2011: How The High Street Was Hit

2011 was a very tough year for the high-street. It never seemed to be out of the news. Either someone was in administration, or someone was about to go into administration.


I found a website which lists the retailers that have gone over the course of 2011. Warning, the list below is a bit of a long one, but I'm writing it to make a point of how badly the high-street is struggling right now (I've highlighted the bigger and more obvious companies):


Hawkins Bazaar
D2 Jeans
Barratt's/Priceless
Cooks Bakery
Broadmarsh Centre
MFI
Best Buy
Comet
Alexon
Walmsley
Floors-2-Go
Lombok
TJ Hughes
Jane Norman
Habitat
Homeform
McCormick's Music Shop - iconic music store in Glasgow
Life And Style
Haldanes
Focus DIY
ETS
HiHo Jewelers
BeCheeky - online retailer
Oddbins
Alworths - successor to Woolworths
Easy Living Furniture - retails trading name of Sofas UK
The Officers Club
Henley's
Dekko
Autoquake
Shakeaway Milk Bars
Arrogant Cat
Triumph Furniture Company
Bennets
Fenchurch
Ollie & Nic
Auto Windscreens
Cattles
JJB Sports
HPJ Jewelers
British Bookshops and Stationers 
Cruise
Balls Brothers
Suits You
Stokes
Confetti
Mad O'Roukes Pie Factory
Thoughts
Vergo Retailing
Fashionair
Laser Electrical
Labsport
Faith Shoes
Envy!
Not Only Shops!
Specialty Retail Group
Ethel Austin
Adili
Diamonds and Pearls
Adams
D2
Head
Virgin Cosmetics

Total store closures: 2469
Total job losses: 24,025

Stats from: http://www.retailresearch.org/whosegonebust.php 

Sorry you had to read all, that, I was just making a point! We've already had La Senza, Blacks Leisure and Past Times fail this year.

The high street is still very important to the economy of this country. It still employes tens of thousands of people up and down the UK. These are very valuable jobs in a time where having a job is increasingly considered a privilege. 

Maybe the high street is a bit dated. I think it still plays an important role in business. But maybe their presence should be in a different capacity. Improvements and changes obviously need to be made. Investment in the streets themselves to make them look more desirable would be a good start for the Government to make. Shops need updating, rents need to fall to ease the pressure on retail companies. Perhaps stores need to be integrated with their online portals more. Click and collect services for more stores will drive internet users through the doors to pick up their goods.


I'm not claiming to be an expert. Not like Mary, queen of shops! This was a clever little move by the Government. If anyone knows how to improve a high-street store then it's this clever lady. I'll be interested to see some of the ideas she's got and how she's going to put them into practice.

How Long Left For HMV?

HMV announced figures today that in the 5 weeks leading up to Christmas in 2011, sales were down 8.2% in comparison to the same 5 weeks in the year before.

You know things are bad when the company itself is saying that it may not be around in the coming few months! However according to reports, the suppliers to the high street chain are still backing the company, which is probably the most important string to the HMV bow right now. If they lose the support of their suppliers however, they might as well shut up shop now.

The big question here is what has caused HMV to be hit so hard? It lost out mainly due to being on the back foot when it came to the digital music revolution. iTunes from Apple really hit the company, as well as others, very hard indeed. In fact iTunes sales account for over £2billion per year in online music sales in the UK. Other companies like Amazon have adapted a little bit better. They've created their own music download section, though it's nowhere near as advanced as iTunes, at least they're making an effort. HMV on the other hand have been very slow off the mark. They have tried to update their online music operations. Their site looks well laid out, better than the Amazon download site. They have a list of 8 million songs to choose from, and the prices are very similar to iTunes. But because they were so many years behind Apple, most people's default choice of online music store is now iTunes. They won't be able to catch up.

Speaking from a personal point of view, their prices in-store are far too expensive. Why would I pay £15 for an album when I could pay half that online? Spending another £7/£8 just to own the case isn't enough justification. 

HMV have spent a little bit of money trying to update their stores. The thing is, I never found their stores dowdy or offensive in the first place. I always found it a nice environment to be in. So money wasted there if you ask me.

They've also made their way into technology. They sell things such as iPods, iPads, speakers and other musical hardware. The problem here again is price. Online these items are cheaper. And if someone is going to buy something like an iPad, or speakers, they're more likely to go to those suppliers direct and pay a cheaper price.

I think the overall problem here is that HMV have an old business model that has just been caught out by the advances in internet shopping habits and the recession. I can see the chain going into administration sooner rather than later. Hopefully it will find a buyer. I've always been a fan of HMV. In fact I have a points card with them, which I probably need to spend before they go! Someone, possibly one of the guys from Dragons Den, needs to take over the store and inject some new passion and ideas. Maybe reduce the high-street presence, as there probably isn't a future with that, and focus more on creating a bigger and better online business.

The employ thousands of people in hundreds of stores. It will be a sad day if they were to go from our high streets altogether.

High Street Takes Another Hit

It was announced today that for the second time, high street shoe retailers Barratt's is to go into administration, putting nearly 4000 jobs at risk.


The first time their owners went into administration they had to reduce the number of stores by 220 from 380. In total the brand has 191 stores throughout the UK on the high street and in malls, it also own the Priceless Shoes brand.


The Bradford based firm blamed the tough economic trading conditions for it's further difficulties.

Administrators Deloitte said that they were "working closely with suppliers to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors".


One wonders when the assault on the high street will ease off. Barratts joins a long list of businesses that are either in administration or have fallen prey completely to some of the worst financial and economic conditions since the Great Depression. 


High street chains provide tens of thousands of jobs. Something needs to be done to help the high street remain a viable shopping option. There are too many towns home to baron, once-bustling town centers.

Jane Norman In Administration

Not a great way to start the new working week, but it has been announced that the high street fashion retailer Jane Norman has been placed in administration with US accountancy group Zolfo Cooper.

The chain employs around 1600 staff, and has debts of £140 million but has been suffering from slow sales.


Zolfo Cooper has said that they will put Jane Norman into something called a pre-pack administration, where a buyer of their company or assets have already been lined up, before they enter formal administration. This practice has been criticized has it often leaves creditors unpaid. That feels oh so like double glazing doesn't it?! 

More Pressure On HMV

In an announcement expected to be made tomorrow, the trouble high-street music chain HMV is set to become owned by the general public. More specifically, banks such has the Lloyds Banking Group which are majority owned by the general public will now take a stake in HMV in a bid to help with restructuring it's debt.


With the announcement tomorrow, it's expected that the sale of Waterstones book chain will go through, raising £53 million towards HMV's debt fund.


HMV has debts of £170 million. Banks will take a 5% stake in the company, based on a warrant. In a years time these warrants will be converted into shares. The deal with the banks come with high interest rates and fees. 


This is yet another sign that a once dominant high-street is struggling under the pressure of debt, low consumer confidence and the rise of internet shopping, which HMV missed the boat on when iTunes was launched.


Personally, I don't think HMV will be long for this world. Their CD's are too expensive compared to downloadable albums. Their points rewards system doesn't proportionately reflect the amount of money you spend, you get 1 point per penny spent, but to get a £20 voucher, you have to spend 50,000 points (£500), and that's no way near value for money.