Nearly half of people working for UK retailers are at risk of quitting (51 per cent) or going into work with a health problem (44 per cent) in the weeks following Christmas, according to a new index tracking employee well-being trends across the retail industry over the last year.
The Retail People Index, which surveyed more than 2,000 UK retail employees and is the first to be published by retail industry charity the Retail Trust and global consulting firm AlixPartners, also showed a 7 per cent drop in overall well-being (from 65 per cent to 58 per cent) across the retail workforce between the start of autumn 2023 and the end of last winter, showing the impact of the busy Christmas period on employees’ mental health.
Calls to the Retail Trust’s well-being helpline also rose by more than a third (36 per cent) in January this year.
The research found that the risk of employees leaving their jobs or working while unwell is lower in the summer months. 27 per cent of all UK retail employees were at risk of working while unwell and 40 per cent were at risk of quitting in the summer of 2023 and just third (34 per cent) were at risk of working while unwell or quitting by the start of this summer.
Younger retail employees most impacted
But the Retail People Index discovered a greater mental health toll on young retail employees between the ages of 19 and 34 years than on that of older colleagues.
Young employees were found to be 10 per cent more likely to leave their retail jobs than the workforce as a whole at the start of this year (61 per cent versus 51 per cent). Meanwhile, half (52 per cent) of 19–24 year olds and 43 per cent of 25-34 year olds were still at risk of coming into work while sick between April and June this year, compared to a third of retail workers overall.
The index was created by measuring more than 4,500 responses to the Retail Trust’s online happiness assessment, delivered with employee engagement platform WorkL, between June 2023 and June 2024.
More than 2,000 staff were asked about their mental and physical health and how valued and fulfilled they feel at work to create an overall well-being score. Questions around pay, recognition, relationships with managers, work-related anxiety and workplace safety were among those used to separately help calculate the likelihood of them leaving their jobs or working while unwell.
‘Getting used to a new job, meeting new people, working out how to exist in an office, my living situation – it was overwhelming.’
“I’ve always been able to adapt to new situations, moving schools, starting college, going to university. However, this was so different,” admitted Phillip James, a 22-year-old student who sought help from the Retail Trust after beginning a marketing placement with The Perfume Shop.
“If I had been dealing with just one thing, it would have been ok, but putting it all together – getting used to a new job, meeting new people, working out how to exist in an office, my living situation – it was overwhelming. I started to dissociate. I’d go home after work and there would be nothing.
“Slowly it crept into work. It was like I was on autopilot. I’d be in situations and think, I should be happy, I should be enjoying this right now, and I’m not, and that’s tough.”
‘The industry’s reputation as a great place for young people to begin or build a career could be under threat.’
Chris Brook-Carter, chief executive of the Retail Trust, said: “Retailers need to put in place the right well-being support in the run up to this winter when the mental health pressures on retail staff could again be at their highest. This is particularly important for younger workers who tell us they feel less happy and safe at work and lack the tools to manage their stress and anxiety themselves.
“Retail has a fantastic track record of moving people from the shop floor to the boardroom so we are concerned the industry’s reputation as a great place for young people to begin or build a career could be under threat unless they are given more support.
“There is a fundamental link between the hope, health and happiness of a business’s workforce and its economic resilience. And, thanks to the support of our data partner WorkL, we hope the new Retail People Index will spur on more businesses from across the retail sector to address the causes of poor well-being within their organisations. In doing so, they will also help to ensure a more sustainable and successful industry as a whole.”
Laura Bond, Director at AlixPartners, said: “It continues to be an uncomfortable time to be a retailer. Persistently high levels of disruption – such as rising input costs and broader geopolitical uncertainty – affect not only business performance, but also the confidence of the people that work within them.
“At times like this, it is people and culture that can act as your shock absorber to these external forces, and this can have a material long-term impact on a company’s ability to be successful.
“So much effort goes into attracting and developing retail talent, but retention is perhaps the softer side that businesses do not always do so well. However, building a strong culture is the secret sauce to an engaged workforce that will perpetuate a sense of belonging and purpose, driving business performance in the process.”
Separate research by the Retail Trust found 80 per cent of retail workers were experiencing declining well-being last year, with a fifth (19 per cent) struggling to meet their monthly outgoings due to rising costs and nearly half (47 per cent) feeling unsafe at work amidst a wave of assaults and retail crime.
66 per cent of shop workers also told the Retail Trust they were feeling stressed or anxious about going into work following a rise in assaults and 42 per cent were considering quitting their jobs or leaving retail as a result.
The average cost to replace a departing employee earning £25,000 a year or more is £30,614, according to Oxford Economics and Unum while research by Deloitte has found poor mental health costs UK employers more than £50 billion a year. A study by CIPD has found UK employers are now absent for an average of 7.8 days, compared to 5.8 days before the pandemic.
The Retail Trust runs a well-being helpline and provides counselling and financial aid for retail workers and works with more than 200 retail employers to improve the mental health of their staff. It launched a new generative AI powered dashboard earlier this year to help retailer better track staff well-being trends and improve the effectiveness of support.
“Leaving Brighton, where I had been studying, for High Wycombe to start my 12-month placement at The Perfume Shop was a bit of a shock,” admitted Phillip James, a 22-year-old marketing management student.
“I’ve always been able to adapt to new situations, moving schools, starting college, going to university. However, this was so different. If I had been dealing with just one thing, it would have been ok, but putting it all together – getting used to a new job, meeting new people, working out how to exist in an office, my living situation – it was overwhelming.
“I started to dissociate. I’d go home after work and there would be nothing. I would just sit and dwell. Slowly it crept into work. It was like I was on autopilot. I was getting on with things, but I think there’s a difference between feeling neutral in a positive way, as opposed to having no feelings. I’d be in situations and think, I should be happy, I should be enjoying this right now, and I’m not, and that’s tough.
“Around that time, I saw a poster in the bathrooms at work that said something along the lines of, it’s important to feel good and happy at work but if you’re feeling bad, here’s an email, reach out and so I did. We had a bit of back and forth and then I met up with a member of the HR team at The Perfume Shop. I asked about my options, and she suggested I contact the Retail Trust, and guided me in the right direction.
“I signed up on the Retail Trust website, called the helpline number and had an initial chat. After the call they set me up with some counselling sessions.
“I still experience moments of dissociation, but now I’m more patient with myself. Rather than panicking, I’m much more relaxed and I’m way more comfortable in the situation I’m in. That’s not just down to the counselling, growing into the role has helped too. But the counselling has helped to prevent things overflowing to the point where it becomes unmanageable.”
To support and champion independent wholesalers, a brand new buying group title The Wholesale Group has been created and will officially launch on Jan 1 2025.
Described as "the buying group for the future" and "home of the independent wholesalers" The Wholesale Group will be led by joint managing directors Tom Gittins and Jess Douglas with Martin Williams and Coral Rose as co-chairs. The Wholesale Group will bring together the members of Confex and Fairway Foodservice to create the new group.
The Wholesale Group represents more than 12 per cent of UK wholesale and has £4.47bn annual turnover. The group will boast of 253 depots across the UK, serving more than 349,000 customers.
“Put simply, this is the buying group that the sector needs,” said Gittins.
“The Wholesale Group will be the only UK buying group to offer an extensive retail and foodservice range and expertise, alongside logistics efficiency via central distribution. It has an award-winning foodservice own brand supported by bespoke, coordinated member marketing and retail member support. And there are no membership fees and every member receives a share of the profits. We are delighted to launch The Wholesale Group as we know it is the solution for the independent wholesaler.”
Douglas adds, “The sector has changed dramatically and it is crucial that we do things differently to accommodate these changes for both our members and suppliers, and The Wholesale Group will lead the way. Driven by data and technology and with a crystal-clear focus on service, it will be the largest delivered buying group, the largest foodservice buying group and the second largest retail buying group in the UK.”
Rose states, "For our supplier partners, The Wholesale Group provides an efficient and powerful route to market through enhanced scale and capability.
“For our members, it is clear that Confex and Fairway have long held similar cultures and ethos, focused on celebrating and championing family businesses with members at the heart of everything we do. By coming together, we retain this member-centric approach but are even stronger, while building for the future.”
“While the foundations of The Wholesale Group are built upon years of expertise and specialist knowledge of the sector, this is a buying group created for the future,” said Williams.
“This is the solution for the independent wholesaler. It will provide something no other group can, and this will enable us to become the genuine home of independent wholesalers. We look forward to an incredibly exciting future.”
Things have had a shake-up at SPAR Milnthorpe with the launch of an Ann Forshaw’s Milk Shed, the new vending machine offering up fresh whole milk and flavoured milkshakes.
The machine has been placed adjacent to the SPAR store and Shell forecourt on the A6. It is dispensing gently pasteurised and non-homogenised milk fresh from the dairy in 500ml or one litre servings, competitively priced at £1 and £1.60 respectively.
Milkshakes are available too at £1.80 for a 500ml size or £2.80 for a one litre serving, and are in five mouthwatering classic flavours of Chocolate, Strawberry, Banana, Vanilla, and Salted Caramel. A sixth Limited Edition milkshake flavour will always be on rotation to complement the core range. At launch this week it is Mint, and this will be replaced by White Chocolate flavour on Friday 15th November.
All the milkshakes use natural flavourings and colourings where possible and do not contain the ‘Southampton Six’ food colours which have been found to have an adverse effect on activity and attention in children. Customers will also have the option to purchase Milk Shed branded reusable glass bottles at £1.80 for a 500ml or £2.20 for a one litre size, enabling repeat, plastic free purchases.
Recyclable cardboard cups and paper straws offer a free and an environmentally friendly alternative. SPAR Milnthorpe’s Milk Shed will be operational 24-hours a day, and it becomes the third Ann Forshaw’s Milk Shed to launch.
The original Milk Shed concept was launched at Ann Forshaw’s Alston Dairy at Longridge, near Preston, in February of this year. After an incredibly successful launch, SPAR Padiham Road in Burnley became the first SPAR North of England store to receive one in September.
Fiona Drummond, Company Stores Director at James Hall & Co. Ltd, owner of SPAR Milnthorpe, said: “This is the first Milk Shed to launch at one of our forecourt sites, and we are thrilled to bring our Milk Shed offer to Milnthorpe which we believe will be a real asset for the community.
“It is such a simple but effective concept. Our high-quality fresh milk is very competitively priced, and the milkshakes are delicious treat and suitable for all ages with the conscious decision to utilise natural flavourings.”
Ann Forshaw’s and its associated Alston Dairy was acquired by the James Hall Group of Companies in December 2022. James Hall & Co. Ltd is a fifth-generation family business which serves a network of independent SPAR retailers and company-owned SPAR stores across Northern England six days a week from its base at Bowland View in Preston.
In a significant escalation in backlash to plans announced by Chancellor Rachel Reeves, farmers are threatening to target ports and disrupt supermarket supply chains to protest against Labour tax rises, states a recent report, claiming that there are plans to withhold produce and livestock in a bid to trigger food shortages,
The Chancellor placed a 20 per cent inheritance tax on farmers’ assets worth more than £1 million in her first Budget. Previously, tax breaks designed to allow family farms to pass down the generations were exempt from the divisive 40 per cent duty.
According to The Telegraph, some farmers are now openly discussing plans to take a more radical course of action. The discussions are understood to be taking place among farmers who have previously organised tractor “go-slows” on roads as well as protests in February which saw 5,000 farmers gather at the Senedd to voice dissent over environmental targets.
“They will block every port in the UK if they have to,” the report quoted an insider. “[This] could be a possibility to slow down the supply in the supermarket. The Government and supermarkets need to realise the control we have as farmers. The good thing with that is you have farmers everywhere so you can cover all the ports.”
Tom Bradshaw, president of the National Farmers Union (NFU), said that his members felt “betrayed” by Labour government.
“I had a meeting with farmers this week and they are absolutely irate,” he said. “If they hadn’t said they weren’t going to do it, there would still be dismay but not the sense of betrayal. Anyone living longer than five years is thinking, will a future government do something different? The leader of the opposition has said they will overturn it.”
The NFU has organised a lobbying event later this month in Parliament where members will hold meetings with their MPs – but the union declined to back a mass demonstration in the capital on the same day, telling its members that unless they have registered for the parliamentary event they should stay away.
There are also reports of plans for a co-ordinated “sewage strike” in a move that risks causing chaos for water-treatment companies and creating a mountain of waste.
Clive Bailye, the founder of the Farming Forum, the UK’s biggest agricultural online forum, said that some farmers were looking at other actions, “from not taking sewage sludge to not letting food leave the farm or sending livestock to market”.
“I can see produce being withheld.”
He said that although they were “very worried about going to prison” he felt his position as founder of the Farming Forum put him in a strong position to help, adding: “We know we need to do something but we are not sure what it will look like yet. But I’ve got thousands of messages from farmers asking me how, when, where.”
A government spokesman said, “With public services crumbling, a £22 billion fiscal hole inherited from the previous government and 40 per cent of Agricultural Property Relief going to the 7 per cent of the wealthiest claimants, we made a difficult decision to ensure the relief is fiscally sustainable.
“Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3 million without paying any inheritance tax – this is a fair and balanced approach.”
Post Offices handled £3.69 billion in cash deposits and withdrawals in October, reaching the highest monthly amount since July when a record £3.78 billion was handled over the counter, shows new figures released today (11).
Personal cash deposits totaled £1.52 billion which was up 2.2 per cent month-on-month (£1.49 billion, September 2024) and up almost 15 per cent year-on-year (£1.32 billion, October 2023). October 2024 was only the third time personal cash deposits have exceeded £1.5 billion in a single month (previously July and August 2024).
Business cash deposits totaled £1.21 billion which was up almost 4% month-on-month (£1.16 billion, September 2024) and up almost 8% year-on-year (£1.12 billion, October 2023). October 2024 was only the second time business cash deposits have exceeded £1.2 billion in a single month (previously July 2024).
Personal cash withdrawals totalled £928 million which was up 6.6% month-on-month (£871 million, September 2024) and up 13% year-on-year (£821 million, October 2023). The amount withdrawn over the counter was just below the record amount withdrawn in a single month set in December 2023 (£930 million).
Ross Borkett, Post Office Banking Director, said, “Our figures indicate that demand for cash is as strong as ever as people rely on cash to budget, particularly in the run-up to Christmas, and businesses rely on it to survive a volatile trading environment. Postmasters and their teams play a vital role in supporting small businesses to trade by providing a convenient and secure location to deposit their cash takings with many branches open long hours and some at weekends.”
Post Office Cash tracker data – October 2024
Cash deposits value (business & personal)
MOM%
YOY%
Cash withdrawals value (business & personal)
MOM%
YOY%
Total cash deposits & withdrawal value for October 2024
As at 16 October, 88 hubs have been opened in partnership between Cash Access UK and the Post Office. 168 Banking Hubs have now been announced by LINK with further openings planned for later this year.
Chancellor Rachel Reeves' budget is expected to prove to be “a big burden for the retail industry to carry”, Asda chair Stuart Rose has said, warning that the “consequences” of the budget will lead to some price increases.
Rose said the increase in employers’ NICs and changes to tax thresholds would have “consequences” and meant it could not rule out some price increases.
“If you get presented with a bill unexpectedly for around £100m, even if you’re a business as big as us, that takes some digestion. So we’re looking at the consequences of that, but you cannot rule out the fact there will be some inflation,” Lord Rose told the Guardian.
Rose added that the changes in last week’s budget were “a big burden for the retail industry to carry” and meant that Asda would “have to look hard at every piece of expenditure”, including the annual pay increase for staff, and may limit how many workers it hires.
“We’ve seen an increase in national minimum wage,” he added. “We want to attract good staff, but we have to look very, very hard to affordability.”
It comes a day after Asda released its gloomy numbers the slide in total revenues, excluding fuel, by 2.5 per cent to £5.3bn in the three months to the end of September, while like-for-like sales were 4.8 per cent lower than the same quarter in 2023.
Asda’s warning about the cost of budget measures comes only days after it announced hundreds of head office job cuts and a restructuring in an attempt to turn around the business.
The retailer said it would slash 475 management roles in Leeds and Leicestershire to “remove duplication and simplify structures” amid a “challenging” market. The remaining staff have also been told they will be required to spend at least three days a week in the office from January.
“We are a business that relies on teams working together. It’s not always as efficient with those teams working together in terms of online, in terms of Zoom calls," Rose said.
Asda has been without a chief executive since the co-owner Mohsin Issa stepped back from executive duties in September, leaving the retail veteran Rose in the lead role.
Rose, who had previously called on Issa to step back, said he was “embarrassed” by Asda’s performance.
“I’d like to see the business flying again, so I stick by what I said,” Rose said. “We’re in here now with our heads together, we’ve got a good management team.”