Top retail stores in UK manage over 1.4millions employees. The retail industry also has over £185.8bn annual turn over with Tesco, Sainsbury and Amazon UK topping the list hence they are critical to the UK’s economy.
Many of these retail companies are planning on reducing the numbers of their brick and mortar stores across the UK.
Boots have announced they are closing 300 stores from across the UK. This policy will reduce their footprint from 2,200 to 1,900 stores. The retail company which currently employes over 56,000 people claims their new policy would not lead to any redundancy.
Although it is yet to be confirmed how 14% of Boots’ retail stores reduction would not lead to sacking of employees but at least new recruitment could just be on hold for the moment.
Factors Responsible for Retail Stores Closure across the UK
- Change in Shoppers Bahaviour
Durring the lockdown, people were forced to shop for groceries and other items online and after the Covid Pandemic, there has been no significant match to footfalls in stores at pre Covid. Shoppers now have an alternative way of shopping which is more comfortable and convenient.
- Reduction in Purchasing Power
UK is currently battling with high inflation rate, with the figure risen to 7.9% as at May 2023, it has become the highest in Europe. High prices of food and energy are the major contributors to the inflation in UK. As the wages remain largely the same, more people are cautious with spendings and would only go for necessities.
- High Cost of Energy
The retail companies has recorded spikes in cost of operation due to high cost of energy. As their revenue dwingles, it is obvious the current business model remain unsustainable. This among other reasons has lead to moves in reducing brick and mortar stores across the UK.
