The UK’s retail sector is forecast to report 200,000 job losses this year as Covid-19 restrictions continue to affect the industry.
The latest research from the Centre for Retail Research (CRR) showed that an average of 320 stores were shuttered every week in 2020.
New figures show a bleak retail landscape for 2021, with high streets and shopping centres likely to be most affected by social distancing rules.
The CRR said the retail sector’s troubles are “caused by high costs, low profitability, and losing sales to online shopping”.
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“These problems are felt by most businesses operating from physical stores in high streets, shopping malls or neighbourhoods.
“The low growth in consumer spending since 2015 has meant that the growth in online sales comes at the expense of the high street.”
The third lockdown and tiered restrictions have impacted stores as a large proportion of retail trade has been lost.
“Although a lot of money has been channelled into the retail sector ‘to preserve jobs’, businesses cannot operate with zero revenue and constant threats of pandemic-driven closure,” CRR said.
By Sahar Nazir
Source: Retail Gazette
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