Retail sector job cuts worse than feared at 125,000 in eight months
● Analysis reveals 13,867 shops have permanently closed their doors
More than 125,000 jobs in the UK retail sector have been lost in the first eight months of 2020 - far higher than previous estimates, new data shows.
According to analysis by the Centre for Retail Research, 125,515 retail jobs have been axed and 13,867 shops have permanently shut across high streets, shopping centres and retail parks.
The research found a pre - viously-unaccounted 32,598 positions have gone at inde - pen dent retailers, although the majority of job cuts have been at chain stores and bigger-name brands - with 73,133 losses.
Professor Joshua Bamfield, director at the Centre for Retail Research, said: “There are some good times being had, but the majority of retailers are under incredible pressure. Many retailers really missed the opportunity in the early 2010s to recast their businesses.
“They’re being forced to do it now and they have to move more quickly because what should’ve been done over five years is being done over six months.”
The 125,000 jobs axed in the retail sector do not include those lost in the leisure and hospitality industry, which is suffering its own employment cull.
Some retailers have created positions to cope with extra demand. These include new roles in super markets like Tesco and Iceland, alongside online giants Amazon and courier firm DPD.
However, concern remains that they will not be enough to cover the shortfall.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Coronavirus is continuing to have a devastating effect on many retail businesses, with shopping malls and town centre shops suffering significantly lower footfall.
“Government must ensure a more sustainable long-term tax system-avoiding the cliffedge of rent sand business rates in April.
“Without action, the recent job losses we’ve seen across the industry may be just the tip of the iceberg.”
High street stalwarts have already announced major changes and staff cutbacks.
M& S revealed 7,000 positions would go as sales plunged; De ben ha ms put itself into administration protection and slashed 2,500 positions.
John Lewis, the former barometer of the nation’ s shopping habits, announced 1,300 jobs were at risk and eight stores will never reopen - including the Birmingham branch which falls under the jurisdiction of its Conservative mayor Andy Street, himself the former boss of the retailer.
The cuts to retail have been felt particularly hard, and it is understood a concerted effort to force the Government into a business rates holiday extension are under way.
Executives at Arcadia and River Island alongside lobby ists representing West End retailers and businesses have been encouraging retailers to write to the Treasury. Some have also been asked to include estimates of how many jobs they plan to axe.