9,500 stores at risk of shutting down this year

London - Retail experts predict a total of 9,500 stores are likely to close down this year, a 30 percent increase on 2017 if the government moves forward with plans to increase business rates.

Up to 26 stores could shut down for good each day this year, as difficult trading conditions and continue to take a toll on the high street. Business rates are set to increase again this April, rising by a total of 845 million pounds, which means retailers across the UK will have to pay a total of 24.8 billion pounds in property taxes for 2018-2019.

In total 20,000 stores are predicted to shutter by 2020, leading to a "bloodbath" on the high street, reported The Sun on Monday."The retail industry is now in crisis, caused by slack demand and escalating business rates," said Professor Joshua Bamfield at the Centre for Retail Research.

"The Government must act now to protect the range of large and small shops by freezing rates as the very minimum. If not, then thousands of jobs and stores [will be] forced to close." Bamford expects 2,000 stores will close down this year as a result of entering into administration. However, he also predicts nearly four times as many, 7,500 stores, will also shut down as retailers prepare to cut costs.

An additional 10,00 stores are predicted to close in 2019. The report comes after 42 major retailers shut down for good in 2017, including Store Twenty One, Rare London and Brantano, affecting close to 1,500 retail stores and more than 15,000 employees.

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