Jersey’s retail sector is continuing to face significant pressure from weak consumer demand and staffing shortages – with significant work ahead to become “future-fit”, according to a new government report.
The Future-Fit Retail Roadmap delivery report revealed that some local businesses are unable to expand opening hours or fully capitalise on trading opportunities due to ongoing market constraints.
Efforts to encourage retailers to extend their daytime and evening offer saw “limited uptake” last year due to “market conditions, including suppressed demand and staffing shortages”, according to the report.
Published this month, the roadmap update described a year of “meaningful progress, close collaboration, and renewed ambition” for the island’s retail economy, despite ongoing global pressures.
Retail continues to play a major role in Jersey’s economy, contributing £416 million in 2024 and employing more than 800 businesses, making it the third-largest private sector employer.
Of the 33 actions outlined in the roadmap,16 were delivered last year, 10 remain in progress and seven have not yet started – meaning 79% are either complete or underway.
Among the key achievements was a 90% occupancy rate in St Helier’s town centre, alongside initiatives aimed at boosting footfall and improving customer experience.
The report also highlights the rollout of a digital GST refund scheme, which generated around £4.6 million in visitor spending after its launch in mid-2025.
Meanwhile, more than 260 employees were trained in customer service excellence, with satisfaction and knowledge scores rising significantly after the programme.
Efforts to improve productivity included grants worth more than £450,000 across the retail sector, as well as pilot schemes such as carbon labelling to encourage sustainable consumer choices.
But plans to allow shops to open and receive deliveries on Sundays and public holidays without a permit were proposed and subsequently withdrawn by Economic Development Minister Kirsten Morel earlier this year.
And suggestions to introduce a Business Improvement District framework – which would create a defined area in which local businesses have voted to invest together to improve their environment – have not yet progressed into legislation.
The report noted that a Business Improvement District delivery framework was “scoped” last year, including the requirements for legislation to enable these structures in Jersey.
However, the report added that the government cannot create a Business Improvement District.
“It is down to the business community to submit proposals, which can then be voted on by those within a designated Business Improvement District area,” it said.
Other actions – including a strategy to boost local product visibility and reforms to retail taxation – have yet to begin.
The report acknowledges that Jersey, as a small island, “feels the pressures on global retail acutely”, underlining the need for continued innovation and partnership working.
Looking ahead, ministers have expanded the roadmap to include Les Quennevais as a second retail hub and committed to tackling long-term vacancies and commercial lease reform.