Philip Green announced this morning that between 250 and 260 of Arcadia’s stores – which includes BHS, Top Shop, Wallis, Burtons etc. – will close. Arcadia own numerous stores, but this is going to be a big impact on the high street.
What are the potential consequences? Have you noticed how, in your own local shopping centre, when stores close they stay empty for longer? A couple of years ago, when a shop closed, the store re-opened within days as something else. Now, a store closes and no-one wants to rent the space. One key reason for this is our increase in shopping on-line and the other is the economic downturn.
Now imagine that you own one of these shopping malls. How long could you survive without the rent these empty stores should be bringing in? I don’t know the exact answer, but my prophecy is that it will not be much longer before one ‘goes pop’ – and then others will follow, similar to the banks did in 2008.
Watch this space……