Fixed Costs and Breakeven | Survival of Small Shops Threatened by Rising Energy Costs

The average cost of energy to run a small convenience store is rising significantly and is now around £45,000 per year. Further increases in energy costs for small businesses such as these may force many to close.

As The Guardian reports here, thousands of small convenience stores are wondering whether they will be able to continue to trade if energy tariffs continue to rise.

The energy cost of running a store, such as electricity for the lighting and refrigerated store room and cabinets, is a significant fixed cost. The lights have to be on and the food and drink kept chilled or frozen no matter how many shoppers are in the store.

The trade association for convenience stores has written to the UK government urging greater financial support for small businesses in the face of what is a crisis for households and businesses alike. Will the government respond?