Death of the High Street

Given that the economic downturn has been ongoing since 2008, it's surprising that more British household names haven't gone under.

We had Woolworth's which went into liquidation in 2009, but I struggle to think of any other high street stalwarts that we've lost. I'm sure there have been a couple.

So it's surprised me a little that now, four years into the downturn, we've lost Comet, Jessop's, HMV and Blockbuster, all household names, in the space of a single month.

Who knows which shop is next?

I guess the poor economic climate has finally caught up with the finances of some of these firms. They may have been hanging on until the economy picked up again. The concentration of bankruptcies in December and January indicates that they may have overstretched themselves in one last hurrah to try and gain business over the Christmas season.

Ultimately, though, it's pretty obvious what has caused these firms' demise - the internet.

Any shop selling electronic, branded goods, stands little chance of competing with the likes of Amazon. Amazon doesn't have to pay shop rents or hire sales staff, and so can sell the exact same product for much less. For the customer, the choice is a "no brainer."

Does this mean the death of the high street is nigh?

No.

It simply means that a reshuffle is underway.  Customers are working out for themselves which goods are best purchased on a computer at home, and which are best purchased face-to-face, in a high street shop. The high street has a huge advantage over the internet in more tactile products, like clothes, that people want to try on before buying, and in goods which simply cannot be sent in the post, which is why coffee shops and hairdressers are doing so well.

High streets will never disappear. We're stuck with them. We've built our towns and cities, immovable, around them.

Over the next few years we'll see the high street changing further. There'll be opportunities for new businesses to take advantage of vacant premises and lower rents to introduce themselves to the high street. These businesses will deal in products that people want to touch, smell, try on, eat, drink. There will also be a growth in the service industry as high street shopping is treated more as an "experience" in which people also want to take advantage of beauty treatments, look round galleries, and who knows what else?

The high street isn't dying. It's being reborn.