More than 176,000 jobs in retail were lost in 2020 after harsh high street conditions saw over 15,000 stores close, with experts warning more of the same in 2021.
The number of job losses experienced by the retail sector in 2020 was almost 25% higher than those lost the year before, according to figures from the Centre for Retail Research (CRR).
The figures make for grim reading for the sector and CRR director Joshua Bamfield warned that 2021 could see more than 200,000 jobs disappear.
“Our forecast is based on a number of factors, such as the cumulative effects of months of closure and its impact upon cash flow and rent arrears that will be payable when the moratorium ends,” he said.
The acceleration of online shopping would be “hugely damaging for physical stores”, he added.
The figures show that over 176,000 retail jobs were lost in 2020 due to retailers such as Debenhams, Laura Ashley, Oasis and Cath Kidston filing for administration; 11,000 jobs were cut through insolvency procedures such as CVAs.
Retailers such as New Look and Monsoon Accessorize used such procedures to shutter stores and slash rents across property portfolios.
However, CRR figures show the largest proportion of jobs lost last year came from retailers rationalising workforces.
Nearly 93,000 jobs were lost this way, with Marks & Spencer axing 7,000 jobs in August, Boots 4,000, John Lewis making 1,500 redundancies and Dixons Carphone losing 3,700 staff after shutting all its Carphone Warehouse stores.
The fact that so many ‘non-essential’ retailers, already reeling from one of the toughest trading years on record, were forced to shut stores days before Christmas has experts worried about further casualties in the new year.
Some property experts are also warning that even as restrictions lift in the spring, many retailers will decide not to reopen many stores to save costs.
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