Another year of turmoil for crisis-hit shops

THE crisis on the High Street will last into 2020 as shops try to fight rising costs and the move online, experts have warned.

By the end of the year chains will have shed 8,000 stores and 85,000 jobs, with retail experts predicting the bloodbath will continue at the same pace during the next 12 months.

The period immediately after the ‘golden’ quarter of Christmas trading is the most dangerous for ailing High Street firms, who face large rent and business rates bills.

Shoppers have deserted the High Street in the last fortnight. Footfall was down by 10pc yesterday morning – the worst performance since the financial crisis – and in the week before Christmas it dropped by 7pc, data company Springboard said.

even without further casualties, the insolvency proceedings of many retailers involving store closures will only come into force in 2020. And hedge funds have bet against a recovery, taking positions against the likes of Sainsbury’s, B&Q-owner Kingfisher and Marks & Spencer.

The gloomy outlook comes in a year when dozens of wellknown brands including Mothercare, Links of London and Bonmarche have gone into administration.

Many companies were offering deep discounts in the runup to Christmas to beat off competitors and bring in much-needed sales.

experts have said there will be no let up next year, even if consumer confidence recovers as a result of the Conservative Party winning a majority.

Lisa Hooker, leader of Industry for Consumer Markets at PwC, said: ‘we’ve already seen the worst-ever net store closures for a year’s first half.

‘If a last-minute Christmas shopping rush fails to materialise, retailers should be prepared for a bumpy first quarter and more high street – and even online – casualties in the months ahead.’

The British retail Consortium, which represents 150 of the UK’s largest employers, said business rates and the Government’s apprenticeship levy were fuelling closures and job losses.

The Conservative Party last week announced it would hand tax breaks to independent retailers, music venues, small cinemas and pubs, worth up to £12,500 for each premises.

But critics said this relief was only temporary, and did not apply to the largest firms.

Boris Johnson has also promised to launch a ‘fundamental review’ of the business rates system in the spring.

Tom Ironside, director of Business and regulation at the British retail Consortium, said: ‘Government must address rising costs, particularly the sky-high business rates, or we are likely to see more job losses and store closures in the future.’