NI Tax Rises To Hit Prices

Cosmetics company Lush and car repair chain Kwik Fit are among firms which have warned they will raise prices due to an increase in employers' National Insurance (NI). Other firms have told the BBC they will reduce how much profit they make, freeze hiring or in some cases cut jobs to cover the higher costs. From Sunday, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently. The Treasury said the billions raised will be spent on public services, including the NHS. Lush told the BBC that with 3,600 employees in the UK and Ireland, it would have to find an extra £2.7m per year. Kasey Swithenbank, Lush's retail head for the UK and Ireland, said: "We are going to be taking small incremental price changes. Kwik Fit, which employs about 5,000 people, estimates the NICs rises will cost it £5m. This will have a knock-on effect on prices, and recruitment, said Mark Slade, its managing director.  The rate that employers pay in contributions will rise from 13.8% to 15% on a worker's earnings above £175 per week. The government expects about 940,000 firms to pay more, 250,000 companies to pay less, and 820,000 to see no change.

BBQ - How would you deal with the NI increase if you ran your own business?

NI Increase

 

Percy Pig USA Adventure Cut Short?

Percy Pig, the beloved British gummy candy, recently embarked on its biggest journey yet—crossing the Atlantic to make its debut in the United States. Available at Target stores nationwide, Percy Pig quickly captured the hearts of American candy lovers. However, this sweet adventure may be short-lived as Marks & Spencer (M&S) faces challenges from the latest Trump tariffs. Percy Pig has been a staple in British households for nearly three decades, known for its delightful berry and grape flavors and perfect balance of foam and jelly. The candy's arrival in the US was met with enthusiasm, with fans eagerly grabbing bags off the shelves at Target for $3.99 each. Despite the initial success, Percy Pig's US adventure faces uncertainty due to the sweeping tariffs imposed by former President Donald Trump. These tariffs, aimed at boosting US manufacturing, have placed significant pressure on companies importing goods from abroad. In response to the tariffs, M&S is exploring various strategies to mitigate the impact on Percy Pig's US presence. This includes negotiating with suppliers, adjusting pricing, and potentially scaling back the distribution of Percy Pig in the US market. Percy Pig's US adventure has brought a taste of British sweetness to American shores, but its future is uncertain as M&S navigates the complexities of Trump tariffs

BBQ - Why would a tariff impact the sale of Percy Pigs in America?

Percy Pig

Lynx Africa April Fools

 

The announcement that Lynx Africa was being discontinued sent shockwaves through its fanbase, with many taking to social media to express their dismay. The iconic scent, which has been a staple in British bathrooms since 1995, was initially declared discontinued by Lynx's official Twitter account This sparked a frenzy, with fans mourning the loss and even stockpiling cans in fear of its disappearance. However, Lynx soon revealed that this was all part of a clever marketing stunt designed to promote a product upgrade. The brand clarified that Lynx Africa isn't going anywhere; instead, it's getting a fresh new look and improved formula. The new design and enhanced fragrance are set to hit stores across all formats, including body spray, shower gel, antiperspirant, roll-on, and stick deodorants. Additionally, Lynx has reformulated its body sprays to last even longer and upgraded its antiperspirant range to include new "no white marks" technology. This playful approach not only created buzz but also highlighted Lynx's ability to engage with its audience in a fun and memorable way. So, rest easy, Lynx Africa fans—your favorite scent is here to stay, just with a new twist!

BBQ - Discuss the impact of Lynx's marketing stunt on consumer behavior and brand loyalty. How might this approach influence the company's sales and market positioning?

Lynx Africa