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    Retail Sales Jump In Face Of Mass Store Closures

    UK retail sales rose unexpectedly in January, while other data reveals the mass closures of chain stores on the high street.    

    Retail sales for the first month of 2011 were up by 1.9% year-on-year, according to Office for National Statistics ( ONS ) figures published on Friday.

    Sales volumes, excluding fuel, were up by 1.2% compared to the previous month.

    In January an estimated £24.6bn was spent in the retail sector, compared to £42.1bn in December and £23.6bn in January 2011.

    The surprise jump helped drag retail inflation down to its lowest level for more than two years.

    Shoppers benefited from heavy discounting as retailers tried to lure in cash-strapped customers.

    Richard Dodd, of the British Retail Consortium ( BRC ), told Sky News that the ONS figures did not represent growth in spending, but "people getting more for their money".

    He added: "The reason that's happening is because retailers are discounting and running really big promotions.

    "That has serious implications for their margins and in some cases for their viability."

    Fears for the future of the UK high street were also driven by the fact that internet outlets and supermarkets were among the biggest drivers of the increase in sales volumes.

    Separate data published on the same day revealed big high street chains closed an average of 14 stores a day across Britain in 2011.

    Multiple retailers like bookshops, electrical stores, home furnishings and menswear shops fell in numbers while charity shops, pound stores and credit unions bucked the trend.

    According to data compiled on behalf of PwC by the Local Data Company (LDC), multiple retailers reduced their high street presence by 0.25% - a reduction of 174 shops in 2011.

    Mike Jervis, PwC insolvency partner and retail specialist, said: "A common feature of the retailers in distress who we are dealing with is that they have too many locations.

    "Relatively long leases were entered into in a growth phase of the economy which are no longer appropriate.

    "Electricals and bookshops have suffered as these products are now increasingly bought online but retailers in this sector are typically carrying unnecessarily large property portfolios."

    In the Greater Manchester town of Altrincham, a quarter of all shops are empty.

    Mark Rubin, a retail space landlord says some of his tenants are struggling to stay open.

    "On a number of occasions I have listened to tenants and decided the rent should be lowered. But that's not a situation that can continue forever. I have to explain to them that one day the landlord is going to be in trouble."

    Florist Janet Smith has been trading for 27 years but recently nearly went out of business. Her landlord reduced the rent.

    "It took the strain off us - the landlord knows that he would rather have us here than have to take over the property himself," she said.

    "But the real problems are with rates - they are too high and there is no negotiation when times are bad."

    Matthew Hopkinson, director of the Local Data Company, said: "In the past the closures were offset by openings but 2011 has shown a true decline in multiple retail and leisure outlets across Great Britain.

    "With the move to out-of-town locations and the numbers of closures being announced currently, this decline is likely to continue into 2012 and thus lead to a rise in vacancy rates."

    Some experts believe the high street needs to rethink how it attracts trade or run the risk of "terminal decline".

    Tarlok Teji, retail analyst at Manchester Business School, said: "The majority of new space has been in shopping centres such as Westfield in London and Liverpool ONE.

    "These are substantially better shopping environments than the high street often with free parking so it's not a surprise that consumer footfall migrates away from the high street.

    "Add the growth of online shopping and we then have a high street in terminal decline."

     
    • I'm alrite Jack  •  Newtown, Wales  •  3 months ago
      Its very very sad when family run business's cannot continue anymore, a sad reflectance of what the UK as become.
      Shame on you all the Banks,Councils, politicians and all the other "pigs in the trough" that have caused all this........These are REAL people you have destroyed!
      • R.P. Murphy 3 months ago
        I A J. They do not care. Can people not see this are do they want to struggle on under the illussion that banks and politicians are trying to sort this out because it gives them faint hope.
      • I'm alrite Jack 3 months ago
        14 shops a day is just statistics to them...... Just look at and do a breakdown of ONE shop, the owner with pride as to tell his/her loyal workers that they no longer have a job and the "heartache" all-around that creates..... The worker goes home and tells their partner they are now down to ONE INCOME, the arguments/fall-outs/grief /stress of it all are quite shameful.
      • abatis 3 months ago
        What we have is a vicious circle, walk into any high street, supermarket you will be lucky to find anything produce in the UK. Almost all clothes, shoes, tools, furniture etc. made abroad. What did the retailers expect, that all the firms that manufactures this products in the UK would stay in business and all their employees fully employed? For these retailers the chickens are coming home to roost, buy foreign made goods and your customers will be put out of work and your customer base will dry up, not rocket science.
    • anon  •  Leeds, England  •  3 months ago
      Surely it would be better for councils to reduce rates and landlords to reduce rent rather than have empty shops. Don't think this country has looked so bad since after the last war.
      • Francis 3 months ago
        you talking about Iraq or Afghanistan ? Because Afghanistan is still going on and costing us millions every day, for what ?
      • abatis 3 months ago
        Agreed Anon, All of the Politicos have overseen the decline of the UK since 1945. It was their job to create the conditions to ensure the country could prosper; to say they failed would be an understatement. There hardly any MP who has had a proper job, bunch of disingenuous plonkers.
      • Richard 3 months ago
        you'd thinks so ... but that would imply rational thinking, in light of falling rates our council put up car parking charges and aggressively increased the area it could issue tickets to raise revenue then went on whining about how the high street was dying to so empathy with shop owners loosing trade ...
    • STUART  •  Darlington, England  •  3 months ago
      welcome to pound shop britain
      • Richard 3 months ago
        and charity shops - they're reproducing here exponentially (no rates to pay)
    • M  •  3 months ago
      Whilst I accept that people can shop how they like, as in many trends in this country we all need to look at the bigger picture. Shopping online might be some peoples cup-of-tea but in the long run we are all going to suffer as more and more shops close. One doesn't have to be clever to see the pitfalls, never mind the danger of trusting technology more and more. Thing are not always what they seem.
      • Yorkie410 3 months ago
        Indeed not, M. That said, the high street in my (small) local town was wrecked before the advent of internet shopping by the increasing presence of charity shops. Even in the 'boom' years, every damn charity going was represented by a shop. Now, as other retailers are forced to close due to rent, rates and banking costs, some of those charity shops actually have opened more than one 'branch' within the town! How on earth can that be justified? Their stock is free, their assistants are volunteers, their prices are a rip-off (some things sell for more than they cost originally, and they're not 'vintage' pieces, just chain store items). Charities have become very greedy over the years, and it's time to start charging them the going rates for occupying commercial premises.
      • M 3 months ago
        You make an interesting point Yorkie. My local British Heart Foundation Shop gets electrical goods and furniture donated for free but charges a hefty mark-up price
      • Chris 3 months ago
        charity shops our a con really ,,,most prices our marked higher now as they the shopper still thinks they our getting a deal ,,when really the shop is making a massive profit as all they get is donated ,,i suspose everyone is happy in the end ,,thats life
    • MALCOLM  •  Coventry, England  •  3 months ago
      not surprised,letting tescos build on every corner in brittain.
      • From Luddite Lodge 3 months ago
        I was going to say that. Within 12 miles of Newbury there are over ten tesco stores.
      • Girosnooty 3 months ago
        and all a rip off
    • Andrew Howard  •  Huddersfield, England  •  3 months ago
      There are a lot of pubs closing and too many pound shops where I live Britain is boring now
    • MESS  •  Singapore, Singapore  •  3 months ago
      I BELIEVE UK WILL BE LIKE GREECE SOON OR LATER
    • Alex  •  Manchester, England  •  3 months ago
      Greedy councils with high business rates take a look at Hong kong low taxes and rates booming businesses since the 60's the people who run this are and always have been short minding
    • Mr B  •  London, England  •  3 months ago
      TAX IS TO HIGH CUT COUNCIL TAX ITS KILLING BUSINESS
    • PETER  •  London, England  •  3 months ago
      Everone knows that High Street business rates are too high and retail park rates are a bargain. Council's further aggravate the problem by constantly imposing more parking restrictions and raising car park charges. Some time ago I was given a huge hike in my business rates which put my business in jeopardy, on speaking to the Council I was literally told "if you can't pay, then close down".
    • LINDA  •  London, England  •  3 months ago
      Online shopping is not helping but neither is the recession. More and more people will shop in the £ shops, the need to buy as cheaply as possible will get more and more important to people. All landlords and councils need to look at reducing rents and rates even if only in the short term, surely it is better to have a little than nothing at all. The Government also needs to get things sorted out URGENTLY before it really is too late.
    • Ed W  •  Huddersfield, England  •  3 months ago
      It is said that the £1 stores are on the up, well good luck to them, of course there are some things that are tat but on the whole you do get some good buys, one springs to mind Heinz Big Soup, really good and only £1, go to Tesco or any of the big supermerkets and the same soup is £1.35, also big shops like Home Bargains should look to their service, 10, 12, or more at times and 1 till open, the customer is the most important thing in any business.
    • margueriteheywood  •  Manchester, England  •  3 months ago
      And all that only because we have the worst economists on the planet, no matter what sort of education they have they are retarded idiots! To make an economy work it has to be bouyant and on the move! These backward effers have encouraged the few, to exploit and extort the national wealth for themselves and then have it stuffed in banks were it is now totally stagnant, as is the state of the national economy! It took a pack of effing retards to bring that about! I blame it on their teachers for every telling them they were clever when the rest of us know that they are not!
    • TS  •  3 months ago
      Business and private Council Rates are far to high - full stop!! Council's Top jobs needs to be reviewed and together with those nefarious Jobs, created without any justification, should be cut.
    • stuart  •  3 months ago
      Parking is an issue with many city centres
    • BARRY  •  3 months ago
      How many people reconnoitre the high street to try out and view what they want, talk to a saleman who then educates them on the product and then they go and
      buy on the "net". It's dog eat dog out there and ultimately self destruction.
    • medieval ringwraith  •  Lincoln, England  •  3 months ago
      it will only get worse.
    • andrew  •  Manchester, England  •  3 months ago
      The only shops staying open are tesco's azda sainsbury's etc who seam to only employ part time and dole workers! my local tesco's has one full time worker out of its entire staff! (apart from the store manager) and thats a security guard which is a out sourced private corp! why people are not in the streets i dont know? this country is shot to bits! finito! had it! deceased!
    • bob  •  London, England  •  3 months ago
      so its nothing to do with unemplyment going up then? i wasnt sure..
    • marting  •  London, England  •  3 months ago
      Will you please give just £2 a month to help Britain's endangered businesses..our pubs and shops are fast disappearing from their natural habitat....Well they do it for Africa, Pakistan and Jaguars.
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