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Highlights
- According to a report, approximately 14,874 jobs have been cut since the beginning of 2023.
- The report named some of the leading names, such as Paperchase M&Co.
Just as the UK retailers celebrated a period of increased sales due to the boost in online shops, the retail job markets had a different story. Contrary to popular beliefs that increased sales will brighten up the mood for the segment, a new report reveals that a few of them have either gone bust or have announced major job cuts in the forthcoming months.
According to a report by the Centre for Retail Research, approximately 14,874 jobs have been cut since the beginning of 2023. The overall cuts could swell after the figures of large retailers, which include 10 or more UK stores and under-pressure independents, are included.
Centre for Retail Research’s reports found about 3,185 job cuts through large retailers undergoing insolvency proceedings. The report named some of the leading names, such as Paperchase, M&Co etc., that have gone bust in recent weeks. Meanwhile, leading supermarket chains Tesco and Asda have announced job cuts.
Ask Centre for Retail Research Director Prof Joshua Bamfield, and he will tell you that many retailers have been on the brink in recent years. He further added that the rationalisation would likely continue as the retailers look to reduce their cost base. The effect of retail job losses was evident during the Covid-19 pandemic, which saw a prolonged period of closures.
However, the retailers can breathe a sigh of relief as the new business rates at about to set in from 1 April. The business rates relief would mean that new bills will be discounted by 75% for the tax year from April 2023 to the end of March 2024. The Treasury is anticipating overall bills paid to fall by 20% due to the relief of business rates.
Amidst all this, Kalkine Media explores some of the leading LSE-listed stocks on which investors can keep a keen eye.
Tesco Plc (LON: TSCO)
One of the biggest retail outlets in Britain, Tesco Plc, recently announced that it intends to cut 1,750 postitions. TSCO enjoyed a market cap of £ 18,368.77 with an EPS (earnings per share) of 0.19. Supermarket giant on 20 February was trading at GBX 251.20 and was up by 0.12%. The FTSE-100 constituent, Tesco, gave its investors returns of 11.91% -14.72% on a YTD and a one-year basis.
ASOS PLC (ASC)
ASOS Plc is a global online fashion and cosmetic retailer based out of London. The ASC share was seen in the red zone as it was down by -0.36% at GBX 831. Asos Plc enjoyed a market cap of £834.13 million with an EPS of 1.26. From the return perspective, Asos gave 62.89% and -57.86% on YTD and one-year basis.
WH SMITH PLC (LON: SMWH)
The FTSE-250 constituent, WH Smith Plc, was trading at GBX 1,709.50 and was down by -0.26% at the time of writing. The SMWH shares gave its investors positive returns on both YTD and one-year basis at 15.22% and 10.32%, respectively. The Swindon headquartered SMWH had a market cap of £2,243.83 million.
