Over 17,000 retail jobs are set to disappear next year, along with over 200,000 stores, as the sector’s decade-long crisis continues, according to a top retail body.

Online shopping, a Covid-19 hangover and high taxes are compounding a problem that began with the financial crisis in 2008, according to the Centre for Retail Research (CRR).

With many out of the habit of high street shopping, shops have been struggling with a lack of in-store customers – even by early 2023, customer footfall was 10 per cent lower than in 2019, and in major cities even less.

Brits have instead turned to experiences like meals out, city breaks, gym memberships and subscriptions to TV Channels, leaving less to spend in shops.

Around 85,000 shops have closed in the last six years, according to the CRR.

‘Tough decisions’ for retailers

The British Retail Consortium (BRC) expect retail costs to rise by £7bn across the industry next year due to a combination of the minimum wage increase, the packaging levy and higher national insurance costs.

“Businesses now face tough decisions: do they absorb the costs, pass them on through higher prices, or find other ways to cut back?,” retail economist Tim Black said.

“In retail and hospitality, the challenge is especially tough… there’s no real room to absorb higher costs,” Black added.