The number of UK retail jobs has shrunk by over 200,000 since 2019, according to the latest ONS figures.

The data shows that there were 2.81 million jobs in September, down from around three million five years ago, while 2024 saw 40,000 fewer jobs than last year.

Chief executive of the British Retail Consortium (BRC) Helen Dickinson explained that these figures have in part been driven by higher levels of automation in the industry, as well as increased hiring costs.

“The current fall is partially explained by ongoing transformation in the industry, from increased investment in automation and higher productivity, to a shift to outsourcing of warehousing and logistics that are not all captured by the ONS retail figures,” she said.

The chief exec went on to say that retailers are continuing to respond to the changing business landscape with further investment in automation and a focus on boosting worker productivity.

Marks & Spencer (M&S) and Midcounties Co-op recently said they are eyeing technology investments to drive productivity and efficiency in their stores ahead of the 1.2 per cent increase in employer National Insurance Contributions (NICs) scheduled for 2025.

Earlier this month, Aaron Spicer, head of retail activity and communications at M&S said that the company plans to digitise processes such as the monitoring of refrigeration at the supermarket's stores.

Chris Chandler, head of store support at Midcounties Co-op went as far as to say that post-Budget announcement the company had "ripped up" half of its capital plans for 2025.

The business transformation lead explained that the company is looking to invest in more self-checkout technology to make its stores more productive.

Dickinson said that pay growth in the industry was well above the national average at 8.5 per cent in 2024, and up by over 25 per cent since 2021.

Labour's October Budget also increased the National Living Wage by a further 6.7 per cent, which the BRC said adds £2.7 billion to retailer wage bills from April next year. Higher NICs are set to cost the industry a further £2.3 billion.

“Despite a further fall in the number of retail jobs, the industry remains the largest private sector employer providing approximately 2.9 million jobs in the UK, with another 2.7 million in the supply chain," added the BRC chief exec.

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