Storm Katie delivers another blow to small retailers
New figures from retail analyst Springboard have revealed that high street footfall over the Easter weekend was down almost five per cent compared to 2015, with Storm Katie named as the culprit.
Shops in some of the areas worst affected by the storm were unable to trade at all over the bank holiday weekend due to the scale of the destruction caused. Digital retailers were the main beneficiaries of the poor weather, with online sales seven per cent higher over the first key retail weekend of the year.
easter 2016 has been an interesting trading experience for both UK retailers and e-commerce it revealed how the two trading platforms complement each other, said Springboard insights director Diane Wehrle.
easter Monday is usually the best day for high street retailers because people have finished all their DIY, she added. However, as Storm Katie swept in, it seems shoppers have chosen to stay at home rather than venturing out into the wind and rain.
For the owners of the UK’s smallest shops, the storm comes as an additional blow on top of the imminent implementation of the National Living Wage on 1 April.
Research carried out by the Federation of Small Businesses (FSB) in October 2015 found that almost 40 per cent of small firm owners believe the change will have a negative impact on their firm.
FSB predictions in the organisation’s Cost of Employment index also suggested that a small retail business with six full time staff aged 25 or over and earning the minimum wage will see wage bills rise by 5, 900 when the policy comes into place.
Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.
A report carried out by think tank Resolution Foundation found that three sectors hospitality, retail and support services will be most affected by the national living wage, while small businesses will also be significantly worse off compared to larger companies. more»