Store closures are a complex issue.17 May 2018
Once again this morning we’ve woken to the news of a CVA on the high street.
There are many underlying reasons for the recent spate of store closures that have been announced and the retail sector is a complex one, but what is entirely clear is that the cost of doing business on the high street is a massive burden that has to be addressed.
The main cost is now property tax, ahead of rent for many occupiers. Worse, internet retailers do not contribute to the tax, but they’re reaping the benefits.
The government has to step up to the plate here and take urgent action on rates, review how it treats online retailers and an examination of the fairness and use of CVAs.
Director, The Hark Group