Heron Foods shed more than 250 shopworkers and warehouse staff in its latest financial year – about 5% of the workforce – despite opening more stores.
The average monthly number of sales and distribution employees at the frozen food chain fell by 256 to 5,391 in the 52 weeks to 29 March 2025, according to accounts at Companies House.
At the same time, the B&M-owned chain opened and relocated 14 stores. With some branches also closing during the year, the estate grew by a net eight stores to 343.
The reduction in headcount came ahead of increases in employers’ National Insurance payments and the minimum wage from April. When Chancellor Rachel Reeves announced the measures in last year’s budget, the BRC put the cost to retail at £5bn, made up of £2.3bn in changes to employers’ National Insurance and £2.7bn from the national living wage increase. The BRC also warned one in 10 part-time retail jobs could be cut, thanks to a lowering of the earnings threshold at which employers’ National Insurance is payable.
Heron Foods accounts said the impact of the national minimum wage increasing by around 9.5% had been absorbed into its EBITDA for the year, which fell by 18% to £30.3m.
Like-for-like sales also fell, by 3.2% compared with the previous year.
Wages and salaries came to £86.8m, up from £81.5m.
Turnover was £546m, down £561m in the previous 53-week period, or from £550m against a 52-week comparative.
The directors have set a target of 10 new stores for the 2026 financial year, according to the accounts, seeing estate growth as central to future success.
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