Thursday, 9 October 2014

High Street Decline Continues With Shop Closures (UK)

High Street decline

The decline of the high street has accelerated in the first half of the year, according to new figures.

Experts suggest betting shops and discount stores gained increasing footholds at the expense of traditional retailers

While the recession has hit high street businesses hard, the changes have been put down to the rise of digital commerce.

Phones 4 U shop

Matthew Hopkinson, director of the Local Data Company, told Sky News: "Significant changes are continuing to take place across Britain's town centres.

"The transaction element is between people and not on product.
"The UK leads in terms of the impact online."

Town centres saw 406 net store closures compared to 209 in the same period last year, research from accountancy firm PwC, compiled by the Local Data Company, showed.

The collapse of businesses such as Phones 4u and lingerie chain La Senza saw this rise to 964 for the year to date at the end of September - two-and-a-half times the number for the whole of 2013.

There were 953 net closures in the first half of 2012 which reflects a closure rate of about 16 shops each day.
Traditional goods retailers such as shoe and clothes shops saw a net decline of 365 in the first half while leisure chains - encompassing food, beverage and entertainment - grew outlets by a net 215.

About 80% of the UK's national output comes from services, which includes retail, hospitality and financial industries.

The figures showed the changing face of the high street with coffee outlets, banks, pound shops, charity shops and convenience stores on the rise, together with American-style eateries.

Meanwhile, video libraries were wiped out, as were many mobile phone shops.Mark Hudson, retail leader at PwC, said: "This data shows that we are now really starting to see the full effects of the digital revolution and consequent change in customer behaviour play out on the high street.

"We're heading for a high street based around immediate consumption of food, goods and services or distress or convenience purchases."

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