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Summary
- Online retail sales in July continued its strong run and were 50 per cent higher than the pre-crisis levels of February 2020
- The number of people who are currently out of work has increased, and the Claimant Count has risen to 2.7 million in July 2020.
- Amazon is likely to create 7 thousand more job opportunities during the remaining part of 2020
The retail sales volumes had increased by 3.6 per cent month-on month in July 2020. The overall retail sales were at similar levels seen during the pre-crisis levels in February 2020. The food store sales and non-store retailing volume recorded robust demand during July. Online retail sales continued its strong run and were 50 per cent higher than the pre-crisis levels of February 2020. The strongest performance was seen in demand for household goods and processed food items.
The pandemic has prompted the retailers to finetune their business models for online delivery services, and they are rapidly expanding their operations in anticipation of a robust demand during the upcoming festive season.
UK has officially entered the recession with its GDP (Gross Domestic Product) falling substantially by more than 20 per cent in the April to June quarter (Q2 2020), as per the Office of National Statistics (ONS) report. The rate of employment weakened in the April to June (2020) quarter due to decline in self-employment activities. The number of people who are currently out of work has increased. The Claimant Count (inclusive of both lower-income groups and lesser hours) has increased to 2.7 million in July 2020. Despite the economic distortion and inactivity, Vacancies in the UK were 10 per cent higher to an estimated 370 thousand during May to July 2020; in comparison to a record low in April to June 2020 period.
Retailers creating jobs to support the economy
General retailers in the UK have been operational during the unprecedented crisis induced by the coronavirus pandemic. They have been an important cog in the wheel in terms of contribution made to the nation’s economy. They had provided special assistance to the vulnerable sections of the society when the chips were down.
Amazon to add 10 thousand jobs in the UK by the end of 2020
American multinational e-commerce company, Amazon is likely to create big employment opportunities in the retail space across the United Kingdom. The e-commerce giant has nearly added 3 thousand permanent jobs so far in 2020, which takes the tally of its permanent workforce in excess of 40 thousand in the UK. The company is likely to create 7 thousand more job opportunities during the remaining part of 2020. Minimum wage criteria of £9.50 an hour are applicable to these job opportunities.
Moreover, the multi-retailer expecting a surge in sales during the upcoming festive season is likely to hire 20 thousand people on a temporary basis. The lockdowns induced by the novel coronavirus have indirectly converted online shopping methods, which were just an alternative to conventional shopping methods, into mainstream shopping. This paradigm shift in the behaviour of shoppers has massively benefitted online tech giants such as Amazon. Amazon founder, Jeff Bezos’ net worth surpassed the $200 billion mark for the first time in the last week of August 2020.
Do read: Online Threats to The Businesses During Covid-19; Amazon UK Website Gets Defaced
Co-operative Group to create jobs and expand operations
Co-operative Group becomes the latest supermarket chain to expand operations during the unprecedented crisis caused by the coronavirus pandemic as it opened 50 new stores. In addition, the retailer has created nearly a thousand jobs to cater to the expected demand in the near term. The company has nearly added 5 thousand people to its workforce so far in 2020. The company has more than 2,500 stores across the UK along with a headcount of more than 50 thousand.
During the peak of the unprecedented crisis, as online orders soared, the logistics companies have been under the pump. The logistics firms often are a part of the delivery network used by online retailers. The retail industry witnessed a huge surge in orders during the peak of the coronavirus crisis. To cope with the sudden shift of shoppers to online mode, UK’s Parcel delivery firm, Hermes announced the creation of 10,000 job opportunities a few weeks ago.
Do read: How is the UK's Logistics Business Faring?
UK’s leading supermarket chain, Tesco Plc (LON: TSCO) had reportedly doubled its number of delivery slots to more than a million during the unprecedented crisis. Tesco went on a hiring spree earlier and has given permanent position to nearly 16 thousand people who were hired on temporary roles during the peak of coronavirus pandemic.
Market experts believe that general retailers are likely to witness robust demand for online orders in the near term. Britons still fear to go out to high streets and public squares for shopping. Therefore, most of the retailers have ramped up operations by hiring more people to serve the Britons as the uncertainty with reference to Covid-19 pandemic persists and is expected to prevail for a few more months. It would be interesting to see the retail sales volumes in the month of October when some support schemes are expected to wind-up.
