Over the past year, the noise has become louder and louder. Is it just media hype or social media driven, the high street retail industry continues to fall but has that also affected the retail property market?
Landlords have increasingly become more and more concerned with what value property has in the retail sector. The most recent figures have shown that the value has dropped by 1.9% this is the steepest drop in the sector since 2009 figures released by GBRE.
The past year has seen the amount of high street store closure increase month upon month. Each week it seems to be a new story of a retail chain or store going into to administration. House of Fraser once a staple in the retail sector have recently most notable fallen on hard times.
Saved at the death rescue package by Sports Direct billionaire Mike Ashley. Even with this rescue package a number of House Fraser stores still face closure. Initially 31 stores were earmarked to be closed down but this number has been reduced to around 13.
Laura Ashley, New Look, Marks and Spencer’s all high street fashion stalwarts have announced store closures taking an estimated 85,000 jobs off the high street.
As landlords begin to panic with the lack of tenants in their properties. The counter-attack being used is increasing rents with current tenants.
This along with the increase of business rates store running cost and loss of earning stores are cutting there loses and shutting down.
Leaving an all too familiar site on the local high streets of empty buildings with a retail unit to let sign in the window.
The most common response to the decline has been for stores to relocate to an online business model such as Boohoo and ASOS. But the grass isn’t always greener on the other side.
Just as recent as Monday ASOS themselves posted a 38% profit loss while issuing a warning that all sectors of retail are suffering.
