6,000 job cuts for local shops linked to rising cost of employment
The Scottish Grocers’ Federation has revealed its latest annual figures on the Scottish convenience sector. Highlighting a reduction in local lifeline services and a staggering 10% drop in staff over the year, amidst an increasing cost of doing business which is hammering the sector.
Published with the support of the Association of Convenience Stores (ACS), the SGF Scottish Local Shop Report 2025 shows that the number of convenience stores has remained consistent at 5,228 (up 8 on 2024). However, the number of people employed in the sector has dropped by 6,000 to 49,000. Reducing the overall hours worked by colleagues from 9.8m in 2024, down to 9.5m.
Meanwhile, employer National Insurance contributions have shot up to £396m, an increase of £175m on the previous year (UK wide). With year-on-year hikes to the National Living Wage increasing by 33% since 2019 (from £8.21 to £12.21 per hour).
Several other critical services offered in local stores have also come under pressure. Including:
Post Office (down from 25% to 20%)
Free to use cash machines (down from 46% to 40%)
Prescription collection (down from 4% to 2%)
Cost pressures such as Retail Crime, tighter regulations across a range of product areas and a real terms decline in business rates reliefs have also resulted in retailers investing less back into their stores, down from £94m to £89m in 2025.
You can also read our press release on the subject here.