Store bosses working over 55 hours per week to manage costs

THE Scottish Grocers’ Federation (SGF) has highlighted the true costs to retailers from the increases to National Living Wage (NLW) and National Insurance (NI) contributions in a new study.
Working alongside the University of Stirling, the SGF said that, after accounting for statutory costs – including NI and Holiday Pay – as well as additional employee expenses, the cost of employment for convenience store retailers will be as much as £16.72 per hour.
This is a jump of £1.33 when compared to the previous year and the SGF noted that many convenience store owners will be forced to reduce staff hours and increase their own or stop hiring new employees altogether.
In fact, a new SGF survey found that 97% of respondents were less likely to hire more staff due to the increased cost of running their businesses and 91% of store owners said they are now working more than 55 hours per week in order to keep wage costs down.
Pete Cheema, chief executive at the SGF, said: “Despite many retailers working longer and longer hours to keep staff costs down, the well-above-inflation increases to employment costs year on year means that some stores will need to cut staff hours yet again.
“There is no doubt that local stores employing local staff will have to think twice before taking on anyone new in the coming year.
“In the worst cases, it could be the final straw, pushing retailers to reduce staff or even close the doors for good. We are already seeing retailers selling their stores and leaving the business.
“Small businesses and convenience stores are the lifeblood of communities, providing lifeline services, essential local jobs and a boost for the local economy.
“It beggars belief that our governments, both desperate to promote economic stability and business investment, are doggedly adding to the cost of employment and crippling any potential growth.”