E-commerce causes 15 per cent rise in high street collapses
11 April 2012 - 14:15 by Graham Miller
The rise of online shopping is continuing to take its toll on the high street, with a 15 per cent increase in the number of retailers going into administration hitting the UK during the first three months of the year.
This is according to a report published by Deloitte, which identified that 69 different high street retail groups were faced with bankruptcy in Q1 of 2012, which is significantly higher than it was during early 2011.
There is a long list of well known brands which have come close to collapse so far this year, including Game, Peacocks, Black Leisure and La Senza.
It is estimated that 10,000 jobs have been lost as a result of the various high street culls, although if you look at the evidence, it is easy to see why so many people are choosing safe shopping online over traditional bricks and mortar outlets.
During times of economic strength the world of e-commerce was mainly attractive for the added convenience it offered over visiting the high street, because ordering something from your sofa and getting it delivered to your door, without having to brave the crowds or seek out a parking space, is clearly a more desirable option.
However, with the economic downturn still squeezing household budgets, the lower prices and wider choice available via e-commerce sites has helped more and more people to migrate their normal shopping habits over to safe shopping online.
Industry insiders are regularly stating that high street chains that want to survive will have to embrace e-commerce platforms and adopt a multichannel approach to retail, which involves aspects of online shopping. Meanwhile, web-based retailers should, hopefully, take up the economic slack caused by the disappearance of more and more high street chains.