Nearly 15,000 British retail jobs have been cut since last month in a “brutal start to the year” for the high street.
A total of 14,874 retail job losses have been announced by companies so far, research by the Centre for Retail Research (CRR) found.
National retailers, including stationery brand Paperchase, clothing chain M&Co and Tile Giant Ltd, have all gone bust in the past few weeks, while discount retailer Wilko Ltd, clothing retailer New Look Ltd, and supermarkets Tesco PLC and Asda Stores Ltd have all announced job cuts.
Photo: Bloomberg
Large retail chains, which have 10 or more stores, are among those cutting jobs on UK high streets, as well as at main shopping destinations, the research found.
Most of the job losses — totaling 11,689 — are at large retailers, including Tesco and Asda, who are carrying out cost-cutting programs and restructuring operations.
Meanwhile, a further 3,185 jobs have been lost at large retailers that have collapsed and are undergoing insolvency proceedings.
Embattled stationery specialist retailer Paperchase Products Ltd fell into administration last month, after being hit by rising costs and disappointing sales.
The brand and its intellectual property was bought by Tesco, but the deal did not include taking on Paperchase’s 106 stores in the UK and Ireland, prompting the loss of 250 jobs, with an uncertain future for the remaining 500 staff.
Many retailers have already collapsed in the past few years, CRR director Joshua Bamfield said.
“The process of rationalization will continue at pace as retailers continue to reduce their cost base,” he said. “We are unlikely to see any respite in job losses in 2023 after a brutal start to the year.”
Retail job losses have been mounting for several years, even prior to lengthy closures after repeated COVID-19 lockdowns.
Just under 3 million people were employed in retail in the second quarter of last year — 63,000 less than a year earlier, a British Retail Consortium survey found.
A revaluation of business rates, which are among the largest operating costs for retailers, is taking place from April 1, and looks likely to reduce the rateable values used to determine bills.
Business rates relief means that new bills would be discounted by 75 percent for the tax year from April to the end of March next year, up to a cash cap of ￡110,000 (US$132,551) per business, as British Chancellor of the Exchequer Jeremy Hunt announced in his autumn statement.
His Majesty’s Treasury has said that the retail sector “is set to see its overall bills paid fall by 20 percent” as a result.
However, property adviser Altus Group is saying that most retailers with multiple stores are only expected to benefit from the discount on a handful of their branches because of the cap.
“While the adjustments brought about by the revaluation are welcome, 10 percent overall just does not go far enough given the state of the market on the valuation date, which is likely to lead to a tsunami of appeals,” Altus Group global president of property tax Alex Probyn said.
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