Ecommerce thriving, retail stores closing

With the success of ecommerce companies in the U.K. market, high street retailers are feeling the pressure. According to a recent study by PricewaterhouseCoopers and the Local Data Company, 20 stores are closing daily and the end of this development may not happen anytime soon as consumers hold onto their money or opt to shop online.

"Over the next six months, retailers will undoubtedly continue to struggle," said Bruce Cartwright, head of business recovery for PwC in Scotland. "Certain categories such as clothes shops, where in Scotland we have already seen 19 retail outlets close in the first five months of 2011, are likely to experience high levels of financial distress."

According to the study, Scotland has experienced 161 stores closing compared to 131 opening, which is the worst statistics for high retailers in all of the U.K.

To slow this predicament for U.K. high street retailers, the British Retail Consortium has called for government action.

While retailers in the U.K. try to stay afloat from increased online shopping, more consumers are expected to take advantage of online payment gateways. Joanne Bethlamy, director of the internet business solutions group at Cisco, told Practical Ecommerce that worldwide ecommerce will reach $1.4 trillion by 2015.