Marks & Spencer this week became the latest big retailer to cut jobs. M&S will cut 950 roles, adding to the recent toll at retailers including John Lewis and Boots. Industry experts offer their views on what the government could be doing to stem the tide of lost jobs.

Nelson Blackley

Nelson Blackley, retail research associate, Nottingham Business School

Long before Covid-19, UK retail was already undergoing huge structural shifts driven by changing consumer behaviour combined with the over-expansion of many national retail brands.

Since 2016, when BHS collapsed into administration, tens of thousands of retail jobs have been lost every year. However, unlike other sectors, such as steelmaking or car manufacturing, the government has repeatedly failed to respond to this growing crisis in retail employment, which Covid-19 has now accelerated.

Regrettably, I am not sure there is much now that the government can actually do to prevent whatever further retail job losses might take place as the sector continues to restructure and so reflect current and future demand.

What it can and must do, however, is support all those from the retail industry who have already lost their jobs by providing them with training or retraining and the skills and qualifications likely to be required in the future.

Gemma goldfingle byline

Gemma Goldfingle, features editor, Retail Week

When the pandemic hit, the government acted swiftly to help businesses get through this crisis with support via the furlough scheme and business rates holidays. However, these are short-term initiatives with cut-off dates rather than something that can provide real structural change to an industry that has been suffering for some time.

The fact is that jobs are being cut in order for retailers to make ends meet and pay their substantial overheads. The most substantial of these is business rates. 

It’s no coincidence that this was one of the areas where the government felt support was needed throughout the pandemic. But it needs more than that – the system needs a complete overhaul and everyone knows it. 

The government kicked off yet another review into rates reform this week but there needs to be less talk and more action. Reduce some of the huge burden blighting store-based retailers and save jobs – and shops – before it’s too late.

Alex McCulloch

Alex McCulloch, director, CACI

It is clear we are in a period of enormous upheaval, which if left unchecked will continue to amplify and accelerate change. There are three areas the government can help reinvigorate the high street and by extension stop job losses. 

General policy – the retail sector is one of the largest sectors in the UK with over 4 million people dependent on it. But too often the priority and focus for policymaking are on other, more high-profile industries

By prioritising the sector when making policy, the government can build public confidence in returning to a degree of normality. VAT, clarity on messaging of face masks, use of public transport and supporting small self-employed businesses – these are all key policy areas but it often seems retail is an afterthought, not at the centre of decision making.

Business rates – retailers consider locations on the basis of total occupancy cost and in many instances, business rates are a huge proportion of this. The temporary suspension of rates is hugely beneficial in preserving occupancy now, but without extensive reworking, it is only delaying the problem if they are reintroduced in the previous form. One obvious improvement is to better tie rates to the total contribution a store makes to turnover.

Beware unintended consequences – the current moratorium on evictions has protected retailer occupancy; however, in rendering landlords toothless it has significantly impacted rent roll, which has, in turn, pushed some of the largest landlords to the limit. While it’s easy to beat up landlords it is usually forgotten that real estate was a previously ‘safe sector’ in which pensions are heavily invested. The solution is more complex but lies in supporting steps to secure the long-term occupancy of stores and valuing retail property accurately.

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