Job losses in UK retail topped almost 170,000 this year after the collapse of major high street chains, according to data from the Altus Group/Centre for Retail Research.

That’s the highest since more than 200,000 jobs in the sector were lost in 2020 in the aftermath of the pandemic, which forced retailers to shut their stores during lockdowns.

The latest figure of 169,395 lost retail jobs in the 2024 calendar year to date is an increase of 41.9% compared with 2023.

A third of all retail job losses in 2024, or 55,914 in total, resulted from the collapse of businesses, with 38 major retailers going into administration, including Ted Baker, Body Shop, Homebase and Lloyds Pharmacy.

The rest were through “rationalisation”, as part of cost-cutting programmes by large retailers or small independents choosing to close their stores for good, according to the report.

Independent retailers, which are generally small businesses with between one and five stores, shed 58,616 jobs in total during the year.

Professor Joshua Bamfield, director of the Centre for Retail Research, said: “The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns if you like.

“The problems of changed customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut back even more strongly in 2024.”

Retailers are also bracing for a tough 2025, with more than 200,000 additional roles expected to go. Policy measures including a cut in business rate relief and a rise in employers’ National Insurance contributions threaten to hit the industry in the spring.

The current 75% discount to business rates — due to end on 31 March — will be replaced by a discount of 40%, with the maximum discount remaining at £110,000.

Alex Probyn, president of property tax at real estate adviser Altus Group, said: “The cut in the business rates discount from 1 April will disproportionately affect independent retailers who will see their bills rise on average by 140% adding an extra £5,024 for the average shop.”

Altus forecasts have predicted the change will save the Treasury money but cost the retail sector an extra £688 million.

The British Retail Consortium has also predicted that an increase in employer National Insurance contributions and a reduction in the threshold at which firms start paying will create a £2.3 billion bill for the sector.

“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020,” Probyn added.