'Pingdemic' bigger threat than pandemic to small independent stores' business
In this photo illustration a smartphone using the NHS Covid-19 app alerts the user "You need to self-isolate" on July 18, 2021 in Knutsford, England. (Photo illustration by Christopher Furlong/Getty Images)
After the Pandemic, the “Pingdemic” is the next challenge faced by UK businesses and its impact on small independent stores is massive. During lockdown, the government categorised the grocery sector as essential and allowed stores to remain open. It was a huge opportunity for them as many shops and businesses had been forced to close their doors.
But opportunity also brings challenges, and from a shortage of lorry drivers to multiple staff absences, retailers are dealing with them all. Although their sales have increased – originally due to panic buying and later to changed shopping habits – issues related to lack of stock and staff-shortages continue to impact their business.
For the past few weeks, many shopworkers have been “pinged” by the NHS Track and Trace app. Amish Shingadia runs Londis Caterways and Post Office in Horsham, Sussex, and two of his staff were pinged last week. “We had members of staff who have been pinged,” he said. “We had to redo a whole week's work rotas. All the staff have to move around. There's no surplus in the business at the moment.”
Amish explained how he has been trying to cope: “As retail stores, we keep our staffing levels to a minimum naturally trying to save on staffing costs. So, when you have someone who just goes off for 10 days, or even multiple staff, it has huge ramifications. And, at the moment with limited resources, current shortages with the stock coming through, and more panic buying at the moment, all these have a massive impact on the store. The last two years as a retail store, we've been flat out, no one has really rested in the whole Covid period. You can’t expect much more from your staff. I've got a few staff who are on a holiday this week and two are pinged. Therefore, I've got only two members of staff right now, so if they leave us it will be very tight.”
Londis Caterways witnessed a 30 per cent increase in sales last week, because of renewed panic buying. "The numbers aren't too bad, obviously, compared to the first panic buying [last year]. We have 120 per cent now and our place is nothing like the previous levels," Shingadia said.
“In a small shop, if one member of staff tests positive it is likely that nearly all that team will be deemed to be in close contact, including the owner," comments Andrew Goodacre, British Independent Retailers Association (BIRA) CEO. “And this comes at a time when they are in a process of rebuilding their business after many months of closure, with little or no income.
“In addition, high street confidence is at its most fragile as shoppers navigate post-lockdown retail and an end to compulsory mask-wearing in England.”
Sunita Aggarwal, Director at Spar in Wigston, Leicestershire said, “This situation is a constant worry because we need contingency plans if there are staff shortages caused by this. There are also mixed messages regarding what a person needs to do.”
Sharing her experience on the pingdemic, Aggarwal said, “We have experienced a person attending an interview, who was then pinged on the same day and advised us of their situation. As the interviewee had come into contact with us, this was obviously quite worrying and impacted on us to resolve this straight away. We have also had a staff member who was pinged and experienced the symptoms of covid but was advised not to go to the test centre for the test. How do we as employers then know if the staff member is being truthful if they have been pinged if they are not able to take a test?” Aggarwal asked.
“At present, we have no option but to let the staff isolate, because our hands are tied; but as a small independent family business, we are hugely impacted by even one staff member not attending work.”
Bharti Chavda of Westminster Grocery is not concerned by the staff shortage as their store is only run by herself and her husband, but the shortage of drivers is the major issue facing them.
“Myself and my husband are the only ones working very hard at our store,” Chavda said. “Only from last week, I am facing this crisis, as there is a shortage of delivery drivers. My usual delivery comes to us every Tuesday, and now I have to wait till Friday. I hope they will resolve this issue soon.”
Trade bodies have asked the government to exempt shopworkers from self-isolation. In response, the government, in a bid to keep the supply chain moving, announced they would be exempt if they had received both doses of the coronavirus vaccine.
Responding to the announcement of a daily contact testing scheme for food supply chain workers, Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), said: “We welcome the government's rapid response to this unfolding ‘pingdemic’, which has impacted shops and distribution centres. Retailers are working closely with the government to identify hundreds of key distribution sites that will benefit from the new daily contact testing scheme.”
Dickinson believes that it is absolutely vital that government makes up for lost time and rolls out this new scheme as fast as possible.
Similarly, Goodacre said, “BIRA recommends the money still sat in the bank accounts of local authorities, which was supposed to be allocated in Restart Grants – some £800 million – is redistributed to help indie businesses facing further closures. For if the government does not step in now there will be yet more high street casualties – is that something we really want to see when the focus is meant to be on economic recovery?”
Aggarwal, meanwhile hopes the government will reiterate that everyone must take a test as soon as possible and that if it is negative, it will not be mandatory to self-isolate.
“The government needs to work quickly and around the clock to ensure everyone has guidance in place. I understand that where covid is concerned, it's an ever-changing situation,” She added. “However, we rely on the guidance to ensure people are protected and can work together to get out of this difficult situation.”
Shingadia added, “I know, lots of retailers are saying they should be exempted. But I don't agree with that. Because there are so many retail workers out there in the food. There is more risk of Covid spreading in your store, for example, if someone gets Covid in your store, you lose more staff, there's a big risk factor to it on the flip side.”
"As the government has announced that people in the food chain can be exempt. When it comes down to staffing, I might be wrong on this, but it will change on the 16th of August, if shopworkers had a second jab more than two weeks ago, you only self-isolate if you have previous symptoms or test for test positive."
“Disruption is limited at the moment, and retailers are monitoring the situation closely. The government will need to continue to listen to the concerns of the retail industry in the coming days and must be prepared to take further action if necessary," concluded BRC’s Dickinson.
The police-led National Business Crime Centre (NBCC) is urging retailers to make full use of the crime prevention and training resource available for free via their website to help support shop workers during the busy festive season.
With the most recent crime survey from the BRC showing incidents of abuse and violence towards shopworkers have risen to 1,300 a day, the lead up to Christmas can be extremely challenging for those working in retail.
The NBCC has designed a series of training videos for those working in the retail sector to help them deal with difficult situations and customers and to provide practical steps they can take to stay safe and de-escalate a potential flash point.
The videos cover four key areas: personal safety and de-escalation, saying no - refusing service, deterring and interacting with thieves, and handling disruptive behaviour. Each video is no more than four minutes long and provides tactics and strategies which any retail worker can use.
“We know what a difficult time the run up to Christmas can be for those working in retail. Long queues and crowded shops can lead to tempers fraying and provide more opportunities for shop thefts. The NBCC has developed easy-to-use support for retailers and their staff to help keep staff safe and reduce the potential for shop thefts. We hope that the easy to digest training videos can give shop workers a bit more confidence and support during a very busy time,” Supt Patrick Holdaway, NBCC lead, said.
Retailers can also access a comprehensive employer framework aimed at preventing violence and abuse within retails retail settings.
The ‘Framework for Employers’ brings together existing good practice within the sector and presents it as a comprehensive, simple step by step process that can be implemented by retailers to demonstrate how they will support their employers to prevent violence and abuse in retail settings.
It includes a post-incident support process which highlights the practical steps employers should be taking to support retail workers after an incident of violence and abuse occurs, for example, their responsibility to ensure incidents are reported, risks are analysed and appropriate support systems are put in place.
If a crime is committed then it is essential to report it to police and capture any digital evidence such as CCTV. The NBCC have worked with the Crown Prosecution Service (CPS) and police forces to develop a standard witness statement which retailers can use when submitting CCTV evidence to the police using a Digital Evidence Management Systems (DEMS). Retailers can access it here.
When reporting a crime to the police it is important that key information is conveyed calmly and accurately to the operator so that they can assess the information and decide on the appropriate response. The information provided to the operator is important in assessing the threat, harm and risk enabling the police to decide on how best to respond. The NBCC has developed a comprehensive guide for retailers and shopworkers on what you need to tell police when reporting a crime and when to dial 999.
“Undoubtedly crimes will take place, and when they do, we want retailers to report the crime and know how to get the digital evidence to the police in the fastest way possible and how to support and care for employees who may have been impacted emotionally or physically by abuse or violence towards them,” Holdaway added.
The NBCC has a dedicated section on the website for Shopworker Safety.
UK food businesses are expected to face significant financial challenges in 2025, grappling with multiple cost pressures. The cost of food items is predicted to rise by up to 4.9 per cent next year, according to the Institute of Grocery Distribution (IGD).
IGD’s latest Viewpoint Special Report, “Hungry For Growth”, highlights food inflation as one of the most significant challenges for UK households. However, it also places the increase in food prices within a wider context of overall industry pressures.
IGD’s forecast for food inflation in 2025 is based on a full overview of all the cost pressures on food businesses for the next 12 months. While energy and commodity prices will remain stable albeit a little higher in 2025, there will be significantly increased employment and regulatory costs for food businesses in the coming year which will mean food inflation could hit anywhere between 2.4 per cent - 4.9 per cent.
In July 2024, IGD forecast that retail food inflation in 2025 would average 2.1 per cent. This forecast has been revised upward principally on the basis of measures announced in the budget.
In forming these new forecasts, IGD assumed that major policy changes raising business costs will arrive in three phases over the next year:
April: rising costs to employment staff due to increases in National Insurance and National Living Wage
July: rising costs of food imports due to implementation of the Windsor Agreement framework with the EU
Oct: first payments are due to fall on Extended Producer Responsibility (EPR), increasing costs on packaging
IGD estimates that the food sector will only be able to absorb between 20 per cent - 40 per cent of these costs, meaning the remainder will be passed onto the consumer.
Food inflation is likely to continue to exceed inflation in other items, not just in 2025 but also 2026.
“We do not see food prices going down in the foreseeable future," said IGD Chief Economist James Walton. "The rising cost of living, combined with increased employment and regulatory costs, will keep inflation elevated. Consumers will undoubtedly look for ways to save money, but the impact of these cost pressures will be felt across the economy.
"For the food sector, the increased financial burdens are becoming harder to absorb, particularly for smaller players in the sector. The cumulative impact of multiple changes landing within a short period of time will drive significant cost into all food businesses across the UK.”
Police investigating crimes linked to the Post Office Horizon IT scandal are looking at "dozens" of potential suspects, but don't expect trials to begin until 2027. The police will also await the publication of Sir Wyn Williams’ public inquiry into the Post Office Horizon IT scandal before moving forward to charging, stated recent reports.
The investigation, which the police describe as unprecedented in size and scale, is in the first instance examining potential offences of perjury and perverting the course of justice by those involved in making “key decisions” on Post Office investigations and supporting prosecutions of branch owner-operators.
However, a second phase, which is being developed concurrently, is looking at “wider offences” and decision-makers involved more broadly at the Post Office, as well as at Fujitsu, which developed the controversial Horizon accounting software.
Three suspects have already been interviewed under caution and there are plans to interview others next year, according to police.
But no one will be charged until officers have read the final report from the separate public inquiry, almost 30 years after concerns were first raised.
Stephen Clayman, the Met commander overseeing the police investigation, said officers were “looking at the actions of prominent individuals” beyond those directly involved in making decisions on Post Office investigations and supporting prosecutions.
“We will go where the evidence takes us,” The Guardian quoted Clayman as saying. “We are looking at the Post Office and Fujitsu and anything wider. We will cast the net wider in terms of culpability.”
“The scale of the task ahead is unprecedented. I do know that if you take into account Post Office criminal and private prosecutions, civil claims and contract withdrawals, there are potentially thousands of victims who we are working hard to identify.”
Clayman added, “No key decisions will be made around submissions and charging decisions until the final report is delivered and thoroughly reviewed by the investigation team and the Crown Prosecution Service. We are looking at 2027 [for trials] realistically.”
“We have been building a larger investigation team made up of officers across all forces. All forces are contributing to the build of a national team. This is a truly national operation in scale and should be resourced as such.”
Michael Norman, the senior investigating officer, added that police were also looking at “investigators, solicitors, barristers and people within Fujitsu as well”.
“As others [persons of interest] come into scope we will look at those as well, if they become raised to suspect status,” Norman said. “It is very fluid. The issue of corporate liability, corporate culpability, is always open.”
Norman said that to date the police had interviewed three individuals under caution, dating back to 2021, with the most recent in September this year. Clayman said prosecutions would not reach trial until 2027, in part due to the “unprecedented” scale of the investigation, which is reviewing more than 1.5 million documents.
More than 900 post office operators were prosecuted between 1999 and 2015 because of faulty Horizon accounting software that made it look as though they had been committing fraud.
Tŷ Nant, a symbol of Welsh luxury and premium hydration, has announced the strategic acquisition of Fonthill Water and Decantae Mineral Water from the US-based Primo Water Corporation.
Tŷ Nant said the acquisition will elevate its status as one of the UK's leading premium water brands, following closely on the heels of acquiring the premium Welsh water and mixer brand, Llanllyr Source in late 2023.
Primo Water is a leading player in North America's beverage industry with a multi-billion dollar market cap and an EBITDA of $500 million in 2023.
Decantae Mineral Water, known for its pristine quality sourced from the foothills of Snowdonia, has been a leader in the premium bottled water sector in the UK and Europe. The acquisition of Decantae brings new packaging innovations to Tŷ Nant's line-up, including cuplets for travel retail and healthcare, complementing its existing glass and PET bottles.
Fonthill Spring Water, with its origins in the historic Fonthill Bishop Estate in Wiltshire owned by Lord Margadale, is celebrated for its naturally filtered, high-quality spring water. This acquisition not only broadens Tỳ Nant's geographical footprint but also enhances its product range with another iconic British water source and introduces Tŷ Nant to the water cooler market, targeting commercial, educational, and healthcare sectors with its 15L bottles.
Raminder Sidhu, chairman of Tŷ Nant, highlighted the synergy in these acquisitions, stating: “Our commitment to sustainability, innovation, and exceptional customer service aligns perfectly with the ethos of Decantae and Fonthill. These acquisitions are pivotal in our vision to grow our diversified super-premium adult beverage group, where each product carries a deep sense of provenance, alongside our commitment to premium and sustainable offerings.”
In a market increasingly driven by consumer demand for quality and sustainability, Tŷ Nant has been recognised as the UK's fastest-growing bottled water company in the Alantra Fast 50 this year, and ranked as the overall 4th fastest growing food and beverage company in the UK. This recognition is particularly impressive given that Tŷ Nant is already profitable, securing the highest average price per litre among all British mineral and spring water brands.
Looking ahead, Sidhu outlined ambitious plans for 2025. “We are poised for an exciting year continuing the tremendous growth we have experienced for the last four years. We will continue to innovate across our portfolio. We're introducing aluminium bottles and cans as an eco-friendly alternative to traditional packaging and refreshing the 'contemporary classical' look for Llanllyr Source. Moreover, we're set to launch new flavours from our award-winning Kings Hill small batch gin distillery in the Pentland Hills, Edinburgh and we are expanding into 10 new export markets.”
Bira (the), which represents 6,000 independent retailers across the UK, says the extension of waste electrical and electronic equipment (WEEE) regulations will finally create a level playing field between high street and online sellers.
"Electrical equipment like vapes are being sold in the UK by producers who are failing to pay their fair share when recycling and reusing of dealing with old or broken items," announced circular economy minister Mary Creagh on December 10. "Today, we're ending this: creating a level playing field for all producers of electronics, to ensure fairness and fund the cost of the treatment of waste electricals.
"As part of our Plan for Change, we are helping UK businesses compete and grow, and we continue to get more households recycling, cracking down on waste and ending the throwaway society."
Andrew Goodacre, CEO of Bira, said: "This marks a significant step towards fairer retail competition. The regulation of online marketplaces for WEEE compliance has been a particular concern in the vaping sector, where we've seen a surge in online sales without corresponding waste management responsibilities. These new rules will ensure all sellers contribute to the environmental costs of their products."
The WEEE directive, which covers all items requiring batteries, solar energy, or electrical current to operate, will now require online retailers to cover disposal costs for products they place on the market. This brings them in line with existing requirements for high street retailers who have long managed these responsibilities.
Jeff Moody, commercial director of Retra, Bira's specialist electrical retail division, added: "The vaping industry exemplifies why these regulations are needed. High street retailers have managed disposal responsibilities while online sellers haven't faced the same obligations. This has created an unfair advantage for online marketplaces, particularly with products like vapes that have significant environmental impact."
The directive, first introduced in 2002 and updated in 2012, places responsibilities on all producers - including manufacturers, importers, distant-sellers, distributors and retailers. These regulations ensure proper disposal and recycling of everything from large household appliances to small electronics, including the growing category of vaping products.
"As part of the Bira group, Retra has long advocated for equal treatment between online and physical retailers," added Mr Moody. "This announcement marks a significant victory for independent retailers who have consistently met their environmental obligations while competing with online sellers operating under different rules."