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East Midlands Chamber News

A Fifth of High Street Shops Will be Lost in Five Years

Over a fifth of High Street stores will close in the next five years with many being converted to housing, according to the Centre for Retail Research.

In a report published on the 28th May, the CRR says the 22 per cent reduction will be countered by a rise in internet buying.

The report, Retail Futures 2018, goes on to say that 316,000 jobs will be lost as a result of the demise of High Street retailing.

The share of online retail sales will rise from 12.7 per cent (2012) to 21.5 per cent by 2018 or the end of the decade.

There will be a further 164 major or medium-sized companies going into administration, involving the loss of 22,600 stores and 140,000 employees. Many of these companies will survive but at the cost of closing more than half their stores.

Customers are shunning the high street: their share of consumer spending has declined from 50 per cent in 2000 to a predicted 40.2 per cent next year, the report says.

It compared the monthly cost of setting up a High Street shop in the Midlands with that of starting a similar online business from a small, out-of-town warehouse - £10,000 compared with £1,800.

Read the full Centre for Retail Research report.

Don''t miss the latest edition of In Business for a look at how technology is changing the way we work.

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