The retail sector, one of the UK’s largest employers, is facing up to 900,000 job losses and the closure of thousands of shops in the next decade, according to a new report by an industry body, The Guardian reports.
The retail sector, one of the UK’s largest employers, is facing up to 900,000 job losses and the closure of thousands of shops in the next decade, according to a new report by an industry body.
The British Retail Consortium (BRC) warns that rising costs due to the “national living wage” and the new apprenticeship levy – both introduced by George Osborne in last year’s budget – could increase the rate of job cuts.
“Both have sound intentions but could fail on implementation,” the BRC, which represents retail companies, stated.
“Together these effects could mean there are as many as 900,000 fewer jobs in retail by 2025 but those that remain will be more productive and higher earning.”
The retail sector currently employs 3 million people – but of the 270,000 shops in the UK today, up to 74,000 could shut. Nearly 30% of these could be in Wales and the north of England, the report says.
Many high streets across the country have still not fully recovered from the aftermath of the 2008 financial crash, when shop closures accelerated dramatically and chain including Woolworths, Zavvi and MFI disappeared.
“Areas that are already economically fragile are likely to see the greatest impact of store closures and some of the people affected by changing roles will be those who may find it hardest to transition into new jobs that are created.”
The “national living wage” will come into force in April, replacing the current minimum wage of £6.50 an hour with a rate of £7.20 for the over-25s. This is estimated to cost the industry up to £3bn a year, according to the BRC.
Sir Charlie Mayfield, chairman of the BRC and head of the John Lewis Partnership, told the BBC that although retailers supported the introduction of higher pay, employment would be effected. “People are not realising just how significantly the workplace is changing and I think that is dangerous,” he said.
“It means that people assume that somehow things are going to carry on as they are, when that’s unlikely. Some of the places that will be affected will be some of the most economically fragile.”
