Up to 175,000 UK retail jobs to be lost this year says Altus

By

Barbara Santamaria

Published
Jan 21, 2019

New data has suggested that 2019 will be a worse year for UK retail than 2018, with the number of shops expected to close rising by 3,000.

The UK high street is expected to shed a total of 23,000 stores and 175,000 jobs this year, as online players including Amazon continue to take market share from physical retailers, according to new research by real estate adviser Altus Group.

The figures paint a bleak picture after a tough 2018, which saw a multitude of company collapses and store closure programmes claim nearly 20,000 stores and 150,000 jobs.

Marks & Spencer, Debenhams House of Fraser are some of national chains trying to reshape their store estate, while Philip Green’s Arcadia is also reviewing its store numbers.

This activity will have a negative impact on the value of retail property, which is expected to tumble by almost 16% this year.

EXPERIENCE-LED RETAIL

However, the report suggests that not all is lost, as 78% of UK property owners are moving towards experiential retailing to tap into the growing trend of experience-led shopping.

“Retail of the future will use bricks-and-mortar spaces in a very different way mixed in with leisure and lifestyle residential spaces, for example,” commented Altus Group managing director Guillaume Fiastre.

“The most successful retailers - the survivors - are learning to draw in their customers with the promise of a personalised experience. Technology makes that all possible, but it still needs a strong human element.

“The growth of online retailing, which had been seen as a difficult trend for property, is one property owners and investors can now take advantage of to drive revenue.”