{UAH} UK store closure and opening
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5:37 AM |
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The differential between store closures and openings has reached a
five year high in the first half of 2019, where a net 1,234 shops
closed doors on Britain's top 500 high streets. This constitutes
around 16 shop closures each day across the UK, often in response to
increasing proportions of business moving online. The biggest net
declines in physical retail outlets were in fashion, restaurants,
estate agents and pubs, which all saw around 100 or more closures in
the first six months of this year. Indeed only 15 out of 96 retail
sectors enjoyed net growth. However, the state of new retail openings
is improved on last year, with around 9 openings per day, up 4.1% on
last year.
The biggest areas of decline included fashion, an industry that has
been under immense pressure from online retailers. There was a net
loss of 118 stores, mainly driven by administrations rather than CVAs.
This trend of store closures is likely to continue in the latter half
of the year, although an exception has been smaller brands who have
opened new locations. There were 144 fashion retailer openings in the
first half of 2019 involving a mix of designer and high-street labels.
Premium or niche brands have accounted for a greater proportion of
openings, as in-person interaction has remained an integral part of
customer experience in this sector. Value fashion retailers have
opened fewer stores and have been more affected by online players as
well as a move away from 'fast-fashion' as consumers grow more
environmentally aware.
The US is considered a strong potential market for future growth with
nearly a quarter of all British luxury branded goods already sent
there. The overwhelming majority currently however go EU states and
per the British Fashion Council, a no-deal Brexit could cost the
industry nearly £1 billion per year in lost revenue.
Other areas of industry have faced increasing closures such as estate
agents with 143 total closures. Competitive and reliable online
services coupled with a general slow-down in the property market have
reduced the market share of high-street agents. Banks and other
financial services have also continued to close outlets as they go
digital. In both cases, consumers' increasing reliance on and affinity
with online mediums have led to a reduction in store outlets. This
strategy has been criticised for leaving behind older or less
tech-savvy customers, who are often left isolated from services by
branch closures.
source: Economic Research Council UK
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five year high in the first half of 2019, where a net 1,234 shops
closed doors on Britain's top 500 high streets. This constitutes
around 16 shop closures each day across the UK, often in response to
increasing proportions of business moving online. The biggest net
declines in physical retail outlets were in fashion, restaurants,
estate agents and pubs, which all saw around 100 or more closures in
the first six months of this year. Indeed only 15 out of 96 retail
sectors enjoyed net growth. However, the state of new retail openings
is improved on last year, with around 9 openings per day, up 4.1% on
last year.
The biggest areas of decline included fashion, an industry that has
been under immense pressure from online retailers. There was a net
loss of 118 stores, mainly driven by administrations rather than CVAs.
This trend of store closures is likely to continue in the latter half
of the year, although an exception has been smaller brands who have
opened new locations. There were 144 fashion retailer openings in the
first half of 2019 involving a mix of designer and high-street labels.
Premium or niche brands have accounted for a greater proportion of
openings, as in-person interaction has remained an integral part of
customer experience in this sector. Value fashion retailers have
opened fewer stores and have been more affected by online players as
well as a move away from 'fast-fashion' as consumers grow more
environmentally aware.
The US is considered a strong potential market for future growth with
nearly a quarter of all British luxury branded goods already sent
there. The overwhelming majority currently however go EU states and
per the British Fashion Council, a no-deal Brexit could cost the
industry nearly £1 billion per year in lost revenue.
Other areas of industry have faced increasing closures such as estate
agents with 143 total closures. Competitive and reliable online
services coupled with a general slow-down in the property market have
reduced the market share of high-street agents. Banks and other
financial services have also continued to close outlets as they go
digital. In both cases, consumers' increasing reliance on and affinity
with online mediums have led to a reduction in store outlets. This
strategy has been criticised for leaving behind older or less
tech-savvy customers, who are often left isolated from services by
branch closures.
source: Economic Research Council UK
--
Disclaimer:Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.To unsubscribe from this group, send email to: ugandans-at-heart+unsubscribe@googlegroups.com
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You received this message because you are subscribed to the Google Groups "Ugandans at Heart (UAH) Community" group.
To unsubscribe from this group and stop receiving emails from it, send an email to ugandans-at-heart+unsubscribe@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/ugandans-at-heart/CAKm4MWp6nUU0wBd1RmDfFOJRjq0%2BGkynDB7oS8n8wjFTT_21Vg%40mail.gmail.com.
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