- Photo by Tolga AKMEN / AFP
London: Almost 170,000 retail workers lost their jobs during 2024 after a challenging year for high street firms in Britain, according to data.
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.
It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar-year to date.
This was up 49,990 – an increase of 41.9% – 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% 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.
Professor Joshua Bamfield, director of the Centre for Retail Research, 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.
Alex Probyn, president of property tax at real estate adviser Altus Group, 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% adding an extra £5,024 or about US$6,028 for the average shop.”
The current 75% discount to business rates – due to end on March 31, 2025 – will be replaced by a less generous discount of 40%. There will still be a maximum discount of £110,000.
Altus forecasts have predicted the change will save the Treasury money but cost the retail sector an extra £688mil.
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 £2.3bil bill for the sector. — dpa
