A very tough trading climate across the retail sector is giving chief financial officers major concerns for the year ahead, as 84% ranked staffing and employment costs as the top problem, up dramatically from just 21% in July 2025.

In just 12 months, retail lost a total of £5bn to taxation, along with this, the cost of hiring a full time worker rose by 10%, and hiring a part time employee, such as a student shot up by 13%. Meanwhile, youth unemployment has risen to 15.9%, with 730,000 under-24s not able to find work.

This pressure could mean jobs are at risk, as 55% of retail chief financial officers and financial directors’ said they are planning to reduce head office headcount this year, with 66% planning to make up for a smaller workforce with ‘investment in automation’, according to the British Retail Consortium’s (BRC) latest survey of retail leaders.

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