Nearly 170,000 shop staff lost their jobs during 2024, according to the Centre for Retail Research.
The independent analyst said 169,395 retail jobs were lost, an increase of nearly 50,000 compared to last year.
The number of job losses soared as big names disappeared from the British high street, including Homebase and The Body Shop.
In 2020, during the first wave of the COVID-19 pandemic, 200,000 retail jobs were lost. This year, smaller retailers also took the brunt of the closures, as those with less than five stores accounted for some 55,000, a third of job losses.
Professor Joshua Bamfield, director of the Centre for Retail Research, said: “The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns.
“The problems of changed customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut back even more strongly in 2024.”
Earlier this month, the British Retail Consortium reported that Brits were spending less as they became more worried about the UK economy and their personal finances.
Monthly data compiled by BRC and Opinium to track consumer sentiment found monthly personal spending fell to -3 in December, down from +3 in November.
Personal spending overall dropped to +11 in December, down from +17 in November, and personal savings increased to -5 in December, up from -9 in November.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Public confidence in the state of the economy took a nosedive, falling 8pts to -27.
Dickinson said the public’s spending intentions – both in retail and beyond – dropped 6pts, with expectations of spending in nearly every retail category falling. If these expectations are realised, retailers could face a New Year spending squeeze just as they unveil their January sales.
Dickinson warned the weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7bn of new costs from the Budget set to hit the industry in 2025.
“With sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment. To mitigate the impact this will have on growth, the Government must ensure that its proposed business rates reform does not result in any shops paying higher rates than they already do.”
