We have moved into a new year. However, there is a disappointing sense of déjà vu about the challenges that await the Scottish convenience sector in 2025.
It is becoming harder for retailers to run successful businesses and to continue to provide groceries and vital services to their communities.
The legislative burden in the months and years ahead is daunting as the sector waits for the Scottish government to clarify what action it will take around restricting promotions of products high in fat, sugar or salt; restricting alcohol advertising and promotion; and charging for single-use disposable cups.
At a UK level, there is also the Tobacco and Vapes Bill, and the introduction of a single-use vapes ban on 1 June.
Retailers are also bracing themselves for the eye-watering increases to employer National Insurance contributions announced in the latest UK Budget, alongside a 77p increase to the National Living Wage, both of which come into effect in April 2025 and add around £2,400 to the cost of employing a full-time member of staff.
Politicians need to act and help the convenience sector contribute to economic growth
Retail crime also looms large, with figures published by the Scottish government in November showing a 25% increase in reported shoplifting crimes in 2024 – up by 70% from September 2020.
Some retailer members are giving up reporting due to lack of action.
Behind these figures are people like you and me, who are being affected financially, and seeing their health and well-being suffer as a result.
The convenience sector needs support now, as shops do not have the financial reserves to cover the rising costs of doing business.
This is what the government appears to fail to recognise. Our politicians must help reduce business costs and recognise that a healthy, vibrant convenience sector will be a key pillar to supporting sustainable economic growth that ultimately will benefit us all.
Pete Cheema is chief executive of the Scottish Grocers’ Federation (SGF)
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