A staggering 358 stores may shut down weekly as the retail landscape shifts.

  • UK retail sector expected to lose 200,000 jobs in 2021.
  • Predicted 18% increase in retail closures this year.
  • Up to 358 stores could close each week.
  • Fashion outlets and department stores facing significant challenges.
  • 320 high street stores closed weekly in 2020.
  • High costs and low profitability impacting physical retail.
  • Online shopping growth is detrimental to physical stores.
  • UK retail sales fell 1.9% year-on-year, the largest drop since 1997.

The UK retail sector is bracing for a challenging year ahead, with forecasts indicating a potential loss of 200,000 jobs in 2021 due to the ongoing impact of Covid-19. A study by the Centre for Retail Research (CRR) predicts an alarming 18% increase in retail closures, which could see as many as 358 stores closing each week. Professor Joshua Bamfield, who led the research, described the situation as a ‘very grim year’ for the industry, particularly for fashion retailers, town centers, and department stores, all of which are struggling without additional government support. In 2020, an average of 320 high street stores were already shutting down weekly, driven by cash flow issues, rent obligations, and a surge in e-commerce. The CRR’s findings emphasize the high costs and low profitability that physical stores are grappling with, as online shopping continues to rise at the expense of traditional retail. The report highlights that these challenges are widespread among businesses operating in high streets, shopping malls, and neighborhoods. Furthermore, the UK retail sector has experienced its largest year-on-year sales decline of 1.9% since records began in 1997, according to the Office for National Statistics (ONS).

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information from a reputable source (Centre for Retail Research) about the expected job losses and store closures in the UK retail sector due to Covid-19. It also cites relevant data such as the largest year-on-year fall in sales since 1997. However, it lacks personal opinions or biased statements.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of Covid-19 on the UK retail sector and its job losses, but it could benefit from more analysis or context on the long-term trends and possible solutions to address these challenges.
Financial Relevance: Yes
Financial Markets Impacted: The job losses and store closures in the UK retail sector impact companies within the industry and may affect related industries such as real estate and e-commerce.
Financial Rating Justification: The article discusses the financial challenges faced by the UK’s retail sector, including job losses, store closures, and a shift towards online shopping. This has implications for companies in the sector and related industries, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: Although there is a significant impact on the retail sector, it does not qualify as an extreme event due to no natural disaster, financial crisis, political crisis, major accident, terrorist attack, health crisis, environmental crisis, technological disruption, cultural/social issues, armed conflicts and wars or space/extraterrestrial events.

Reported publicly: www.retailsector.co.uk