Pain on the High Street

Nearly six in ten independent retailers suffered a fall in business in the second quarter of 2011.

Fresh research from the British Independent Retailers Association (bira), the results of its quarterly sales monitor, shows that 58% reported falls averaging 10%, with 42% reporting increases averaging the same 10%.

The mix in the picture shows clothing, footwear, card & stationery, book & toy, DIY and pet product retailers experiencing declines, while furniture, giftware and cookshop retailers enjoying rises.

The year-on-year figures for the quarter also show Sotland and the Souith West in positive territory, while the seven other broad regions dropping away.

One of the gloomiest comments from the respondents, a cookshop in the north west, bundled all of the pressing issues and a full dose of pessimism into one statement, but one that the government nevertheless needs to hear from the high street: “Job losses, job insecurity, higher food and fuel costs are all squeezing consumer pockets to (and beyond) their financial limits. Compound this with a VAT rate of 20%, stagnant housing market and large cuts in public spending and it is unsurprising that retailers are going in to administration left, right and centre. Unless the government urgently address these issues I see nothing but a downward spiral with many more businesses failing in the near future.”

Deputy CEO Michael Weedon added: "Another story that the government needs to hear is the answer to the question: 'Has your line of credit reduced (including your overdraft) or rate charge increased in the past quarter?' This quarter 17% answered that it had. In the most recent four quarters fully half of respondents have reported the strengthening constriction of credit to small businesses. If the government wants growth then it must act on this issue."

The summary of the survey can be downloaded here

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• Solving High Street/Independant Retailer Problem

  Posted by: Samantha Gooderson (Samantha Gooderson)

  Something very simple could be implicated, the internet has taken over, the internet sellers don't have the overheads we the independent have, lower our Rates and then we to can compete. For example, my business Rates are £4K per year, we live above our business and for the same Sq footage we pay just over £1k per year household rates, how doe this figure, we get no extra, we still have to arrange for our own rubbish collection, we also pay more in water, telephone and electric. The governement should look seriously at these issues and help the independent.

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