Retail Job Losses Reached Almost 177,000 In 2020

Data from the Centre for Retail Research (CRR) has revealed that 176,718 retail jobs were lost during 2020 as the sector struggled amid the coronavirus pandemic and the growth in online sales.

The retail analysis organisation forecasts job losses of 200,000 in 2021, with the first half of the year likely to be worse than the same period in 2020.  An increased number of retail closures are anticipated as coronavirus restrictions force non-essential retail to close and online demand rises. 

On average, 3,400 retail jobs were lost each week during 2020, and 15,747 retail stores closed during the year.

There were nearly 20% fewer job losses in 2019 - 143,128 - equating to around 2,752 each week.  The data shows that 9,356 retail stores closed their doors during the year.

Job losses were as a result of retailers going into administration, CVA activity and rationalisation, and include those lost at independent stores as well as large chains.  

Administration was the cause of 71,811 jobs; 92,921 were lost as a result of rationalisation, and 11,986 jobs vanished due to CVA activity.

The total number of overall retail jobs lost in 2020 was up by almost a quarter on the 143,128 overall jobs lost during 2019.

Professor Joshua Bamfield, CRR director, said: 

“Our forecast is based upon a number of factors such as the cumulative effects of months of closure and its impact upon cash flow and rent arrears that will be payable when the moratorium ends,”

“Whilst the longer-term effects of the greater use by shoppers of all kinds of online retailing is likely to be hugely damaging for physical stores.”

Source : Insight DIY Team

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.