Hardship on the High Street – what’s the problem?

We’re currently receiving daily reminders of the problems on the UK High Street. Today it’s Thorntons, following on from Jane Norman, TJ Hughes and Homeform, which controls Möben Kitchens, Sharps Bedrooms and Dolphin Bathrooms. Habitat, HMV, Waterstones – the list goes on and on. Do these high profile business failures threaten the High Street? And what is behind their problems?

You can bring yourself up-to-date on the latest news here, with the gloomy conclusion that a large number of job losses in retail looks very likely. There’s a BBC video clip too which is suitable as an introduction.

Analysts have warned that hundreds of shops across Britain could close over the summer. The latest figures showed the volume of goods sold on the high street fell by 1.4% in May So what’s happening? The honest answer is that the picture is complicated.

- Some firms (particularly ‘big ticket’ items like expensive household goods) have taken a beating because of the economic downturn.
- Other businesses have failed because they weren’t meeting the wants and needs of today’s customers.
- Long term trends may be working to disadvantage traditional High Street favourites, with the pub being the most obvious example. Similarly, technological forces (specifically the rise of internet retail) is causing pain for many well established brands and businesses.

Would you add the pressure from larger retail chains to this list?

The BBC have a great short video clip looking directly at the problem. After you’ve watched that there’s another video clip from the BBC offering analysis from the City AM editor and others.