High street on the road to recovery?

The way the average person shops has been going through a revolution in recent years.

In previous generations, entire days were spent pounding the pavements of city centres hunting for bargains and the odd treat from the various high street stores. However, thanks to the advancements in technology this has changed significantly. Now everything is available at the touch of a button.

With the rise and rise of smartphone and tablet devices, people can order their groceries, clothing and all other goods over the internet and either have them delivered or ready to pick up in store. This change in consumer behaviour has had a somewhat detrimental effect on the high street and has led to a number of high-profile casualties.

Big names such as HMV, Phones4U and Blacks Leisure have all previously entered administration shutting a raft of outlets. It has resulted in a number of empty stores across city centres but a recent report has provided a bit of positivity for the future of the high street retail sector.

Advisory consultants FRP Advisory released data which highlighted that since the turn of the year there has been a significant fall in the amount of major administrations across the UK. Since the beginning of 2015 only three companies have fallen into financial difficulty, compared to the 13 recorded a year earlier.

Companies have also been performing well in the face of adversity with around 70 per cent of those dropping into administration emerging again. This was a marked improvement from the 42 per cent during 2014, a figure which would have been much worse had a rescue operation for a large part of the beleaguered Phones4U.

There were casualties in the administration of these retailers with 4,900 jobs being lost from the 9,800 affected. The likes of La Senza, Jane Norman and Internacionale also experienced job losses which were included in the figures. However, analysts believe that the high street is starting to head towards to a more positive outcome.

Glyn Mummery, partner at FRP, said: "It is re-emerging after four years of significant store culling, in a fitter albeit leaner shape with retailers having to cope with a new norm of tougher operating margins but boosted by a return in consumer confidence and spending power helped by cheaper fuel costs.

"It is re-emerging after four years of significant store culling, in a fitter albeit leaner shape with retailers having to cope with a new norm of tougher operating margins but boosted by a return in consumer confidence and spending power helped by cheaper fuel costs."

A return to the golden years for the high street can only be good news for the recruitment sector. As shops begin to grow in confidence they can start strengthening and eventually, if the upward trend continues, embark on an expansion programme that would see more staff being brought onboard.

It highlights that the bricks and mortar stores that have become household names are fighting back against the rise of online shopping.

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