Over the last ten years, the way we shop has changed dramatically. Online retailers have redesigned the retail sphere and for some, going to the high street is now a thing of the past. This, as you can imagine, is not good news for commercial landlords.
2018 was hailed "The Year of the CVA", which saw a wave of company voluntary arrangements (informal insolvency procedures designed to help insolvent companies reach agreements with their creditors whilst continuing to trade) of well known brands (House of Fraser, Carpetright and New Look just to name a few), all with an emphasis on renegotiating the rents due to high street landlords.
As online shopping continues to grow, it is likely we will see more high street giants enter into CVAs in an attempt to compromise the rents due to landlords, which ultimately may result in the closure of more stores nationwide. For now, the future of the UK high street remains uncertain.
Online shopping could more than double its share of the retail market by 2028, according to a report that spells further difficulties for landlords, stores and communities.