British retailers are bracing for price hikes and staff cuts as costs rise, leaving many businesses pessimistic about the future of the high street.
A recent survey by the British Retail Consortium shows that many retailers are feeling gloomy. About 70% of them are either “pessimistic” or “very pessimistic” about the next year. When asked how they would handle the National Insurance hike, two-thirds said they would raise prices.
Many also plan to cut hours and reduce staff. Around half of the retailers said they would cut head office jobs and store staff. Some are even considering more automation to save costs.
Helen Dickinson, the Chief Executive at the BRC, pointed out that these changes will hit retailers hard. They employ millions of people, and the new costs will force them to make tough choices.
Retailers have tried to keep prices low for customers, but with rising costs and slim margins, they have little choice. Food prices are expected to rise steadily this year, which is not good news for shoppers.
Just last week, Prime Minister Keir Starmer praised Reeves, saying she’d be Chancellor for a long time. That’s probably not what high street bosses wanted to hear right now.