ShopMate Speaks to Scottish Parliament
Our Managing Director Brian Eagle-Brown addressed representatives of the Scottish Parliament at an event on Tuesday 18th February, hosted by The Scottish Grocery Federation, bringing forward the concerns of independent convenience store owners regarding the impact of rising National Insurance Contributions (NICs) and the increasing cost of employment.
ShopMate Survey: Retailers Struggling Under Cost Pressures
A recent survey conducted by ShopMate revealed the sentiment within the convenience industry. When asked about the impact of NICs increases:
- 78.6% of retailers stated it would significantly affect their business
- 21.4% of retailers said it would marginally affect their business
- 0% of respondents felt they would be unaffected
Retailers voiced concerns about their ability to absorb these additional costs and the need to increase prices. Many stated that they would be left with difficult choices, including:
- Increasing prices, making affordability a greater challenge for customers
- Reducing staffing levels, with some mentioning potential staff cuts and an increased risk of financial instability
- Struggling with already-tight margins, compounded by rising costs, shoplifting, and other operational pressures
The Impact of National Minimum Wage Increases
Beyond NICs, the rising National Minimum Wage also presents a significant challenge for independent retailers. Survey respondents highlighted how they are adapting to this financial pressure:
- “Prices will have to go up to survive.”
- “It means fewer staff employed and causes a security issue.”
- “Yes, we cut some hours every time it goes up. We cut 40 hours a week in the last 12 months.”
With costs increasing on multiple fronts, independent retailers are finding it increasingly difficult to maintain service levels while remaining competitive.
Raising Awareness and Calling for Support
Presenting to Scottish Parliament representatives, Brian underscored the critical role convenience retailers play in local communities. The ongoing cost pressures threaten not only individual businesses but also the accessibility and affordability of essential goods for consumers. He also highlighted that ShopMate’s automated pricing, promotional files, managed media content for screens are all tools provided to help save time and reduce costs. Innovation through Self Checkout terminals, Electronic Shelf Edge Labels and Home Delivery integrations can also help drive turnover.
ShopMate has worked with convenience stores for 26 years with 4,025 customers UK wide, including over 350 stores in Scotland.
