The UK’s retail sector is set to shed more than 500,000 roles in the next five years as boards turn to automation and new technologies to make efficiencies.

The annual Harvey Nash and KPMG survey of 3,645 chief information officers (CIOs) found that one in five jobs are likely to be replaced by artificial intelligence (AI) and automation by 2024.

The move towards automation is being driven by board-level decision makers, with almost half (44 per cent) reporting that their departments are being eyed by senior leaders as key to driving efficiencies within the business.

The findings comes after the Office for National Statistics (ONS) estimated that two thirds (135,000) of cashier jobs in UK retail are at high risk of being automated.

Leading High Street retailers are also researching the potential relationship between humans and robots, with John Lewis trialling the use of robots to harvest produce from farms for Waitrose stores.

However, the data, which forms part of the world’s largest technology leadership survey - analysing responses from over 3,600 organisations with a combined technology spend of over $250 billion - also found that two thirds of IT Leaders in UK retail believe that new jobs will compensate for roles lost through automation.

This combined effect of job losses in ‘traditional’ areas, and new job growth requiring new ‘digital’ skills, is likely to lead to a significant reorganisation of roles, the report found, with the process already underway in UK retail.

A quarter of IT leaders are currently piloting or implementing Robotic Process Automation (RPA), with a further quarter rolling out AI or machine learning tools.

In addition, the survey revealed that more than half (50.8 per cent) of IT leaders in UK retail are currently spending more than $10 million a year on IT, with 16 per cent setting aside more than $100 million annually.

The survey also revealed that the vast majority (80 per cent) of chief executives in UK retail want their IT investment to make the business money rather than just reduce costs. However, two thirds of IT leaders in the sector reported that a skills shortage is preventing their business from keeping up with the pace of digital change.

Albert Ellis, chief executive of global tech recruiter at Harvey Nash, said: “Whilst most consumers’ experience of retail automation may be the frustration of having an ‘unexpected item in the bagging area’, this survey shows how the influence of automation is being felt across the entire retail organisation.

“If you also consider the radical changes happening in the high street, and the explosive growth of online commerce, it’s clear the retail sector is undergoing massive change,” he continued. #

“But, while much of the narrative has been around what jobs might be lost, the real battle for success will be around which retailers will be able to attract and develop the right skills and talent for this new automated, digital world.”

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