The Association of Convenience Stores has warned that pessimistic
consumers and increased costs for retailers are putting the UK's
50,000 local shops under pressure, resulting in a fall in jobs,
investment and sales.
The 2025 Local Shop
Report, released today, reveals that despite a slight
increase in the number of convenience stores trading in the UK to
50,486, the number of jobs that they provide has fallen from
445,000 to 443,000, the amount invested by retailers has fallen
by £100m from £1bn to £900m, and the total projected sales this
year has fallen to £48.8bn, from £49.4bn last year.
Convenience stores have faced major challenges over the last
year, not just from a retail and grocery market competing ever
more strongly against the backdrop of stretched household budgets
and limited consumer spending, but from changes in regulation and
policy that have added to their costs. Employment costs have
risen significantly over the last year as a result of the
combination of National Living Wage increases and changes to
Employer National Insurance rates and thresholds.
The cost of business rates has also risen as the Government
reduced reliefs from 75% to 40% this year, with more cost
increases on the horizon through the incoming business rates
revaluation.
The impact of Employer NICs rises, the National Living Wage
increase and business rates increases alone will cost retailers
an additional £612m this year.
Retailers have also had to deal with the additional cost of vape
recycling in their business, and most recently the impact on
their sales from the introduction of a ban on disposable vapes.
Later this year, retailers that are part of a larger overall
business will be banned from providing multibuy promotions like
buy-one-get-one-frees on High Fat, Salt and Sugar products.
ACS chief executive James Lowman said: “This has been an
extremely challenging year for local shops as the cost of doing
business has risen significantly while sales have stagnated due
to fierce competition from discounters, supermarkets and other
retailers. These figures should serve as a warning to Government
that we cannot continue taking the brunt of additional costs and
other burdens without the impact being felt by the communities
that these essential stores serve.”
While retailers have faced challenges this year, the sector
remains robust in its commitment to serving the community. 80% of
convenience stores have been involved in community activity over
the last year, and convenience stores are consistently ranked in
the top three services that have a positive impact locally,
alongside pharmacies and Post Offices.
Mr Lowman continued: “Despite the challenges, convenience stores
are still right at the heart of communities, more relevant than
ever to people's daily lives, and making a positive difference
not just through diversified products and services, but as job
creators, investors and social hubs. Every community has
different needs and our members' greatest asset is being able to
adapt their offer to meet those needs.”
The full Local Shop Report
is available here.
