Corporate Recovery Expert Comments On Deloitte Report
New research suggesting that many high street retailers will be forced to review their portfolio of property over the next five years strongly reflects the trends being seen across the sector, a corporate recovery expert at Irwin Mitchell has revealed.
The Store of the Future report from Deloitte has forecast that many retailers will have to cut their properties by up to 40 per cent in the near future, in an effort to remain competitive and continue to function in line with current market conditions.
It also suggested that floor space has generally dropped over the past few years as an increasing number of consumers continue to embrace shopping online.
Chris Jones, a Partner who specialises in insolvency, corporate recovery and restructuring, said that recent events demonstrated just how timely the release of the report is.
He outlined: “This study undoubtedly rings true when viewed in line with the larger cases and insolvencies which we have been involved in over recent months.
“It also seems very coincidental that it has been released as a retailer which has been a mainstay on the high street for some time, Game, has confirmed that it is now intending to head into administration after shares were suspended.
“There are strong suggestions that it is more than the current economic climate at play here, as general consumer trends are showing that online shopping is becoming more and more important to a huge number of people.”
Chris added that any companies concerned over potential financial issues related to property should seek advice as soon as possible.
He outlined: “Once again rent quarter day is approaching and many retailers may have worries over how they can meet the payments which will be due.
“Companies need not suffer in silence though, and should talk to their landlords about the potential for restructuring their payments into an easier package. Aiming to address any issues as soon as they arise can make a huge difference for all involved.”