United Kingdom: Tax reform could close 400 stores and kill 100,000 jobs.

Threat of store closures in the UK

According to The Sun: Industry leaders warn that if a higher business tax is introduced, up to 400 major stores could close. The British Retail Consortium notes that companies are already feeling pressure from rising labor costs and high taxes — 1,000 such establishments have closed since 2020.

If the new tax affects stores with an estimated value over £500,000, it could lead to even greater losses. It is estimated that as a result, up to 100,000 jobs could disappear, and retail revenues could decrease by over £100 million each year.

BRC Director Helen Dickinson emphasized:

“Large stores in the UK are magnets that attract people to shopping streets, shopping centers, and retail parks.”

“They support surrounding cafes, restaurants, and small independent shops.”

The association urges Chancellor Rachel Reeves to exempt large stores from further tax increases during the budget announcement on November 26.

Dickinson also added:

“It will not cost the treasury a penny, but it could save the future of 400 retail stores and the communities they support across the country.”

“But failing to act risks closing even more stores and losing jobs.”

BRC emphasizes that retail accounts for 5 percent of the economy but pays over 20 percent of all business taxes.

Technological pause for Marks & Spencer

Rachel Haim, Chief Digital Technology Officer at Marks & Spencer, is resigning after several months in the role, witnessing the consequences of a cyberattack that disrupted the company's online operations. Ms. Haim joined the retailer in June last year and is now “taking a career break.”

Online disruptions are expected to cost the company £300 million for the 2025/26 financial year, although insurance and cost controls may partially mitigate losses.

£2 charge at IKEA

The Swedish company IKEA has introduced a £2 charge for click and collect service for non-members. It applies to collections from Tesco points, DPD, or lockers.

The company explained that this charge was implemented to ensure the financial sustainability of delivery and collection services. Joining the Ikea Family club is free and has its benefits, including discounts on meatballs in-store.

£88 million loss at John Lewis

John Lewis reported a loss of £88 million for the first half of the year, attributing it to rising taxes. The loss includes £29 million due to increased national insurance contributions and new packaging responsibility schemes that took effect in April. Despite this, the retailer hopes for profit growth by the end of the year due to an increase in shoppers.

Total revenue increased by 5 percent to £5.4 billion for the half-year. Director Jason Tarry noted that it is still early to talk about possible bonuses for employees.

The retail market situation in the UK shows certain challenges faced by both large companies and small stores. Rising costs and taxes threaten their stability, while raising questions about government support. How the government will respond to these challenges remains in question, but the developments of the coming weeks may determine the economic balance in this sector.