Over 175,000 jobs are set to be shed from the UK’s struggling high street retailers as property value slides amid Amazon’s success as well as the increase in online shopping.
A further 23,000 shops are expected to close this year, according to research conducted by real estate advisors Altus Group.
Meanwhile, 62 per cent of UK property owners have said Amazon’s success has disrupted the retail property market.
A further 78 per cent said the rise in experiential retailing has also affected retailers as customers are mainly seeking out experience-led shopping.
The results show that retailers are forecast to have an even worse year in 2019 than the previous year which saw nearly 20,000 stores close and 150,000 jobs were lost.
The value of property is expected to decrease by 15.9 per cent as consumers continue to prefer online alternatives.
The change in UK consumers’ shopping habits is the reason Altus Group undertook the research.
Furthermore, 2018 was a tough year for many retailers as the likes of House of Fraser, Evans Cycles, Maplin and Poundworld were considerably failing, while Mothercare and Carpetright closed hundreds of their failing stores.
Overall, Altus Group said that “2019 is set to be another tough year for Britain’s high streets as businesses continue to grapple with rising costs, subdued consumer confidence and an increase spend online”.
