Usdaw is calling for unions, government and retailers to come together to develop an industrial strategy for retail that provides economic reforms and offers decent pay and secure work; not just in terms of the current crisis, but to help futureproof the sector against new and evolving challenges ahead.
 
The conference also heard from representatives of: Department for Business, Energy and Industrial Strategy, High Streets Task Force, British Retail Consortium, Association of Convenience Stores, British Independent Retailers Association, along with retail guru Bill Grimsey.
 
Paddy Lillis - Usdaw General Secretary said: “It’s no secret that the retail sector has been impacted by the pandemic on an unprecedented scale, but the experiences of food and non-food retail have been completely different. Food and homeware retailers have reported growing sales driven by huge consumer demand, while non-food retailers such as high street clothing shops are struggling under the pressure of lockdowns and public health restrictions, costing stores billions in lost sales.
 
“With non-essential retail currently closed, there are big questions about how many high street retailers will survive. Concerns for the future of the high street are heightened by the shift to online shopping, which has grown by 46% over the last 11 months. Even when shops do re-open, we know some of the shift to online shopping will be permanent.
 
“But we also know that shops are a vital part of the local economy. We know that local communities want to have a successful retail sector at the heart of our towns and city centres. As a society, we have a choice. Do we want to see shops and a thriving retail sector at the heart of our towns and cities? If we do, and I think most people and communities would agree that is what they want, then we need to act. We need the Government to act, to legislate and reform business and property taxes to ensure that town centre retail can survive and thrive. We urgently need a more level playing field between online and bricks-and-mortar retailers.
 
“We must also look beyond the impact on business and consider the heavy toll the pandemic is having on retail workers. Whether you work in food retail or on the high street, retail workers are going through challenging times. Usdaw members in supermarkets and convenience stores have worked throughout the pandemic to keep the country supplied with essential items. Shopworkers in the food retail sector have been at the forefront of the response to the pandemic.
 
“They were rightly designated as key workers from the very start of the crisis. The realisation of the importance of retail workers has helped to change the narrative around retail jobs. This recognition is welcome but needs to be followed by action.
 
“Retail workers are at a greater risk of catching the virus and taking it home to their families and loved ones. We know from our conversations with employers that the sector is currently suffering from incredibly high absence rates because of Covid-19. This is why the Government must prioritise retail workers and delivery drivers, alongside other key workers, in the second phase of the vaccine rollout. And why we’ve been asking retailers to tighten their measures around customer numbers, queue systems and hand hygiene as well as better enforcement on face coverings and social distancing in stores. This is of course to help keep staff safe, but also to make sure essential retailers can stay open and continue to support their local communities during this difficult time.
 
“In non-essential retail, we’ve seen a different crisis impacting on retail workers. Many well-known established retailers have embarked on huge restructures cutting thousands of jobs. Popular retailers like Laura Ashley, Oasis and Cath Kidston have fallen into administration.
At the end of last year 13,000 jobs were put at risk in Arcadia. This week Asos have moved to buy the Top Man, Topshop and Miss Selfridges brands but there is no package to save the shops or protect the retail jobs in the high street stores. Last week, the purchase of the Debenhams brand by Boohoo confirmed that there was also no plan to save the stores or protect jobs, with another 12,000 people losing their jobs.
 
“Last year, in total, 180,000 retail jobs were lost in the sector. The extension of furlough until April 2021 will help to retain jobs, but it’s not enough. The Government needs to extend the Job Retention Scheme at least to the summer. But it also needs to urgently reassure those retailers hardest hit by the pandemic with an extension to business rates relief. A return to full rates liability in April would be disastrous for the high street.
 
“The strong rumours are that the Government in the March Budget is going to extend the business rates holiday. If it plans to extend the business rates holiday then it needs to confirm and announce this as quickly as possible and not wait until the 3rd of March. Rent bills also continue to weigh heavily on the sector. The moratorium on evictions offers some relief but unpaid rents are still accruing and will become liable at some point. Again, the moratorium on evictions needs to be extended at least to the summer and that needs to be announced as soon as possible. Unless we see the right level of support for retailers, we can expect more job losses in the coming months. In addition to immediate rescue measures, retail needs a longer term recovery plan.
 
“It’s clear that the current economic framework – from taxation, commercial rents to business rates – is not working. We need a plan developed in a partnership between business, government and unions; a plan that provides more of a level playing field between online and bricks-and-mortar retailers. We need fundamental reform of business rates, to include a permanent reduction in rates for retailers. And we need an online sales tax to help address the imbalance between online and ‘bricks and mortar’ retail.
 
“An online sales tax of just 1% would raise an estimated £1.5 billion, generating enough money to help cut business rates for retailers by about 20%. We need a plan that addresses the longstanding problem with rents and leases. The sector has changed dramatically over recent years. This is why we need a new model for rents and leases. Whether it’s a question of more flexible short-term leases or rents being linked to turnover remains to be seen. But what we do know is that we need a model that works for both landlords and retailers, as well as the wider sector. 
 
“Beyond the economic importance of retail, shops are an integral part of our communities. Vibrant high streets are often seen as a driver and reflection of the wider town and local economy. But local government cannot deliver successful thriving town centres without the right resources and funding to invest in their transport networks and high streets.
 
“Most importantly any plan for the future of the retail sector must go beyond supporting business and local government. We need a plan that recognises the contribution of the people who work in the retail sector. There are serious questions and concerns about what retail jobs will look like in the future. For too long the retail sector has become a byword for low pay and insecure hours. This isn’t sustainable and won’t attract or retain talent in the long run.
 
“If we want retail to prosper, we need to make sure that retail jobs are good jobs. We need decent pay. I’m pleased that Usdaw and Morrisons have recently negotiated an increase in the basic pay rate to £10 per hour. We want to see a real living wage being offered right across retail. We need workers getting guarantees over the hours they need to support themselves and their families and we need a commitment to staff training and development. Especially in light of automation and new technology, which is changing the retail landscape, but it must be utilised alongside retail workers - not in place of.
 
“It’s clear that significant challenges lie ahead for the retail sector. Which is why Usdaw is calling for unions, government and retailers to come together to develop a plan for the sector. An industrial strategy for retail that makes practical changes and provides economic reforms, offers decent pay and secure work and delivers for both retailers and retail workers. Not just in terms of the current crisis, but also to help futureproof the sector against new and evolving challenges going forward.
 
Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fifth biggest trade union with over 400,000 members. Membership has increased by more than one-third over the last couple of decades. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemicals and other trades.
 
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