Britain was once known as a ‘nation of shopkeepers.’ Now, not so much: CNBC UK Exchange

This report from the newsletter for this week from CNBC for exchange by Ian King. Like what you see? You can subscribe here.

They are just the tip of the iceberg. Bonthland, who was recently unloaded for 1 pounds by the former parents listed on the Polish list to the American Gordon Brothers Group, will close dozens of stores at the top of those that have already been announced with their serious restructuring. Hobbycraft, retail art and craftsmanship, and the original factory store, which is public retail stores, both close to the ports after their acquisition by Modella Capital, the UK’s private stock company that currently represents a process. Buy a high street arm from Wh SmithThe stationery retail merchant now known for his airport parking around the world. Some of its branches may be closed.

Pain is more severe in the field of retail, which reflects the increase in competition from competitors online such as ASOS and Shein.

New Look, who has made generations of teenagers and 20 years for 55 years, fights for her life, and announced earlier this year plans to close 100 outlets, about a quarter of her total, when their lease contracts end.

The equal island of the River-which dates back to 1948, and in the swinging 1960s, renamed its commercial brand Chelsea because it installed the mutation of the small skirt-as it called the advisers to help in the potential restructuring. Currently employ about 5,500 people in more than 250 stores.

They follow a long series of well-known retailers in the United Kingdom to close their doors during the past decade or so-some still gather as trademarks only via the Internet-including Topshop, Dorothy Perkins, Ted Baker, Thorntons, Carpetright, Paperchase and Debenhams. Others, like Body Shop and Wilko, are subject to new owners, which tends to attend with a significantly reduced store.

The retail sector is not alone in suffering. Also, hospitality has firm names such as Peron Burger, Chipotel, Franky, Benin and Baba John throughout the United Kingdom, and the latest Ping Bong’s injuries, a famous faint series, which was closed again last week after 20 years of work. There may also be a closure soon in CôTE, the Braserie series that has a 100 -out outlet, the private stock investors are now seeking to obtain new investments.

In general, about 17,350 retail sites are expected to be closed this year, with a loss of approximately 202,000 jobs, according to the retail research center, which is a data provider. It is estimated that during the year 2024, about 13479 stores were closed, after 10494 closed during the year 2023. To say that the accelerated direction is accurate and disturbing.

A The number of employers I blame all job losses and branch closing.

Among them was Bob Weii, the owner of Margot, a famous restaurant in Kovet Garden, London, was recently forced to close.

Winchi, who was previously one of the most investing in the city, posted on LinkedIn that one of the restaurant managers told him: “We have survived Covid but we cannot survive.”

The government has told CNBC that its tax changes are “difficult but necessary”, and it is necessary to “protect Paylips from higher tax workers” and investing in public services.

The British Retail Union, the main body of industry, estimated that the rise in NIC for employers will cost the retail sector alone about 2.3 billion pounds.

Other factors close to the range include the last increase in the minimum wage of 11.44 pounds ($ 15.38) per hour to 12.21 pounds. The age in which it is operated was reduced from 23 to 21-which makes it more expensive to employ younger workers-while the rate of children between the ages of 18 and 20 years increased from 9.60 pounds per hour to 10 pounds. Wages have also increased on a larger scale, after several years of profit growth higher than average across the economy, as a result of the narrow labor market in the UK and the high economic lack of activity since the epidemic.

But with the start of unemployment – and with it, the lack of functional security – begins to rise, consumers are increasingly eating food in their savings or becoming more economical. The savings rate in the United Kingdom, which increased through the epidemic and remained high after that, is now decreasing for the first time in this contract.

As Clive Black, head of consumer research at the Bank Bank Shore Capital and one of the most retailers in the city, put it in a modern customer note: “UK consumers are low to confidence, and raised from broken Britain.”

Local councils also pushed parking fees and introduced the so-called “low traffic neighborhoods”, which made high shopping in the street difficult for those who depend on their cars, which prompted many largest operators-like Next and Marks & Spence-to switch to retail brands outside the city.

But there are also long -term factors. Business prices-a tax dating back to 400 years imposed on the “category value” of most non-local real estate such as stores, offices, bars and warehouses-connects to bricks from bricks and more difficult shells of many online retailers such as Amazon, which are also thrown into business absorbing away from the high street.

In its statement in the elections last year, the ruling Labor Party promised to “settle the stadium between the high street and the giants over the Internet”, but its solution-which is more largely to finance lower prices for smaller buildings-has many effects in the sector, including complications of supermarkets such as Tesco, Sainsbury’s and CO-OP. The government says its business price system is designed to “protect high street” and support investment.

Regardless, the acceleration in the closing of stores has raised fears that this stagnation, not just a periodic. There is some evidence of this.

In the past, when a firm retail seller has been forced out of work, other operators intervened to solve it. A good example of this is the UK arm at Woolworths, the diverse chain of diverse stores, which closed 807 ports-with 27,000 jobs-in late 2008 and early 2009 at the height of the financial crisis. New tenants are found quickly for many of these as competitors, such as B&M, who intervened to take the sites in cheaper rent. Many of these, including the likes of Poundland, Pound Starter and the original factory store, are now struggling.

However, recently when the store closed, it has been closed, adding to the departure of the retail gardens, leaving many high streets with a feeling of decomposition. When you close a large or moved or move, Footfall is reduced.

Accordingly, the high -model British street, which was in the 1980s or 1990s, has familiar names such as Boots, Woolworths and Marks & Spencer, is likely to be home to store stores, American dessert stores, tattoos and charitable shops (which benefit from largely low business prices).

Feeling that this structural change also reflects a shift in retail property ownership. Big players in commercial real estate such as Land Securities and British Land will be exposed to the retail sector at all, largely via retail gardens or shopping centers. The typical owner of the High Street is likely to be a “mom and bob” operator who is unable to provide better conditions for tenants when they have difficulty.

All this seems to be an ideal storm, however, there is another factor, less recognized for playing: When going to the twenty -first century, when Amazon began to have lunch from old retailers brick and mortar, there were many players.

Many retailers will not put the idea, but perhaps what we saw during the past quarter is simply the excess capacity of the market is simply removed.

Ian King

UK shares were strong, one of the most important performance over the past week, with FTSE 100 Get 1.6 %. The index achieved a record during the day above 9000 points on Tuesday.

London listed companies have been strengthened by the fact that the United Kingdom has already negotiated a trade agreement with the White House, while businesses in the European Union are still immersed in uncertainty- Under the threat of American duties 30 % – Go to the profit season.

More support came from a decrease in sterlingAnd, which decreased by 1.5 % against the US dollar to $ 1.339 during the past week, as the Governor of Bank of England and Andrew Billy suggested that the central bank be more powerful with interest rate discounts if the labor market is weak. The weakest pound can be useful for FTSE 100 companies, which derives the majority of its revenues abroad.

The inflammatory market was relatively calm after its last talisman from Volatility. The return has decreased for 10 years to 4.62 % from 4.63 % during the past seven days, while the return for two years has decreased to 3.83 % from 3.88 %.