The UK retail sector is currently grappling with a harsh reality, with over 27,000 jobs already lost in the industry so far this year, as reported by the Centre for Retail Research (CRR). This staggering number underscores the immense challenges that the retail sector in the UK is facing, with an average of 850 jobs disappearing every single working day since the start of the year.
Furthermore, the CRR report sheds light on the closure of 1,023 stores within the retail sector due to insolvencies among retailers with 10 or more stores. This wave of closures paints a grim outlook for the future of retail in the UK, signaling the urgent need for intervention and support.
Professor Joshua Bamfield from CRR warns that the job cuts we are witnessing in the retail sector are merely the beginning, emphasizing the necessity for continued assistance from the Treasury. Bamfield advocates for extending measures like the business rates holiday and eviction moratorium to provide immediate relief, but also stresses the importance of devising long-term solutions, such as offering loans to help retailers repay mounting debts.
Throughout the pandemic, the UK government implemented a business rates holiday for retail, hospitality, and leisure businesses until March 31. However, industry leaders are calling on Chancellor Rishi Sunak to extend this support in the upcoming Budget on March 3. The Scottish government has already prolonged its business rates holiday until April 2022, underscoring the ongoing need for sustained aid for struggling businesses in the retail sector.
In light of the unprecedented challenges facing the retail industry, it is imperative for the government to take proactive steps to curb further job losses and store closures. By providing financial support and extending relief measures, the government can help ease the burden on retailers and safeguard employment within the sector. The resilience of the UK retail industry hinges on the government’s response to the current crisis and its dedication to bolstering businesses during these turbulent times.
For more information on the UK retail sector and the impact of the pandemic, visit Retail Gazette and BBC Retail News.
