We have job losses if you want them baby

[vetran]

https://www.bbc.co.uk/news/articles/cp816jrnynyo

High Street job losses are "inevitable", prices will rise, and shops will close because of tax rises in the Budget and other rising costs, a group of the biggest retailers in the UK is warning.

Tesco, Amazon, Greggs, Next, and dozens of other chains are urging the Treasury to reconsider some of the measures.

In a letter to Chancellor Rachel Reeves, they said the "cumulative burden" of the Budget changes and other policies already in the pipeline will add billions in costs to a sector with a 3% to 5% profit margin.

what a surprise!

[Snooky]

Hmmm, let's see how much those businesses are struggling

• Greggs: profits increased by 14% from 2022 to 2023
• Tesco: pre-tax profits £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February 2024
• Next: expects to deliver pre-tax profits of £995mn for the full year, 1.5% higher than it previously forecast and 8.4% higher than last year
• Amazon: gross profit for the twelve months ending September 30, 2024 was $300.180B, a 17.17% increase year-over-year

The lady doth protest too much, methinks. They're just rattling the cage in the hope of scaring the government.

[vetran]

Hmmm, let's see how much those businesses are struggling

• Greggs: profits increased by 14% from 2022 to 2023
• Tesco: pre-tax profits £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February 2024
• Next: expects to deliver pre-tax profits of £995mn for the full year, 1.5% higher than it previously forecast and 8.4% higher than last year
• Amazon: gross profit for the twelve months ending September 30, 2024 was $300.180B, a 17.17% increase year-over-year

The lady doth protest too much, methinks. They're just rattling the cage in the hope of scaring the government.

Good point businesses should make a profit , now please explain why they should keep staff if they now cost more?

[Uncle Albert]

Good point businesses should make a profit , now please explain why they should keep staff if they now cost more?

That's a bit like syaing why should people carry on buying bread and milk if they now cost more than they did last year. If you intend to keep alive/in business then you have to accept that prices/wages will rise over time.

[WTFH]

That's a bit like syaing why should people carry on buying bread and milk if they now cost more than they did last year. If you intend to keep alive/in business then you have to accept that prices/wages will rise over time.

Equally, if you want your customers to have money to be able to spend with you, they need to earn enough to be able to do that.

Why should shops/restaurants/etc pay staff a wage that means they can afford to live? The staff should get 20p a day and be glad. In my day 20p would get you a 4 bedroom house which is why I own so many of them, and yet these people complain that I"m charging them £5000 a month in rent. They are all woke and lazy, and it's the fault of everyone but me...

[vetran]

That's a bit like syaing why should people carry on buying bread and milk if they now cost more than they did last year. If you intend to keep alive/in business then you have to accept that prices/wages will rise over time.

Not sure if you have noticed it many large companies have gone into bankruptcy and many closed shops throughout the country. We are now taxed more than we have ever been.

[Uncle Albert]

Not sure if you have noticed it many large companies have gone into bankruptcy and many closed shops throughout the country. We are now taxed more than we have ever been.

As it happens, in my town, quite a few new shops have opened over the last 6 months. Proper shops that is, not vape stores/nail bars. The shop closures were all in the couple of years before then.

It's not all rosy but I'm not too worried about the future of Tesco, Amazon, Greggs and Next.

[Fraidycat]

Minimum wage has been upped to almost 25K for those that work full time, Tesco and Amzon etc and pay above minimum wage. So i guess closer to 30K for full time shelf stacking now. 40K with overtime in London. + Employer NICs on top. And not able to save as much on employer NICs with part time staff now that the threshold has been lowered.

They already have bare minimum staff so they only way to reduce headcount further will be more automation. That and close the less profitable stores.

If they cant reduce head count then they will all raise prices.

[vetran]

As it happens, in my town, quite a few new shops have opened over the last 6 months. Proper shops that is, not vape stores/nail bars. The shop closures were all in the couple of years before then.

It's not all rosy but I'm not too worried about the future of Tesco, Amazon, Greggs and Next.

oh they will survive just with fewer staff as we have already seen.Profits will be declared abroad of course.

[Snooky]

Good point businesses should make a profit , now please explain why they should keep staff if they now cost more?

Since any efficient business will get rid of staff they don't need, we can assume that they need all the staff they currently have to achieve their current level of sales. To continue their success or improve on it, in the absence of any innovative efficiencies, they'll need to keep all those staff and possibly employ more.