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Fifth of retailers to cut jobs in next three months as sector undergoes 'reinvention', study finds

Total number of hours worked has already fallen almost 3% in the last year, British Retail Consortium says

Ben Chapman
Thursday 26 July 2018 17:37 BST
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High street shops have already shed tens of thousands of jobs this year, with House of Fraser, Debenhams and Marks & Spencer among those to cut back
High street shops have already shed tens of thousands of jobs this year, with House of Fraser, Debenhams and Marks & Spencer among those to cut back

A fifth of retailers are looking to cut staff within the next three months as the industry, which employs 4.6 million people in the UK, continues to go through upheaval.

The British Retail Consortium (BRC), which compiled the figures, said the sector was undergoing a “reinvention” in order to deal with the challenges posed by online competitors.

The figures show a move towards using less staff to cover a larger store area, with the total number of hours worked in retail falling 2.8 per cent in the last 12 months as the number of shops rose 1.2 per cent.

Retailers have already shed tens of thousands of jobs this year, with House of Fraser, Debenhams and Marks & Spencer among those to cut back.

A heatwave, as well as England’s strong showing at the World Cup, have given the sector a short-term boost over the last month, according to separate data.

The Confederation of British Industry reported that 32 per cent of retailers said sales volumes were up in July compared to the same month last year. Just 12 per cent reported falling sales.

Earlier this week, data measurement company Nielsen revealed that supermarkets had enjoyed a summer bounce. Grocery sales volumes rose at their fastest pace in five years in the four weeks to 15 July, and supermarkets shifted a record £287m of booze in the week of England’s World Cup wins against Colombia and Sweden.

“Retailers are continuing to reduce labour requirements to support a reinvention in how retail and shopping works,” says Helen Dickinson, chief executive of the BRC.

“Hours worked by employees on full-time contracts dropped more sharply this quarter as retailers seek greater flexibility in their workforce to cope with the pressure felt from the diverging costs of labour versus technology.

“The retail industry stands ready to work in partnership with government to upskill the retail workforce as the transformation of retail continues and digital skills become more crucial.

“Less rigidity and more flexibility, as well as future thinking by the government in how Apprenticeship Levy funds can be used, would facilitate more positive change more quickly.”

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