UK retail job cuts at highest level since depths of financial crisis

Job cuts in Britain have led to long queues at food banks.

British retailers have cut the most jobs since the depths of the financial crisis and expect the pace of losses to accelerate, industry body the Confederation of British Industry said, adding to warning signs of an expected sharp rise in the country’s unemployment rate.

The data also showed an unexpected drop in UK retail sales this month, which contrasted with a recent pick-up in demand by consumers after the coronavirus lockdown was lifted.

“Trading conditions for the retail sector remain tough,” CBI economist Alpesh Paleja said.

“...Firms will be wary of deteriorating household incomes and the risk of further local lockdowns potentially hitting them in the pocket for a second time.”

However, British furniture retailer DFS said its performance over the last six weeks was significantly above its initial expectations, generating an additional £100m (€111m) in revenue for the year.

However, the UK’s Co-operative Bank is cutting around 350 jobs and closing 18 branches as the coronavirus crisis forces it to reduce costs.

“Unfortunately, we’re not immune to the impact of recent events, with the historically low base rate affecting the income of all banks and a period of prolonged economic uncertainty ahead, which means it’s important we reduce costs and have the right-sized operating model in place for the future,” CEO Andrew Bester said.

- Reuters