Shops and restaurants face a tough 2019, with the malaise of falling sales spreading online
This has been a challenging year on the high street for shops and restaurants as consumers have reined in their spending, switched to buying on the internet and prioritised spending on leisure and holidays. At the same time, business rates have soared in some locations and the minimum wage rates paid to many shop workers have gone up by more than the rate of inflation.
Asos – the biggest UK online-only fashion retailer – issued a shock profit warning just before Christmas. Its chief executive, Nick Beighton, said: “In fashion we are seeing an unprecedented level of discounting, certainly something I have not seen before, and that’s across the board.” Asos had knocked 20% off everything on Black Friday – but others offered bigger reductions. Neil Wilson, an analyst at Markets.com, said: “If Asos is finding it tough out there, then just about every retailer has a problem.
Related: HMV to call in administrators, putting 2,200 jobs at risk
Related: How to save our high streets? The answer is in the church | Simon Jenkins
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