NOW THAT’S A GOOD IDEA…
OUT THE BOX BLICK ROTHENBURG
SHOP OUT TO HELP OUT THE GOVERNMENT SHOULD PAY SMALL RETAILERS 75% OF LAST YEAR’S TAKINGS AND INTRODUCE A SHOP OUT TO HELP OUT SCHEME, SAYS LEADING ADVISORY FIRM.
WHAT’S THE BIG IDEA? Small retailers should be paid 75% of last year’s taking to help them through Christmas and the Government should introduce a Shop Out To Help Out scheme to support small stores.
HOW WOULD THAT WORK? Leading tax and advisory firm Blick Rothenberg says the latest lockdown measures are going to hit small retailers hard just when they were just starting to get their businesses back in shape. They believe the Government should step in now and adopt the German model of guaranteeing small retailers incomes up to 75% of last year’s November takings. By guaranteeing this level of income, it would give retailers the resources to be able to pay rent and other outgoings including salaries. This would enable them to also invest in an on-line presence. Otherwise, says the firm, many of them simply will not be around to trade at all in the new year.
ONLY SMALL RETAILERS? Yes. Limiting this support to small retailers would focus resources on the independent sector and mean that consumers would not have to rely on the internet giants and help ensure that the UK continues to have an innovative retail sector. Thousands of small retailers, says the firm, have already bought in stock for Christmas that they will now struggle to sell, so any form of support would be welcome.
DOES THIS RELATE SPECIFICALLY TO THE CHRISTMAS PERIOD? Blick Rothenberg highlights how the ‘golden quarter’ up to Christmas is when retailers seek to generate the profits which
often see them through the rest of the year. This year, the need to maximise income generation and reduce costs is more important than ever. Retailers need to focus on understanding their customers’ needs and how their spending priorities will shift as a result of tighter restrictions. They should launch websites if they can, operate a click & collect system and use social media well.
SHOP OUT TO HELP OUT? The company is also proposing that the Government introduce a Christmas bonus of £100 to the unemployed and people on furlough for them to spend with small retailers. This ‘shop out to help out’ scheme would help families with their Christmas shopping, and would also give small retail outlets much needed support.
WHAT ARE BLICK ROTHENBERG SAYING? Mark Hart, a partner at the firm, says: “We are looking at a very bleak Christmas unless the Government takes action to keep the consumer spending. These interventions are crucial in order for small retailers to continue to trade and protect jobs, considering that the furlough scheme still requires contributions to national insurance and pension. They need to be able to accurately forecast their cash burn and their working capital needs when they are able to reopen. “The reintroduction of the furlough scheme is a clear sign that the Government sees this as the appropriate jobs support mechanism during lockdown and therefore they should announce now that the scheme will be in place throughout the winter as the threat of further closures of shops must be a real one.”
WEDNESDAY 4TH NOVEMBER 2020 / ISSUE 29 / SLRMAG.CO.UK / 25
