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Retails massive close down

In the business news this week, reports have flooded in that on average 14 high street retail stores were closed every day during 2011.

Stores included bookshops, furniture stores, electrical stores and fashion retailers.

Retail specialist Mike Jervis said “A common feature of the retailers in distress who we are dealing with is that they have too many locations. Relatively long leases have been entered into in a growth phase of the economy which are no longer appropriate. Electricals and bookshops have suffered as these products are now increasingly bought online but retailers in this sector are typically carrying unnecessarily large property portfolios.”

Almost a quarter of the shops in the Greater Manchester area of Altrincham. Many retail space landlords like Mark Rubin are noticing that they are struggling to pay the bills and keep the shops open. “On a number of occasions I have listened to tenants and decided the rent should be lowered. But that’s not a situation that can continue forever. I have to explain to them that one day the landlord is going to be in trouble.”

The loss of many retailers could carry on well into 2012 and this will in turn increase the vacancy rates.

What can people do to avoid having to shut up shop? Well if you have a lot of stock you could sell some pieces online and create an e-commerce store. This way, you should be targeting a global audience, rather than hoping people will come into your shop from the high street.

Also, if money is a problem, you could try raising funding by using any invoices you send out to clients. Factoring enables you to gain access to that capital and bring it forward, rather than having to wait up to 90 days for payment. This form of funding has managed to keep many businesses afloat during turbulent times.

Select Factoring

 

 

 

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