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UK retail industry continues to shrink – London Business News | London Wallet

Philip Roth by Philip Roth
April 11, 2025
in UK
UK retail industry continues to shrink – London Business News | London Wallet
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According to new research from Deputy, the world’s leading workforce management platform, employment across the UK’s retail sector remains 5% below pre-pandemic levels, reinforcing the industry’s major decline as it combats the impact of automation and e-commerce.

With workers seeking better wages and stability, the hospitality sector has proved to be the most popular, experiencing 2% year-on-year (YoY) job growth powered by the resurgence of London’s night-time economy.

This outperformed global counterparts Los Angeles and New York City, highlighting not only the rapidly changing dynamics of how and when people engage with work, but also leisure.

Featured as part of The Big Shift 2025: Fall of Retail, Rise of the Night-Time Economy – Deputy’s annual report highlighting the evolving hourly workforce and its economic impact – the findings are derived from analysis of 20+ million shifts across 165+ million hours of work by over 189,000 shift workers in the UK. Conducted in partnership with Dr. Shashi Karunanethy, Chief Economist at Geografia, the report reveals retail’s decline, London’s nightlife boom, and the rise of micro-shifts across key industries such as retail, hospitality, healthcare and services.

According to The Big Shift 2025, 25% of consumer spending in London now happens at night, fuelling a shift in dining habits across the capital as shift workers in fast food and cashier restaurants (31%), cafes and coffeeshops (16%) and sit-down restaurants (14%) benefit most from a surge in hours. However, the fortunes of the retail sector are rapidly deteriorating – a quarter (25%) of retail shift workers are considering leaving their roles, with the same figure taking on more than one job to supplement their income.

As more UK shift workers navigate the challenging economic climate, one of the key workforce dynamics is the emerging transition from gig roles to structured micro-shifts, which combines flexibility with more predictable income and job protections. 41% believe this will improve their job stability.

“The hourly shift work market is undergoing a rapid transition. Retail, once an industry powerhouse, is shrinking as automation and e-commerce take hold, pushing workers toward better paying jobs in hospitality, healthcare and services. Meanwhile, London’s night-time economy is booming, with businesses adapting to rising after-dark demand from consumers.” said Silvija Martincevic, CEO of Deputy.

“At the same time, we are seeing vulnerable gig work under pressure. Micro-shifts aren’t about working less, but they are about working smarter, offering flexibility and forcing businesses to rethink workforce planning. The Big Shift Report 2025 is a roadmap to this new world of hourly work.”

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