Overview of the retail and sales sector in the UK

Providing jobs for three million people, the retail sector is the UK's largest private employer. Find out about the main organisations and what areas of work you can enter...

What areas of retail can I work in?

Employment opportunities in retail and sales are grouped into:

• customer service;
• distribution, logistics and supply chain;
• finance;
• human resources;
• IT and e-commerce;
• marketing/advertising;
• merchandising/buying/planning;
• product development;
• sales;
• store operations/management.

The retail sector makes up approximately 10% of all employment in the UK. More than half of people work part time in the sector compared to less than a third across the whole economy.

The UK is the most international retail market with the highest proportion of international retailers trading.

For examples of job roles in the sector, see graduate jobs in retail and sales.

Who are the main graduate employers?

In clothing retail, employers include:

• Arcadia Group (Burton, Dorothy Perkins, Miss Selfridge, Topshop and others);
• John Lewis Partnership (includes Waitrose);
• Next.

In home shopping, large companies include:

• Amazon.co.uk;
• N Brown Group;
• Shop Direct Group.

Other retailers:

• The Carphone Warehouse;
• DSG International (includes Currys and PC World);
• IKEA;
• Kingfisher (B&Q and Screwfix);
• Lloyds Pharmacy;
• Wilkinson Hardware Stores.

What's it like working in the sector?

Graduates entering the retail and sales sector can expect:

• varied working environments, e.g. working in the sales department can be target driven, customer facing and very busy. Merchandisers may work nights when the stores are closed. Finance teams and other office-based roles generally work 9am to 5pm;
• a lower salary when compared to other sectors in the UK. This is in part due to the majority of occupations being at an elementary customer service level, however at store management level salaries can be high;
• to find many roles based on shift work. This can mean unsociable hours and weekend work, as retailers are often open seven days a week with some operating 24 hours a day (except for Sundays).

To find out more about typical salaries and working conditions in your chosen career, see types of jobs.

What are the key issues in the retail sector?

The high street has become empty as many businesses have ceased trading all together or reduced the number of stores. This is a result of both the decrease in consumer spending during the recession and the transition of some companies to operate predominantly online.

Many large retailers including Borders, MFI and Woolworths have suffered during the recession causing full closures. Others have gone into administration resulting in store closures and staff redundancies, for example Barratts, Carpet Right, Game, HMV and La Senza. Recently (between September and November 2012) companies going into administration include Comet and JJB Sports.

According to research by the UK Commission for Employment and Skills (UKCES):

• the majority of labour demand will be in the moderately skilled, low paid customer service occupations but there will also be demand for higher skilled, managerial and professional occupations required to sustain and encourage growth in the sector;
• technology advancement is continuing to have an effect on retailing with the creation and continuing expansion of online retailing. This has affected the trading of some high street shops - Argos is due to close some of its stores as it undergoes a digital overhaul;
• consumer demand impacts upon the direction of the sector which has seen an increase in discount retailers. Also large retailers have begun to offer financial services and develop their own branded goods. Changes in demographics will mean that retailers will have to start considering the needs of the ageing population.