The UK retail sector witnessed its worst year since the aftermath of the COVID-19 pandemic, with almost 170,000 jobs lost in 2024. The collapse of major high street chains and extensive cost-cutting measures contributed to the staggering figure, marking a 41.9% increase compared to 2023.

Queuing outside Hombase, Barnstaple by Roger A Smith, CC BY-SA 2.0 https://creativecommons.org/licenses/b y -sa/2.0, via Wikimedia Commons

Data from the Centre for Retail Research reveals that 169,395 retail workers lost their jobs this year, making it the highest total since over 200,000 jobs were wiped out in 2020 due to pandemic lockdowns.

A significant portion of the job losses—33% or 55,914 roles—resulted from the collapse of 38 major retailers, including well-known names such as Homebase, Ted Baker, Lloyds Pharmacy, The Body Shop, and Carpetright. The remaining losses stemmed from “rationalisation” efforts, where businesses either downsized to cut costs or shut down entirely.

The outlook for 2025 is equally bleak, with experts warning of additional challenges for high street retailers. The upcoming increase in national insurance contributions and changes to business rate discounts are set to exacerbate financial pressures.

Currently, high street firms benefit from a 75% discount on business rates, but this relief ends on March 31, 2025. It will be replaced by a 40% discount, capped at £110,000, significantly reducing the support available to struggling businesses.

Retail analysts fear these measures will lead to further closures and job losses, pushing the sector into even deeper turmoil in the year ahead.