UK high streets have lost more than 140,000 jobs this year, with store closures and retail failures making 2019 one of the most challenging years in a generation, according to a study by the Centre for Retail Research (CRR). The report, published today, found that over 2,750 jobs were lost every week, and predicts the situation will worsen in 2020 unless the government intervenes. High business rates are among the factors blamed for accelerating chain store closures.
CRR director Professor Joshua Bamfield said retail was in crisis due to high costs, low profitability, and the shift to online sales. “These problems are felt by most businesses operating from physical stores in high streets or shopping malls,” he said. “The low growth in consumer spending since 2015 has meant that the growth in online sales has come at the expense of the high street.”
The CRR said 38,100 of the jobs lost this year were due to retail chains going bust, including Karen Millen and Coast. Another 26,500 roles were cut through company voluntary arrangements (CVAs), used by firms like Arcadia and Debenhams to close loss-making stores. A further 78,600 jobs were axed via cost-cutting by large retailers or small shops closing permanently. Marks & Spencer and House of Fraser are among those shutting outlets. In total, 143,100 jobs were lost in 2019, up by more than a fifth on 2018’s 117,400. The CRR also calculated that 16,073 shops closed in 2019, or about 61 per working day, up from 14,583 in 2018.
A separate study by the RSA Future Work Centre found that the rise of online shopping has eliminated 289,000 traditional high street roles over the past decade. Eight out of 10 of these entry-level jobs, such as sales assistants and checkout operators, were held by women. RSA head Alan Lockey said: “The carnage on the high street has hollowed out many jobs traditionally held by women, but areas of growth related to e-commerce, such as van driving, are going more to men. This is having a profound effect on individuals, families and society.”
Today, one in every five pounds spent at shops is online, more than double the level at the start of the decade. The RSA analysis shows there are now 166,000 fewer checkout staff, shelf fillers and sales assistants than in 2010, while bank and post office clerks have shrunk by 65,000. In contrast, there are 102,000 more van drivers and 161,000 more administration roles. Despite the decline, retail remains the UK’s largest private sector employer with about 3 million workers. However, many former shop workers have moved to lower-paid roles in restaurants, hotels, and care work, leading to working poverty.
