Resilience is key as Northern Ireland retail reels from April tax rises

Staff recruitment is on hold and expansion plans have been stalled as Northern Ireland retailers seek ways to address the financial challenges they are now facing.

Businesses are now dealing with a host of rises in their business costs following the increase in National Minimum Wage and employers’ NICs announced in Labour’s Autumn Budget.

Notably, the retail sector is reeling from the rises having long been recognised as the sector which employs younger people, with many at school or university often experiencing retail as their first step into the world of work.

In the wake of the Budget and subsequently the Spring Statement, Northern Ireland retailers told NR that they have had to stall expansion and recruitment as they seek ways to address the rising costs in their business.

Well-known retailer, Judy Mercer revealed that the cost to her business will be in excess of £15,000 per annum. She said they would reduce staffing costs by not recruiting and reducing overtime and holiday cover.

“We had planned to refit one of our businesses this month, but this has been put on hold until we see how things pan out,” Judy told NR.

“There will be no recruitment of staff again until we see how things go. We have also looked into new initiatives to help drive footfall for the future,” added Judy.

It is a similar situation facing the wholesale and distribution sector, with businesses having to adapt to deal with the rising costs.

“Some planned developments will need to be re-evaluated in light of the increased cost base,” said Richard Norris, Director at Clearline Distribution.

“Growth remains a long-term goal, but in the short term we need to focus on resilience and ensuring the core business remains strong.”

Their short-term approach will see them reviewing all areas of spending in a bid to find efficiencies without compromising the customer experience or employee well-being.

Richard added in the long term, they will look at investing in technology and automation where it makes sense, to streamline operations and build greater resilience against future cost pressures.

TO READ THE IMPACT ON THESE BUSINESSES AND MORE ACROSS NORTHERN IRELAND, SEE THE FULL FEATURE IN THE APRIL ISSUE OF NEIGHBOURHOOD RETAILER HERE