Some 150,000 jobs lost in ‘toxic’ year for retail

More than 150,000 retail jobs were lost last year as thousands of stores were forced to permanently shut down, a devastating report reveals.

The staggering casualty figures – a shocking 43 per cent higher than in 2021 – resulted from a ‘toxic cocktail’ of soaring costs and sliding consumer confidence. It came at a time when many stores had been hoping for a post-Covid bounce.

Research by The Mail on Sunday has discovered that listed retailers lost £27billion of their value last year. Only the iconic fashion house Burberry ended the year in positive territory.

Among the biggest losers were JD Sports, plunging by about 45 per cent – or £5billion – of its value. Marks & Spencer and Currys saw similar nosedives in their valuations.

The figures lay bare the pressure on Britain’s retail industry, which is the biggest employer outside the public sector.

Soaring inflation, escalating business costs and a record-breaking squeeze on household income all combined to pile enormous pressure on retailers.

Store bosses had been hoping the past year would herald a new dawn for the sector after pandemic restrictions were lifted. Many reported a strong summer, but since then times have become increasingly tough.

The startling report on the retail industry’s sudden decline has been compiled by the Centre for Retail Research. It is due to be published this week.

Professor Joshua Bamfield, director at the CRR, said: ‘The last year was meant to be the year when retailers got on a sound footing, achieved regular growth throughout the year and were able to repay a proportion of the debts run up during the pandemic.’

But the year has instead been increasingly characterised by ‘rapid inflation, exceptional increases in energy costs and belt-tightening’, Bamfield added.

Listed retailer JD Sports was among the biggest losers, plunging by about 45 per cent

One retail executive described the dire situation as a ‘toxic cocktail that couldn’t have come at a worse time’ for many retailers.

The figures for job losses cover stores on high streets, retail parks, shopping centres, towns and villages, as well as small local shopping parades, independent outlets and retailers selling online.

Bamfield said 53,741 jobs went from independent shops, while cutbacks at larger stores and among internet retailers saw another 97,733 posts lost.

Retailers that collapsed last year included Joules, Made.com, McColl’s, M&Co and Missguided.

Sales fell unexpectedly in November, according to the Office for National Statistics.

Barclaycard data released last week revealed that retail spending fell 0.8 per cent in 2022, compared to 2021, despite a very good start to the year.

There were reports of bumper Boxing Day sales at shops last week, but Bamfield expects that spending is likely to quickly fall away.

He predicts that the January sales fortnight could reap up to £1.5billion less than last year.

Next boss Lord Wolfson will become one of the first to report on Christmas trading this week.

He has already warned that sales in the second half of Next’s financial year to the end of January will fall, despite a solid first half, saying: ‘We need to prepare for tough times ahead.’