Convenience retailers have been taking lower profits, increasing prices, and reducing the number of staff hours in the business after the rise in National Living Wage this year, a leading body has said, urging the government to "go no further".
In 2025, the headline rate of the National Living Wage rose to £12.21 per hour, alongside an increase in the eligibility for the headline rate so that anyone aged 21 or over can receive it.
The headline rate of the National Living Wage has now increased by over 40% since April 2019, and has met Government targets of first 60% and then two thirds of median earnings.
In a recently submitted evidence to the Low Pay Commission on the future direction of minimum wage rates, Association of Convenience Stores (ACS) highlighted the impact that rising costs over the last year having on local shops and detailing the measures that retailers are taking in the face of significant increases in their wage bills.
The most common responses to increases in employment costs this year by retailers have been taking lower profits, increasing prices, and reducing the number of staff hours in the business.
ACS chief executive James Lowman said, “Retailers are already facing difficult decisions in their businesses as a result of increases in employment costs in 2025.
"We have urged the Low Pay Commission to go no further than the existing two-thirds of median earnings target, and to phase in the changes to age eligibility that will eventually see everyone aged 18 and over eligible for the headline National Living Wage rate.
"Convenience stores want to be able to invest in products, services and people but this can only be achieved if they can plan ahead without facing cost shocks every year.”
The convenience sector employs over 445,000 people in local, secure and flexible jobs. 96 per cent of colleagues are on a permanent contract, and 81 per cent of colleagues feel secure in their current role.
ACS submitted written evidence to the Commission earlier this year. The full submission is available here.