London Daily

Focus on the big picture.
Tuesday, Jul 14, 2026

'Worst year for High Street job losses in 25 years'

'Worst year for High Street job losses in 25 years'

Last year was the worst for the High Street in more than 25 years as the coronavirus accelerated the move towards online shopping, analysts say.

Nearly 180,000 retail jobs were lost in the UK in 2020, up by almost a quarter on the previous year, according to the Centre for Retail Research (CRR).

It warned there will be more pain for the sector in 2021 as retailers face a cash flow crisis and rent payments.

It has predicted up to 200,000 more retail jobs will be at risk in 2021.

Professor Joshua Bamfield, a director at the Centre for Retail Research, said its forecast was based on "the cumulative effects of months of closure and its impact upon cash flow and rent arrears that will be payable when the moratorium ends.

"Whilst the longer-term effects of the greater use by shoppers of all kinds of online retailing is likely to be hugely damaging for physical stores," he added.


Topshop has been hit hard by coronavirus lockdowns


Major brands including Topshop-owner Arcadia, Edinburgh Woollen Mill Group and Debenhams slashed hundreds of jobs after collapsinig into administration during the year.

Susannah Streeter, market analyst at Hargreaves Landsdown, said the pandemic alone couldn't "be blamed for the collapse of household names. It merely accelerated the shift to digital," she said.

She says that 2021 will be a "year of painful evolution" for the sector.

"Debenhams has been the key anchor store in city centres for decades, but fell behind fashion trends, whilst locked into long leases with rising rents with underperforming online sales.

"Topshop was still the leader of the High Street fashion pack a decade ago, but underinvestment in e-commerce and social media, saw it leapfrogged by savvy online rivals like Boohoo and Asos."



The success of fast fashion online retailers such as Boohoo has been tough for some of the more established High Street brands to emulate.

Mrs Streeter said that shoppers appeared to "shrug off" accusations that the retailer had been "tolerating widespread abuses of employment law" at some of its suppliers in Leicester.

"Although ethical concerns do appear to be growing amongst some consumers, it seems fast fashion shoppers are still prioritising price."

The pandemic has 'turbo-charged' the High Street's decline

Analysis by consumer affairs correspondent Sarah Corker



The High Street was struggling before the pandemic struck, but almost a year of lockdowns and restrictions appears to have turbocharged that decline. Some estimate the shift towards online shopping has been accelerated by five to ten years.

Every week in 2020, an estimated 3,400 retail jobs were lost. Retailers have spent huge sums of money making their premises covid secure; stores have been re-designed with one way systems and plastic screens, returned items are quarantined for up to 72 hours and there are enhanced cleaning regimes.

All that pushes costs up at a time when social distancing means there are fewer customers.

But amid the slew of store closures, there is a slither of positive news. As more of us work from home, we're spending more money locally and rediscovering our local high streets and independent stores.

Analysis of spending habits suggests smaller neighbourhood shopping areas have fared much better than large cities and shopping centres this year.

Currently around three million people in the UK work in retail.

The CRR warned that on-going Tier 4 restrictions and a delayed rollout of coronavirus vaccines in the UK could spark up to 200,000 job losses.

'Not a bun fight'


Mrs Streeter added that it would be crucial for high street retailers to evolve their in-store experience if they were to attract customers back in a post Covid-19 climate.

"Department stores can still thrive, if they provide the experience the customer craves. Items like footwear can be very difficult to get right online," she said.


Boohoo's market capitalisation is now more than household name Marks & Spencer

Trying out fragrances and skincare is impossible in a virtual world. Underwear, which is difficult to return, may look a good fit on models but customers prefer to try it before they buy, she says.

"However, shopping needs to be an enjoyable past time, not a bun fight amid vast racks of clothes. Reducing retail footprints, while investing in the appeal of an exciting in store and online seamless experience will be key to attracting newer younger customers."

Newsletter

Related Articles

0:00
0:00
Close
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
UK Government Reports Forty-Three Million Pounds in Savings From Office Estate Reform
UK Government Expands Civil Service Regional Strategy With Manchester and Darlington Campus Projects
UK Designates Iran’s Islamic Revolutionary Guard Corps as National Security Threat
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
×