Representatives from across Scottish retail have written a joint letter to the Scottish Government’s Minister for Community Safety, Siobhian Brown, highlighting the devastating impact that the surge in retail crime is having on staff wellbeing and business.
The letter provides four separate reports, carried out by the Scottish Grocers Federation, Retailers Against Crime and Co-op and is co-signed by the likes of the Scottish Retail Consortium. Representing retail businesses on high streets the length and breadth of Scotland.
Details include the damaging effects of threatening abuse and violent behaviour toward staff and the cumulative cost of shop theft and vandalism for Scottish business – estimated to be in the hundreds of millions of pounds.
“Over the past eighteen months, retailers have been forced to contend with a disturbing escalation in both the volume and seriousness of incidents happening in stores, and it is only getting worse," said SGF Chief Exec, Dr Pete Cheema OBE.
“People’s lives and their livelihoods are now at risk. That is why we need immediate action from the Scottish Government. There isn’t a moment to lose.
SGF Chief Exec, Dr Pete Cheema OBE
“The police and our justice system are hugely overstretched, and many of the offenders and criminal groups think they can get away with anything they like, without consequence. But no one should be forced to come into work and put up with stock disappearing off shelves, anti-social behaviour and even armed threats or violence.”
Maxine Fraser, Managing Director for Retailers Against Crime, added: “Along with multiple thefts being submitted from our members every day, we also receive reports of deeply distressing incidents. Staff being clawed and spat at, raids by organised gangs and intoxicated individuals wielding knives and other weapons. Often threatening to seriously injure or even kill staff.
“The impact on the mental health and wellbeing of shop workers is also felt by their families and the wider community. Not to mention the loss of income for businesses, damaging viability and increasing costs for customers.
“We need to see much more from the Scottish Government, more dedicated resources for the police and action taken by our courts, as well as early intervention and education programmes to turn people away from committing these crimes.”
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.”
Family members and employees of post office branch owners who were not considered eligible to make claims over the Horizon IT scandal may be allowed to apply for compensation, postal minister Gareth Thomas told the inquiry into the scandal on Friday (8).
During the hearing, Thomas stated that the government has been looking into the “gaps” in the eligibility criteria for those wanting to make claims under the four redress schemes being administered by the Post Office and the government.
“[Employees and counter assistants] are one of the gaps in the compensation process,” said Thomas. “We are actively looking at what we can do to address those gaps. As indeed we are looking at family members affected very badly by the Horizon scandal and cannot claim compensation either. It was one of those issues identified as being very significant.”
The current schemes exclude applications from family members and assistants at branches because only the person with a direct contract with the Post Office is eligible to apply as managers and counter assistants at branches have a contract with the owner-operator, not the Post Office. And while many branches are run by family teams, not all members have the contract with the Post Office.
Thomas also said that if claimants to the existing schemes can file by Christmas he is confident that payouts can be made by the end of March, the unofficial deadline sought by the leading campaigner Sir Alan Bates.
“Officials have been talking to claimants’ lawyers and looking at potential timings of those claims coming in,” he said. “If claims come in by Christmas we will be able to have made offers of paid financial redress by the end of March.”
Thomas however stressed that no date has been set for a deadline for final applications to be received.
Thomas also said that the government intends to publish a green paper next year to get nationwide views on the future governance options for the Post Office including the ownership of the 11,500 branches. He added that former minister Kevin Hollinrake held “constructive” talks with Post Office workers about ultimately transferring ownership through mutualisation.
“It is difficult to be anything other than concerned about culture in the Post Office,” Thomas said on Friday (8). “There has been some early conversations with stakeholders … about how to change that governance and also look at improvements to culture going forward. We are thinking we will publish a green paper next year to invite wider views about the future of the Post Office.”
Select & Save, which claims to be the UK’s sole independent symbol group, has initiated the rollout of its new identity across its UK estate. Over the past year, the group has invested in its brand to distinguish itself in "an increasingly bland and static market".
Boasting the youngest management team among the UK convenience symbol groups, Select & Save has collaborated with industry experts to redefine its offerings for both retailers and shoppers.
“We believe that without good incentives for retailers, the future of convenience will fall in the hands of the wholesalers, who will ultimately serve their own interests controlling cost pricing and dictating terms,” said Founder and CEO Kam Sanghera.
The group’s new retailer package includes rebates of up to 5.5 per cent and various other incentives. Notably, Select & Save offers a Relief Manager service at no cost, allowing retailers to take well-deserved breaks — a first in the industry.
Store designs have been revamped to enhance inclusivity and visual appeal. The new concept features a distinctive layout with an upgraded colour system, assigning specific colours to each section for an improved shopping experience.
Sanghera added, “This is part of our wider strategy to differentiate ourselves in the market. As most symbol brands have now sold out to a corporate structure, they have no control over their wholesale supply. Once you do that, you lose independence, your individuality, and any negotiating power. We’re making the conscious decision to invest in, enabling us to grow organically as a group by recruiting retailers that share our principles.”
The first rebranded Select & Save store is now open at Calder Drive, Walmley, Birmingham.
Leading buying group Confex has added three new members, further strengthening its buying power and geographical reach.
As reported today (8), Ahmed Foods, A C Georgiades and Regency Service and Solutions have joined Confex. Their combined turnover adds an impressive £56.2 million to Confex's turnover, which further bolsters its strength and buying power as a group.
Tom Gittins, CEO, Confex said, “In addition, these three new members add yet more diversity to the group, which we all benefit from. By combining our insight, knowledge and expertise, it’s no wonder that Confex is outperforming other buying groups in the sector.”
A C Georgiades are a national soft drink wholesaler and distributor located in Morpeth, Northumberland and Stevenage, Hertfordshire. Selling to a wide range of wholesalers, cash and carries, groups and chains.
Chris Georgiades, managing director, “There are really exciting times ahead for us as Confex members. Our aim is to add more variety to our portfolio and to be able to communicate with the wider wholesale industry, so joining Confex was an incredibly easy decision.”
Regency Services and Solution managing director Jarrod Normie said: “As a business, we are really excited to join the Confex family. As we take the business to the next level, joining a buying group is a logical step forward and so far, Confex has delivered a stand-out service.”
Bradford-based Ahmed Foods is a leading supplier of vast range of chilled, frozen, ambient and fresh produce for the hospitality and restaurant trade in the north of England.
Tanweer Ahmed, director, said, “Ahmed Foods Bradford is proud to join the Confex buying group,” said . “We look forward to working closely with the central team who have been extremely attentive. We plan to both expand our current range and strengthen our supply partnerships with the support of the group.”
Eye watering increases to employer NI contributions in this year’s UK Budget, alongside a 77p increase to the National Living Wage (NLW), could add around £2,400 to the cost of employing a full-time member of staff, Scottish Grocers Federation stated today (8).
Convenience staff across Scotland worked almost 500 million hours last year. Over 55,000 people are employed across the Scottish convenience sector, many of whom fall within the scope of the increase to National Insurance Contributions (NIC) and the NLW rise, meaning that together the changes could cost retailers tens of millions in additional outgoings. Despite the planned uplift in Employment Allowance relief from £5,000 to £10,500.
With a nearly a third of staff working between 17-30hr/wk (18 per cent less than 17hrs/wk), and many on or near the NLW, thousands of additional employees will require employer NI contributions. Where they didn’t need to pay much, if any, before.
A recent survey conducted by SGF, for its annual True Cost of Employment Report, shows that 74 per cent of retailers are now working more than 65hrs/wk, just to keep staff costs down.
SGF Head of Policy & Public Affairs, Luke McGarty, said: “Despite many retailers working longer and longer hours to keep staff costs down and many stores struggling to keep the lights on. Together with a plethora of new regulation directed at small local businesses, higher employment costs could now result in the Scottish sector paying tens of millions in additional outgoings.
“There is no doubt that local stores employing local staff will have to think twice before taking on anyone new or increasing staff hours. In some cases, it could be the final straw pushing retailers to reduce staff or even close the doors for good.
“Most local retailers simply won’t be able to absorb the extra cost and will either have to pass them onto customers, or reduce annual pay rises for hard working and long serving staff.
“We welcome the recognition of the additional support through the uplift in Employment Allowance, but for many that will only mitigate the damage. Small businesses and local shops are the lifeblood of the UK and Scottish Economies, providing a critical economic multiplier to boost local growth. Now is not the time to be penalising them for creating much needed local jobs."
The Scottish Government will publish its budget on 4th December, and SGF is calling on ministers to act cautiously on any proposals that could put small businesses under additional pressure.