More Than 100 Retailers Fall Into Administration In First Half Of Year

[Monkey]

The financial crisis was and will be the final nail in the ciffin for retail as we knew it. The internet started it with companies world wide being able to offer the same products at a fraction of the cost.

Retail will not die 100%, but the business model needs to change. And to start with its the landlords of retail units who need to change first. Reducing overheads of running a shop should be top priority for the top business minds to stop high streets turning into ghost towns.

But it will take years for the people with the power to actually realise and do something

[MrPin]

Shop early and shop often!

[interestrateripoff]

The retail-less recovery.

[porca misèria]

The financial crisis was and will be the final nail in the ciffin for retail as we knew it. The internet started it with companies world wide being able to offer the same products at a fraction of the cost.

Retail will not die 100%, but the business model needs to change. And to start with its the landlords of retail units who need to change first. Reducing overheads of running a shop should be top priority for the top business minds to stop high streets turning into ghost towns.

But it will take years for the people with the power to actually realise and do something

The twin pillars of rents and business rates have led to the big rise of the commercial charity shop displacing the regular retailer over a decade. That's a separate issue, parallel to the ones you've identified.

We've actually just seen one improvement for high-street retailers and other buinesses: since April this year the tax breaks for hoarders of empty property have been reduced, so there's more pressure on landlords to be reasonable.

As against that, we have the trend for converting former retail premises to a range of different uses.

[Shrink Proof]

"While the overall increase in the number of retail failures this quarter is relatively small, we have seen a significant number of household names falling into administration including Oddbins, Moben, Dolphin, Focus DIY, Habitat and Jane Norman.

"This signifies that the severity of retail distress is far greater than the absolute figures suggest."

In the case of Dolphin it doesn't. What it suggests confirms is that their products were crap & their service laughable. Good riddance.

[profitofdoom]

I have just done a comparison of my business for Q2 2010 and Q2 2011.The figures make interesting reading

2010 Turnover £129,500

Gross Profit £15,755

Wages £6,420 (1 full time 1p/time )

Other Costs Rent,advertising rates etc £2,980

VAT £2,375

Net profit £ 3,980

2011 Turnover £38,760

Gross Profit £6,225

Wages Nil

Other Costs £1,345

VAT £770

Net Profit £4,120

So,who is the loser here? I have more time off because I go home early and arrive late.My full time employee is on JSA. Looks the advertiser and Boy George take the biggest hit.

[winkie]

.....No surprise really, over the last 20 or 30 years our economy has grown off the back of consumerism the finance industry that provided the funds to service it, together with a good mixture of property speculation to create money form nothing that enabled the lenders to lend even more......people are in the process of waking up that this can not be maintained indefinitely...now is the time to start doing things differently, by bringing back and using our specialist skills, engineering, manufacturing all the old ways but using the new technology.....we can't create growth on our own, it has to be created and exported to the people who want to and can afford to buy it.

[TheCountOfNowhere]

We need a healthy bout of deflation. Cheaper prices, less debt.