High Street Meltdown

Lots of stories in the papers this weekend about the crisis affecting the UK High Street. This one seems a particularly good summary of the situation....

Walsh,K & Shah, O (2011) High noon on the High Street, Sunday Times, 3rd July Focus Section p.5

It has been a disastrous few days for the following companies :

T.J Hughes - discount department chain, has gone out of business. 57 stores and 4,000 staff face a bleak future.

Jane Norman, the youth fashion chain went under on Monday night. 200 shops and 1,600 staff lost.

HMV finally gave up with the CD market and will now concentrate on live music and gadgets. Sales sank by 11% this year, and the company only survived, many think, by selling off Waterstones.

Thorntons, the chocolatier, is closing many high street shops. We are not sure whether the Luton and Bedford branches have survived the chop.

What are the reasons for these poor results ?

1. Internet shopping
2. The financial crisis means that consumers are changing from a 'want' culture to a 'need' culture
3. Giant supermarkets are now selling everything, including Thorntons chocolates and CD's.
4. Lack of consumer confidence ( consumers may have the cash to spend but they are worried about their future )
5. Conspicuous consumption is no longer fashionable. People feel guilty about spending ( despite this some luxury brands are still manageing to prosper )
6. Customer service is no longer valued as much as it was formerly. This may be partly because people have so much information about the products they are buying available online.
7. Discount retailers such as Aldi and Lidl are doing well.