The British Retail Consortium warns that around 400 large shops, including supermarkets and department stores in the UK, could face closure if the government proceeds with higher business rates for premises valued over £500,000.

Retail stores are already under pressure from rising employment costs, taxes, and rates, with the industry paying over 20% of all business rates despite representing only 5% of the economy.

Industry leaders like John Lewis and the BRC emphasize that large stores are essential for attracting customers to high streets and supporting smaller businesses, arguing that excluding them from higher rates could prevent closures without additional government costs.

Support for reform also comes from UKHospitality, with Kate Nicholls stating that recent changes will help reduce punitive taxes and encourage investment in the hospitality sector.

Large retail outlets employ about one-third of the retail workforce and are crucial for local economies by attracting foot traffic, which supports surrounding businesses like cafes, pubs, and independent shops.

The government is considering reforms to business rates to eliminate 'cliff edges' for small firms and encourage expansion, following discussions with major retailers and plans to reduce red tape to foster economic growth.

Recent rate increases have already impacted businesses, with discounts reduced from 75% to 40% earlier this year, adding to financial pressures.

John Lewis reported an £88 million loss for the first half of the year, mainly due to increased taxes and costs, but remains optimistic about future growth due to rising shopper numbers.

Marks & Spencer's Chief Digital Officer, Rachel Haim, is resigning after cyberattack-related disruptions impacted online sales, with projected costs of £300 million for 2025/26, partly covered by insurance.

The higher rates are intended to subsidize discounts for smaller businesses like independent retailers, cafes, and pubs, but could lead to increased prices or job cuts in larger stores.

Large stores serve as anchors in high streets, employing about one-third of the retail workforce and attracting foot traffic that benefits surrounding businesses.

IKEA has introduced a £2 charge for non-member click-and-collect services at Tesco points, DPD, and lockers, aiming to sustain delivery services, with memberships remaining free and offering benefits.