Convenience stores struggle for survival: 6,900 facing closure
- last year
An estimated 6,900 convenience stores across the UK are at risk of closure – putting more than 46,000 jobs at risk – due to being stuck in excessive fixed contracts signed during the height of the energy crisis, causing bills to triple and, in some cases, quadruple.
The Association of Convenience Stores (ACS) estimate that around 40% of independent stores faced contract renewals between July – December 2022, while wholesale energy prices peaked.
For an average-sized store facing rates of 95p per kWh, this would mean paying more than £75,000 each year for electricity, compared to £20,000 in 2021.
But government support at the currently proposed level (1.9p per kWh) will only reduce the average bill by around £1,520 for the year – equating to just £60m in relief across the entire convenience sector.
At present, just £11m through the Energy Bill Relief Scheme has been allocated to these 6,900 stores, but the loss of their business will cost the Treasury £70m annually in direct tax income, not to mention the additional loss in revenue from VAT and excise duties.
Meanwhile, beyond financial implications, the loss of just one convenience store can have a massive impact on the community it serves, with many local people seeing convenience stores as one of the most essential services in their community.
The Association of Convenience Stores (ACS) estimate that around 40% of independent stores faced contract renewals between July – December 2022, while wholesale energy prices peaked.
For an average-sized store facing rates of 95p per kWh, this would mean paying more than £75,000 each year for electricity, compared to £20,000 in 2021.
But government support at the currently proposed level (1.9p per kWh) will only reduce the average bill by around £1,520 for the year – equating to just £60m in relief across the entire convenience sector.
At present, just £11m through the Energy Bill Relief Scheme has been allocated to these 6,900 stores, but the loss of their business will cost the Treasury £70m annually in direct tax income, not to mention the additional loss in revenue from VAT and excise duties.
Meanwhile, beyond financial implications, the loss of just one convenience store can have a massive impact on the community it serves, with many local people seeing convenience stores as one of the most essential services in their community.