Amid tax increases, Pets at Home might face job cuts and price hikes.
- CEO Lyssa McGowan signals the company must examine cost structures.
- Annual expenses could rise by £18m due to tax changes.
- No immediate job cuts planned, but future remains uncertain.
- Industry peers also struggle with similar fiscal challenges.
In response to upcoming tax increases, Pets at Home is preparing for potential adjustments. The company’s CEO, Lyssa McGowan, has indicated that while they will attempt to mitigate these impacts, reviewing the entire cost structure is inevitable. This comes as the company estimates an additional £18 million in costs annually, due to increased National Insurance Contributions and the National Living Wage.
McGowan remarked, “We will mitigate what we can. That’s not to say we can mitigate all £18m, and we will have to look across the full suite of levers, just like every other retail business, to see what we can do, and we’re in that process right now.” This statement underscores the challenges faced by the retail sector in absorbing new expenses.
The CEO has reassured that there are no immediate plans for job losses at Pets at Home. However, she did not entirely rule out the possibility, reflecting a cautious approach in uncertain economic conditions: “We’ve got no current plans for job losses… I don’t think anybody can rule those out, but that’s certainly not in our plans right now.”
The situation at Pets at Home mirrors wider industry difficulties. For instance, HMV’s owner, Doug Putman, has stated that his company has paused store openings for the next year, also hinting at potential job cuts. Putman’s comments, “We could end up opening five stores, but more than likely we’re not… I would be surprised if we could find a way to get through this without cutting jobs,” highlight the shared nature of these fiscal pressures across retail businesses.
The retail sector, including Pets at Home, is bracing for significant financial impacts due to rising costs.
