The high street must adapt to survive

Drake Street, empty shops

Specialist short-term lender, Bridging Finance Limited, is suggesting there should to be a shift of emphasis from chain stores to boutiques and residential dwellings in order for the local high street to stay in business.

2013 has already brought news of the collapse of several high street chains, including Jessops, HMV and Blockbuster. A triple whammy of online purchasing increasing, supermarkets expanding their range and out of town shopping malls being built has squeezed the life out of many town centres.

It is now estimated that one in ten shops on the UK high street is empty. HMV, the 92-year-old chain has seen its sales eroded by fierce competition from online music retailers, digital downloads and supermarkets. It has also been saddled with £220m of bank debt. Similarly Jessops closed all 187 stores following poor Christmas sales and increasing competition from supermarkets and internet retailers.

Chris Baguley, managing director of Bridging Finance Limited, said: “The high street in 2013 needs to develop to survive. I envisage shops and offices becoming residential properties and service businesses such as bars, newsagents and restaurants springing up to cater for residents.

"The high street of the future will still be a focal point for the community but it will have a different emphasis. The new high street will be a destination space where consumers will spend their leisure time socialising with friends and shopping at unique boutique stores.

“The shift to converting old terraced/semi commercial shops back to residential dwellings will also supply a shortage of housing space and fulfil a desire to live in buzzing areas. The most thriving centres have residential properties in walking distance to desirable shops, bars and restaurants.”