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High street gloom as Britain shuts up shop | The Times
High street gloom as Britain shuts up shop | The Times
The sickly condition of the nation’s high streets has worsened as coffee chains and discount outlets struggle to fill the gaps left by disappearing video rental stores, fashion boutiques and pawnbrokers.
Although the economy has improved, 3,003 shops shut during the first half of 2014, equivalent to 16 closures daily, according to a study of 500 town centres by PwC and the Local Data Company.
Although the closure rate was not as bad as last year’s rate of 18 daily closures, the number of new shops opening has slumped from 3,157 to 2,597, which meant a “net” loss of 406 shops over the six months to June, compared with 371 for all of 2013.
Mike Jervis, a retail specialist at PwC, described the findings as “depressing” for town centres: “At this point in the economic cycle, maybe you’d expect to see more optimism in openings, but you’re not. It’s clear that the high street is still suffering as people migrate online or to out-of-town shopping centres.”
Building societies accounted for more closures than any other retail category, followed by DVD rental outlets, which have been virtually wiped out since the failure of the Blockbuster chain. Pawnbrokers and clothes shops also fared poorly.
Among new openings, the relentless march of William Hill and Ladbrokes continued as betting shops topped the expansion league, ahead of coffee outlets such as Costa and Starbucks, with banks and discount shops also in the mix. American restaurants such as Five Guys burgers also did well.
Patrick O’Brien, a retail analyst at Verdict, said that the changing mixture was not necessarily negative and that “restaurants and coffee shops serve a purpose in terms of town centres retaining their place in the community”.
He added that discount stores such as Poundland and Poundworld had built a durable business model: “The discounters have earned their place on the high street; they serve a strong purpose for consumers.”
The only regions where openings outpaced closures were London and the east of England. Worst hit were the Midlands, the northwest and the southeast.
The picture is likely to get even worse. Since the figures were compiled, Phones4u has collapsed, with the majority of its 700 outlets shutting permanently. La Senza, the lingerie chain, has also been liquidated, with 55 shops closing.
In 2011, David Cameron asked Mary Portas, the retail expert, to carry out a review for the government on how to revitalise town centre shopping. She made a series of recommendations, including the creation of so-called “town teams” and a national market day.
Although the economy has improved, 3,003 shops shut during the first half of 2014, equivalent to 16 closures daily, according to a study of 500 town centres by PwC and the Local Data Company.
Although the closure rate was not as bad as last year’s rate of 18 daily closures, the number of new shops opening has slumped from 3,157 to 2,597, which meant a “net” loss of 406 shops over the six months to June, compared with 371 for all of 2013.
Mike Jervis, a retail specialist at PwC, described the findings as “depressing” for town centres: “At this point in the economic cycle, maybe you’d expect to see more optimism in openings, but you’re not. It’s clear that the high street is still suffering as people migrate online or to out-of-town shopping centres.”
Building societies accounted for more closures than any other retail category, followed by DVD rental outlets, which have been virtually wiped out since the failure of the Blockbuster chain. Pawnbrokers and clothes shops also fared poorly.
Among new openings, the relentless march of William Hill and Ladbrokes continued as betting shops topped the expansion league, ahead of coffee outlets such as Costa and Starbucks, with banks and discount shops also in the mix. American restaurants such as Five Guys burgers also did well.
Patrick O’Brien, a retail analyst at Verdict, said that the changing mixture was not necessarily negative and that “restaurants and coffee shops serve a purpose in terms of town centres retaining their place in the community”.
He added that discount stores such as Poundland and Poundworld had built a durable business model: “The discounters have earned their place on the high street; they serve a strong purpose for consumers.”
The only regions where openings outpaced closures were London and the east of England. Worst hit were the Midlands, the northwest and the southeast.
The picture is likely to get even worse. Since the figures were compiled, Phones4u has collapsed, with the majority of its 700 outlets shutting permanently. La Senza, the lingerie chain, has also been liquidated, with 55 shops closing.
In 2011, David Cameron asked Mary Portas, the retail expert, to carry out a review for the government on how to revitalise town centre shopping. She made a series of recommendations, including the creation of so-called “town teams” and a national market day.
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