Job market information
Finding out about retail
Retail activity can be expressed as the sale of goods for personal or household use or consumption, traditionally via shops or markets. However, the boundaries have changed somewhat in recent years due to the significant growth in online retailing and the development of alternative formats such as farmers’ markets and travel retailing.
The UK retail industry covers the following activity:
- Retail sales in non-specialised stores (such as supermarkets and department stores)
- Retail sales in specialised stores (such as butchers, greengrocers and fishmongers)
- Retail sales of pharmaceutical goods (such as chemists and pharmacies)
- Retail sales of new goods in specialised stores (such as stores selling textiles, clothing, books, electrical household appliances, furniture and lighting)
- Retail sales of second-hand goods
- Retail sales not in store (e.g. catalogue and mail order sales, online and via stalls and markets)
Within retail, there are an estimated 295,000 businesses selling a wide range of products, employing from one person to thousands of people, all who have a number of functions.
The retail industry is represented by Skillsmart Retail Sector Skills Council.
Key facts:
- UK retail accounts for £321 billion turnover and one‐third of all consumers spending.
- It is the largest private sector employer and employs around 2.9 million people or 1 in 10 of the working population.
- 13% of people employed within retail do not have an NVQ qualification, 22% have a NVQ level 2 qualification and 34% have a NVQ level 3 or higher qualification.
- Much of the employment and turnover in retail is accounted for by a few dominant retailers, who operate both nationally and internationally.
- Just 10 retailers employ around a third of all those who work in retail.
- There are a substantial number of smaller retailers who operate locally or in niche markets.
- New emerging markets and job opportunities to support the online retailing are needed.
- The current economic climate is affecting all areas of retail business, but online retailers and value/discount stores are showing signs of growth.
- Between 2007 and 2017, 214,000 new retail jobs are expected to be created in UK, while a further 1.2 million jobs will need to be filled as a result of people leaving the sector.
Jobs in the industry are divided into areas: Store operations, Human resources/training, Finance and administration, Buying, Merchandising, Customer contact centres, PR and Marketing, Logistics, and Information Technology.
Job roles range from: Director of operations, Store manager, Assistant department manager, Sales assistant, Shelf filler, Recruitment officer, Financial analyst, Procurement manager, Merchandiser, Buyer, Contact centre operators, Marketeer, Information analyst, Van driver, Warehouse / distribution manager, Information systems managers.
Entry and progression
Retail Apprenticeships are available to people looking to work in retail and who want to learn the skills needed for a successful career in the industry. Apprentices work towards a level 2 Retail Skills N/SVQ or a level 3 in Retail (Retail Management, Sales Professional or Visual Merchandising pathway) N/SVQ.
Qualifications or experience in retail or other customer service focused roles are useful for those wishing to enter the industry. Career changers can also look to apply for more advanced roles – for example supervisor and management roles.
The retail industry provides people with good generic skills and is attractive to adults changing career direction. Increased opening hours have allowed a greater flexibility in the types of jobs available and full‐time, part‐time, or shift work is available. Although there are many different types of jobs in retail, most adults will enter the workplace in store operations, which could mean being a sales assistant.
Skillsmart Retail is developing a network of 30 plus Skill Shops through its National Skills Academy for Retail across the UK.
The Skills Shops offer a range of advice and information on training and qualifications. You can find your nearest Skills Shop by searching the Skills Shop map 
on the National Skills Academy website.
For job specific entry requirements, take a look at our job profiles.
Workforce statistics
| Number of UK employees: |
2.9 million |
| Number of UK employers: |
295,000 |
| Gender: |
43% male |
57% female |
| Ethnicity: |
89% white, 6% Asian/Asian British, 2% Black/Black British, 2% other minority ethnic groups |
|---|
| Age: |
31% of workforce is 16‐24 years |
|---|
| 22% are over 50 years |
| 43% of sales and customer services employees are below 25 years of age |
| Approximately 8% of managers and senior occupations are filled by people below 25 years |
| 43% of sales and customer services employees are below 25 years of age |
| Approximately 8% of managers and senior occupations are filled by people below 25 years |
| Retail employs a far greater proportion of 19‐25 year olds than the UK economy as a whole 9% of the UK retail workforce is disabled |
| 49% of all those employed in the UK retail industry are in part‐time positions (the whole economy average is 25%) |
[N.B. Data derived from Annual Business Inquiry, 2009, and Labour Force Survey.]
Employment trends and future prospects
The current UK retail market is dominated by a comparatively small number of large stores, who employ 65% of people working in retail and have 69% of all annual turnovers of retail businesses. The largest number of establishments is businesses with less than 10 people, which make up 83% of all retailers. These small retail outlets employ 29% of the workforce and take 19% of total retail outlet.
However, the current recessionary climate is affecting all areas of retail business. Much of retail is going to have a difficult period, but certain sections of retail businesses, online and value/discount stores are showing signs of growth.
Between 2007 and 2017, 214,000 new retail jobs are expected to be created in UK, while a further 1.2 million jobs will need to be filled as a result of people leaving the sector. This means a total requirement of around 1.4 million jobs.
Skill requirements and shortages
- Softer skills of customer handling and communication are the skills that are most required in retail
- 22% of English retailers reporting skill gaps identified customer handling, team working, problem solving and oral communications as areas of development
- 15% of English retailers stated that they had skill gaps, predominantly in sales and customer service (12%) and managerial (6%) occupations
Occupational trends
Designing and rolling out e‐commerce schemes have increased the demand for appropriate technical personnel and skills, but online trading has also placed new requirements on the marketing and customer service aspects of many retail businesses. There are emerging job opportunities to support the online operations of the larger retailers in, for example, web portal design, front line administration of online transactions, logistics and distribution, and online data mining and statistical analysis of data collected on web‐user shopping and browsing.
UK Retail industry occupational distribution | Managers and Senior Officials |
18% |
|---|
| Professional Occupations |
2% |
|---|
| Associate Professional and Technical |
5% |
|---|
| Administrative and Secretarial |
6% |
|---|
| Skilled Trades Occupations |
3% |
|---|
| Sales and Customer Service Occupations |
50% |
|---|
| Personal Service Occupations |
0% |
|---|
| Process, Plant and Machine Operatives |
3% |
|---|
| Elementary Occupations |
12% |
|---|
National and regional data
Retail employment and activity are evenly distributed across the UK, with the largest number of employees is located in:
- South East
- London
- East of England
- North West
The largest number of employers is located in: London; the South East; and the North West. There are distinct clusters of major centres of retail in London, Birmingham, Cardiff, Liverpool, Manchester, Newcastle, Nottingham, Leicester and Derby.
The highest percentage growth in employment over the next five years is expected in the North East, whilst significant declines are forecast in the South East, London and the North West.
Retail can play an important role in the regeneration of towns and cities throughout the UK. It provides a catalyst for change, as retailers seek to enhance their offer to the consumer and modernise the spaces within which they trade.
East Midlands – There are 189,408 people employed in the industry, in around 19,634 retail establishments. 63% of the workforce is female. 43% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling and verbal communication skills.
East of England – There are 274,350 people employed in the industry, in around 25,258 retail establishments. 60% of the workforce is female. 42% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling, problem solving and management skills.
London – There are 376,523 people employed in the industry, in around 39,414 retail establishments. 55% of the workforce is female. 50% of the workforce work full‐time. The greatest perceived skills shortage is with management, customer handling and problem solving skills.
North East – There are 106,513 people employed in the industry, in around 10,569 retail establishments. 65% of the workforce is female. 41% of the workforce work full‐time.
North West – There are 318,406 people employed in the industry, in around 32,814 retail establishments. 62% of the workforce is female. 45% of the workforce work full‐time. The greatest perceived skills shortage is with technical, practical or job specific skills, team working and management skills.
South East – There are 398,069 people employed in the industry, in around 38,926 retail establishments. 59% of the workforce is female. 44% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling, technical, practical or job specific and team working skills.
South West – There are 254,668 people employed in the industry, in around 26,398 retail establishments. 62% of the workforce is female. 42% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling, technical, practical or job specific and management skills.
West Midlands – There are 237,529 people employed in the industry, in around 25,352 retail establishments. 62% of the workforce is female. 43% of the workforce work full‐time. The greatest perceived skills shortage is with team working and customer handling skills.
Yorkshire and the Humber – There are 236,430 people employed in the industry, in around 24,251 retail establishments. 62% of the workforce is female. 44% of the workforce work full‐time. The greatest perceived skills shortage is with management skills.
Northern Ireland – There are 74,491 people employed in the industry, in around 9,805 retail establishments. 58% of the workforce is female. 54% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling, written communication and management skills.
Scotland – There are 245,960 people employed in the industry, in around 23,978 retail establishments. 62% of the workforce is female. 44% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling, written communication and management skills.
Wales – There are 133,459 people employed in the industry, in around 13,765 retail establishments. 63% of the workforce is female. 42% of the workforce work full‐time. The greatest perceived skills shortage is with customer handling, written communication and management skills.
[N.B. Data derived from Annual Business Inquiry, 2008, Labour Force Survey (annualised), 2009, and NESS, 2009.]
Salary levels
The following details the average 2009 annual pay for a range of job roles in the UK retail sector:
New goods in specialised and non‐specialised stores
- Storage and warehouse managers £29,000
- Retail and wholesale managers £23,000
- Sales and retail assistants £14,000
- Shelf fillers £14,000
Food, beverages and tobacco sold in specialised stores
- Butchers meat cutters £17,000
- Bakers flour confectioners £17,000
Pharmaceutical and medical goods, cosmetic and toiletries
- Pharmacists & pharmacologists £39,000
- Pharmacy managers £40,000
Not in stores
- Telephone salespersons £18,000
- Customer care occupations £17,000
Career paths
Further sources
Produced Sept 2010, using Skillsmart Retail AACS LMI report (Jun 2010)
