The growth of online shopping could lead to the closure of one in five high street stores by 2018, according to a report. A study from the Centre for Retail Research (CRR) says that over the next five years the number of UK retail stores will drop from 281,930 to 220,000 if current trends continue.
In addition, there could be 316,000 job losses in the same period due to what the CRR describes as the "growing retail crisis". The share of consumer spending going to high street stores is falling – it was 50% in 2000 and is predicted to drop to 40.2% by next year, according to the CRR. Meanwhile, online retail continues to grow and is predicted to account for 21.5% of all retail sales by 2018.
The report, Retail Futures 2018, states that consumer spending has increased by 12% since 2006 but operating costs for retailers have increased by 20%. Its author, Professor Joshua Bamfield, the CRR director, said: "Customers now shop in multiple ways, checking a store's website, visiting stores, reading reviews and making online price comparisons with smart phones whilst shopping.
"Retailers have to make clear and strategic responses to the changing pattern of how consumers shop, which includes tactical decisions about store numbers and locations. They also need to fully integrate these physical stores with their websites, smart phone offerings and social media community coherently. Going forward, I think retail stores will remain an important, although smaller, part of the shopping process as online retail continues to grow."
Wales is set to suffer the largest number of store closures, with 29% of high street shops at risk, followed by the north-west, with 28% of stores predicted to shut, according to the CRR. The lowest number would be in London, where 9% of shops could close, they said.
Source: The Guardian
