- Don-Alvin Adegeest
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Nearly 10,000 retail jobs have been lost since the start of the new year according to research from the Centre for Retail Research (CRR).
With 143,100 jobs lost in 2019, estimates for 2020 are worse, with 171,669 job losses projected this year, an increase of 19.8 percent. A further 17,565 store closures are expected to shutter, an increase of 9.3 percent.
The high street continues to face grave challenges
According to CRR, the commercial pressures of higher labour costs, business rates and relatively weak demand will continue to undercut profits and force the weakest
companies to close stores or enter administration. The high street and suburbs will continue to decline.
Retailers that survived the high street stresses of 2019 will not necessarily be thriving in 2020. Further announcements from companies that have already gone through CVAs or administration such as the House of Fraser, Debenhams, Arcadia, Select, Clintons, and Beales Department Stores may come about new protocols and restructuring that may well result in cutbacks on their existing operations.
The UK retail sector employs nearly three million people, so the latest losses would mean that one job in 300 has disappeared this year so far.
While online-only fast fashion brand Boohoo has overtaken High Street stalwart Marks and Spencer in terms of market capitalisation, Asos issued profit warnings in 2018 and 2019. There appears to be no magic formula for retail success other than Darwinian’s survival of the fittest.
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