UK Retail Sector Faces Worst Job Losses Since 2020

Nearly 170,000 retail jobs were cut in 2024, with more losses predicted next year due to rising taxes and reduced consumer spending.

A total of 169,395 retail jobs were lost in 2024, marking a 42% increase from 2023 and the highest annual figure since the pandemic-induced losses of 2020.
Major chains such as Homebase, Ted Baker, Lloyds Pharmacy, The Body Shop, and Carpetright went into administration, contributing to a third of the job cuts.
Independent retailers, typically small businesses, accounted for 65% of store closures but only 29% of job losses, shedding 58,616 positions in total.
Upcoming changes in 2025, including higher employer National Insurance contributions and reduced business rate discounts, are expected to further strain the sector, potentially leading to over 200,000 job losses next year, according to experts.
Retailers are grappling with rising operational costs, shifting consumer habits, and declining foot traffic, with November sales volumes still 1.6% below pre-COVID levels.