London Daily

Focus on the big picture.
Wednesday, Nov 04, 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
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
×