Just three months after Prime Minister David Cameron declared that the country was on the ‘right track’, three major high street retailers Jessops, HMV and Blockbuster went into
Just three months after Prime Minister David Cameron declared that the country was on the ‘right track’, three major high street retailers Jessops, HMV and Blockbuster went into administration.
Last Friday, camera retailer Jessops closed down all its 187 branches across the country after becoming the first high street casualty of 2013, announcing a loss of more than 1,300 jobs, with ‘PriceWaterhouseCoopers’ (PWC) being assigned as joint administrators.
Just DAYS after the first demise of the new year, the retail world then took another, yet even bigger beating, with Deloitte being appointed as administrator of global entertainment group HMV, leaving the future of 4,123 staff hanging by a thread.
Astonishingly, just when the retail world had been stretched enough, on Wednesday DVD rental firm Blockbuster revealed that they were to become the THIRD UK high street firm to go into administration, thus leaving the future of the high street in complete dismay.
With the fresh economic crisis now beginning to take firm hold over the country, it has become clear that all retail casualties of 2013 each contain one thing in common for the causes of their administrations: online shopping.
Neil Saunders, the managing director of the research house Conlumino, gave evidence on the online shopping era: “By our own figures, we forecast that by the end of 2015 some 90.4% of music and film sales will be online.”
He said, “the bottom line is that there is no real future for physical retail in the music sector.”
Leading UK retail expert Clare Rayner also believes that the causes of this has been down to similar circumstances, blaming the recent events on showrooming, a term which suggests when a shopper visits a store to check out a product, but then purchases the product online from home due to the availability of lower prices through online vendors.
Aptly named “The Retail Champion”, Clare has regarded the situation as “lost relevance,” saying it was “pretty much what retail week said.”
Blockbuster’s collapse now means that nearly 200 retailers have collapsed over the past 12 months, with electricals chain Comet and sportswear retailer JJB following the long string of retail loses, which includes the disappearance of retailers such as Clinton Cards, Game Group and Peacocks.
So who is next to be added to the list of retail casulties?
Although there is no telling who could be the fourth outlet to sink into administration, which at this rate, could be very soon. Stores such as Past Times, Blacks and Hawkin’s Bazaar are amongst the many other firms who could be next in line to tip into serious trouble.
It seems now that Shadow Chancellor Ed Balls’ response to Mr Cameron’s positivity three months ago has proved a matter of fact, having stated that “it would be very unwise of David Cameron and George Osborne to just sit back, cross their fingers and hope for the best.”
Now just 12 weeks after the PM hinted in the Commons of “good news” to come, these three major blows have proved otherwise.