‘Broken’ business owners ‘working for next to nothing’ appeal for help - as four shops forced to close in Derbyshire town

The small businesses – Smarties Fruit & Veg, Brew'd Cafe & Gifts, Cards R Us and Emma Coleman Fitness – were forced to close their doors at the end of last year and more are set to follow suit as the profits shrink drastically.

Gail Hanan, who has been running Totally Locally Clay Cross, an independent business association, for over two years, believes in a few months, more small shops will be closing every day if no financial help is offered by authorities.

She said: “In Clay Cross, we lost four businesses in three months going up to Christmas, two are set to close at the end of February. There are another five business owners, including myself, who do not have much money left to pay the rent and if nothing changes, will be forced to close.

“Everybody has lost the motivation. Things started getting difficult in the late summer, then picked up a bit before Christmas, but not to the extent of the previous Christmas. Since then it's been absolutely dire. Nobody is walking about in our town centre, the streets are empty.

“Costs have gone up so much, some products went up by over 200 per cent, but we can’t put the prices up, because people wouldn't be able to buy them. The profit margin is shrinking, and you’re working for next to nothing. On a £50, we might be getting back a fiver. Everybody's struggling to pay the rent. The increased fuel bills mean a couple of places have been forced to open part-time because they couldn’t afford to pay more. In another six months, I think we're gonna see more and more businesses close every day.”

Gail who has also been running her own shop, Cup & Saucer, for five years, added: “I lost my motivation and I feel broken. I’ve been building my business for five years and it's just come crashing down. All my sales, including online, are down. Christmas sales were 48% down on last year. People just aren't coming in anymore and if they do, they are just browsing, not spending. It’s absolutely terrible.

“It is the same across other businesses in Clay Cross and nationally, we all need support from the government, at least subsidy towards the rent and energy costs, because this is what is knocking a lot of shops out.”

Other small shop owners from Clay Cross, who have been affected by the cost of living crisis, shared Gail’s frustration and fears.

Emma Abrams-Pashley, who took over Rate Good Brownies in January 2022, said: “We've had nothing but price increases. Eggs have gone up by 233% in one year, butter has gone up by 60%, sugar, flour, you name it, we use it and it's all gone up in price. We haven't increased our prices for customers as we didn't feel comfortable doing that.

“After doing our legal paperwork and sorting what's gone in and what's come out, I've earned £2k in one year. So I'm at a loss, that's not even close to minimal wage and doesn't cover my bills.

“The reality is I'm applying for other jobs to cover the costs of living. Running a business in this current climate is affecting people's mental state. I don't want to give up this lovely little business but sometimes it's hard and I feel like I'm in limbo.”

Jane Louise Pattison who has been running Jane Louise Photography for 13 years now, has seen her electricity bill increase from £55 in January 2022 to £210 in January 2023.

She said: “Materials such as backdrop paper have doubled in price meaning three rolls are £300. The main issue is the energy crisis -as a photographer, I’m using lighting and heating constantly. I have increased my package prices to try and absorb some of the increase but I can’t for all, including my personal bills at home have increased.

"Having a nonessential business in a cost of living crisis means you are tied at how much you set your prices as people have no leftover money for services like mine. I am having sleepless nights and just hoping to get through to summer when work will pick up and I won’t require the heating as much. But the local government should be helping the high street before the shops end up shutting for good.”

Hairdressers at Do or Dye Hair & Beauty added: “For us, it’s clients going longer between appointments, instead of the normal 4-6 weeks it’s 6-8, 8-10 weeks in some cases.”

Georgia Churchill, a freelance graphic designer who runs Georgia April Art said: “All supplier costs for printing have had to go up, I've held off on raising my costs as long as I can, but it's still had a knock-on effect on my customers. As the majority of my customers are independent businesses, I have found a decline in sales.

"When my usual 'bread and butter' jobs include designing and printing business cards and leaflets, these are the expenses that businesses cut back on. If it's between ordering some business cards or leaflets and paying for the gas and electricity in the shop, then they're going to hold off on their order with me.

“I've also noticed a decline in my design-only jobs, when customers can choose a free app to design something themselves, they'll opt for that rather than paying me to create something original and unique for them. It's a competitive market working in graphic design right now. Everyone is needing to cut back on costs, so it's not been easy to make a profit and offer my customers the best deal when it seems my main competition is a free app and a printer at home.”

A spokesman for North East Derbyshire District Council said the authority recognised the cost of living challenges faced by businesses across the UK and is currently developing a range of support opportunities to address this locally.

They added: “The council website includes a range of information to help save energy, get advice and grants, whilst through its UK Shared Prosperity Fund it is developing initiatives to provide dedicated business support services, expert energy audits and Shop Front Enhancement grants of up to £10,000 to improve the appearance and energy efficiency of high street business premises. Details of these schemes will be publicised as soon as they are launched.

"Within Clay Cross itself the Council is working with the Clay Cross Town Deal Board to bring forward it’s Investment Plan, whose proposals include revitalising the Town Centre, with more information about our progress on this development to be circulated very soon. Plans to establish a Low Carbon Challenge Fund, to which businesses can apply, are also in progress.

"We are always keen to support our local businesses wherever possible and encourage them to contact us to see where we can help them further. Any businesses who wishes to check that they claiming all reliefs that they may be entitled to such as Small Business Rates Relief and Retail, Hospitality and Leisure Relief, or are struggling to pay their rates and wish to discuss the potential of repayment plans should contact us on 01246 217600.”