Following the year on year 4% rise in retail sales, reported by the Office of National Statistics yesterday (March 21), the British Independent Retailers Association’s (Bira) ceo Andrew Goodacre concurs that the positive results for retail sales growth in February are encouraging and will certainly be a help to many struggling retailers. “The surprising warmer weather will have got people in the buying mood,” he points out.
But nevertheless, he is quick to add a note of caution. “It is still an incredibly difficult market and margins continue to be under pressure,” he points out. “Retailers still need help, and these results shouldn’t be a distraction from the issues they face on a daily basis, in particular the ever increasing costs and paperwork.”
With business rates remaining a major concern, Andrew continues: “For example, local authorities can support their local independent retail businesses by automatically implementing the forthcoming reduction in rates for those with a rateable value of £51,000.”
At the Federation of Small Businesses (FSB), national chairman Mike Cherry, adds that the figures are a testament to the resilience of ambitious small business owners who are able to react quickly to trends and market changes.
“But we shouldn’t forget the monumental pressure that all businesses on the high street are currently under. Our own research shows confidence among small retailers is the lowest of all sectors, with pressure from employment costs, high rents and competition from large online brands all ramping up.”
He continues: “Business rates are one of the biggest burdens looming over small firms, and these are set to rise yet again next month. On top of this, the rates multiplier that applies to larger premises with a rateable value of £51,000 or above in England, will rise above 50p for the first time, from April.
“It’s with certainty and support, the full potential of these small firms can be realised. The business rates discount announced by the Chancellor should give some relief to shops, pubs and cafés on the high street, which are vital to the economy and communities. But the relief must reach businesses, applying immediately to bills from 1 April – just over a week’s time.”
Mike adds that with local authorities distributing much needed relief, it’s vital that they take prompt action. “These businesses, which are at the heart of high street communities and beyond, cannot afford delays,” he stresses.
Above: A warm February helped to boost retail figures.
