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Retail outlet closures could hit 72,000 in 2009
The High Streets of Britain could be unrecognisable this time next year, as consumers struggle with the recession and the retail sector takes the sort of pounding that is already making regular headlines.
Credit rating specialist, Experian, has predicted that 72,000 retails outlets could close during 2009, pushing up the number of empty units in the sector from 63,000 in December 2008 to 135,000 by the end of the year.
Experian’s director of retail consultancy, Jonathan de Mello, warns that the level of retail vacancy will be disproportionately spread across Britain with market towns worse affected.
He adds that the loss of major multiples, such as Woolworths, is likely to have an effect on other retailers.
Closures on this scale would cost thousand of jobs, evidence of which is mounting fast.
This week, the last of the Woolworths stores closed their doors and today, Marks & Spencer has announced over 1,200 job losses, after reporting a 7.1% fall in sales during the pre-Christmas period.
Twenty-seven of M&S’s smaller stores will close, including 25 Simply Food outlets.
Children’s clothes outlet, Adams, has closed 111 stores with the loss of 850 jobs, which can be added to redundancies at MFI, Rosebys, The Officers Club and other chains that have been placed in administration in the past few weeks.
The knock-on effects of failing retailers will also certainly be seen in headcount reductions among suppliers and services providers.
Source: http://www.financemarkets.co.uk
Topics: Highstreet |
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