SGF study highlights True Cost of Employment for convenience retailers

Research, published by the University of Stirling and the Scottish Grocers’ Federation, has shed light on the impact of rising staff costs on the convenience retail sector in Scotland.

On 1st of April, the UK National Living Wage rose to £11.44 per hour, a 9.8% increase on 2023/24. However, a collaboration between SGF and University of Stirling has revealed that the true cost for retail employers will be as much as £15.39 per hour. A jump of £1.39 on the previous year and the highest increase for at least the past eight years.

The study takes into account statutory costs, such as National Insurance and Holiday Pay, as well as additional employment expenses such as uniforms and administration costs. Meanwhile, a recent survey of SGF members shows that more than 90% of respondents were less likely to hire more staff, due to the wage increases. Three quarters of owners/managers reported working over 65 hours per week, just to keep costs down.

Professor Leigh Sparks, University of Stirling, said: “Convenience and independent retailers find it harder to cope with large increases in the National Living Wage, despite their recognition of the need to reward staff for the jobs they do. This is the ninth year that we have looked at the true cost of employment and again we see the pressures on the sector.

SGF Chief Executive, Dr Pete Cheema OBE, added: “Convenience stores are at the very heart of their communities. Providing valuable local employment, with flexible hours, but the significant increase to wages year on year means that some stores will need to cut staff hours. Impacting local jobs and overall harming the economy.

You can find the full report here.

You can read our press release on this here.