The acceleration in store closures this year followed a grim 2012, when a
net 1,779 closed. That represents a 10-fold increase from the 174 in 2011.
So far this year 16 major retailers have entered administration operating
1985 shops and employing over 14,000 staff.
With the rise of online shopping the chains did not need as many stores
as they did in the past, a trend that looks set to accelerate this year.
People have got less money in their pockets, employment is tighter and
also we've seen a massive growth in the supermarkets in terms of non-food
retail.
The dominant factor has been the growth of online shopping. The internet
now accounts for 12% of retail sales - and is forecasted to be at least 30% by
2020.
Reflecting this trend the Centre for Retail Research estimate that over
the next 5 years the total number of UK retail stores will fall by 22 % from
the current 281,000 to 220,000.
Particularly vulnerable will be those retailers specialising in books,
cards and stationery as well as DIY outlets.
Those retailers who fail to exploit all areas of multi channel marketing
whilst finding themselves saddled with the burgeoning costs of maintaining
retail outlets will continue to suffer and add to the casualties in the coming
months.
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