Almost 170,000 retail jobs lost in 2024 – and there could be even more next year
It is the highest since more than 200,000 jobs in the sector were lost in 2020 in the aftermath of the COVID pandemic, which forced retailers to shut their stores during lockdowns.
The figures, compiled by the Centre for Retail Research, show a total of 169,395 retail jobs were lost in the 2024 calendar year to date – up 49,990 – an increase of 41.9% – compared with 2023.
It said its latest analysis showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from the collapse of businesses, with 38 major retailers going into administration, including other household names such as Lloyds Pharmacy, The Body Shop, and Carpetright.
The rest were through “rationalisation”, as part of cost-cutting programmes by large retailers or small independents choosing to close their stores for good, according to the centre.
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, which are generally small businesses with between one and five stores, shed 58,616 jobs in total during the year.
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Experts said 2025 is expected to be another challenging year for high street firms, with an increase in national insurance contributions as well as a reduction in discounts for business rates – the property tax affecting high street firms.
The current 75% discount to business rates – due to end on 31 March 2025 – will be replaced by a less generous discount of 40%, with the maximum discount remaining at £110,000.
Alex Probyn, president of property tax at real estate adviser Altus Group, said: “The cut in the business rates discount from 1 April will disproportionately affect independent retailers who will see their bills rise on average by 140% adding an extra £5,024 for the average shop.”
Altus forecasts have predicted the change will save the Treasury money but cost the retail sector an extra £688m.
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 £2.3bn bill for the sector.
Professor Bamfield has predicted as many as 202,000 jobs could be lost in the sector in 2025.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020,” he added.
