UK high street facing store closures

A new report on the state of the UK high street says more than 20 percent of stores may close by 2018. The closures will also lead to job losses, with over 300,000 workers expected to be out of work. The report, called 'Retail Futures 2018,' says the

consumer shift to ship more online will leave the high street volatile.

A predicted 62,000 stores will cease trading, and in deprived areas, such as Wales and North West England, up to three in 10 stores could close.

The report states online shopping accounts for 12.7 percent of UK retail spending, but this is expected to surge to at least 22 percent by 2018.

Major chains opening less stores

Major chains such as Marks & Spencer and Tesco are opening fewer large stores and are looking to international expansion to build their businesses.

The total number of UK retail stores will fall by 22 percent over the next five years from 281,930 to 220,000 in 2018, the study found.

“If no action is taken, store vacancy rates could almost double to 24 percent,” the centre’s founder Professor Joshua Bamfield told the Daily Mail. “Already this year, 16 major retailers have gone into administration operating 1,985 stores and employing 14,719 staff.

“By the end of 2018, research predicts that a further 164 companies will go bust, taking 22,600 stores and 140,000 employees with them.”

The amount of consumer spending on the high street is down from around 50 percent in 2000 to an estimated 40.2 percent today, as shoppers turn to the internet.

Image: Closed for business