Thousands of jobs have been axed by major retailers amid growing concerns of economic slowdown, states a recent report.
According to analysis from the Centre for Retail Research (CRR), a total of 14,874 retail job losses have been announced by companies so far. Large retail chains, which have 10 or more stores, are among those cutting jobs on UK high streets, as well as at main shopping destinations, the research found.
Most of the job losses – totaling 11,689 – are at large retailers including Tesco and Asda who are reportedly carrying out cost cutting programmes and restructuring operations.
Meanwhile, a further 3,185 jobs have been lost at large retailers which have collapsed and undergoing insolvency proceedings.
“The process of rationalisation will continue at pace as retailers continue to reduce their cost base,” reports quoted Prof Joshua Bamfield, as saying. “We are unlikely to see any respite in job losses in 2023 after a brutal start to the year."
Just under 3 million people were employed in retail in the second quarter of 2022, according to a survey from industry body the British Retail Consortium, which was 63,000 lower than a year earlier.
The loss of 15,000 jobs comes amid a tough start to 2023 for high-street retailers as brands contend with a raft of collapses and restructurings.
Experts have warned over “the brutal start of the year” as stores struggle amid weaker customer spending power.
The figures come ahead of April 1 when business rates will be evaluated which is expected to benefit dozens of businesses. The Treasury has said the retail sector will “see its overall bills paid fall by 20 per cent” as firms also receive a 75 per cent discount of up to £110,000.
“The reality is most multiple retailers will only benefit from the discount on a handful of their stores given the cap," reports quoted Alex Probyn, global president of property tax at real estate adviser Altus Group, as saying.
“Whilst the adjustments brought about by the revaluation are welcome, 10% overall just does not go far enough given the state of the market on the valuation date which is likely to lead to a tsunami of appeals.”
