Blog: Retailers must grasp the opportunity of the retail inquiry with both hands

The retail inquiry heated up this week as six big names including Alliance Boots and Sainsbury’s eloquently laid out the struggles in the retail sector as business rates yet again topped the bill.

In the third evidence hearing for the retail inquiry it was the first time retailers had been called to give evidence.

Alliance Boots health and beauty chief executive Alex Gourlay led the way with the business rates issue, saying that the Government needs to review corporation tax, business rates and the cost of employing people.  

He said: “Rebalancing the cost of doing business in physical shops is a real place for Government to act.”

It is obviously a crucial issue when such a major industry leader who is also a co-chair of the Government’s Future High Street Forum tells MPs that business rates should not be ignored.

The issue was repeated by almost every retailer in the session with directors from Sainsbury’s, Tesco and the Co-op all throwing their weight behind his claims.

It is unfortunate then that much of the debate was steered away from this huge issue, dampening any hope that the Government is not going to act on business rates any time soon, which made it a much duller affair than hoped.

Interesting answers centred around the need to plug the skills gap created by the retail sector’s changing nature with growing online operations, resulting in more jobs in the supply chain and customer service department and less roles on the shop floor.

Sainsbury’s corporate services director Tim Fallowfield said: “I don’t think we always get the credit for the training we are providing nor the necessary promotion from Government or society that retail careers are the fantastic careers that they are.”

Meanwhile, click-and-collect and convenience stores were highlighted as ways to draw more shoppers on to the high street.

But with the hearing taking place just a week after the administrations of Dwell and ModelZone and the imminent appointment of administrators to Internacionale, I had hoped there would be more urgency from the Committee and the fiery debate I expected was more of a flame.

But it is up to retailers to ensure they keep pressure on the Government and ensure that it doesn’t lose its way as some movement on business rates would make a real difference to the sector.