Almost 125,000 UK retail jobs lost so far this year, study estimates

  • 9/9/2020
  • 00:00
  • 9
  • 0
  • 0
news-picture

Nearly 125,000 retail jobs have been lost in the UK in the first eight months of this year, according to a fresh estimate, as major chains including Debenhams, Marks & Spencer joined independents in shutting stores. As many as 13,867 shops have closed permanently, including thousands of small stores employing 32,598, the Centre for Retail Research (CRR) said. The job losses at small shops come alongside 92,917 at high street chains between 1 January and 31 August, taking the total to 124,515. They include 7,000 jobs going at M&S, 2,500 at Debenhams, 4,000 at Boots and 1,300 at John Lewis. Prof Joshua Bamfield, director at the CRR, said increasing costs and the move to online shopping meant “retail was already in crisis before the pandemic”. But he added: “Covid-19 has been a real hammer blow for retailers many of which were not in good health before the contagion took a hand. The prospects for many non-food retailers are bleak.” Despite the government’s furlough scheme, which was designed to protect jobs during the high street lockdown, the number of job losses is 31.5% greater than during the same period in 2019. Recent figures indicate the number of empty shops on UK high streets has risen to its highest level in six years as city centres, and especially London’s, have experienced a dive in visitor numbers. The British Retail Consortium has warned of more pain in September, with high street sales still below pre-pandemic levels and the lack of shoppers having a devastating effect on those retailers operating in city centres that once thronged with workers. Bamfield estimates that 43,381 jobs have been lost through retailers falling into administration, such as Debenhams, Monsoon, Oasis, M&Co and Cath Kidston. A further 10,556 jobs have been lost through company voluntary arrangements (CVAs), an insolvency procedure used to close loss-making stores by Poundstretcher among others. Robert Hayton, the head of business rates at advisory firm Altus Group, said: “Many retailers are clinging on to solvency and, for those, an abrupt halt to the current [business] rates holiday could spell the end, full stop. “Whilst what comes next cannot be a return to pre-pandemic levels of property taxes for retailers, it must strike a balance with public finance affordability.”

مشاركة :