After walking through my smallish town looking at all the empty shop fronts, it prompted me to ask what is prohibiting new businesses taking them on?
Peacocks is closing not one, but two stores this month, one in Cornwall and one in Bournemouth.
The fashion chain is also shut its branch in Boscombe, Bournemouth, on April 6 in a blow for locals.
M&S blamed “customers shopping habits” ,and it had been closed on April 20.
The store used to be John Lewis's flagship store for 40 years was taken over by M&S in 2021.
I imagine a string of cute independent craft shops, bakeries, chocolatiers and plant shops bringing the high street back to life.
What is stopping that from happening?
The high rent on the shops?
Actually, it’s even worse than that for the landlord. Normally the tenant pays the business rates, but when the property is empty, the landlord has to pay the rates. There may be a short grace period, or for a period when the property is being substantially renovated, but otherwise, the landlord must pay.If you reduce the rent, it means the value of the property, which is usually determined on its rental value, will decrease. Possibly putting you in negativity equity, especially if you've also borrowed money for other investments using your property as collateral.It isn't sustainable and we could be looking at a massive commercial property collapse in the not so distant future.
Is it the government or local council's fault?
Anything you sell has to cover these expenses. Then throw in staff costs.Then, even if you did manage to turn a profit, the government takes its share in corporation tax, then dividend tax.
As others have said, the internet has become too convenient unfortunately and can undercut many high street independent shops.High rents and business rates, lack of parking spaces, low footfall, security, etc. The list is long but in short, it's just not viable for businesses to go on.
There are another Some people say that it's because people don't want to shop anymore as
they lost much money in the stock game, but I disagree. If you look at retail parks, they are always heaving. Yes the high rents and costs of running are too high in the city centre, but that doesn't explain why people don't want to go there.
Imo it's a lack of convenience for the customers. Parking is a nightmare, driving through a city centre is always awful as well. On a retail park you have loads of free parking and all the shops are around you, you don't have to walk far. Whereas city shopping is the opposite. It's spread out and parking is horrendous. I don't blame people for not wanting to go, especially now half the shops are closed anyway.
Maybe it's time we made some changes..
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