Retail Job Losses in 2024 Reach Highest Level Since Pandemic

Nearly 170,000 retail jobs were lost in 2024 due to the collapse of major high-street chains, marking the highest job loss in the sector since the COVID-19 pandemic, according to new data.

The figures, compiled by the Centre for Retail Research, show a total of 169,395 retail jobs lost so far this year, representing a significant increase of 41.9% compared to 2023, which saw 49,990 fewer job losses. The surge in job cuts is due to the fall of major retail chains such as Homebase, Ted Baker, and several others.

Approximately one-third of the total job losses, or around 55,914 positions, directly resulted from the bankruptcy of 38 major retailers, including household names like Lloyds Pharmacy, The Body Shop, and Carpetright. The rest of the losses came from “rationalization” efforts by larger retailers and the closure of small independent stores.

Retail Job Losses in 2024 Reach Highest Level Since Pandemic

Professor Joshua Bamfield, director of the Centre for Retail Research, explained that the relatively low job loss numbers in 2023 now appear to be an anomaly, attributed to a brief recovery after the pandemic lockdowns. He attributed the continued difficulties to changing consumer habits, inflation, rising energy costs, and high business rates.

Independent retailers, which typically operate small businesses, accounted for 58,616 job losses in 2024.

Experts predict the challenges will continue into 2025, with rising national insurance contributions and cuts to business rate discounts. From April 1, 2025, the government will reduce the current 75% discount on business rates to 40%, which will increase bills for independent retailers by 140%.

The British Retail Consortium anticipates an additional £2.3 billion burden on the sector due to increased employer national insurance contributions. Professor Bamfield warned that job losses in 2025 could reach up to 202,000, surpassing even the height of the pandemic.

For the analysis and updates, visit FXAN to stay informed on the latest news and insights. Also, follow us on Instagram.