Bloodbath on the high street as experts predict 12,000 shops could close this year

Online is drier: Experts predict shoppers will continue to change their habits this year
Reuters
A shocking 12,000 shops face the chop in a ­bloodbath on the high street this year.

Tens of thousands of jobs will be at risk as record numbers of customers desert stores to buy online instead.

The dire warning from shopping experts comes after a week of dreadful sales figures for several leading retailers and supermarkets.

Fashion chains, chemists, jewellers, newsagents and health and beauty stores are most likely to close as a result of changing shopping habits and the cost of living squeeze, says the Centre for Retail Research.

More big chains are set to call in administrators following the collapse of shops including Tie Rack, Blockbuster, Barratts and Comet despite the improvement in the economy, says CRR boss Professor Joshua Bamfield.

He says the Government should freeze business rates for two years and link them to turnover to help newer and smaller retailers to survive. He also says parking should be cheaper.

He said: “The decline of high streets is accelerating. Our research shows around 12,000 stores may close this year, an increase of 2,000 over 2013.”

Writing in the Sunday Mirror today, Sainsbury’s boss Justin King also calls for business rates to be overhauled with online firms paying their “fair share”.

While Next and John Lewis saw a rise in Christmas sales, Debenhams and Mothercare warned profits would be lower than expected.

Morrisons had a 5.6 per cent sales slump in the run-up to Christmas compared with the previous year.

Marks & Spencer was down 2.1 per cent and Tesco 2.4 per cent.

Prof Bamfield said one in five shops – about 61,000 – could go bust by 2018 based on current trends, leaving just 220,000.

He added: “The news that John Lewis has done so well does not disguise the fact that a lot of shops like jewellers and fashion retailers are in serious trouble.

“The high street’s share of retail sales, which was 50 per cent in 2001, is expected to drop below 40 per cent this year. By 2018 it could be 33 per cent.

“High rents and rates, fewer shoppers, the closure of uneconomic high street shops, internet retailers and high parking charges have made it hard for remaining stores to survive.”

Insolvency firm Begbies Traynor also sounded a warning that 151 retailers have “critical” problems and 15,792 have “significant” problems.

Separate research for the Sunday Mirror by price comparison website MySupermarket shows the average number of items in shopping trolleys fell by six per cent last month.



Still visiting: A shopper carrrying Sainsbury's bags
Getty
'Let online shops pay rates like us' says Sainsbury's chief executive Justin King
Things are still tough on the high street. Over Christmas we saw shoppers spending carefully.

But looking for value doesn’t mean forgetting about values. Despite the difficult economic backdrop, people still have high standards about the food in their baskets.

They also care about how retailers treat their colleagues – and the work they do to support the community.

People are also choosing to do some shopping online but it’s far from the end of your local store.

Millions still go to the supermarket each week to get the best for their families. That’s great for the high street – and we need to keep going.

We’re playing our part, opening more of our Local convenience stores, increasing trade for other businesses close by and providing jobs.

Creating jobs in the communities we serve is one of the most important ways we are helping to revitalise our high streets.

But it’s also important the Government looks at the issue of business rates.

We need to level the playing field between “bricks and mortar” shops on the high street and the virtual shops online, to make sure all businesses contribute their fair share.

This year, those big issues of trust and support will be more important than ever. And British retailers must be ready for that challenge.



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It's shocking with regards to the jobs issue, but the high street from here is almost half an hour away, so naturally everything is now done online apart from to support our local shop for the basics, when you run out of stuff.