Jason Jeffries
15 February 2011
The popularity of ecommerce is having a severe effect on high street retailers who can't keep up with the demand for online shopping options - or who are leaving their businesses in order to focus solely on the online world.
The Independent reports that one out of seven retail stores in the U.K. is now vacant, having shut its doors after being unable to compete with better prices, more variety, fast shipping and the other conveniences of the ecommerce world. Others have simply chosen to take their entire operations online, realising that a high street shop can often cost more money than it generates. An online outlet, in addition to being less expensive to maintain, reaches a wider audience and often generates greater revenue.
According to Matthew Hopkinson, a director of the Local Data Company, which compiled the figures, the overall vacancy rate is expected to "level out" to between 14 percent and 18 percent over the next 18 months. Retail experts suspect that the growth of online shopping – which now accounts for about 10 percent of total retail sales – could be contributing to the rise in vacancies, as merchants shut their physical doors to focus more on online sales.
More than 50 percent of the adult population in the U.K. now shops online, but many major high street brands will likely stick around for years to come, as their physical stores do provide the benefit of allowing shoppers to try on clothes and take home their purchases the same day.