Brits have an affinity for high streets and the retail services they offer. As noted by a Legal & General survey, 24% of respondents said they visit their local high street at least once per week. Breaking down that stat, most people (40%) go to the supermarket, 27% spend time in high street cafes, and 21% visit independent shops. By this measure, there’s still a desire amongst consumers to visit high street shops and cafes, despite the very obvious dominance e-commerce now has.
The staying power of the British high street is certainly noteworthy in a world of digital innovations, but certain statistics suggest it may be running out of power. Forget the convenience of online shopping, perhaps the most significant problem facing high-street shops is workers. Statista data shows a sharp decline in the number of people working in the retail sector over the last 15 years. As per the employment chart, the number of people working in retail, as well as the motor trade, in Q1 2023 was 3.5 million. That’s around 1 million less than 2003.
Businesses Need to Adapt to Strict Immigration Rules
This figure may decrease further in the coming years if levels of migration fall. Prime Minister Rishi Sunak, along with Home Secretary James Cleverly, announced in December 2023 that rules surrounding work-related migration are set to change in spring 2024. In particular, the increase in the minimum salary requirement for the Skilled Worker Visa may impact the retail sector. As of spring 2024, immigration rules mandate employers to pay a minimum of £38,700 to sponsor a foreign skilled worker. This reflects an almost 50% increase from the current £26,200 per year. Businesses wanting to employ foreign workers will need to familiarise themselves with the new visa requirements, ultimately facilitating the need for expert advice from immigration lawyers.
Although no law says a company needs to work with a lawyer, it’s the best way to streamline the process. Moreover, a lawyer can ensure businesses don’t fall foul of rules such as working conditions and salary requirements. OK, but why will new rules regarding migrant workers make a difference in the retail sector? According to the Office for National Statistics, almost 30% of the workforce in retail and the customer service industry wasn’t born in the UK. Zoning in on retail specifically, 17.8% of sales and retail assistants were born outside of the UK.
British High Streets Need Migrant Workers
If new migration rules remove almost 20% of the workforce, that would cause another significant drop in the number of workers in the retail sector. With the number of workers already falling, as we’ve said, this could cause problems for the retail sector and, in turn, British high streets. There’s an acceptance that online stores take precedence over their physical counterparts. That’s been the way for almost two decades. However, the Legal & General survey does suggest that people aren’t ready to let go of the high street just yet.
This desire might be enough to push back against the wave of digital innovation washing over the retail sector, but a lack of migration is only adding to the problem. Shops need workers and, with migrants making up a significant portion of the workforce, retail businesses need to move in step with the latest rules. Failure to do this could result in a sharp drop in the number of workers. This could accelerate the demise of the high street which, as the data shows, Brits still love.
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