More empty shops cause concern

High costs and low consumer spending caused an increase of retail insolvencies by up to 9% in the second quarter, according to new reports. It comes as a further damaging blow to the UK high street, where the new research by Pricewater House

and the Local Data Company found that currently an average 20 shops are closing per day.

With high street stalwarts, such as Jane Norman, recently falling into administration following the beginning of 2011, where about 375 retailers fell into insolvency, the British Retail Consortium has called for the Government to take action to stop the continuous demise.

Commenting on the research, BRC Director General Stephen Robertson said: “The government’s review of the high street – headed up by television presenter Mary Portas – comes at a crucial time and must result in urgent action.

“Practical steps are needed to protect and promote our high streets so they remain attractive locations where businesses of all kinds can thrive. This cannot be left to chance.”

Robertson says that the report should focus on deterring crime and tackling the oft cited problems of high business rates, affordable parking and decent public transport. However, more encouragingly, certain areas don’t seem to be so badly affected – with the South West area actually seeing a 48% increase.

Robertson added: “It’s encouraging that not all regions are seeing a fall in retail premises; some have seen a net gain thanks to new stores opening. “The priority must be protecting that growth and helping it spread to all parts of the country, boosting town centres and creating jobs.”