Convenience stores in the East of England see the introduction of the National Living Wage as their biggest challenge in the year ahead – with jobs potentially at risk – according to new research.

In a study commissioned by Palmer & Harvey, a leading national wholesale supplier to the convenience store sector, nearly half of the retailers surveyed in the eastern region said they would look to increase prices in order to offset their increased wage bill.

However, a quarter of those surveyed in the region said they were considering cutting their staff numbers.

The survey – which comes a month after the introduction of the National Living Wage – found that, so far, retailers have responded mainly by cutting benefits such as staff breaks, Sunday pay or overtime.

Chris Etherington, chairman and chief executive of Palmer & Harvey, said: “Our research confirms that retailers in the East of England see the living wage as the greatest challenge facing them, and that they will respond by cutting staff costs and increasing prices.”

The survey, which covered 100 retailers in the eastern region, found that 26% of convenience store businesses are hoping for local authorities to help them find solutions.

“Stores, including those in the East of England, are looking to local councils and government to help secure the 400,000 jobs in convenience retail and offer solutions to the issues facing the sector,” said Mr Etherington.

“Whilst agreeing with the principle of a living wage for our customers, this research shows that implementation will be challenging.”

According to Palmer & Harvey, convenience stores provide more than 400,000 jobs in the UK.

The data from the company’s survey shows that other major concerns for retailers based in the region include plans for a Sugar Tax on soft drinks and changes to the business rates system.