Association of Convenience Stores calls for freeze on minimum wage
The body representing the convenience store sector has called for the Low Pay Commission to place a freeze on the minimum wage in a bid to help struggling convenience store owners.
James Lowman, chief executive of the Association of Convenience Stores, as told the Low Pay Commission that year-on-year increases in the national minimum wage are holding back businesses in the convenience sector, according to evidence submitted by ACS to this year’s investigation by the Commission.
Following a survey of local shop owners that together operate over 600 stores and employ nearly 9,000 people, the association found significant increases in the reported burden of the wage increase.
Lowman said: “Unaffordable increases in the minimum wage are holding retailers back from making the investments necessary to grow their businesses.”
The survey revealed that 80% of respondents reported having to cut back on staff hours, compared to 50% is 2010, and 74% reported a negative impact on store expansion plans, compared to 54% in 2010
85% reported a negative impact on pay structures, compared to 53% in 2010 and 81% believed the increase has made their business less competitive, compared to 50% on 2010.
Lowman continued: “There is no doubt that the recent increases in the minimum wage have come at a bad time for retailers as they struggle with increasing costs and squeezes on profitability. We are urging the Low Pay Commission not to add to that burden.
“Our survey provides further evidence that when costs go up retailers’ scale back their ambitions for growing their business, fewer people get employed and less investment is possible. At a time when we need to focus on growth the best thing the Low Pay Commission can do is freeze the minimum wage until at least 2014.”
The Low Pay Commission’s call for evidence to support its report and recommendation closed on 16 September. The LPC will hold hearings throughout October and November and will make a recommendation to ministers in the spring of 2012.
The ACS has organised an independently chaired retailer focus group meeting to take place on the 23 September. The findings of the focus group will be written up and submitted to the Commissioners. ACS is also helping to organise meetings between Commissioners and ACS members in their shops across the country.
