Since the beginning of 2023, UK retailers have already cut nearly 15,000 jobs and closed almost 700 stores, according to the data.
Experts warn that the “reckless start to the year” will continue as price pressures and lower consumer spending take their toll.
The Retail Research Center found that 14,874 job cuts or layoffs have been announced since the start of the year.
Retailers such as stationery store Paperchase and department store M&Co moved into administrative jobs, resulting in 3,185 job losses.
The study found that a further 11,689 jobs will be cut by major retailers as a result of “rationalization” as part of their cost-cutting programs.
These cuts include cuts from Tesco, Asda, Wilko and New Look since the beginning of last month.
Professor Joshua Bamfield of the Center for Retail Research said: “The optimization process will gain momentum as retailers continue to reduce their cost base. ”
The total reflects the decline of major retailers with 10 or more stores in the UK. This means that the industry’s overall job loss could be even greater if smaller independent retailers are also included.
The latest figures from the Office for National Statistics (ONS) show that the retail sector remains at risk in the current economic environment.
Non-gasoline retail sales fell 5.1 percent last month, according to the ONS. They also fell in December 2022 (-6.1 percent) and November 2022 (-5.7 percent) as consumers react to inflation-driven higher prices by buying fewer goods.
Despite this decline, the cost of retail sales – the amount of money consumers spend – rose 4.1 percent year on year.
Retailers are also suffering from increases in their own electricity bills and property taxes. Business taxes, property taxes faced by large businesses and one of their biggest expense items, will be reset from April 1st, benefiting many businesses.
The Treasury says retailers “will see their total bills drop by 20 per cent” as businesses also receive a 75 per cent cut to a cap of £110,000.
However, Alex Probin, global president of property tax at Altus Group, said: “The reality is that with the cap, most retailers will only benefit from a discount in a few of their stores.”
Source: I News
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