One in ten shop floor workers expected to leave retail by 2028 warns RJA

One in ten shop floor workers are expected to exit retail by 2028, campaign group the Retail Jobs Alliance (RJA) has warned.

Retail giants including Tesco, Sainsbury’s and M&S have cautioned that the high street is set to cut at least 300,000 jobs during the next three years, citing a “perfect storm” of higher costs and increased regulations.

The RJA claimed the amount of workers exiting the industry could be even higher than the predicted 300,000, because its forecasts do not consider increased costs announced in the most recent Budget.

The warning comes as retailers face mounting costs from the Autumn Budget, where Chancellor Rachel Reeves hiked National Insurance contributions for employers and increased the National Minimum Wage (NMW).

Retail executives have now said they could face even higher costs due to a planned business rates revamp, where the Treasury is set to raise tax rates for large properties and decrease them for small shops.

The RJA warned that thousands of shops would be at risk under the changes, with impoverished communities likely to be hit hardest.

The organisation said it was calling on the government to grant stores an exemption from the higher rate business rates multiplier.

An RJA spokesman said: “This change would provide much-needed relief for at-risk stores, enabling them to reinvest in their businesses, retain staff, and grow their footprint on the high street.”

A Treasury spokesman said: “We delivered a once-in-a-Parliament Budget to wipe the slate clean. Now we are focused on going further and faster to kickstart economic growth so working people have more money in their pockets.

“We’re levelling the playing field for high street businesses by permanently cutting business rates and removing the £110,000 cap for over 280,000 retail, hospitality and leisure business properties, while also capping corporation tax.”

Retailers have already been making heavy job cuts in the wake of the Budget, with Tesco cutting 400 jobs last month to “simplify” the business.

The UK’s biggest supermarket said the cuts would impact several head office management roles, management in Tesco Mobile phone shops and staff at its in-store bakeries.

Sainsbury’s also announced it was slashing more than 3,000 jobs as part of a drive to simplify its business and address rising costs.

Click here to sign up to Retail Gazette‘s free daily email newsletter