The increase represents a 21% hike since 2006 while retail sales values rose just 12% in the same period.

The growing disparity in costs and revenues, said the retail body, were the primary reasons for store closures and curtailing of job creation in the sector.

Conducted by Oxford Economics, the research outlined that costs such as rents, business rates and utility bills have increased exponentially since 2006 while sales haven’t caught up proportionally.

In view of the developments the trade body has sought certain measures from the Chancellor to ease cost escalations and spur consumer demand.

BRC sought an increase in personal spending allowance to £10,000, to help the country’s fledging consumer confidence while freezing business rates in April 2013 to control costs.

A time-limited National Insurance holiday for all companies was also sought for providing employment to the currently unemployed, thereby spurring job creation in the sector.

British Retail Consortium director general Helen Dickinson remarked that the retail industry was the largest private sector jobs provider even in the last few years of tough economic conditions.

"Consumer spending accounts for two thirds of all expenditure in the UK. It must recover before the economy can, yet 2013 has begun with high-profile evidence that demand is weak and a painful restructuring of the UK retail industry is underway as customers change the ways in which they want to shop," said Dickinson.

"There were welcome measures in the Autumn Statement and the Chancellor has it within his gift to do a great deal more. Our figures show dramatic increases in operating costs, often as a direct result of Government decisions."