Number of UK retail job losses to rise to 164,100 in 2019

By

Barbara Santamaria

Published
Jan 2, 2019

Retailers throughout the UK will collectively cut an estimated 164,100 jobs this year, representing a 20% increase in retail job losses compared to 2018, according to new data.

Last year’s wave of CVAs, administrations and store rationalisation programmes is expected to accelerate this year amid a worsening of conditions on the high street. More than 22,000 stores are forecasted to close, new data from the Centre for Retail Research showed.

Jobs will be lost from both independent and large retailers as continuing weak demand adds to further pressures facing businesses, such as the high cost of running stores.

102,000 jobs are expected to be cut due to retailers going into administration or liquidation: 53,100 due to CVAs (company voluntary agreements, a form of insolvency which allows retailers to renegotiate rents and close loss-making stores) and 8,500 due to store rationalisation plans.

CRR professor Joshua Bamfield commented: “We expect a number of major retailer chains to hit the buffers in 2019 and go into administration or seek approval for CVAs, of which HMV may be only the first. Most retailers are likely to bring forward plans for store closures and jobs-shedding.”

“Consumers have shown over Christmas they are increasingly anxious and have become more careful about spending money. The bitchy nature of political debate on either side of the Brexit debate further undermines consumer confidence and makes shoppers doubt whether anyone is in charge.

“It is time for the Government and local authorities to make a strong effort to save the high street and cutting business rates as a priority would be a welcome first start.”