Opinion: Retailers must heed warnings of structural revolution

The latest predictions from the British Retail Consortium that almost 1 million jobs could be lost from the industry over the next 10 years is certainly an eye-catching if not eye-watering number.

However, unlike some of the statistics being thrown around to support positions in the Brexit debate, the BRC’s figures are not an exercise in scaremongering but a legitimate view of the future should current trends accelerate.

Rising cost pressures combined with ongoing structural changes, such as an increased rate of store closures and productivity growth from a fall in technology costs could mean 900,000 fewer jobs, the calculations suggest.

While change is inevitable, the loss of a third of an entire workforce is a seismic shift in the make-up of any industry.

And it should act as a stark warning to both policymakers and retailers of the potentially undesirable consequences should action to confront the implications not be taken quickly.

Government intervention

Retail’s contribution to the UK economy may be taken for granted in the halls of Westminster, but it remains the country’s largest private sector employer.

And its support of the UK economy is far more nuanced than that, playing an important role in distributing wealth to regions outside the Southeast – let us not kid ourselves that these job losses will be spread evenly geographically – as well as upholding the social fabric of the country, not only through the high streets it supports but the flexible employment opportunities it offers to those that may not otherwise be able to work.

“The Government simply must take heed of retail’s concerns about the punitive financial pressures it is hostage to”

Chris-Brook Carter

The Government simply must take heed of retail’s concerns about the punitive financial pressures it is hostage to and ease the unnatural acceleration of job losses that are linked to these burdens.  

The second warning should be taken directly by the industry itself.

The implications of this study tell of a retail sector not only reshaped by the volume of jobs lost but by the changing nature of the roles that will remain.

The BRC claims retail will have fewer but better jobs – roles supported by an increasing technological sophistication.

For retail to thrive in those new paradigms it has limited time to transform the skill base and image of the sector as it tries to attract the brightest digital talent in the country to fill these roles, a challenge made all the harder by the rising incidence of low pay across the sector.

Closing the gap between that reality and the kind of culture which will attract, nurture and retain the very brightest young talent must be a priority.