This year has seen the retail sector cut staff numbers by the most since the Covid lockdowns of 2020 and companies are expected to continue trying to work with as few humans as possible in 2025 due to various factors.
This is according to a report from the Centre for Retail Research (CRR) and Altus Group (TSX:AIF) released yesterday, which found that 169,395 retail jobs were lost in the 2024 calendar year, up 42% compared to last year.
It forecasts next year could be even worse due to the recent Budget changes.
A third of the high street job losses in 2024 resulted from administrations, including Carpetright, Body Shop, Homebase, Lloyds Pharmacy and Ted Baker as 38 retailers called in the administrators, resulting in the worst year for retail job losses since 2020.
"The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns if you like," said Professor Joshua Bamfield, director of the Centre for Retail Research.
"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."
Looking forward, the report suggested 2025 could remain challenging for the high street because of recent tax and wage measures in the Budget, as well as a less generous discount to business rates.
Over 200,000 retail jobs could be lost in 2025, the CRR predicted, or around 550 jobs per day.
"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," said Alex Probyn of real estate adviser Altus.
The current and temporary Covid-related 75% discount to business rates for retailers is due to be phased out at the end of March, to be replaced by a less generous but more permanent discount of 40%.