Almost 170,000 retail employees lost their jobs this year after several major high street firms collapsed.
Homebase, Ted Baker, The Bodyshop, Carpetright and Lloyds Pharmacy were among 38 retailers that went into administration in 2024, according to figures compiled by the Centre for Retail Research.
It said a total of 169,395 retail jobs have been axed since January 1, which is 49,990 (or 41.9%) more than last year.
It is the highest number since more than 200,000 retail jobs were lost in 2020 in the aftermath of the Covid-19 pandemic which forced businesses to shut their stores during lockdowns.
Around a third of all retail job losses in 2024 – 55,914 in total -came as a result of administrations.
The centre found the remaining job cuts were through ‘rationalisation’, as part of cost-cutting measures by large retailers or small independents closing down for good.
Professor Joshua Bamfield, director of the Centre for Retail Research, said: ‘The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns if you like.
‘The problems of changed customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut back even more strongly in 2024.’
Small businesses with between one and five stores saw 58,616 jobs axed in total during the year.
According to experts, 2025 will be particularly difficult due to changes to budget tax and wages.
There will be a rise in national insurance contributions as well as a reduction in discounts for business rates.
Alex Probyn, president of property tax at real estate adviser Altus Group, said: ‘The cut in the business rates discount from April 1 will disproportionately affect independent retailers who will see their bills rise on average by 140% adding an extra £5,024 for the average shop.’
The current 75% discount to business rates – due to end on March 31 2025 – will be replaced by a less generous discount of 40%. There will still be a maximum discount of £110,000.
Altus forecasts suggest the change will save the Treasury money but cost the retail sector an extra £688 million.
Professor Bamfield warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
‘By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.’
There was some good news for Homebase fans, however, as it was revealed that CDS Superstores, owners of The Range and now Wilko, will be reopening 70 Homebase stores as The Range Superstores.
The Superstores will feature Homebase garden centres and a ‘Kitchens by Homebase’ section.
It’s not clear if Homebase employees will be kept on.
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