The downturn has now turned into a crisis and Bricks and Mortar High Street Giant Stores and Superstores are struggling.
Following the closure of Toys R Us High Street Giant ”Next” is set to announce a drop in profits this week.
Consumer Analysts Blame Online Shopping.
The trend is expected to continue with many of our favourite High Street Stores and Superstores in serious trouble.
The blame for their demise is being directed at online large and powerful organisations such as Amazon.
More Closures to Follow.
Retailer Kingfisher is also expected to announce a downturn in profits, following Toys R Us and Electronics seller Maplin, who have closed with the loss of several thousand jobs.
Debenhams, Mothercare and Carpetright have all issued profit warnings, while Fashion retailer New Look has closed stores, and Tesco and Sainsbury’s have cut staff.
The internet is wiping out bricks and mortar shops and even John Lewis is being hammered in the great High Street slowdown.
It is interesting to note consumers are also deserting mass-market restaurant chains, which were once seen as the future as the internet wipes out shops.
Jamie’s Italian, burger chain Byron and Prezzo have announced hundreds of closures between them.
The rout has also hit High Street budget retailers.
Off-licence chains Bargain Booze and Wine Rack are formulating a survival business plan to raise emergency funds after it was revealed the 700 store chain employing 2,600 people imploded. Last week it revealed it owed the taxman £30m.
Discount chain Poundstretcher is also believed to be in trouble with their rival Poundland also in trouble following an accounting scandal at its parent Steinhoff.
The online shopping surge will continue.
Richard Hyman, the renowned retail analyst, said ”High Street Bricks and Mortar Shops were struggling amid over-capacity worsened by the online shopping surge.” He said: ‘I think we are going through a big shake-out at the moment – there are too many mouths to feed.”
”Being good in this market is not good enough anymore – you have to be better than good. I think that the weaknesses of some retail businesses are being exposed in a way they were not when the market was more buoyant.”
But – Wait a Moment!
High Street Traders big and small are being hammered and are seeing their profits disappear.
But just wait a moment! High Street Bricks and Mortar Stores all have something else in common, in perfect unison, they all collectively blame the Online Stores.
So what makes Online Stores so powerful?
We asked online retail furniture analyst Duncan Shearing what makes Online Stores so powerful.
So powerful they can overturn the High Street Giants of the Retail.
Made.com and Retro Europe.com have flourished.
”Do not blame the internet for everything – the internet has been around for 20 years so their power should not be a surprise.I can not speak for all industries but I am happy to make some observations in the retail online furniture Industry”
”Companies such as Made.com and RetroEurope.com have flourished in the retail modern designer furniture market”
Lower Operating Costs – These saving go straight off the Retail Price.
”Both Made.com and Retro Europe.com have very low operating costs and they use these savings to keep their prices very low.”
”High Street Shops cannot compete with online modern designer furniture stores for ‘like for like quality’, and prices.”
The speed to market with new innovative designer furniture is alarming.
”Both Retro Europe and Made have in-house design teams and are capable of bringing a new and innovative modern designer furniture to market in a matter of weeks.”
”In the past 12 months, Retro Europe has launched three brand new product lines that are already selling in their hundreds.”
” Retro Europe launched their designer Corbusier-esque Le Bauhaus, an Industrial Vintage style Armchair and Sofa Collection, plus the Scandi styled modern contemporary Spiers Sofa and Armchair Collection, and more recently the Herman Miller-esque Aero5 Office Chairs for the home office and commercial office markets.”
Prices at up to one-tenth of High Street Shops and Superstores are at Retro Europe.
”Retro Europe and Made will continue to flourish in today’s’ market, and discerning buyers of modern design furniture will continue to buy in their thousands”
”Especially, when consumers can buy high -quality contemporary, modernist, vintage and industrial styled modern furniture at prices one-tenth of High Street Shops and Superstores”