High Street "Loses One Shop Every Hour"

High Street 'loses one shop every hour'


Britain's high streets lost almost one shop every hour last year, according
to research, and the flood of closures is predicted to worsen.








Last month, a business recovery
firm has claimed that more than 100 retailers are on the critical list and could
follow the likes of HMV and Jessops into administration. Photo: ALAMY






By Rachel Cooper, and
agencies

8:32AM GMT 28 Feb 2013


8 Comments




Analysis by PricewaterhouseCoopers and the Local Data Company found that
major retailers in Britain closed an average of 20 stores a day over the past 12
months.


The number of shop closures by high street chains in 2012 was ten times the
number on the previous year, with the survey finding that 1,779 stores were
closed last year compared with 174 in 2011.


Drawing on studies of 500 town centres, the study found that jewellers,
health food shops, travel agents and sports goods shops were among the hardest
hit, along with banks, computer games and clothing stores also bore the brunt.



But as cash-strapped consumers look for bargains or cheap treats, pound
shops, charity shops, supermarkets and coffee shops bucked the trend. Cheque
cashing, payday loan companies and betting shops also benefited from the
consumer downturn.


Last year, electrical goods chain Comet went into administration as did video
game retailer Game. The first two months of 2013 have witnessed further carnage
on the high street, with Jessops, HMV and Blockbuster all calling in
administrators in the space of a week.



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  HMV to call in administrators: the
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In light a tough few months for retailers, the number of shop closures is
predicted to rise this year. Studies of the three months between December last
year and February show the rate of closures could soar to 28 a day, mainly
through companies falling into administration.

Matthew Hopkinson, director of The Local Data Company, said: "We can expect
to see this trend continue and indeed accelerate in 2013 as more leases come up
for renewal along with the ever increasing demands from consumers for space that
delivers an experience good enough to pull them away from their technology
devices."

"The end of 2012 and the beginning of 2013 has seen the most dramatic period
on record as companies controlling more than 1,400 shops went into
administration," he added.

"Will the discounters, pawnbrokers, charity shops, coffee shops and
supermarkets continue to fill a large proportion of these closing stores?

"Town centres will have to adapt faster than ever before to maintain their
attraction to consumers."

Last month, a business recovery firm has claimed that more than 100 retailers
are on the critical list and could follow the likes of HMV and Jessops into
administration.

Research by Begbies Traynor has found a 35pc increase in the number of
retailers experiencing significant distress before Christmas, meaning 13,700
shopkeepers experienced a sustained period of deteriorating finances or received
a county court judgement of less than £5,000.

WHO ARE THE 100 RETAILERS?