LONDON - The Association of Convenience Stores (ACS) has hit back at the U.K. government??s plans to extend Sunday trading during this year??s Summer Olympics in London. Chancellor George Osborne is leading moves to allow large stores to open all day on eight Sundays, claiming this will add ?180m to the economy, but ACS data from retailers suggest the costs to local shops will be more than twice this at ?480m.

"This will cost convenience stores ?1,500 in sales per day, or ?480m in total across the industry over the summer as big supermarkets drag trade out of towns and away from small shops. The move will also cause job losses in convenience stores. We fear this is the thin end of the wedge, and that supermarket lobbyists will persuade the Government to extend these provisions on a permanent basis," said James Lowman, CEO of the association, in a press release.

"Twice last year, the government considered this issue in detail, in its Retail Growth Review and in the Red Tape Challenge. Twice they recognized that the current position is popular and sustainable ?" 89% of the public oppose further liberalization. Yet now, at the last minute and with no consultation, they are making a spurious link to the Olympics to open up superstores all over England and Wales to the detriment of local shops."

The ACS?? briefing revealed that 30% of local shops fear an extension of Sunday trading hours could critically affect their business, while 44% have said it will cost jobs. Meanwhile, the government announcement that the national minimum wage will increase by 2% from ?6.08 to ?6.19 per hour. The increase represents another blow to retailers struggling to meet increasing employment costs and will resulted in reduced staffing hours and job creation.

"We welcome the government??s move to freeze the youth and development minimum rates but yet another increase in the adult minimum wage rates will hit retailers hard," said Lowman. "Our research has clearly shown that retailers have little choice but to reduce staff hours and delay further business investment when the minimum wage is increased."

ACS called on the Low Pay Commission and the government to freeze the adult national minimum wage rates for 2012 and 2013. ACS estimates that the actual cost per hour to a retailer for a full time employee will be ?7.23 per hour when holiday entitlement and national insurance contributions are taken into account.

ACS research found that 70% of retailers had cut jobs and staff hours as a result of the 2010 minimum wage increase, and that retailers were cutting investment as a result of increased employment costs.