- 169,395 retail jobs lost in 2024, marking a 41.9% increase from 2023.
- High street giants like Homebase and Ted Baker filed for administration.
- Smaller retailers facing further strain in 2025 due to rising costs and tax changes.
In 2024, the UK retail industry experienced a sharp rise in job losses, with nearly 170,000 positions cut, primarily due to the collapse of major chains.
Looking ahead, experts predict an even tougher year for the retail sector in 2025, particularly for small businesses. Tax and wage changes, including increases in national insurance contributions and reduced discounts on business rates, are expected to add significant financial pressure.
Retail Job Losses Surge in 2024 as UK High Streets Struggle to Adapt
In 2024, UK retail job losses surged to 169,395, a 41.9% increase from the previous year. The high number of layoffs was driven by the closures of large retail chains like Homebase, Ted Baker, and The Body Shop. The Centre for Retail Research recorded a sharp spike in administrations, with 38 major retailers going bankrupt this year, contributing significantly to the overall job cuts. These closures impacted both larger chains and independent stores, which had to streamline operations in response to changing market conditions.
Small independent businesses, many of which have only a handful of locations, were among the hardest hit. In total, they lost 58,616 jobs as they faced mounting challenges in an increasingly difficult retail environment. These small retailers are especially vulnerable to changes in national policies, such as the reduction in business rates discounts and higher national insurance costs that will come into effect in 2025. The impact of these changes could force even more store closures, resulting in additional job losses.
Retailers are facing an increasingly complex set of challenges that go beyond just business rates and wages. Shifts in consumer shopping habits, inflation, and rising energy costs have compounded the difficulty for businesses trying to survive in the competitive high street environment. These economic factors have led to a more cautious approach by many firms, with some reducing staff and consolidating operations in a bid to stay afloat.
Looking ahead to 2025, the outlook for the retail sector remains bleak. Experts predict that the challenges faced by high street businesses will continue, with the risk of job losses exceeding those seen during the pandemic. The combination of higher operational costs and a slower recovery in consumer spending could result in an even greater wave of closures and layoffs, further straining the sector.
The retail industry is bracing for a challenging 2025, with escalating operational costs and changing consumer behaviors threatening more job losses and closures.
“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
