The rise in the hourly adult minimum wage from £5.35 to £5.52 this October is going to put extra strain on independent retailers who are already struggling to compete with the multiples, according to The Grocer reader survey.
Some 80% of independent retailers in our latest survey say they do not agree with having to pay more for staff, with 78% also believing that the change will have a negative impact on their competitiveness because they will have to raise prices to offset the increase.
"It is going to put a bigger strain on my profit margins," says one retailer. "I already struggle to compete with the nearby supermarkets and this wage increase will make it harder still because I will probably have to raise my prices to cover the costs. It is a worry for me.
" Although the rise is only 17p per hour, some retailers say it will make a big difference. Customer service, which many independent retailers concentrate on to compete with their larger rivals, could be affected, according to one retailer. "We aim to give better customer service than the bigger retailers but this will be harder if we can't afford the number of staff needed to do this.
" Independents also warn that they may be forced to cut staff levels when the changes come into force in October. According to the survey, 30% of retailers say they may have to reduce the number of staff they employ.
"My staff will no doubt welcome the rise and it will make it easier for me to recruit new staff, but my concern is that, in the long-term, I may have to cut staff levels to cover the increased costs," says one retailer.
Not all businesses are concerned about the rise, however. "I already pay my staff more than the minimum wage to show them how valuable they are, so this rise won't have too much of an impact on me," says one retailer.
Another adds: "People work long hours in this business and deserve to be paid for it. If the costs of living are going up, then we need to pay staff more so they can live.
" Smaller shops and family-run businesses in particular, say the rise will have only a small impact on their business. "I don't employ a lot of staff so the difference for me is going to be less than for other retailers," says one. Another adds: "We are a family business, which means that any rise is less of a problem for us."
Some 80% of independent retailers in our latest survey say they do not agree with having to pay more for staff, with 78% also believing that the change will have a negative impact on their competitiveness because they will have to raise prices to offset the increase.
"It is going to put a bigger strain on my profit margins," says one retailer. "I already struggle to compete with the nearby supermarkets and this wage increase will make it harder still because I will probably have to raise my prices to cover the costs. It is a worry for me.
" Although the rise is only 17p per hour, some retailers say it will make a big difference. Customer service, which many independent retailers concentrate on to compete with their larger rivals, could be affected, according to one retailer. "We aim to give better customer service than the bigger retailers but this will be harder if we can't afford the number of staff needed to do this.
" Independents also warn that they may be forced to cut staff levels when the changes come into force in October. According to the survey, 30% of retailers say they may have to reduce the number of staff they employ.
"My staff will no doubt welcome the rise and it will make it easier for me to recruit new staff, but my concern is that, in the long-term, I may have to cut staff levels to cover the increased costs," says one retailer.
Not all businesses are concerned about the rise, however. "I already pay my staff more than the minimum wage to show them how valuable they are, so this rise won't have too much of an impact on me," says one retailer.
Another adds: "People work long hours in this business and deserve to be paid for it. If the costs of living are going up, then we need to pay staff more so they can live.
" Smaller shops and family-run businesses in particular, say the rise will have only a small impact on their business. "I don't employ a lot of staff so the difference for me is going to be less than for other retailers," says one. Another adds: "We are a family business, which means that any rise is less of a problem for us."
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