Nov 28, 2024
National Insurance payments increasing demands on suppliers
Increased National Insurance payments risks increasing demands from major retailers on their suppliers.
Forbes Magazine reported that; ‘UK retailers brace for a £2.5 billion blow in 2025, according to the British Retail Consortium (BRC). Industry bodies were quick to highlight the impact of the budget, with the British Independent Retailers Association (BIRA) stating in a press release that the budget was “the most damaging for independent retailers in recent memory”. This NI rise is coupled with an increase in business rates (i.e. a decrease in the discount on business rates (a form of local tax) from 75% to 40%.).’
Forbes magazine concluded: ‘With profit margins already under pressure, UK retailers are once again being forced to look creatively at ways of maintaining profitability at a time of rising costs.’
Retailer buying teams will be targeted by their management to maximise the trading profit and the investment they can negotiate from suppliers. The skills and capability of your customer-facing teams will be key in delivering your business results whilst maintaining great relationships with your customers.
Are your teams geared up for this challenge?
- Have you practiced role plays as a team as to how you will respond to these requests?
- Do your sales and legal teams understand how they can use competition Law as a ‘Sword and Shield’ to respond appropriately to customer requests?
- Are your teams aware of the protection provided by GSCOP Legislation and the activities of the GCA (Grocery Code Adjudicator)?
To support your customer and legal teams, the British Brands Group provides a range of functional training with courses covering GSCOP, Competition Law and Compliance and Trading with Amazon, whether as a vendor or a seller. All feature a strong commercial bias, building understanding and applying that in the trading world.
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