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30/07/2015

New Living Wage Set To Hit Convenience Store Retailers

Living_Wage_ImageThe ACS has predicted disastrous consequences for convenience retailers after the new living wage was announced by George Osborne in his summer budget.

The living wage is set to rise to £7.20 in April 2016 and according to the Association of Convenience Stores (ACS) this could lead to more than 24,000 independent stores closing and 80,000 jobs being lost as a result.  The government plans to further increase the wage to £9 in 2020, which could have a far worse effect than original figures suggest.

In order to reduce the effects of the living wage the government is planning on introducing increased employment allowance. However, the ACS said this would provide comparatively “small compensation” for convenience stores and so there would still be a “devastating impact” on the sector. Chief Executive of ACS, James Lowman, said “Our analysis only looks at the increase to £7.20 and as this rises to £9 by 2020 there could be far greater effects than even these figures suggest.”

Lowman said that there needs to be more support for retailers in order to help them cope with the change, and that the Chancellor must take responsibility the impact it will have on the convenience sector which looks to lose £166m.

Find out more about the new living wage on the ACS website:

http://www.acs.org.uk/press-releases/acs-national-living-wage-puts-c-stores-at-risk/

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