Nearly 170,000 retail workers lost their jobs this year after the collapse of major chain stores, according to data.
This is the highest since more than 200,000 jobs in the sector were lost in 2020 in the wake of the crisis. COVID pandemic, which forced retailers to close their stores during lockdowns.
The figures, compiled by the Center for Retail Research, put the total at 169,395 retail Jobs have been lost in calendar year 2024 to date – up 49,990 – an increase of 41.9% – compared to 2023.
According to its latest analyses, the number of job cuts has increased due to the collapse of large chains such as Base of attachment And Ted Boulanger.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, are due to business collapse, with 38 major retailers placed into administration, including other names well-known ones such as Lloyds Pharmacy, The Body Shop and Carpetright.
The rest was done through “rationalization,” as part of cost-cutting programs led by large retailers or small independents choosing to permanently close their stores, according to the center.
File photo: PA
Professor Joshua Bamfield, director of the Center for Retail Research, said: “The relatively low figures for 2023 now look like an anomaly, a pause for breath from many retailers after the lockdowns, if you like.
“Problems related to changing customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut even more sharply in 2024.”
Independent retailers, which are typically small businesses with between one and five stores, shed a total of 58,616 jobs over the year.
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Experts have said 2025 is set to be another tough year for big businesses, with national insurance contributions rising as well as reduced business rates discounts – with property tax hitting big businesses.
The current 75% discount on business rates – which is due to end on March 31, 2025 – will be replaced by a less generous 40% discount, with the maximum discount remaining at £110,000.
Alex Probyn, president of property tax at property adviser Altus Group, said: “The reduction in the business rates reduction from April 1 will disproportionately affect independent retailers who will see their bills increase by an average of 140%. adding a further £5,024 for property tax. average store. »
Altus forecasts predict the change will save the Treasury money, but cost the retail sector an additional £688 million.
The British Retail Consortium also predicted that an increase in employers’ national security contributions and a reduction in the threshold at which businesses start paying would result in a £2.3 billion bill for the sector.
Professor Bamfield predicts that up to 202,000 jobs could be lost in the sector in 2025.
“By increasing both the costs of running stores and the costs to each consumer household, it is very likely that we will see retail job losses eclipse the peak of the pandemic in 2020,” a- he added.