NFU Mutual: Small Shops Feel the Squeeze as Over Half Say Rising Costs Are Their Biggest Worry

Smaller shops are also more worried about tax and wage rises than bigger businesses, while more than one in five say they have lost income to retail crime

More than half of the UK’s smallest retailers say the rising cost of doing business is their biggest concern this year – more than double the proportion among the sector’s largest businesses, according to new research from NFU Mutual.

The commercial insurer’s survey suggests rising costs are hitting small, often independent, traders harder than larger organisations. The insurer pointed to recent increases in the cost of goods, rent and security measures.

OnePoll surveyed 500 retail decision-makers on behalf of NFU Mutual. Small retailers were defined as those with more than one full-time employee but fewer than 10.

Among retailers employing between 250 and 499 people, fewer than one in five named rising costs as their main concern, while just under a quarter of those with 1,000 or more staff said the same.

Tax rises and higher wages were the next biggest worry for the smallest retailers, with 36% saying the issue was front of mind. That was the highest proportion of any size of retailer surveyed, compared with just 17% of businesses with 1,000 or more staff.

Zoe Knight, Head of Commercial at NFU Mutual, said: “Small retailers are the backbone of the communities they serve and unfortunately many are struggling due to a number of cost and tax rises, with the landscape currently a tough one.

“The recent announcement of support from the government for small businesses across the UK is a step in the right direction, as our research shows how much rising costs can impact those companies and the concern it brings them.”

Retail crime is adding to the pressure. While shops of all sizes are affected, NFU Mutual said the problem can feel more personal for smaller stores and can even put their future at risk.

More than one in five smaller stores surveyed said they had personally lost income because of retail crime. Almost one in five retailers with between two and nine employees said they knew of businesses that had been forced to close as a result.

Knight added: “We would also urge people to support the small retailers in our communities to ensure we keep thriving high streets across the UK.”