Asda, M&S and Tesco bosses warn ‘good storm’ of price hikes threaten 300,000 jobs
The Retail Jobs Alliance has been formed by Tesco, Marks and Spencer, Primark, Morrisons, Sainsbury’s, Asda and Kingfisher to warn of the jobs “bloodbath”
Retailers warn that 300,000 workers could be facing the axe within three years, because of rising costs.
Tesco, Marks and Spencer, Primark, Morrisons, Sainsbury’s, Asda, and Kingfisher have banded together to form the new Retail Jobs Alliance in the UK to warn of the jobs “bloodbath” due to rising costs.
Morrisons chief executive Rami Baitieh said: “Supermarkets are grappling with rising costs and steep taxes. Now we face the prospect of even higher business rates. We’d urge the Government to rethink its plans and protect all shops from a damaging new rates hike which would hit jobs and the high street.”
Alongside this, grocery inflation has steadily climbed each month since August, when it was 1.7%, but this is still well below the double-digit inflation figures of 2023.
Shadow Secretary of State for Business ad Trade Andrew Griffith MP said: “Retail businesses are facing an onslaught from the Government. Business rates hikes, 1970s-inspired employment laws and tax rises simply for employing staff will see the shutters closed forever on thousands of shops.”
He went on to caution: “The choices Labour have made will directly lead to job losses, with the worst impacts felt in the most disadvantaged communities. Is this the ‘Change’ people voted for? “
Market research company Kantar have said that 27.2 per cent of all UK sales were promotional items in the four weeks leading up to 26 January, marking the highest level in four years.
Brits hoping to save a quid splurged 9.4% more on these bargains, outpacing general market growth
Fraser McKevitt, head of retail and consumer insights at Kantar said: “Supermarkets were dishing out the discounts this new year, and consumers responded. Spending on promotions rose year on year by £274 MILLION.”
Depsite this doom and gloom, Lidl has some speedy growth with sales shooting up by 7.4 per cent in the quarter leading up to 26 January, while Asda, the UK’s third-biggest grocer, faced a slump with sales down 5.2 per cent.
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