THE retail crisis continues as the latest stats show that nearly 10,000 jobs have been lost in retail since the start of the year and the industry lost 57,000 jobs last year.
Usdaw, the shopworkers’ trade union, has joined retail employers in calling for measures to tackle the crisis on our high streets, including a reform of business rates to help level the playing field between online and “bricks-and-mortar” retailers.
This is not about favours from government, it’s about fairness across all forms of retailing.
The government must address the growing crisis on our high streets, as we have called for through our Save our Shops campaign.
The scale of store closures we have seen is devastating, not just for the workforce but also for our communities and town centres.
Regrettably the government has so far failed to provide any clear or coherent strategy for the retail sector, or to address the worries and concerns of retail workers.
We urge the government to engage with us, support our strategy and give shopworkers a voice in the future of retail.
Our deep concerns about government inaction is shared by the British Retail Consortium, whose chief executive Helen Dickenson OBE this week stated: “Moreover, it is worrying that the government is standing by while tens of thousands of jobs are being lost. If the same was true in manufacturing or aviation, one can be sure that the government would act.”
Store closures, redundancies and chains going bust are only part of the worries shopworkers have for the future.
Many retailers see cashierless shops as one of the top beneficial innovations to come with the introduction of 5G, with the Office for National Statistics predicting that 65 per cent of all retail cashiers and checkout-operator jobs will become redundant.
This apparent rush to automation fails to recognise the value of customer service and face-to-face interaction.
We know that valued, trained and well-paid staff are more likely to stay in the business, drive productivity, reduce overheads and provide excellent customer service, which is key to successful retailing.
Unfortunately as retailers struggle to survive, we have seen staff cuts and reduced hours in stores.
I know from talking to Usdaw members that more and more customers are frustrated by the lack of customer service and understaffing in store and at checkouts.
There is no replacement for good customer service in retail. The customer-service skills of retail workers are vital to transforming businesses and attracting and retaining customers.
However, as retailers look to streamline, the decline in face-to-face interaction undervalues the significance of interpersonal skills and is having a negative impact on customers and local communities.
Usdaw is campaigning for the government to take urgent action to Save Our Shops by implementing a comprehensive and co-ordinated industrial strategy for the sector based on:
• A new framework that supports both the UK-wide economy and local communities, to include measures to create a more level playing field between in-store and online retailing. It’s clear that the current economic framework — from taxation, commercial rents to business rates — is no longer fit for purpose.
• Decent pay and job security for retail workers to help drive productivity in the sector — including a minimum wage of £10 per hour, secure work, and investment in skills and training to tackle the challenge of automation.
• Concentrated efforts from government to change mindsets with a renewed focus on retail across government policy and decision-making mechanisms. This begins with recognition from the government of the crucial role retail plays in the economy, as well as making space for retail workers to have a say in the future of retail.
While 5G and other developments in technology could present opportunities for some retailers, this must be in addition to tackling the fundamental problems facing the sector.
Usdaw acknowledges that there are no quick fixes or easy solutions to the problems facing retail. The sector is in need of fundamental reform and our industrial strategy for retail is a great starting point for the debate www.usdaw.org.uk/retailstrategy.