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28/06/2011

R3 comments on the high street blood bath

“In the aftermath of the last quarter-day we have seen many retailers enter into administration or announce the closure of loss-making stores. However, for many the quarter-day was simply the catalyst for their collapse. The high-street and the way consumers shop is changing and the rate of change has been sped up by the protracted economic downturn. R3’s latest consumer survey found that over eighty percent of consumers have changed the way they shop over the last year. Over half of consumers are buying fewer non-essentials, with a quarter buying items in the sale rather than paying full price.

“However, the most significant change is consumers shift to the internet. Close to a third (31%) are now shopping online more and this has definitely impacted on those retailers that have a very heavy high-street presence. These businesses have to pay rent regardless of whether they are seeing less money going through their tills. For struggling retailers the demand for rent for the quarter has made them assess their profitability and sadly some have realised that they are unable to continue as they are.”
R3 President, Frances Coulson

 

For further information please contact:
Addy Frederick, R3 Communications Officer
t: 020 7566 4217  m: 07825 679 462 e: addy.frederick@r3.org.uk


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.