High Street Faces A Tough 2012, Analysts Say

Thousands of retail jobs are in danger in 2012 with industry analysts warning that of "carnage" on Britain's High Streets.

1,600 job losses have been announced at Barratts and Priceless shoes where administrators have decided to close the retailer's concessions that operate within other stores.

A buyer is being sought for Barratts' remaining 170 High Street (BSE: HIGHSTREE.BO - news) outlets.

Administrators are on standby at the lingerie chain, La Senza, and the gift retailer, Past Times, as they seek new finance or buyers to save their combined 3,600 staff.

A further 2,000 jobs are under threat at the outdoor retailer Blacks Leisure unless a buyer can be found for its 300 Blacks and Millets stores.

Retail analyst Jeremy Parks told Sky News: "It is natural selection on the high street. Winners will win. And a lot of people will go bust.

"That's how retail works; it's a fashion business. People like the next big thing, that's completely normal in retail and it does mean that other businesses will sadly go bust."

Consumers have been under enormous pressure in 2011 during which wages only rose at half the rate of inflation and for many retailers, a poor Christmas will have been the final straw.

Insolvency expert Jamie Constable told the Financial Times: "The new year will trigger a round of retail insolvencies which will outstrip 2008.

"Big bricks-and-mortar retailers, those with 50-500 shops, are the ones that will really take the pain.

Christmas shopping failed to save Hawkins Bazaar which is seeking a buyer for its 65 stores which employ 400 people.

Administrator Zolfo blamed "exceptionally challenging trading conditions" for the collapse of the chain, which was established in 1973.

A spokesman said: "The directors have worked very hard to turn the business around but have concluded that administration is the best route forward."

It comes after an announcement on Thursday that leisurewear retailer D2 Jeans was closing 19 stores and seeking a buyer for the remaining 28.

Some 200 staff have already lost their jobs and hundreds more roles are believed to be at risk.

The rise of internet retailing has been a particular problem for Britain's last remaining entertainment retailer, HMV, which is struggling to remain in competition with online rivals Amazon and Play.com.

Others like M&S (LSE: MKS.L - news) , John Lewis and Currys have responded to the online challenge by starting their winter sales online, on Christmas Day.

The retail research organisation Experian (Dusseldorf: J2B.DU - news) reported 86 million hits for British shopping websites on Boxing Day.

More than 10.7% of retail sales over the past year has been online, according to the Centre for Retail Research, which has reported total internet sales of £50.3 billion in 2011.

However internet retailers, like Ellen Flood of Shopwow, believe traditional shops will retain their prominence.

"There is a place for the High Street," she said.

"I don't see a time when people will do all their shopping online or even parity. Online will always be a complementary service in addition to the High Street."