Ankorstore: Many indie retailers doubt Liz Truss will positively impact high street

With today marking three weeks since Liz Truss was appointed the UK PM, research by Ankorstore reveals that, despite consumers’ reduced spending power in the wake of record inflation and the energy crisis, independent retailers are having to rely on the support of shoppers and their local community, rather than the government, to keep them in business.

The research was carried out online by Vitreous World and features respondents made up of 2,000 nationally representative UK consumers and 200 UK SME business owners in retail.

Whilst 69% of the latter feel optimistic that consumers will continue to support their shop, despite the cost of living crisis, fewer have faith that the new Tory government will positively support independent retailers and high streets (44%).

Gen Z independent retail owners are the most optimistic and hopeful that Truss’ appointment will have a positive impact when it comes to supporting local high streets and independent retailers, with 61% believing the new leader will have a positive impact.

This steadily decreases with age: 52% of 35-44s, 25% of 45-54s and just 17% of over 55s believe the same.

When it comes to energy prices, the government’s Energy Bill Relief Scheme announced last week has potentially saved 67% of independent retailers, who previously worried that they would be at risk of closure without support - and a fifth that stated that soaring energy prices were likely to force them to close for good without the bill.

In fact, 79% of retailers believed that soaring energy prices would have had a long-term impact on their business, citing unprofitability (42%), an inability to make new hires (36%), debt (30%) and reduced opening hours (20%) as key consequences.

85% of independent retailers are also calling on the government to cut business rates in order to preserve British high streets, with that figure rising to 90% for those who only have physical stores.

86% of UK consumers have already noticed an increase in the number of empty shops on their local high streets, and three quarters agree that the government should provide more support for independent retailers and shops.

Tarun Gidoomal, UK General Manager at Ankorstore, comments: “Our research confirms the harsh reality that the majority of small businesses do not predict that they will survive the extraordinary pressures that they are currently facing.”

“As a business that champions and supports independent retailers all over Europe, we hope this research serves as a wake up call to the UK government. Inaction is simply not an option at such a pivotal time for independents.”

“Whilst the Energy Bill Relief Scheme is a welcome step in the right direction, much more is still needed.”

“It’s not enough to provide a six-month solution to one part of a multi-faceted situation caused by chronic under investment, rampant inflation, the cost of living crisis and Covid, to name a few - there needs to be longer-term investment in order for small businesses to survive, and business owners to sustain their livelihoods.”

“The eye watering increases in costs across the board are forcing consumers to cut spending and are unsustainable for retailers. We must come together to breathe life back into British high streets which is core to our mission of rewilding retail.”

Mary Portas, British retail expert and broadcaster, says: “Independent retailers are confident that consumers will continue to support them even as the cost of living crisis rages. In fact, a huge 69% of them feel like that. So from the ground up at least, retailers have faith.”

“They’ve also proved year after year that they’re resilient, they can pivot, they flex, bend and come out the other side. As one CEO said to me this week: retailers are positive realists.”

“But what they cannot do is fight the structure from the top down. And right now, they are going into battle yet again with their hands tied. We’ve had years of inaction by the government and this research shows a staggering 85% of retailers are now calling for business rates to be cut.”

“But will meaningful action be taken at a legislative level? Let’s hope so. Consumers, retailers and government all have to work together to enable independent retailers to survive in the present – and thrive in the future.”