News: Business

Retail Business Death Nail

by Alastair R Agutter (Publishing Editor) 21st November 2022

Landlords and Councils just don't get it, when it comes to rents and business rates. The retail and service sectors in Great Britain (UK) are no longer sustainable, and will no doubt receive the final death nail this March April 2023, as rents and rates go up yet again. I just don't get it, every Councillor complains about shop closures in High Streets as they die. But Council rates and extreme rents still rise!

Still now 12 years later after the financial crash Retailers are still closing, and the High Streets last few remaining stores in most parts of the UK are Charity Shops or Bookmakers. We see them come, and we see them go. How often do we see a store open, only to close three to six months later. And these events are not rare one-off occasions. All too often we see this and why?

The real truth to the matter is, it amounts to greed and not living in the real world. And this includes both Local Councils and the Property Landlords. The Rents and Council rates are extortionate. But there is far more, and I cannot remember the last time I drove down a High Street, easily parked, to grab a few items from a store. Today as a result of architectural vandalism, for this is what it amounts to, trees in High Streets have been cut down, roads removed, and the entire High Street paved and pedestrianized. So where do you park, normally a long and very inconvenient way from the store you wish to quickly visit in some God forsaken multistorey car park, and finally for all the trouble and aggro, you are clobbered with another extortionate parking fee!

Sadly today, High Streets to many families have become hostile, and they are not user friendly. But as pointed out now before, this is as a result of greedy landlords, and willful negligence by the Councils delusional staff, thinking businesses of any type have a bottomless pit of money to waste on Council Rates and Rents. But that is so far from the truth, for these poor souls businesses have to shut down, and normally just after about 3 to 9 months, about 6 months on average going out of business with their lives ruined, and normally inheriting a mountain of debt.

And what does the local community end up having as a High Streets? Yes you've got it, a handful of charity shops and bookmakers.

Finally, online is not the enemy, the facts of life are; these online services have become a raving success as a result of ease and convenience. As opposed to today's High Streets and environments, that are not user friendly at all. It also seems to be too hard for Council officials and staff to grasp the reality caused by their negligence to the situation over countless years.

The great tragedy to all of this is; this year Councils have been given the green light by the Government to increase the rates by up to 5%.

Facts: If you are netting off a profit of just 10%. You need to turn over in one week just to pay one member of staff, the rent and rates around £10,000. You tell me how many little retailers turn over that amount of money, and each week constantly, and this is based on just a £300 a week wage for one member staff.

The entire system is morally bankrupt and criminal, it's extortion at the end of the day!