Range ‘made stores safe’ with £36m in rates relief

HOUSEHOLD goods chain The Range will not be following some other essential retailers and paying back the £36 million it has saved in rates relief – but stressed it has used the cash to make stores Covid-safe.

The Plymouth-headquartered company, run by former market trader Chris Dawson, has benefited from the Government’s year-long business rates holiday, designed to help stores cope with the economic fall-out from the coronavirus pandemic and associated lockdowns.

Pressure is mounting on Chancellor Rishi Sunak to extend the scheme, which is due to end on March 31, but also to save millions of pounds by closing a loophole which has seen essential retailers stay open and even profit during the pandemic.

And while some retailers – including Tesco, Morrisons, Asda, Sainsbury’s, Aldi, Lidl and B&M – have returned huge savings to the Treasury, others – including Waitrose, Iceland, M&S, Poundland and The Range – have not, and, indeed, do not have to.

The Range, which in December, 2020, announced profits of £46.741 million on sales of nearly £1 billion, is understood to have saved about £36 million thanks to the tax holiday.

But the chain, which kept 180 stores open, is stressing it has used some of that cash to pay for the additional costs such as making stores Covid-secure and hiring extra staff.

And it insisted it will use the “majority” of its profits generated this year to create 2,700 jobs across the UK.

A company spokesman said: “The rates holiday provided by the Government gave The Range the confidence (at the time it was announced) to invest in our stores and additional staff to ensure they were Covidsecure whilst trading throughout the pandemic to date. The rates initiative has helped to offset the costs involved in achieving this.

“The Range is planning to use the majority of the profits generated this year to invest in future growth and to create 2,700 new jobs in the UK during the next 12 months.”

Supermarkets and other essential traders have been some of the biggest winners, financially, during the pandemic and its subsequent lockdowns.

Many, however, invested large sums into making stores safe for the public to visit, and also had to cover the costs of staff sickness and selfisolation.

Sainsbury’s said it has spent £290 million, including £110 million on ensuring social distancing and buying PPE for staff.

However, some supermarkets decided to make payments to the Government. The likes of Tesco, Morrisons and Sainsbury’s came under pressure after handing out dividends to shareholders.

The Treasury is now conducting a review of business rates with findings due to be published shortly. The Chancellor presents his Budget on March 3.

The Treasury has already confirmed there will be no increase in rates in 2021. Usually, the bills go up in line with inflation.

Meanwhile, there is also pressure on the Chancellor to look at the situation regarding online operators, such as Amazon and its competitors, which pay rates on their warehouses, but at a much lower rate due to their locations out of city and town centres.