As news hits the headlines this weekend that yet another high street retailer is seeking a rent reduction, the consequences of the decline in high street footfall for corporate retailers are now well recognised.
With many vacant premises, less choice for shoppers and the cost of car parking, it’s little wonder that the out of town shopping experiences are more attractive, leaving in-town retailers feeling the pinch. Not to mention the ever-growing convenience of online shopping and multi-delivery options. The behind-the-scenes obstacle of excessive rent and rates charges compound the financial problems for the affected retailers.
However, those fortunate enough to have a specialist business with continual demand and good accessibility continue to do well. We see niche food retailers, restaurants, bars and bespoke gift and fashion businesses doing well. And service providers like hairdressers, beauty therapists and dressmakers appear to flourish.
While corporate retailers are continually assessing the market to understand consumer trends and demands, the sheer number of large retail businesses reporting difficulties continues to cause alarm. And it’s possible that there are more to come.
Working with professional advisers who have extensive business restructuring experience is crucial when problems are anticipated. Identifying the right strategic options can help steer decision-making, financial planning and a positive outcome.