Measures proposed by the Scottish Government to cap prices could put many small local stores out of business, Scottish Grocers Federation has warned.
The consultation launched today (Sept 1), claims to target “large supermarket” businesses. However, criteria set out in the proposals could also target small independent convenience stores operating under a symbol group or franchise model.
Under the proposed characteristics, local stores operating under a common fascia could be included in the measures (if they are considered as a single entity, similar to other regulation such as restrictions on products High in Fat, Sugar or Salt:
- more than 50% of its annual turnover is from the sale of grocery items
- it has more than 250 employees, and
- it has a total annual turnover of more than £250 million per annum
SGF Chief Exec, Dr Pete Cheema OBE, said: “If these measures are brought forward in their current form, they could decimate hundreds small local businesses operating under a symbol group.
"It would be deeply damaging and entirely perverse if a policy intended to help consumers instead contributed to the closure of the very businesses their communities rely upon.
“Even for out-of-scope retailers, price caps on selected products will inevitably distort competition and have serious consequences for independent local businesses. Risking pulling customers away from local shops and encouraging them to travel further to out-of-town supermarkets for everyday essentials.
“Local stores are not simply another place to shop. They are the backbone of many communities — providing essential and often lifeline goods and services, supporting local jobs, keeping money within the local economy and, crucially, serving people within walking distance of their homes.
“Independent retailers are already facing unprecedented pressure from rising costs, additional government regulation and global economic uncertainty. They must not become collateral damage in a policy intended to target ‘large’ businesses.”