Why Britain’s High Streets are on brink
New Look ‘axes 60 shops’ in latest retail bloodbath
THE crisis in Britain’s high streets is at a new peak – ripping the guts out of once thriving communities.
Shops and businesses making up our town centres are closing at an alarming rate, a Mirror investigation shows.
And favourites such as fashion chain New Look are not immune. It added to the gloom yesterday with reports bosses are considering shutting 60 stores with potentially hundreds of job losses.
A combination of the internet, changing shopping habits, soaring costs, parking charges, business rates, and other taxes have hit hard.
A number of other big name stores also suffered a miserable Christmas.
Debenhams, Mothercare and Moss Bros were among those to issue profit warnings after a slump in sales.
Marks & Spencer revealed a drop in takings and House of Fraser, which also had a tough Christmas, has asked store landlords for rent reductions.
Reports say it is weighing up plans to close around 10% of its UK branches. The firm refused to comment. Toys R Us survived collapse by the skin of its teeth before Christmas, but is closing at least 26 of 105 UK shops early this year – losing up to 800 of 3,200 staff.
And that was during what the industry calls the “golden quarter”, when many outlets make most of their money – a “make or break” for those in trouble.
Yet nearly 22,000 stores were in “significant” difficulties going into Christmas, 6% higher than a year ago, business support group Begbies Traynor found.
Subsequent data suggested the high street suffered its fifth year in a row of falling Christmas sales.
Writing exclusively in the Mirror, high street tycoon Theo Paphitis said: “It’s tougher than I’ve known in 40 years.”
There are plenty examples of high streets fighting back, with enterprising small shops bucking the trend. But one in eight premises nationally are empty. And it’s much higher in some areas.
Just under a third of shops in Burslem, Stoke-on-Trent, are vacant, it’s 29% in Dewsbury, West Yorks, and 27% in Newport, Monmouthshire, and Grimsby.
Saved from collapse with rescue deal but 26 to shut Issued profits warning after a sales drop in December Closing 50 travel agency branches as hols go online
It’s even worse if you include other types of business. Banks were due to shut nearly 800 branches last year, on top of almost 600 in 2016.
Taxpayer-backed Royal Bank of Scotland and Lloyds Banking Group topped the list, followed by HSBC and Barclays. Bank bosses blame a rise in customers doing their finances online. But needs of those who cannot use the internet, or don’t want to, are ignored.
A quarter of bank branch closures last year were in small towns, thinktank the Centre for Towns discovered.
Founder, Labour MP Lisa Nandy, said: “High streets are challenged with the rise in online shopping and out-oftown superstores. But maintaining access to local banking is vital, particularly for those with mobility issues or who rely on public transport.”
The weak housing market has also meant a raft of estate agents closing. And travel agent Thomas Cook is shutting 50 branches. Even betting shops face trouble, with hundreds of branches set to close. Independent analyst Richard Hyman said: “If just 5% change their shopping habits, it can cause a massive change.” Now there is speculation that retail parks, which hit high streets, may in turn have to give way to internet giants such as Amazon. These huge stores could simply become warehouses for online firms. But Mr Hyman warned online shops face a crisis too: “Too many websites are chasing the same business.”
Issued profits warning after a 2.6% drop for Christmas Nearly 800 branches axed across banks in 2017 Suffered 2.8% slump in nonfood sales at end of year Asked store landlords for a rent cut due to festive fall