TIMES.KY

Cayman Islands, Caribbeanand International News
Tuesday, Apr 16, 2024

'Worst year for High Street job losses in 25 years'

'Worst year for High Street job losses in 25 years'

Last year was the worst for the High Street in more than 25 years as the coronavirus accelerated the move towards online shopping, analysts say.

Nearly 180,000 retail jobs were lost in the UK in 2020, up by almost a quarter on the previous year, according to the Centre for Retail Research (CRR).

It warned there will be more pain for the sector in 2021 as retailers face a cash flow crisis and rent payments.

It has predicted up to 200,000 more retail jobs will be at risk in 2021.

Professor Joshua Bamfield, a director at the Centre for Retail Research, said its forecast was based on "the cumulative effects of months of closure and its impact upon cash flow and rent arrears that will be payable when the moratorium ends.

"Whilst the longer-term effects of the greater use by shoppers of all kinds of online retailing is likely to be hugely damaging for physical stores," he added.


Topshop has been hit hard by coronavirus lockdowns


Major brands including Topshop-owner Arcadia, Edinburgh Woollen Mill Group and Debenhams slashed hundreds of jobs after collapsinig into administration during the year.

Susannah Streeter, market analyst at Hargreaves Landsdown, said the pandemic alone couldn't "be blamed for the collapse of household names. It merely accelerated the shift to digital," she said.

She says that 2021 will be a "year of painful evolution" for the sector.

"Debenhams has been the key anchor store in city centres for decades, but fell behind fashion trends, whilst locked into long leases with rising rents with underperforming online sales.

"Topshop was still the leader of the High Street fashion pack a decade ago, but underinvestment in e-commerce and social media, saw it leapfrogged by savvy online rivals like Boohoo and Asos."



The success of fast fashion online retailers such as Boohoo has been tough for some of the more established High Street brands to emulate.

Mrs Streeter said that shoppers appeared to "shrug off" accusations that the retailer had been "tolerating widespread abuses of employment law" at some of its suppliers in Leicester.

"Although ethical concerns do appear to be growing amongst some consumers, it seems fast fashion shoppers are still prioritising price."

The pandemic has 'turbo-charged' the High Street's decline

Analysis by consumer affairs correspondent Sarah Corker



The High Street was struggling before the pandemic struck, but almost a year of lockdowns and restrictions appears to have turbocharged that decline. Some estimate the shift towards online shopping has been accelerated by five to ten years.

Every week in 2020, an estimated 3,400 retail jobs were lost. Retailers have spent huge sums of money making their premises covid secure; stores have been re-designed with one way systems and plastic screens, returned items are quarantined for up to 72 hours and there are enhanced cleaning regimes.

All that pushes costs up at a time when social distancing means there are fewer customers.

But amid the slew of store closures, there is a slither of positive news. As more of us work from home, we're spending more money locally and rediscovering our local high streets and independent stores.

Analysis of spending habits suggests smaller neighbourhood shopping areas have fared much better than large cities and shopping centres this year.

Currently around three million people in the UK work in retail.

The CRR warned that on-going Tier 4 restrictions and a delayed rollout of coronavirus vaccines in the UK could spark up to 200,000 job losses.

'Not a bun fight'


Mrs Streeter added that it would be crucial for high street retailers to evolve their in-store experience if they were to attract customers back in a post Covid-19 climate.

"Department stores can still thrive, if they provide the experience the customer craves. Items like footwear can be very difficult to get right online," she said.


Boohoo's market capitalisation is now more than household name Marks & Spencer

Trying out fragrances and skincare is impossible in a virtual world. Underwear, which is difficult to return, may look a good fit on models but customers prefer to try it before they buy, she says.

"However, shopping needs to be an enjoyable past time, not a bun fight amid vast racks of clothes. Reducing retail footprints, while investing in the appeal of an exciting in store and online seamless experience will be key to attracting newer younger customers."

Newsletter

Related Articles

TIMES.KY
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×