What does the closure of more shops on the high street say about the changing face of the UK retail industry

What does the closure of more shops on the high street say about the changing face of the UK retail industry?

The closure of more high street shops has highlighted a transformation in the retail industry and the way that consumers are choosing to shop for fashion items.

Thanks to a rise in the popularity of internet shopping and a weaker pound, shoppers are choosing to spend less time in their favourite high street shops and the statistics are telling of a worsening crisis for the industry.

Last year 5,855 UK high street stores closed, with fashion and footwear outlets being the hardest hit according to statistics compiled by The Local Data Company.

The problem has continued to deepen this year following the collapse of both Toys R Us and Maplin, which has resulted in the loss of over 5,000 jobs.

Kennedy Zvenyika, Managing Director of GIC Capital said: “While the consumerist element of our society shows no sign of slowing down, what is changing is the way that people are choosing to buy their goods.

“In particular, the emergence of e-commerce is resulting in a shift to online shopping, with customers favouring the convenience and speed of browsing for clothes on websites as opposed to visiting busy shops.

“You only need to look at recent statistics from leading online retailer ASOS, which show that their profits are up 10% to £29.9m, to see that these sorts of businesses are leading the way for the retail industry.

“In order to remain competitive, brands will need to consider utilising websites to sell their goods and will also need to take steps to ensure that their online presence is pertinent with their target market.”

E-commerce refers to the buying and selling of both goods and services on the internet and harbours a number of benefits for both retail businesses and customers.

For businesses, e-commerce gives them the ability to overcome geographical locations and take advantage of global markets while also gaining new custom thanks to the potential of search engine visibility.

GIC Capital offers UK businesses operating across a variety of sectors including retail and construction with fast and flexible expansion capital options. The business loans and overdrafts that they provide are from substantial private owned investment companies and their strong connections with such businesses allow them to make suitable matches for businesses.

For more information about GIC Capital visit their website at: https://www.giccapital.co.uk/