During Q4 (October to December 2011), the number of new retail units opened grew by 1.0 per cent. This equates to 528 new commercial properties across the UK, according to research conducted by the British Retail Consortium (BRC).
Obviously if new commercial properties have opened, they will need staff to run them. Approximately 4000 jobs were created from the 1.0 per cent growth in retail outlets, which is a welcome boost for those struggling to find work. The majority of those recruited during Q4 were seasonal staff which are mostly temporary positions.
Speaking of the recruitment on the run up to Christmas, Christina Tolvas-Vincent, Head of Retail Employment, at Bond Pearce, a business law firm, said: “Seasonal hiring provided a glimmer of hope for retail employment figures at the end of last year but sadly this won’t last. We have already seen a number of retailers enter administration since Christmas and there is no sign of any knight in shining armour for the industry. Retailers are also aware that consumers are likely to be tightening their belts for the next few months and this is going to squeeze them and their profit margins even further.”
The majority of the commercial properties that opened during the end of last year were food outlets, which are leading the property growth, and are likely to continue to do so.
“The disparity between food and non-food retailers remains and some supermarkets will continue to provide growth. However for many non-food retailers the focus is more on survival than growth and those who feel vulnerable already need to do everything they can to prevent outright failure. It also seems unlikely that growth in retail, a major employer in the private sector, will compensate for public sector losses as some had hoped,” Ms Tolvas-Vincent continued.
However the commercial property growth may slow down this year, with businesses looking at ways to save costs, especially with the Government increasing business rates. Speaking of the tough times, Stephen Robertson, Director General at the BRC, stated: “Retailers are focused on reducing costs and reviewing property portfolios, which means employment prospects are weakening.
“Retailers are facing a 5.6 per cent leap in business rates in April, despite inflation already falling well below this level. The Government can protect the jobs market by showing restraint setting the National Minimum Wage, and by acting more swiftly on employment reforms such as simplifying the tribunal process,” Mr Robertson added.
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