Some 150,000 jobs lost in ‘toxic’ year for retail

More than 150,000 retail jobs were lost last year as thousands of stores were forced to close permanently, a damning report found.

The staggering casualty rate – a shocking 43 percent higher than in 2021 – was the result of a “toxic cocktail” of skyrocketing costs and declining consumer confidence. It came at a time when many stores were hoping for a post-Covid bounce.

Research from The Mail on Sunday found that listed retailers lost £27bn in value last year. Just the iconic fashion house Burberry ended the year on a positive note.

were among the biggest losers J.D. Sportswith about 45 per cent – or £5 billion – of its value. Marks & Spencer and Curries saw similar nosedives in their ratings.

The figures expose the pressure on the British retail sector, the largest non-public sector employer.

Rising inflation, rising operating costs and record-breaking pressures on household income all put enormous pressure on retailers.

Retailers had hoped last year would herald a new dawn for the industry after pandemic restrictions were lifted. Many reported a strong summer, but times have gotten tougher since then.

The surprising report on the sudden decline of retail has been compiled by the Center for Retail Research. It will be published this week.

Professor Joshua Bamfield, director of the CRR, said: ‘Last year was meant to be the year where retailers got on a sound footing, achieved steady growth throughout the year and were able to repay some of the debt incurred during the pandemic. .’

But the year was instead increasingly characterized by “rapid inflation, exceptional increases in energy costs and belt tightening,” Bamfield added.

Listed retailer JD Sports was among the biggest losers, falling about 45 percent

A retail executive described the plight for many retailers as a “toxic cocktail that couldn’t have come at a worse time.”

The job loss figures cover high street shops, retail parks, malls, cities and towns, as well as small local malls, independent shops and retailers selling online.

Bamfield said 53,741 jobs were lost from independent stores, while cutbacks at larger stores and internet retailers saw a further 97,733 jobs lost.

Retailers that went out of business last year included Joules, Made.com, McColl’s, M&Co and Missguided.

Sales fell unexpectedly in November, according to the Office for National Statistics.

Barclaycard data released last week revealed that retail spending in 2022 is down 0.8 percent compared to 2021, despite a very good start to the year.

There were reports of Boxing Day sales in stores last week, but Bamfield expects the spending to drop quickly.

He predicts sales in January could bring in up to £1.5 billion less than last year.

Next boss Lord Wolfson will be one of the first to report on Christmas trading this week.

He already warned that sales in the second half of Next’s fiscal year will decline through the end of January despite a solid first half, saying: “We must prepare for difficult times ahead.”