The decline of UK high streets has disproportionately impacted women and people in regions outside of London, especially England’s North East and East Midlands, according to new research.
Women make up almost three-quarters of the loss of 108,000 retail jobs over the last seven years, while 40,000 warehouse roles created during that time by the rise in e-commerce have mostly gone to men, a report by the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) found.
While the retail workforce in London grew by 16 per cent between 2011 and 2018, the North East and East Midlands have both suffered an 11 per cent drop.
Almost four in 10 retail workers are worried their employer will cut their working hours as they have the full flexibility to do so, while not allowing workers to choose their hours. In one of the lowest-paid sectors in the UK, that could in some cases mean the difference between being able to make ends meet and not.
“Our research shows that the economic pain that comes with the decline of the high street is not being felt evenly,” said Fabian Wallace-Stephens, researcher at the RSA’s Future Work Centre.
1/9 Toys ‘R’ Us
Customers shop at a Toys ‘R’ Us store. The retail chain announced plans to shut all of its US stores, becoming one of the biggest casualties of the retail shakeout amid the rise of e-commerce. The debt-plagued company announced that it has filed a motion for bankruptcy court approval to liquidate its US operations, a move that could hit 33,000 jobs. The UK retailer failed to find a buyer and said their 105 Toys R Us stores would remain open until further notice, with administrators appointed to begin “an orderly wind-down”.
AFP/Getty
2/9 New Look
New Look announced it will shut 60 stores and cut 980 jobs as part of a restructuring plan agreed with its creditors.
PA
3/9 Maplin
A Maplin store displays closing down notices after the company went into administration.
Reuters
4/9 Claire’s Accessories (US only)
People walk past a Claire’s store in downtown Chicago. The chain that has pierced the ears of millions of teens has filed for Chapter 11 bankruptcy protection. The accessories chain said that its stores will remain open as it restructures its debt.
AP
5/9 Carpetright
Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration.
Reuters
6/9 MOSS BROS.
Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.”
PA
7/9 Mothercare
Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online.
PA
8/9 House of Fraser
The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets.
Getty Images
9/9 Conviviality – Bargain Booze
Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk.
AFP/Getty
1/9 Toys ‘R’ Us
Customers shop at a Toys ‘R’ Us store. The retail chain announced plans to shut all of its US stores, becoming one of the biggest casualties of the retail shakeout amid the rise of e-commerce. The debt-plagued company announced that it has filed a motion for bankruptcy court approval to liquidate its US operations, a move that could hit 33,000 jobs. The UK retailer failed to find a buyer and said their 105 Toys R Us stores would remain open until further notice, with administrators appointed to begin “an orderly wind-down”.
AFP/Getty
2/9 New Look
New Look announced it will shut 60 stores and cut 980 jobs as part of a restructuring plan agreed with its creditors.
PA
3/9 Maplin
A Maplin store displays closing down notices after the company went into administration.
Reuters
4/9 Claire’s Accessories (US only)
People walk past a Claire’s store in downtown Chicago. The chain that has pierced the ears of millions of teens has filed for Chapter 11 bankruptcy protection. The accessories chain said that its stores will remain open as it restructures its debt.
AP
5/9 Carpetright
Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration.
Reuters
6/9 MOSS BROS.
Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.”
PA
7/9 Mothercare
Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online.
PA
8/9 House of Fraser
The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets.
Getty Images
9/9 Conviviality – Bargain Booze
Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk.
AFP/Getty
Women are being hit particularly hard by automation such as self-service checkouts and the shift towards e-commerce, Mr Wallace-Stephens said. Meanwhile, three-quarters of the new jobs created, including delivery drivers and warehouse workers, have gone to men.
However, he said the RSA is “optimistic” that the high street’s decline can be reversed.
“If retailers collaborate more with each other, offer exciting in-store experiences and make customer service roles higher-skilled – with staff becoming more like in-store ‘influencers’ – then we still see a vibrant future for the British high street.”
Edward Story, partner at law firm Taylor Wessing, was similarly upbeat, saying there is “light at the end of the tunnel” for UK high streets.
“Arguably retail is the sector most enhanced and disrupted by technology and the online revolution,” he said.
For many retailers this has yielded opportunities to connect with new markets, engage with customers in fresh ways, revolutionise how they do business and change working practices.
“There is a bright future ahead for the British high street if it can leverage innovative technology to ensure its survival.“
The RSA’s report puts forward several visions for the future of British retail. In one scenario labelled the “empathy economy”, consumers seek out “authentic” shopping experiences. In response, high street shops become more experiential, leading to new, more highly skilled roles. Independent businesses thrive and workers see conditions and job satisfaction improve.
By contrast, in the “big tech economy” scenario high streets face increased competition from technology firms like Amazon.
Delivery drones, autonomous trucks and other technology are introduced, resulting in a decline in demand for manual jobs.
Many workers are made redundant and, while new hi-tech roles emerge, the opportunities for employees to transition are limited, the RSA suggests.
