17,000 UK Stores May Close, Sainsbury's Boss Warns

The CEO of Sainsbury's, Simon Roberts, has issued a stark warning that approximately 17,000 high street stores in the UK are at risk of closure. This alarming statement comes amid a wave of store shutdowns from major retailers, including Tesco and well-known brands like Clintons and Morphe. Speaking to The Times, Roberts highlighted the urgent need for reform in the business rates system, which he claims is a significant barrier to growth in the retail sector. Roberts criticized the current business rates system as outdated and burdensome, stating that it directly contributes to store closures and job losses. He emphasized that while retailers are willing to pay their fair share of taxes, the existing framework is no longer suitable for the industry. According to data from Development Economics, if the business rates were reduced by 20%, it could potentially save 17,000 jobs and even create additional employment opportunities. In a joint statement with Paddy Lillis, General Secretary of the Union of Shop, Distributive and Allied Workers, Roberts called for a government that prioritizes economic growth and job creation. They argued that a revitalized approach to business rates could lead to significant benefits for the retail sector and the economy as a whole. In response to these concerns, a Treasury spokesman reiterated the government's commitment to replacing the current business rates system with a fairer alternative, aimed at leveling the playing field between high street retailers and online competitors while encouraging investment and entrepreneurship.