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Retail slump has put 21,000 jobs at risk in 2018 so far Retail slump has put 21,000 jobs at risk in 2018 so far
(35 minutes later)
More than 21,000 retail jobs have been put at risk in the first three months of the year as store closures, company restructuring and Carillion’s collapse resulted in a bleak quarter for the industry. More than 21,000 jobs have been cut or put at risk in the first three months of the year as retail store closures, company restructuring and Carillion’s collapse resulted in a bleak quarter.
A Press Association analysis reveals that 21,413 staff have already been made redundant or had their role threatened, the bulk of them at established high-street chains.A Press Association analysis reveals that 21,413 staff have already been made redundant or had their role threatened, the bulk of them at established high-street chains.
Since January Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select are closing stores.Since January Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select are closing stores.
Last week, the Bargain Booze owner Conviviality said it planned to call in administrators within the next 10 days, putting 2,600 jobs at risk.Last week, the Bargain Booze owner Conviviality said it planned to call in administrators within the next 10 days, putting 2,600 jobs at risk.
The casual dining sector has also suffered, with the Prezzo, Byron and Jamie’s Italian chains all shutting restaurants and culling hundreds of jobs.The casual dining sector has also suffered, with the Prezzo, Byron and Jamie’s Italian chains all shutting restaurants and culling hundreds of jobs.
Retailers have been hammered by Brexit-fuelled inflation, soaring business rates and falling consumer confidence, but experts also point to structural changes in the sector.Retailers have been hammered by Brexit-fuelled inflation, soaring business rates and falling consumer confidence, but experts also point to structural changes in the sector.
Duncan Brewer, a partner at the consultancy Oliver Wyman, said the slump was down to multiple factors. “Cost is one of the biggest pressures out there. The devaluation of sterling, increased labour costs and business rates will be having an effect. The high-cost operating model businesses that are not offering customers what they want are being squeezed by better quality, or lower-cost rivals.Duncan Brewer, a partner at the consultancy Oliver Wyman, said the slump was down to multiple factors. “Cost is one of the biggest pressures out there. The devaluation of sterling, increased labour costs and business rates will be having an effect. The high-cost operating model businesses that are not offering customers what they want are being squeezed by better quality, or lower-cost rivals.
“We’re also seeing a move towards improvements in productivity, with some businesses positioning themselves for the future, which will leave others less able to compete.”“We’re also seeing a move towards improvements in productivity, with some businesses positioning themselves for the future, which will leave others less able to compete.”
Supermarket giants have also made deep cuts to shop floor staff, with Morrisons, Sainsbury’s and Tesco axing 5,200 roles between them.Supermarket giants have also made deep cuts to shop floor staff, with Morrisons, Sainsbury’s and Tesco axing 5,200 roles between them.
Brewer said the sector’s prospects were dependent on consumer confidence, which has tanked since the Brexit vote.Brewer said the sector’s prospects were dependent on consumer confidence, which has tanked since the Brexit vote.
Elsewhere, the collapse of the outsourcer Carillion has so far resulted in more than 1,700 job losses, with more pain expected.Elsewhere, the collapse of the outsourcer Carillion has so far resulted in more than 1,700 job losses, with more pain expected.
The British Gas owner Centrica has recently announced the loss of 4,000 roles over the next three years.The British Gas owner Centrica has recently announced the loss of 4,000 roles over the next three years.
Compounding the misery was the closure of the Colman’s mustard factory in Norwich, with the loss of 113 workers, and Coca-Cola’s decision to shut sites in Milton Keynes and Northampton.Compounding the misery was the closure of the Colman’s mustard factory in Norwich, with the loss of 113 workers, and Coca-Cola’s decision to shut sites in Milton Keynes and Northampton.
Unions have blamed retailers’ woes on economic mismanagement by Theresa May’s Conservative government.Unions have blamed retailers’ woes on economic mismanagement by Theresa May’s Conservative government.
Tim Roache, general secretary of the GMB union, said: “A strong economy doesn’t see job losses like this. It’s time to invest in British industry and put forward a plan for real jobs that pay a decent wage.Tim Roache, general secretary of the GMB union, said: “A strong economy doesn’t see job losses like this. It’s time to invest in British industry and put forward a plan for real jobs that pay a decent wage.
“It’s not rocket science, but such a level of common sense seems to be escaping ministers, who are busy concentrating on backbench Brexit squabbles, and not sorting out the economy.“It’s not rocket science, but such a level of common sense seems to be escaping ministers, who are busy concentrating on backbench Brexit squabbles, and not sorting out the economy.
“And when the government does try to tackle industry issues, it fails to include any voice for workers, giving the impression that their views aren’t legitimate despite working at the coal face in British industries.”“And when the government does try to tackle industry issues, it fails to include any voice for workers, giving the impression that their views aren’t legitimate despite working at the coal face in British industries.”
Retail industryRetail industry
CarillionCarillion
Economic policyEconomic policy
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