Christmas challenges as retail staff at lowest number in five years
It’s the busiest time of year for retailers here, and business owners are running with some 7000 less staff than five years ago.
Amongst the many significant challenges already facing the sector, it has been revealed that 139,000 people work in retail in Northern Ireland – a reduction of some 7000.
The latest ONS figures outline some stark figures for retail right across the UK, with 2.81 million jobs in retail in September 2024 – a traditionally low point of the year before rising again ahead of Christmas.
However, questions are being raised about the challenging retail environment, given the context that record numbers are employed overall in Northern Ireland.
“The numbers employed in Northern Ireland overall are up 9000 in the past year, but in retail in the past year numbers have flatlined,” said Director of the Northern Ireland Retail Consortium, Neil Johnston.
“Retail is extremely challenging at present, shopping trends are changing, footfall is continuing to fall and sales are at best flat. Profit margins are notoriously small.
“Recent years have seen additional supply chain and statutory costs imposed on all employers, including retailers, but the environment in retail has been so challenging this has led to this marked decline in staff numbers,” he added.
“Retailing remains a significant employer – employing almost one in six people in Northern Ireland with many more in the supply chain. It is also an important part of the local economy, however, the proposed increases in employers’ National Insurance and expensive regulations for tackling waste seem certain to guarantee that life will remain tough for retailers in 2025.”
It isn’t all bad news though, as there were clear signs consumers were stocking their cupboards early ahead of Christmas while also getting into the spooky spirit for Halloween.
Retailers received a sales boost as shoppers started their Christmas shopping early, buying in some store cupboard staples for the festive period
Take-home sales at the grocers increased by 2.3% over the four weeks to 3rd November to reach £11.6 billion (Kantar), making it the biggest sales month of the year at that point.
However, while some consumers believe Christmas adverts and seasonal treats are being brought out too soon each year, there are still those who are willing to stock up early and get their festive preparations started.
Before mid-November, some 648,000 shoppers had already bought a Christmas cake, with 14.4% of households also picking up mince pies in October.
Supermarket sales are forecast to exceed £13 billion over the four weeks of December, with Monday 23rd December set to be the single busiest day for supermarkets this year.
As many people are willing to treat themselves at this time of year, retailers benefit from setting their stalls out early and encouraging consumers to spread the cost of Christmas over a couple of months.
Meanwhile, the Northern Ireland economy is expected to have grown by 1.1% during 2024, according to Danske Bank, which has lowered its previous forecast of 1.2%.
Its latest Northern Ireland Quarterly Sectoral Forecasts predict that economic growth would pick up next year, with expansion of about 1.4%.
Activity in the wholesale and retail trade sector is projected to rise by around 1.4% in 2024, then grow at a stronger pace than the overall economy in 2025. Danske Bank’s projections for this is supported by the Index of Services data, with the broad sub-index for the whole sale and retail trade; repair of motor vehicles and motorcycles; and accommodation and food service sector rising by 3.3% over the year to 2024 Q2.
Additionally, as we fast approach Christmas and consumers are in the final throes of frantic Christmas shopping, the Police Service of Northern Ireland has reminded consumers to be respectful of retail staff and other shoppers.
As part of their initiative, Operation Season’s Greetings, PSNI officers across Northern Ireland are patrolling retail outlets and areas to remind everyone to shop safe.
The operation has seen an increase in proactive police patrols across key areas of Northern Ireland, in an effort to prevent crime as well as reassure shoppers and business owners that additional resources are in place.
