The retails industry experiences shortcoming on high streets for the first time in about five years. Retailers have begun to struggle with rising wages and a weaker pound and reducing business rates. For the first time over many years United Kingdom visualises harsh struggles in retail sector.
Researches have indicated that retailer’s shift to administration has increased about twenty eight per cent and probably it’s the first time it has risen since the peak of the recession.
The major concern is the drop in the value of product categories like furniture. This is a major point that has made the company realise the incapability of people to buy such products rather they prefer spending upon their daily requirements.
It has also affected sub-sectors of the retail industry i.e the people who sustain in the industry at lower price point and generally take more amount of time to feel the impact of reduced customer spending.
Shock profit warnings are issued by many stores leading to develop fears in people regarding the sustainability of high street stores. Such warning’s has driven shop owners to plead for rent reduction in front of their landlords. Pensions Protection Fund has reduced it’s rental bill which has led a number of people unemployed.
High street stores are in a phase of struggle, however, most of the shoppers have taken decision to make a shift from High street store to online, thereby, increasing online retail.