Retail
The Retail Unit helps the sector to raise its productivity and improve its competitiveness by facilitating better regulation, incentivising innovation and regional development, and encouraging good practice in areas such as skills, employment, international trade, crime prevention and environmental sustainability.
UK Retail – overview
The Retail Unit underpins BIS’s aim of supporting growth by working with the sector, with Other Government Departments and with the European Union to maximise benefits to both retail businesses and consumers in the UK.
UK retail – key facts
- UK retail sales are around £300bn, the 3rd largest in the world, after the USA and Japan.
- The retail sector generates 8% of the GDP of the UK, and 5.2% of GVA.
- The retail industry employs around 3m people. One in ten of those in employment currently work in the retail sector – the highest proportion of UK private sector employment.
- There are 450,000 shops in the UK owned by 300,000 enterprises, including 9% (190,000) of all VAT-registered businesses.
- Shops account for more than a third of consumer spending.
- Despite strong growth in recent years, internet sales currently account for only around 7.5% of total sales.
UK retail is one of the world’s most competitive and innovative industries.
Not only are UK retailers amongst the world’s top performing companies but the UK attracts many global brands setting up flagship stores to attract both domestic and overseas visitors to prime retail locations in the UK. The value of overseas shoppers in London is around £2bn p.a. Many other UK locations recognise the importance of retail as a leisure activity with many initiatives linking retail to tourism in locations such as Leamington, Torquay, Nottingham, Solihull, Medway, Glasgow, Falmouth, Skipton and Rye.
Retail also plays an important role in regeneration. Leading retailers are major constructors in the UK, investing in not just shops but houses, infrastructure, and even civic centres.
Retail is the largest private sector employer in the UK with one in ten of the workforce working in retail. Despite being the third biggest casualty of the recession with over 6,000 insolvencies, the sector continues to grow. Retail encompasses a wide range of professions and is at the forefront of workplace skills development and flexible working.
Retail services encompass a wide variety of formats, product ranges, business structures, locations and sales channels . Retail has many connections with other markets both upstream (e.g. suppliers, logistics providers etc.) and downstream (e.g. consumers).
Europe
EU Report and Consultation: ‘Towards more efficient and fairer retail services in the internal market for 2020’
On 5 July, 2010, following a market monitoring exercise it conducted in 2009, the EU Commission published a report on a wide range of economic, social and environmental performance issues affecting companies operating in the retail sector. Together with an accompanying Commission Staff Working Document, the report identified a number of problems affecting the sector. It says these have potential to affect the performance of retailers and the optimum growth of operators in the retail supply chain as well as working conditions, labour supply, employment levels, competitiveness and sustainability in the retail sector.
The Commission has consulted on this report, and this will feed in to an EU Communication to be published in October 2010.
Further information can be found on the European Commission's EUROPA web site.
New opportunities and threats
The Retail Policy Forum (RPF - chaired by BIS’s Retail Unit) enables a representative cross-section of retailers, and their representative bodies, to talk to Government Departments and EU officials about regulations and other key policies affecting the sector at an early stage in the process. It aims to help both retailers and policy makers by minimising the burdens on retail, looking for alternatives to regulations (where appropriate) and making any regulations and enforcement as practical and sensible as possible. The RPF meets three times a year. When necessary, additional meetings are held to take an in-depth look at particular subjects.
The Retail Unit also manages a Virtual RPF of UK retailers, trade associations and others with a professional interest in retailing. Communications are mainly by email and members can join the RPF’s working groups. To apply for membership of the Virtual RPF please email the Retail Unit explaining your interest in the sector and supplying contact details, including job title, telephone number and postal address.
The Retail Unit has a Partnership Action Plan agreed with the British Retail Consortium, the Association of Convenience Stores and leading retailers focusing on: strategic engagement; employment and skills; climate change; the business environment and fiscal concerns; and better regulation. If you would like to see a copy of the Action Plan please contact the Retail Unit.
BIS Retail Unit Contact details
Retail Unit
Department for Business, Innovation & Skills
4.1
1 Victoria Street
London SW1H 0ET
Email: retail@bis.gsi.gov.uk
BIS Public Enquiries: 020 7215 5000
