budget - Neighbourhood Retailer

Retailers welcome Kwarteng budget but warn business rates holiday is vital

Linda Stewart — Fri, 23 Sep 2022 11:22:36 +0000

Retailers in Northern Ireland have welcomed the reversal of the National Insurance increase announced in Chancellor Kwasi Kwarteng’s Mini Budget but warned that a business rates holiday is urgently needed to save high street businesses.

The Chancellor announced that the recent rise in National Insurance tax would be reversed from 6 November and the planned rise in corporation tax from 19% to 25% has been cancelled.

VAT-free shopping for overseas visitors will be brought in and planned increases on alcohol have been cancelled.

New low tax investment zones will be set up in England where tax cuts and liberalised planning rules to be offered to release land for housing and commercial use.

Reacting to the Chancellors statement, Retail NI Chief Executive Glyn Roberts said: “We welcome that the Government is to reverse the National Insurance increase which will provide some relief to local independent retailers who are struggling with the cost of business crisis.

“Retail NI will engage with the Secretary of State for NI on how the Investment Zone proposals could apply to Northern Ireland, particularly in town and city centres that have high levels of dereliction and are in need of further support.

”We are disappointed that no funding assistance from Treasury has been allocated to allow a business rates holiday to be introduced locally. If we are to stand any chance of saving local high street businesses and protecting jobs, it is vital that a rates holiday is urgently introduced.

“Lowering VAT rates should also have been included in this statement, rather than focusing on stamp duty and corporation tax.

“The UK Government needs to go a lot further in supporting our local high streets and we will continue to press for further measures.”

Ann McGregor, Chief Executive, Northern Ireland Chamber of Commerce and Industry said businesses would welcome the Chancellor’s pledge to focus on economic growth.

“Inevitably, the devil will be in the detail of these proposals, but they must strike the right balance between tackling immediate pressures, driving reform and providing for a sustainable future,” she said.

“Moves to target certain business costs, including reversing plans to increase corporation tax and national insurance are welcome interventions at a time of critical need. Reversing the planned increase in corporation tax will be crucial for local firms competing on the island of Ireland in particular.

“But today’s announcement just underlines the need for a restored Executive to respond in parallel to protect businesses and unlock sustainable growth locally.

“We need an Executive that can take urgent action on priority issues like reforming business rates, tackling the productivity gap and transforming the planning system to enable green growth. That, combined with resolution on the NI Protocol will help restore much needed business confidence.”

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Swizzels top tips for retailers/ store owners this Christmas

Linda Stewart — Mon, 05 Sep 2022 09:51:42 +0000

Confectionery giant Swizzels says Christmas is one of the biggest events in the sugar confectionery calendar and is set to be a huge event for 2022 as consumers resume their pre-Covid lifestyles.

Therefore, it’s essential to stock a range of best-selling, well known brands to entice retailers that are hoping to appeal to customers that plan on making the most of the festivities.

Perfect for all sharing occasions, Swizzels’ Variety bags have recently been rebranded to include everyone’s favourites in three different packs, such as Luscious Lollies 176g, Scrumptious Sweets 173g, and Curious Chews 171g. Available with a £1 RSP, the bags are free from artificial colours and are now all suitable for vegans.

Another product from Swizzels is the Sweet Shop Favourites Tub, which saw a 171% uplift last Christmas. It is the No.1 tub seller at Christmas and is perfect for selling over the festive period and beyond.

Containing a variety of individually wrapped favourites including Squashies, Love Hearts and Refreshers, there’s something for everyone in this tub – making it a guaranteed seller and a must-stock.

Other must-stock products perfect for gifting or sharing from the Sweet Shop Favourites range include the Sweet Shop Favourites pouch 450g and the Sweet Shop Favorites Carton.

This Christmas, Swizzels has some very exciting NPD to shout about.

Following the success of its agreed license with Universal, which included the launch of the brand-new Minions-themed range, Swizzels is delighted to announce its latest product in the selection – its Very Berry chew bars.

Featuring two new flavours: Strawberry & Blueberry and Raspberry & Blackcurrant, the vegan-friendly chew bars are presented in vibrant packaging that features a different Minion on each product – with Christmassy colours to add even more to its festive aesthetic. RRP £1.

Swizzels’ top 3 tips to maximise profits for wholesalers/ C&Cs this Christmas

1. Prep for a ‘tight’ Christmas!

As over 53% are having to reduce spending to pay their bills, value-for-money confectionery continues to be a hugely popular choice for shoppers, particularly as financial circumstances have changed post-pandemic.

Consequently, whilst this Christmas many will want to celebrate the festivities as much as possible, they are likely to be on a tighter budget – so it’s important to stock the right confectionery to appeal to the masses.

58% of shoppers also prefer retailers that sell products with price on the packaging, so retailers should stock a range of value products from popular brands to boost sales.

2. Merchandise seasonal together

With Christmas comes seasonal ranges of popular sweets. Customers will be on the lookout for any opportunities to stock up on these to fit in with themed parties and even secret Santas, so they are sure to be in high demand.

To make it easier to find, retailers should also create a section in-store or online that highlights this range – in a high-footfall location that their customers will definitely walk by, e.g. at the front of the store or end-of-aisle.

3. Don’t underestimate the importance of displays

Seasonal events are the perfect time to create and produce displays that promote your Christmas offering in an exciting way.

At the start of November, retailers should create a Christmas themed display in a high footfall area, like an aisle end or front of store, to take advantage of the countdown to Christmas.

This could include Christmas themed confectionery and also sharing & gifting formats, as shoppers will be looking to take advantage of spending the festive period with loved ones.

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Government warned that banning cheap alcohol will send shoppers north

Linda Stewart — Thu, 11 Aug 2022 10:44:38 +0000

The Irish government is being warned that new laws banning the sale of cheap alcohol could reduce tax returns because people are heading to Northern Ireland to buy beer, spirits and wine.

The government has been advised that the introduction earlier this year of minimum unit pricing on alcohol could ultimately lead to less tax due to people shopping across the border.

A Department of Finance Tax Strategy Group paper on excise duty said it was too early to gauge the impact of the introduction of minimum unit pricing.

But it warned: “It is clear, however, its introduction has resulted in price differentials on alcohol products across the border which might lead to an increase in cross-border trade, undermining the tax take from alcohol sales.”

The guidance came among a range of options on tax and welfare for ministers to consider as they prepare for next month’s Budget.

This includes proposals to increase all welfare rates by €15 and introduce tax cuts for two million taxpayers.

The government is not bound by the recommendations but Irish Finance Minister Paschal Donohoe said consideration will be given to all the proposals outlined by his officials.

The paper on excise notes that the Drinks Industry Group Ireland (DIGI) and the National Off-Licence Association have called in their pre-budget submissions for a 7.5% reduction in alcohol excise in Budget 2023 with a further 7.5% reduction in 2024.

“It considers that this will help the drinks and hospitality sector to rebuild commercial activity in all areas of the country and to recover employment,” it said.

The document also notes that the Republic has the highest level of excise duty on wine in the EU and the second highest on beer and spirits.

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People cut back on food shopping as price rises hit budgets

Linda Stewart — Fri, 24 Jun 2022 09:40:39 +0000

Shoppers are cutting back on food spend as the rising cost of living bites into budgets, according to the Office for National Statistics.

Nearly half of adults surveyed by the Office for National Statistics (ONS) say they have bought less food in the past fortnight due to higher prices.

The price of food was also the most common reason for why those asked were seeing their monthly outgoings rising overall, the ONS said.

The ONS said its feedback from supermarkets also suggested customers were spending less on their food shop because of the rising cost of living.

It found that sales in supermarkets dropped 1.5% in May, with a 2.2% fall in specialist shops such as butchers and bakers. Retail sales overall fell by 0.5% in May.

Prices overall are continuing to rise at their fastest rate for 40 years, with UK inflation at 9.1%, the highest level since March 1982.

Fuel and energy prices are the biggest drivers of inflation, but food costs drove the most recent rise in May, with prices for bread, cereal and meat climbing.

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Asda says shoppers setting £30 limit at tills and switching to budget ranges

Linda Stewart — Wed, 22 Jun 2022 09:40:45 +0000

Some Asda shoppers are setting £30 limits at checkouts and petrol pumps, the supermarket’s chairman has said.

Customers are putting less in their baskets, switching to budget ranges and are worried about the future, said Lord Stuart Rose.

“What we’re seeing is a massive change in behaviour,” he said.

Lord Rose said he saw the inflation rise coming last year like a “train coming through a tunnel with a big flashing light on the top”. Now it’s time to “fasten our seatbelts”, he said.

“People are trading back. They are worried about spending,” he said. “They’ve got a limit that they’ve set out, too. They say £30 is one limit… and if they get to more than £30 then that’s it, stop. It’s the same with petrol.”

Lord Rose said the country was facing some very tough times and urged the government to do more to help low income households.

But the Treasury said it understood people were struggling with rising prices and it was making cost of living payments of £1,200 to those on the lowest incomes.

Lord Rose also addressed government concerns that supermarkets were not passing on March’s 5p per litre cut in fuel duty, insisting Asda price changes were “done the same day”.

He said he was of the generation that remembers the runaway inflation of the 1970s, adding: “Once [inflation] gets hold, it’s quite pernicious.

“And it takes a long time to eradicate… We’re in danger of being in a place that it’s very difficult to extricate ourselves from.

“What’s rather sad is that the country, the government, perhaps the Bank of England didn’t see inflation coming quickly. They’ve now recognised that.”

Asda’s latest data shows households had, on average, £44 less a week in discretionary income in May compared with a year ago – a fall of nearly 18%. This is the amount of money left over after taxes and essential bills have been deducted and it is the third month in a row where disposable incomes have dropped to record levels.

The Asda chairman and former M&S boss said he did not want to predict where food prices will get to by the end of the year but would like to see more government support for those most in need.

“I would urge them to do more for those people at the bottom end of the earnings income scale,” he said. He suggested a VAT reduction or another reduction in fuel tax would be “helpful”.

“I would say the most important priority in the short term is to kill inflation, because once inflation gets embedded, it’s very, very hard to kill. If it means we have to slow the economy down for a while, and it looks as if we are heading for a recession, then so be it.”

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