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.
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.]
