Number of Retail Jobs Fall as Industry Undergoes Transformation

All three months of the quarter reported a decline in full-time employment, with April’s drop the lowest.

69 per cent of the people who took part in the survey reported a reduction in hours in the quarter compared to last year, with 15 per cent of respondents intending to decrease employment levels in the coming quarter - no respondents planned this in the same quarter in 2016.

The BRC believes that these numbers can be put down to factors such as technology and a turbulent market environment affecting the industry.

Helen Dickinson, chief executive of the BRC said, “The second quarter of 2017 saw employment in retail fall as the tide of change continues to sweep through the industry. Technology, which is both transforming the way we shop and providing increasing opportunities for automation in retail, combined with a difficult market environment and policies that have increased the cost of employing people, such as the National Living Wage and the Apprenticeship Levy, are driving the industry towards fewer but more productive jobs.

“The pace of consolidation in the retail workforce has slowed this quarter compared to last. However, there are further reductions to come. The transformation of the industry is still in progress and this quarters’ data show that more retailers are intending to reduce their workforce in the coming months than at the same point last year.

“As ever, there are some retailers who are thriving and growing their workforce, although they are in the minority. 69 per cent of respondents to our survey saw employees work fewer hours in Q2 this year, compared to last, with reductions particularly acute amongst non-food retailers.

“With consumers seeing inflation squeezing their spending power, the challenges facing retailers will only increase in coming months; reinforcing the pressure on retailers to rethink and restructure their workforce.”