Retailers planning to cut hours and jobs amid rising costs - BRC

(Sharecast News) - Finance chiefs in the retail sector are planning to cut jobs and hours amid rising employment costs, according to a survey released on Thursday by the British Retail Consortium. The BRC's latest survey of retail chief financial officers and finance directors showed a sharp rise in anxiety about labour costs over the next year.

The survey found that CFO sentiment has deteriorated markedly in the past six months, with 69% describing themselves as 'pessimistic' or 'very pessimistic', up from 56% in July 2025, and only 14% 'optimistic', versus 11% previously.

The downbeat outlook reflects unease about the 2025 Budget, which three-quarters of CFOs suggested would make it harder to invest. As a result, 61% of finance bosses said they were planning to cut working hours or overtime, while 45% said they would need to freeze recruitment.

The BRC said jobs were likely to be at risk, with 55% of finance chiefs planning to reduce head office headcount and 42% to cut store headcount.

BRC chief executive Helen Dickinson said: "The economy is expected to remain fragile, with weak wage growth, unemployment rising, and low consumer confidence, all pointing towards falling demand. At the same time, businesses face sharply higher costs, from rising input prices and wage bills to new burdens created by government policy.

"We all want more high-quality, well-paid jobs. But retail has already lost 250,000 roles in the past five years, and youth unemployment is climbing fast. The Employment Rights Act is the biggest shakeup of employment rules in a generation, and how it is delivered will make or break job opportunities. Done well, the reforms can raise standards while supporting flexible and entry-level roles that are vital for people whose lives don't fit a fixed 9-5 pattern.

"If the Government fails to consider business needs on policies including guaranteed hours and union rights, they will add complexity and reduce flexibility, ultimately stripping away entry-level and part-time opportunities at precisely the moment the country needs them most."