Retail earnings hit record levels

ONS labour market statistics show average weekly earnings in retail sector rose 6% to £689.57 in Q2 2024, from £649.61 in Q1 2024 – the highest quarter on record.

Vacancies in the sector continued the downward trend from 65,000 to 61,000 in the three months to July 2024.

Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, said: “Increased competition to attract and retain staff and the uplift in the national minimum wage have pushed up wages to record levels. This squeeze on the bottom line, at a time when retail sales are turbulent, will put significant pressure on margins. 

“The labour market is cooling and rationalisation across the industry has allowed retailers to adapt and focus on what is needed, so pressure on wages should start to ease.  

“In addition, when you combine increased consumer confidence with real wages growth of 2.4%, we should start to see a boost in consumer spending in the second half of the year, which would help to ease the acute financial pressure for retailers.”