Under pressure retailers are continuing to monitor rising energy costs — and identify escape routes from mis-sold contracts — ahead of a fresh period of financial uncertainty.
Although retail sales rose by 0.4% in March, business owners have yet to feel the full force of increased taxation and National Insurance contributions (NICs).
And the residual effects of the energy crisis brought about by Russia’s invasion of Ukraine mean high streets could see more famous names forced to throw in the towel.
A tough start to the year has seen the likes of WHSmith, The Entertainer and Sainsbury’s closing the doors on premises across the UK.
And soaring energy bills — set to keep rising through to 2026 — are a significant factor as retailers report a lack of confidence heading into the summer.
“If energy costs continue to rise, businesses may be forced to choose between passing on the costs to consumers through price hikes, which can put them at a competitive disadvantage, or potentially face insolvency,” said Business Energy Claims’ (BEC) CEO Callum Thompson.
“This is especially true if retailers are already struggling with falling sales or other economic challenges.
“There’s very little we can do about a volatile global energy market but where BEC can make a difference is by digging into energy contracts that may have been mis-sold and looking for a positive financial solution.
“The UK high street has enough problems to deal with — sourcing fair, transparent and competitive energy contracts shouldn’t be one of them.”
Following last month’s pre-planned rise in employer National Insurance contributions, fast-inflating energy and rent costs mean retailers are increasingly vulnerable.
The volatile wholesale energy market — alongside network charging reforms — leaves little room for manoeuvre as business owners look to tighten margins and prepare for a sharp drop in footfall over the summer months.
And Callum added: “It’s a simple fact that the war in Ukraine continues to keep energy prices higher than historic averages.
“Changes coming in over the next couple of years, including the rise in newer carbon levies and the anticipated introduction of new cost elements, are expected to see prices increase again from April 2026.
“When it comes to energy costs there’s very little that’s positive on the horizon. Right now retailers need to consolidate and plan — and that includes managing utility bills.
“BEC is perfectly positioned to find out whether your business could be owed thousands of pounds as a result of a mis-sold energy contract — money that could be set against future outgoings and potential growth.”