C-stores cutting staff hours to cope with NLW says ACS

Convenience store owners are continuing to cut staff hours and replacing them with self-service kiosks to offset the rise in the national living wage, a new industry survey has revealed.

The Association of Convenience Stores survey of 1,200 symbol and independent retailers showed 21% had decreased staff hours in May, up 4% from February.

Of those asked, seven per cent increased staff hours, with 72% saying the number had stayed the same.

The national living wage was introduced by then Chancellor George Osborne in his Budget in July 2015.

It came into effect in April 2016, and was set at a rate of £7.20 an hour for workers aged 25 and over, with the aim of increasing it to £9 an hour by 2020.

The rate was raised to £7.50 in April this year.

ACS said retailers could be installing self-service tills after the survey showed one in four had paid out more on their till systems.

“Many retailers now have to strike a difficult balance between using technology in their business to make their stores more efficient, and retaining the personal touch that the sector has been traditionally known for,” said ACS chief executive James Lowman.

“These decisions will have to be made on an individual basis, but with employment costs continuing to rise we expect more stores to look for efficiencies in the near future.”

The figures also showed convenience stores had invested £193m in their business between March and May, up £12m from the same quarter in 2016.

“Despite uncertainty on both a domestic and international level, convenience store owners have remained committed to making investments in their stores to reduce costs in the long term and provide a better service for consumers,” added Lowman.

“Some convenience stores have taken on specialist services like bakery counters, post offices and even pharmacies that would otherwise not be offered to local customers, all of which require investment to be successful.”

Over the last year, the convenience sector has invested £858m on business improvements, refurbishments and store refits.