Rachel Edmonds, the owner of The Butcheress in Hagley, Worcestershire, has announced the closure of her shop and plans to go into liquidation due to rising operational costs and a decrease in customer spending. Since starting her business in 2017, Edmonds observed a significant increase in the price of meat, which has reportedly doubled in the past six months, alongside a sharp decline in the average amount customers are spending.
Edmonds cited escalating energy costs and heightened National Insurance expenses as contributing factors to her ongoing losses. She has called on the government to provide more support for small businesses facing similar challenges. A Treasury spokesperson responded, indicating that the government is working towards a fairer business rates system to support enterprises.
Despite her efforts, Edmonds noted that customer purchasing trends have shifted. Premium products like beef and lamb are being replaced by more affordable options such as sausages, bacon, and chicken. Her data reveals that the average basket spend per customer has decreased from £28.30 to approximately £5 or £6, with fewer customers visiting her shop.
The shop owner pointed out that many customers are opting for supermarkets, which provide cheaper alternatives. Edmonds expressed concern that rising costs are negatively impacting the meat industry. She cited various factors contributing to these price increases, including supply shortages among British farmers, reduced operating days for abattoirs, and rising expenses related to labor, transport, and animal feed.
She reported that her wage expenses account for over half of her weekly turnover, while electricity costs alone reach £3,000 per month. Edmonds questioned how small business owners could continue to operate under such conditions and emphasized the need for government assistance. Meanwhile, the Treasury reiterated their commitment to supporting businesses through planned tax reductions for retail and related sectors starting next year.
Source: https://www.bbc.com/news/articles/c4gw8nqwpqxo?at_medium=RSS&at_campaign=rss