Despite retail employment growing by 0.6% year-on-year in the fourth quarter of 2012, new findings by the BRC have revealed half of the retailers they questioned plan to decrease staffing levels during the first three months of 2013.
The BRC-Bond Pearce Retail employment monitor Q4 2012 showed that the number of outlets dropped by 3.6% during the final quarter of last year, amounting to 573 fewer stores than the year before. Just 4% of retailers said they were planning to increase staff levels during Q1 2013.

BRC director general Helen Dickinson said: "The fact that total employment edged up during this quarter, driven by part-time workers, is a shaft of light against an otherwise challenging backdrop. It shows that, despite relentlessly tought times, retailers are continuing to invest in people and support job creation as much as they can.

"But the record drop in store numbers is stark evidence that this investment should not be taken for granted. We're by no means out of the woods yet - given the administrations of recent weeks, the next quarter's figures are likely to make difficult reading.

"Half our sample intend to decrease staffing levels during the first quarter of this year and only four percent plan to increase them. This trend is to be expected at this time of year due to reductions in temporary seasonal staff, but the rate is higher compared with last year and further highlights testing times still to come."

She added: "Supporting retail sector investment and employment is essential to economic recovery. The government can help by freezing business rates in April."