The COVID-19 pandemic has dealt a devastating blow to the retail sector in the UK, according to a recent study by the Centre for Retail Research (CRR). In 2020, a staggering 177,000 jobs were lost in the industry, marking a 25% increase from the previous year. Unfortunately, the situation is only expected to worsen in 2021, with a projected 200,000 more job losses looming on the horizon.
Retail plays a vital role in the UK economy, providing a significant number of jobs, particularly for women who are often employed in retail positions. The pandemic has hit women in the industry especially hard, particularly those in lower-paying roles such as sales assistants and checkout staff.
The shift towards online shopping and the closure of physical stores have been major contributors to the job losses in the retail sector. With over 310,000 non-essential shops closed in England, retailers like Primark have suffered immense losses, estimating around £650 million in lost sales due to store closures in the UK and Ireland.
Major retailers like Debenhams and Arcadia have already faced insolvency, resulting in store closures and additional job losses. The CRR predicts that more closures are inevitable in 2021, following the 15,700 closures seen in 2020. Joshua Bamfield, the director of the CRR, emphasizes the long-term consequences of the shift towards online retail, which is expected to have devastating effects on brick-and-mortar stores and traditional retail jobs.
The job losses experienced in 2020 have surpassed those seen during the financial crash of 2008, presenting significant challenges for employees as companies struggle to stay afloat. Both independent retailers and major chains have been forced to downsize or shut down entirely, leading to widespread job losses across all sectors of the market.
Establishments such as Laura Ashley, Oasis, Warehouse, and Arcadia’s Evans have already faced closures, indicating the tough road ahead for the retail industry. While some companies have managed to reopen flagship stores, the overall outlook remains uncertain as the sector navigates the impact of the pandemic and the ongoing shift towards online shopping.
For more information on the impact of COVID-19 on the retail sector, you can visit the Centre for Retail Research’s official website here. Additionally, for updates on retail trends and developments in the UK, you can explore Retail Gazette’s platform here.
