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UK Retailers Plan to Cut Hours and Jobs as Labour Costs Climb, BRC Survey Shows

The findings land ahead of a further 4.1% National Living Wage rise in April.

Overview

  • The survey found 61% plan to reduce staff hours or overtime, 55% to cut head office roles, and 42% to reduce store headcount.
  • BRC analysis estimates employer National Insurance and wage hikes added £5 billion to annual retail costs, lifting the cost of a full-time entry-level hire by about 10% and by 13% for part-time.
  • Respondents said 68% will push for higher productivity and 61% plan investment in automation to offset smaller workforces.
  • ONS data show retail employment fell by 74,000 last year to 2.76 million, as 69% of finance chiefs describe their outlook as pessimistic or very pessimistic.
  • The BRC warns that implementation choices on the Employment Rights Act could reduce flexibility and entry-level opportunities, while the government says the reforms will boost productivity and it will work with retailers.