High Street Crisis Deepens as Pandemic Takes Its Toll
- Over 24,000 retail jobs lost in first half of 2020
- Large retailers like Laura Ashley, Debenhams, Monsoon & Accessorize, Oasis & Warehouse, Cath Kidston, Quiz, Victoria’s Secret, Oakland Furniture, Go Outdoors, TM Lewin and Benson Beds/Harveys Furniture have gone into administration
- 2,630 stores and 55,976 jobs affected in the first six months of 2020 compared to 2,051 stores and 46,506 jobs for all of 2019
- Joshua Bamfield warns that the second half could be disastrous for high streets without government intervention
The Centre for Retail Research (CRR) has reported that nearly 24,348 jobs have been lost at large retailers in the first half of 2020 alone. This includes well-known brands such as Laura Ashley, Debenhams, Monsoon & Accessorize, Oasis & Warehouse, Cath Kidston, Quiz, Victoria’s Secret, Oakland Furniture, Go Outdoors, TM Lewin and Benson Beds/Harveys Furniture that have all entered insolvency processes since the pandemic began in March. The CRR states that a total of 2,630 stores and 55,976 jobs have been affected during this period, compared to 2,051 stores and 46,506 jobs for the entirety of 2019. Joshua Bamfield, director at CRR, predicts that the situation will worsen as furlough ends next month and the lease forfeiture moratorium concludes in September. He suggests reducing VAT to 15%, offering free parking on Council-owned car parks, and reopening public lavatories as potential solutions.
Factuality Level: 8
Factuality Justification: The article provides accurate information about job losses and store closures in the retail sector during the first half of 2020 compared to the same period in 2019, as well as expert commentary on potential future challenges. The suggestions for government action are presented as a possible solution, but not as universally accepted truths.
Noise Level: 4
Noise Justification: The article provides relevant information about job losses and store closures in the retail sector due to the pandemic but lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: High streets and retail companies
Financial Rating Justification: The article discusses job losses and insolvencies in the retail sector, which can impact financial markets through changes in company stock prices and investor sentiment. It also mentions potential government actions that could affect consumer spending and high street businesses.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
www.retailsector.co.uk