Half UK stores to vanish by 2030

Half UK stores to vanish by 2030

ParcelHero’s Head of Consumer Research, David Jinks MILT, says recent reports of the shift from off to online shopping proves the findings of its new report – 2030: The Death of the High Street – that within 13 years the impact of online shopping and home deliveries will mean over half of today’s town centre stores, with all their familiar names.

David says,: ‘Analysts are calling December’s High Street sales figures ‘disastrous’ and there’s little wonder. As our report reveals, the disappearance of BHS, Staples, Banana Republic and American Apparel from Britain’s streets are just the tip of the iceberg of the peril facing town centre shops.

“Home deliveries are set to destroy our town centres by 2030 unless there is an urgent rethink in the way we use our High Streets. Planners and retailers need to wake up to the ecommerce Revolution, and plan for a different kind of town centre; with fewer shops and more homes, restaurants and places of entertainment.’

David adds, ‘Between 2020 and 2030 half of the UK’s existing shop premises will have disappeared. 100,000 stores will close, leaving just 120,000 shops on our high street. And that’s because by 2030 e-commerce will account for around 40 per cent of all UK retail sales.

‘For example, our department stores are collapsing, Alders and BHS will not be the only failures. Of the surviving 200 large businesses, 48 business are already labelled in danger and 53 made a loss last year. How long can the sector continue?’

Continues David, ‘Clothing stores are the latest fashion victims, with Banana Republic even now slipping from our streets. In 2013 alone there was a net loss of 264 fashion stores from our High Street. The online fashion industry could reach £36.2 billion by 2030: 63 per cent of the market compared to today’s 21 per cent.’

Retailers are fighting back through their own internet sites. John Lewis is one company pushing ahead online: 25 per cent of its sales are now through the internet; that’s more than its Oxford Street flagship sells. And Tesco’s revenue is £2.9 billion online, second only to Amazon.

But David says, ‘In a way this is cannibalism; these sales will be at the expense of companies’ own physical stores.’

Read the full Parcel Hero report here

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Posted on

January 16, 2017

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