Service Failures Cost UK £7.3bn Monthly

📰 Industry News

Here's a roundup of this week's top headlines shaking up the UK business world.

• Tesco is cutting 400 jobs across its stores and head office management, after revealing it is embarking on a major efficiency programme to “simplify” the business. (The Grocer)

• The Post Office has unveiled plans for more job cuts as part of a transformation plan aimed at boosting pay-outs for thousands of sub-postmasters. (Sky News)

• PrettyLittleThing is believed to be in talks to cut more than 50 staff members, which comes after parent company Boohoo Group proposed job cuts impacting around 200 staff across its brands in December. (Drapers)

• Google has agreed to clampdown on fake reviews of UK businesses, with the CMA to attach warnings to companies found to have artificially boosted their star reviews rating. (BBC)

• The average advertised annual salary passed £40,000 in the UK for the first time. Driven by continuing demand for skilled staff and employer hesitancy around hiring. (Adzuna)

• Jaguar Land Rover has reported a 17% drop in quarterly profit, down to £523m in the final three months of last year, even as the automotive group achieved its best third-quarter revenue on record. (Business Matters)

📦 Shrinkflation: Why Products Are Getting Smaller (…and more expensive)

From biscuits to tea bags, products across the UK are shrinking in size while their prices remain the same - or worse, rise. Known as shrinkflation, this practice is frustrating consumers and sparking backlash online. Companies call it cost-cutting; shoppers call it a rip-off. Let’s talk about it.

What is it?

You grab your favourite snacks, only to find fewer crisps in the bag and your chocolate bar looking suspiciously slim. That’s shrinkflation - a marketing sleight of hand where companies reduce product sizes while keeping prices the same. Why? Because you’re less likely to notice (or riot) over missing grams than an outright price hike.

Some examples to chew on:

• Digestive biscuits: Prices have jumped 129% since 2014, but packs are 28% lighter.

• PG Tips Tea Bags: Went from 180 to 140 bags. Price? Still climbing.

• Kettle Chips: Used to be 150g. Now it’s 130g, but apparently, we’re meant to enjoy “less crunch.”

Between 2012 and 2017 alone, 2,500 products in the UK quietly shrank while keeping the same price tag. Today, it's a widespread tactic across food, toiletries, and even cleaning products.

Why’s It Happening?

• Cost Pressures: Raw materials, energy bills, and wages have soared, so brands are shaving off grams to save cash.

• Consumer Psychology: A smaller biscuit feels less painful than a bigger price hike.

• Global Challenges: Import costs and labour shortages are putting extra pressure on companies.

Fair enough, right? Maybe not. Critics say shrinkflation protects corporate profits while sticking consumers with higher prices in sneaky packaging.

Is This Just a UK Problem?

Not at all. Shrinkflation is global. The US is cracking down with stricter rules, while France forces brands to warn shoppers when products shrink. Skimpflation - the cousin of shrinkflation where quality drops instead of size - makes it even harder to spot when you’re getting short-changed.

Any Upside Here?

Sure, if you count “portion control.” Smaller chocolate bars might save your waistline, but let’s be real: no one’s buying that argument. It’s about margins, not mindfulness.

What’s Next?

As prices rise and sizes shrink, expect the backlash to keep brewing. Social media is already full of receipts, with Reddit’s r/shrinkflation calling out brands for their sneaky tactics. If regulators don’t step in, it’s up to sharp-eyed shoppers to hold brands accountable.

Check your shopping basket closely - you might be buying less than you bargained for.

Transform Your Excel Skills with 50 Pro Hacks (+ Free Templates)

Stop wrestling with spreadsheets. Our comprehensive Excel mastery pack includes everything you need to become a spreadsheet wizard in record time.

• Master 50 essential Excel tricks with step-by-step GIF tutorials

• Create stunning data visualizations using done-for-you graph templates

• Learn time-saving shortcuts the pros use daily

• Access game-changing formulas and functions explained simply

Ready to revolutionize your Excel workflow?

[Download Now]

😲 Service Failures Cost UK £7.3bn Monthly

Let’s start with a warm round of applause for Timpson, who tops the UK customer service charts. The humble shoe-repair-and-key-cutting chain managed to outshine giants like Starling Bank and M&S to top the UK Customer Satisfaction Index (UKCSI) rankings. Scoring an impressive 87.2 out of 100, they’ve proven that good old-fashioned service still has a place in our digital-first world.

But while Timpson’s quietly nailing it, the bigger picture is less cheerful. Service failures are costing the UK economy a staggering £7.3 billion a month. Yes, that’s billion with a B. If you’ve ever spent half your afternoon on hold or wrestled with an unhelpful chatbot, you’re part of the reason why employees are losing four days a month fixing these messes.

Key Points at a Glance:

• Service Kings: Timpson, Starling Bank, and Nationwide are leading the pack in customer satisfaction. Retail players like M&S (Food) and John Lewis are also holding strong.

• Money Down the Drain: Businesses are haemorrhaging £7.3 billion monthly due to service failures. That’s not just inefficiency - it’s a major missed opportunity.

• Retail Reigns: Non-food retail boasts the happiest customers, with digital experiences taking the lion’s share of the credit. Food retail, on the other hand, still has supply and quality issues to sort out.

• Customers Are Game: Over 30% of consumers are willing to pay more for excellent service. For businesses, that’s cash on the table waiting to be scooped up - if they get it right.

Why Timpson’s Success Matters

Timpson’s victory shows that simplicity and authenticity pays off. They focus on human-first service, empowering their employees to make decisions on the spot. In a world that’s increasingly obsessed with automation, Timpson proves that people - not algorithms - still make the biggest difference.

Why I Think This Matters

Here’s the thing: businesses love to talk about innovation, but the basics still matter. Poor service doesn’t just annoy customers - it actively drains economic productivity. And with over 30% of customers willing to shell out more for a smile and a seamless experience, the potential rewards are huge.

It’s not just about fixing what’s broken. It’s about rethinking service as a competitive advantage. Whether you’re a startup founder or running a high street shop, the message is clear: treat your customers right, and they’ll return the favour.

 📚 WHSmith’s High Street Exit: Selling After 230 Years?

WHSmith, the OG of British retail, is quietly negotiating the sale of its historic high street division, ending a 230-year run. If you’ve ever bought overpriced stationery there, this one’s for you. But is this a strategic masterstroke or just another nail in the high street’s coffin? Let’s break it down.

This Week’s Headlines:

• A historic exit: WHSmith is in talks to sell its 500-store high street business, which employs around 5,000 staff. This marks the potential end of a division dating back to 1792.

• Travel retail triumph: The high street arm is being left in the dust by the travel business, which now generates 75% of the company’s revenue and 85% of profits.

• Investors cheer: CEO Carl Cowling’s move to focus on the faster-growing, more profitable travel sector is seen as a win for shareholders—but it leaves Britain’s high street looking even more fragile.

Why It Matters

This isn’t just about WHSmith - it’s a reflection of the wider struggles facing the British high street. With footfall dwindling and traditional retail losing ground, WHSmith’s pivot to travel retail highlights where the real money (and customer focus) lies. But here’s the bigger question: if even a high street fixture like WHSmith is ready to move on, what hope is left for in-person shopping?

There aren’t many UK high streets without a WHSmith, and its departure would feel like losing a cornerstone of everyday retail life. Is this progress, or just another step toward the death of the high street? I think it depends on who you ask…

🌍 Outside the UK

• DeepSeek launched an open-source AI model, developed in two months for under $6M, challenging the big players.

• DeepSeek R1 quickly overtook OpenAI’s ChatGPT as the top app on Apple’s store, thanks to its free access and competitive API pricing.

• Nvidia’s stock plummeted 17%, wiping out $589B in market cap - the largest single-day loss in history - as DeepSeek’s cost-efficient AI threatened demand for Nvidia hardware.

• DeepSeek’s rise is shaking investor confidence in expensive AI models and reshaping tech sector expectations. Watch this space…

💡 Want To Sponsor Hustlers Outpost?

Want to get your brand in front of UK entrepreneurs, hustlers, and e-commerce pros?

Hit reply and let’s chat!