The British Retail Consortium (BRC) Retail Symposium has become one of the most highly anticipated events in the retail calendar, with representatives from some of the industry’s most successful firms sharing their experiences with established companies and start-up SMEs alike. However, as well as being an opportunity for senior figures across the sector to network, it also plays a significant role in determining the trends at play in the retail industry and combating challenges facing retailers in the current climate.
Keynote speaker and chief executive of Sainsbury’s, Justin King, opened the conference on the 25th June. His speech, unsurprisingly, focused on some of the most pressing issues facing retailers today – namely, high property taxes which are contributing to many small businesses closing on the high street.
He said; “As our industry is changing away from being a property intensive industry, to one where property plays a part but a much lesser part than it has historically, our tax system that raises local taxes primarily on property is exposed as an historical anachronism.”
Mr King was speaking about business rates, which have become a contentious issue for retailers attempting to battle the rise of internet shopping. As retail property tenants are forced to pay a higher rate per square foot than those who operate from offices or warehouses, companies such as Amazon and play.com tend to achieve a far larger profit margin than traditional retailers – something which SMEs believe to be very unfair.
Home Retail Group chief executive Terry Duddy went one step further than Mr King in his speech, claiming that the demise of the high street is due to the taxes retailers must pay rather than the rise in internet shopping.
He pointed out that; “When Jessops and Comet went out of business, they were paying tens of millions of pounds worth of business rates.”
With some of the UK’s leading retailers speaking out about business rates, the pressure on ministers to review the issue is growing. However, as the government have already signed off on business rate breaks in the nationwide Enterprise Zone schemes, the question is will they be prepared to offer more?
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