Corner shops 'will hike prices' to cover higher minimum wage

JULIA RAMPEN
16 MAY 2016
Mirror UK
Corner shop workers could do with more pay, but bosses are feeling equally stretched – and soon customers may be too
The price you pay could be about to rise
Next time you pop down to the corner shop, you might find things are a little bit more expensive than you remembered.
Corner shop owners will struggle to cover costs and pay the new ‘living wage’, according to research by corner shop supplier Palmer & Harvey.
One in three of those surveyed said they are planning to either cut staff hours or hike prices. One in four plan to make staff redundant.
Chris Etherington, boss of Palmer & Harvey, said he agreed with the principle of a higher minimum wage.
But he added: “Our research confirms that retailers see the Living Wage as the greatest challenge facing them, and that they will respond by cutting staff costs and increasing prices.”
Millions of workers got a pay rise on 1 April after the minimum wage for over 25s was hiked to £7.20 an hour. Younger workers also got a wages boost.
But it is still not as high as the Living Wage Foundation ‘s recommendation of £8.25 an hour.
The Government hopes higher wages will help families out of in-work poverty. If workers have more to spend, this could in turn help spur on the economy.
But the change means companies used to paying workers a certain amount need to rethink their business plan.
High street retailers such as Next have threatened to raise prices for shoppers by as much as 6%.
Still, corner shop employees may be silently cheering behind the shelves of baked beans.
One worker on job reviews site Indeed described a job in a corner shop as making you “so tired and feeling that you won’t get up and start working again”. Others complained of “rubbish pay” and “very bad money”.
But others praised talking to customers, nice bosses and being part of the community.