Online retailers are facing significant challenges due to rising staffing costs associated with higher National Insurance Contributions and minimum wage. Brands like Seraphine highlight that it's not only traditional high street retailers that are impacted. Those employing a workforce of lower-paid workers feel the pressure the most. While larger companies like Amazon may adapt through automation, smaller online retailers struggle. Government support and advance notice on tax and employment legislation are crucial for retailers preparing for potential upcoming increases in costs.
The primarily online maternity fashion brand, Seraphine, going into administration is a reminder that it's not just high street retailers struggling with higher staffing costs due to the Government's tax and employment policies.
Retail businesses that employ a high proportion of lower paid workers are among those facing the most financial pressure from higher NICs and minimum wage.
Although internet giants like Amazon can weather the storm of unexpected cost rises, partly through further automation, our home-grown online retailers, like Seraphine, clearly cannot.
Retailers need clarity and advance notice from the Government on any planned tax or employment legislation before the Autumn Budget so they can prepare in advance.
#online-retailers #staffing-costs #national-insurance-contributions #minimum-wage #government-legislation
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