Research conducted by Palmer and Harvey found that due to the new Living Wage being introduced, about one-third of independent retailers will cut staff costs or increase prices over the coming year.

The effect on workers is likely to come in the form of reduced hours, although one in five of those interviewed said they would have to limit the number of staff.

UK convenience stores are said to employ over 400,000 people and 83% of them have spent at least a year in their present job.

Some 22% of independent owners want local councils to help them find a solution to the problem.

The introduction of the new Living Wage has also seen retail chains cut benefits like free food, staff breaks, Sunday pay and overtime.

The delivered wholesaler’s chairman and CEO Chris Etherington (pictured) said: “Our research confirms that independents see the Living Wage as the greatest challenge facing them. While agreeing with the principle of a Living Wage for our customers, its implementation will be challenging.”

Tel: Palmer and Harvey (01273) 222100