SHOP SHOCK
10,000 stores set to close in 2019 as experts warn no retailer is safe
AT least 10,000 shops will shut for good next year – choked by a toxic combination of woes, say experts.
They sounded fresh alerts over online competition, rising debt, soaring business rates and a “discount culture”.
Professor Joshua Bamfield, of the Centre for Retail Research, said: “We are expecting about 10,000 shops to close in the next year.
“The greatest sufferers will be the smaller independent retailers who have to pay high rates and wages.
“The areas that will be hit the hardest will be those already hit by recession and industries closing, such as the North, the Midlands and Scotland.”
Fears for the £366billion-a-year retail industry come a month after the Local Data Company revealed the number of empty shops, pubs and restaurants had soared by more than 4,400 in the first six months of 2018 alone.
The crisis has cost tens of thousands of jobs and seen major chains such as House of Fraser collapse into administration in the past 12 months. Experts warned no single high street name was safe as they battle to adjust to ever-changing consumer habits and prepare for another rise in business rates next year.
Professor Bamfield added: “A few years ago you could say there were certain retailers that would never go bust but you cannot say that any more.
“There are no guarantees anyone will survive. The Government needs to develop a policy to deal with the decline of the high street. Business rates are too high for stores to compete with online competitors.”
Retail analyst Richard Hyman said: “I think we have a toxic combination at the moment. Consumer indebtedness is at worrying levels – people have been spending money they have not really got.
“At the same time we have seen years of internet growth while shops are fighting over an ever smaller piece of the pie and their margins are really small.
“Added to this, retailers have become addicted to discounting.
“This leads to customers constantly postponing making a purchase as they don’t trust the retailer not to drop their prices again.
“The retail sector is the biggest employer in the UK after the public sector, with more than three million jobs, so it is inconceivable it will not survive.
“But it is becoming a tougher and less profitable environment.”
Martyn James, of consumer complaints website resolver. co.uk, added: “The death of the high street might have been overhyped but it’s certainly looking the worse for wear.
“We need to recognise that if we don’t use it, we’ll lose it.
“Why not ban yourself from shopping online for a month instead of suffering through dry January?
“Or use the internet to browse for goods, then make a day of going out shopping with friends or family?
“And if you can, pay a little extra for those independent businesses that make Britain great.”
He pointed out that HMV sold 31 per cent of physical copies of music in the UK in 2018 and 23 per cent of all DVDs and Blu-ray discs.
Its market share grew month by month throughout the year.
Mr McGowan added that the market was set to fall by another 17 per cent next year so it was not possible to carry on.
Helen Dickinson, chief executive of the British Retail Consortium, said: “It has been a tough year for many retailers, with many well-known brands disappearing from our high streets.”
Administrators for HMV, which has 2,200 staff, are keeping all 125 stores open as they try to find a buyer for the chain. Shops will accept gift cards while it is trading.
The last time the chain collapsed, administrators told customers gift vouchers would not be honoured but made a U-turn after an outcry.
Will Wright, of KPMG, said: “Gift cards will be honoured while the business continues to trade.”