LONDON (BERNAMA) – Nearly 170,000 retail workers lost their jobs in 2024 following a challenging year for high street firms in Britain, according to data reported by Xinhua.
End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
According to the firm, its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date. This was up by 49,990, an increase of 41.9 per cent, compared with 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic which forced retailers to shut their stores during lockdowns.
The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
Around a third of all retail job losses in 2024, 33 per cent or 55,914 in total, resulted from administrations.
It recorded that the remainder of the jobs lost were through “rationalisation”, as part of cost-cutting programmes by large retailers or small independents choosing to close their stores for good.
Director of the Centre for Retail Research Professor Joshua Bamfield said, “The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns if you like.
“The problems of changed customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut back even more strongly in 2024.”
Independent retailers, small businesses generally with between one and five stores, shed 58,616 jobs in total during the year.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Firms will see an increase in national insurance contributions as well as a reduction in discounts for business rates – the property tax affecting high street firms – next year.
President of property tax at real estate adviser Altus Group Alex Probyn said, “The cut in the business rates discount from April 1 will disproportionately affect independent retailers who will see their bills rise on average by 140 per cent adding an extra GBP5,024 (USD6,028) for the average shop.”
The current 75 per cent discount to business rates – due to end on March 31, 2025 – will be replaced by a less generous discount of 40 per cent. There will still be a maximum discount of GBP110,000.
Altus forecasts have predicted the change will save the Treasury money but cost the retail sector an extra GBP688 million.
The British Retail Consortium has also predicted that an increase in employer national insurance contributions and a reduction in the threshold at which firms start paying will create a GBP2.3-billion bill for the sector.
Professor Bamfield warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
