Feature: Retra/Bira update The Perfect Storm -
Why Independent Electrical Retail Needs Urgent Government Action
Continuing to support the independent electrical retailer, Jeff Moody, (Commercial Director - British Independent Retailers Association, MD Bira Direct), has provided the following update as to why IER readers need urgent Government action.
T
he recent closure of Beales, a 143-year- old retail institution, serves as a stark
warning of the challenges facing Britain’s independent retailers. When a business that has weathered nearly one and a half centuries of economic ups and downs fi nally succumbs to mounting pressures, we must take notice. The closure of their fi nal store in Poole’s Dolphin Centre isn’t just the end of another retailer – it’s a harbinger of what many independent electrical retailers might face without urgent government intervention. The October 2024 Budget’s increase in
employers’ National Insurance contributions from 13.5 per cent to 15 per cent, coupled with the rise in minimum wage to £12.21 per hour for workers aged 21 and over, has created unprecedented pressure on our sector. Through our partnership with Bira, Retra has been actively engaging with government departments to highlight the severe impact these changes are having on independent electrical retailers. The situation is particularly concerning when
viewed alongside Bira’s recent survey data, showing that 46% of retailers reported worse trading conditions in early 2024 compared to the previous year. With the reduction in business rates relief from 75% to 40% looming in April 2025, many of our members are facing diffi cult decisions about their future operations. These employment cost challenges are
forcing many of our members to reassess their staffi ng structures and recruitment plans. Some are considering reducing hours or postponing planned expansions – decisions that will inevitably impact local employment and community service levels. In this climate, it’s crucial that our members ensure their HR documentation and procedures are robust and compliant with current legislation.
Spring 2025 This is where Retra’s partnership with
WorkNest proves invaluable. Through the Bira Legal service, our members have access to free HR advice, helping them navigate these changes while maintaining fair and legal employment practices. We strongly encourage all members to review their HR documentation now, ensuring it’s fi t for purpose as we face these new challenges.
The combination of increased employment costs and unfair online competition creates a perfect storm for independent electrical retailers. Yet, through our Code of Practice and high standards of customer service, our members continue to demonstrate the value of expert, local electrical retail. We’re not just facing these challenges; we’re actively working to shape solutions. Looking ahead, we’re intensifying our lobbying eff orts. We’re gathering evidence of unfair online competition and its impact on our sector. We’re pushing for stronger regulation of online marketplaces and better protection for consumers and legitimate retailers alike. Through our partnership with Bira, we’re developing new support mechanisms for our members, from enhanced business advice services to practical tools for managing increased operational costs. The coming months will be crucial for our
However, employment costs are only part of
the story. Our sector faces another signifi cant threat - the fl ood of duty-free electrical products entering the UK through online marketplaces. Since October 2024, Retra and Bira have been working closely with BHETA (British Home Enhancement Trade Association) to address the de minimis import tax rules that are creating an unfair business environment for our members. Through meetings with Minister Thomas at the
Department for Business and Trade, discussions at the Retail Sector Council, and ongoing engagement with government offi cials, we’ve highlighted how millions of products, primarily from China and Asia, are entering the country duty-free. This isn’t just about lost revenue – it’s about safety standards. We’ve uncovered practices where large container deliveries are broken down into smaller packages to avoid duty, creating a signifi cant VAT ‘hole’ in the process.
While the government cites complexity and trading agreements as barriers to action, we’ve seen both the US and Europe taking decisive steps to address similar issues. For a government facing fi nancial constraints, it seems counterintuitive to ignore this potential revenue stream while simultaneously disadvantaging UK businesses that contribute to our economy.
PEOPLE MAKE THE DIFFERENCE
sector. The closure of Beales demonstrates that even the most established retailers aren’t immune to these pressures. However, by staying informed, maintaining high standards, and making use of the support available through our organisation, we can weather these changes while continuing to provide the expert service and quality products that set independent electrical retailers apart. We urge all members to engage with us, share their experiences, and make use of our support services, particularly the HR expertise available through WorkNest. Together, we can ensure that independent electrical retail not only survives but thrives in the changing retail landscape. The alternative – a high street dominated by unregulated online sellers off ering questionable products – is simply not acceptable for our communities or our country. On a more positive note, Retra is proud to announce that alongside the Bira Group, we are sponsoring this year’s IER Young Achiever Award. We appreciate the importance of nurturing young talent and developing the next generation of professionals in our electrical industry. We encourage all our members to cast their votes in this important recognition of emerging talent. It’s a fantastic opportunity to highlight and celebrate the young professionals who represent the future of our sector.
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