards the end of March by chancellor Riski Sunak, it’s hard to see light at the end of the tunnel in terms of managing costs in a business, let alone at home,” reflects Andrew Goodacre, ceo of Bira (British Independent Retailers Association), which represents cookshops and housewares stockists among its members. He continues:
“While the basic rate of income tax is being cut by a penny, from 20p in the pound to 19p, there was very little support for indie retailers, and limited help on rising costs to the business.
There were support cuts in fuel duty and an increase in National Insurance allowance, however this was nowhere near enough to offset the 300% increases in energy, 100% increases in rates and double digit increases in the cost of employment.
So, it is now the time to look at the sustainability plans to both reduce energy usage and to improve the customer proposition for the business. Increases in product costs are easier to pass on to the consumer, but these rising overhead costs are not, which ultimately means a very difficult year for small retailers.
Retailers really need to start to push the link between driving sales both in store, and online, and showcase the importance to their community of shopping local.
Bira recently launched its online trading site Neartoo.co.uk for this very reason: to support the High Street in getting back on its feet and driving more sales.
Not only does the platform allow traders both on and offline to have more access to shoppers in their area, but for shoppers to also help them explore more local shops to where they live or are visiting – and encourage them to visit on foot, rather than by car. And most importantly, it helps in creating a hybrid model of working for all which is vital for the economy, while keeping their individual profiles and continuing to push local and independent.”
Andrew concludes: “We want to help independent retailers trade up against other multinational online trading stores, help push sales, and increase footfall, which will ultimately help in all areas.”
Top: With the cost of heating homes and shops rising, retailers need to address ways of reducing energy usage. (Photo: Mikhail Nilov).
