Overview

• Last October’s increase in employer National Insurance and the national minimum wage has cost retailers an estimated £7 billion in higher operating expenses, according to the British Retail Consortium.
• Almost 100,000 retail jobs disappeared in the first quarter of 2025 as businesses enacted recruitment freezes and in-store staff cuts to control costs.
• Fifty-six percent of retail finance chiefs are pessimistic about trading conditions over the next 12 months, with 42% freezing recruitment and 38% cutting investment.
• Food inflation stood at 4% in July and is forecast by the BRC to reach 6% by Christmas, potentially adding £275 to the average household’s annual grocery bill.
• Industry leaders caution that any additional tax increases in the upcoming Autumn Budget would speed up retailer failures and further squeeze household budgets.