ACS

Amid the dramatic national political and economic developments of 2009, local shops have been a steady and positive influence in the communities they serve. Given the wider turmoil, the industry has shown itself robust in the face of recession, those elements that make trading tough in our sector are essentially the same longer term pressures that have continued into the recession rather than being generated by it.

2009 has seen a general picture of steady and growing sales in the local shop sector, however where sales have increased it has generally been at the expense of margins. The economic downturn has hit local shops as it has all parts of the economy in terms of the impact on credit . Mounting costs for borrowing have meant increased overdraft charges and loss of credit lines. A longer term concern has been the drying up of investment capital that has put on hold much needed store investments. Government actions to try and address these problems in this area have been widely publicised but retailers have felt little practical positive impact.

2010 brings the prospect of significant additional costs on business tax - rises such as national insurance increases have already been outlined, but local shops are concerned about what comes from a post general election budget aimed at addressing the major economic pressures. An immediate concern is the increse in business rates that many will face in April 2010. For local shops like those on petrol forecourts this increase promises to be dramatic and ACS is working with other groups to influence the valuation office to find some form of eleventh hour reprieve.

2009 saw the continuation of social responsibility debates that have run through most of the decade, about the balance between voluntary and legislative action on the sale and consumption of products that can have harmful social and health effects.

The tobacco display ban was pushed hard through Parliament, but most remain unconvinced that the measure will make a significant impact on smoking attitudes among adults or children. What we do know is that the ban will cause disruption and cost throughout the next few years. It is a shame that so much resource and energy was spent on this minor issue (in health terms) when there are much bigger challenges that with government resource and input from shops and others could significantly change smoking behaviour.

Alcohol policy remains a headline grabbing and controversial issue, but the end of the year saw good news with the dramatic increase in funding for the Drinkaware Trust and a re-energised mandate to educate consumers. Also on the ground the Community Alcohol Partnerships, co-funded by ACS, are changing enforcement practice on underage sales and seeing real results for communities in reduced underage street drinking. The issues will remain a significant political debating issue throughout 2010, and in Scotland in particular there is a real threat of regulatory burdens imposed on the industry that will harm local shops disproportionately.

ACS is proud of the partnership it has forged with Government as part of Change4Life. The convenience stores project has seen thousands of local shops given the opportunity to be part of the social marketing campaign and to introduce or grow their provision of fresh fruit and vegetables. The project is an example of how Government and business can find common interest and forge ahead to achieve real changes on the ground.

Long running grocery market issues that have been characterized by Government indecision may well be decided in 2010. First, the introduction of Private Members Legislation into Parliament late in December for the creation of a grocery ombudsman will increase the pressure on Government to implement this much needed regulator. Second in the past couple of days Government has published the finalized version of its town centre first planning policy, which will govern how and where new retail developments should be built. In both of these areas ACS has been closely involved in complex discussions arguing for the necessity to ensure that the grocery market is subject to the correct light touch regulation to ensure that the smaller players have the opportunity to complete and reverse the consolidation that threatens consumer choice in the long term.

2010 may well be dominated by the run up to and the aftermath of the General Election. For ACS it is a priority to make sure that local shop issues are at the centre of the debate, whether that be in national party manifestos or in the local debates in every community. To this end ACS launched the Heart of the Community campaign in November. At our seminar in central London attended by retailers from across the country, we set out our ten priorities for the next Government. The campaign is currently in full swing and members are making sure that their politicians understand our concerns and what they would do about them. To make this happen we need your help, so get involved by clicking here or calling ACS on 01252 515001.

ACS will continue to argue for a fair deal for our sector, cutting the burdens of regulation and cost where possible and ensuring that the policy environment does not hinder but helps local shops to succeed.