The High Street is really suffering...

lemonjelly

http://news.bbc.co.uk/1/hi/business/8177502.stm

Looking into the above article, consumer activity continues downward. Surely this will further affect confidence of individuals, and also investors.

In example, will shoppers go to a venue/mall/whatever where 20% of the units are vacant?

Also, will projects designed to improve the calibre of an area be put on hold, especially if it could appear that the area is going downhill?

I know my home town was reported on local news this morning with 1 in 5 of the town centre shops being vacant at the moment. In addition, a rather large development for the town centre was pulled, because allegedly the backers were struggling to obtain the neccessary finance.

So, many feel house prices are back on the up. How is the high street going to cope? Will it climb shortly, following the increases in house prices? Or is this a more real picture, & the HP data is flawed? Or is there another option I haven't covered here....

Thrugelmir

lemonjelly wrote: »

http://news.bbc.co.uk/1/hi/business/8177502.stm

Looking into the above article, consumer activity continues downward. Surely this will further affect confidence of individuals, and also investors.

In example, will shoppers go to a venue/mall/whatever where 20% of the units are vacant?

Also, will projects designed to improve the calibre of an area be put on hold, especially if it could appear that the area is going downhill?

I know my home town was reported on local news this morning with 1 in 5 of the town centre shops being vacant at the moment. In addition, a rather large development for the town centre was pulled, because allegedly the backers were struggling to obtain the neccessary finance.

So, many feel house prices are back on the up. How is the high street going to cope? Will it climb shortly, following the increases in house prices? Or is this a more real picture, & the HP data is flawed? Or is there another option I haven't covered here....

Town centres have been in decline for years. Out of town retail parks and imposition of car parking charges to raise council revenue. Too many banks, financial services companies and estate agents driving rents up.

Maybe in this sense recession is a good thing. As town centres can be rebuilt for 21st century living. Including residential units in town centres. So that they become 24 hour living. Smaller shops will then have regular trade to support them.

Really2

Indeed the poor small retailers were suffering due to supermarkets etc. before the recession.

The recession as just put the last few nails in for some.

mbga9pgf

There is a website in the states showing how bad it can get. I go to the US 3 times a year and I can tell you, it gets worse every time I go... Problem is, prices arent getting cut. Its as expensive as ever to go shopping in the US and people dont have the cash to pay.

Really2

mbga9pgf wrote: »

it gets worse every time I go... .

It as always been like that, it's the people .

(only joking, but the fake "have a nice day" does make me feel sick"

nearlynew

It's no surprise really.

The majority of retail spending over recent years was on the back of HPI.

You see, people don't have money any more, they have equity. And without the ability to "mew" they can no longer spend. Debt - fuelled consumerism is what has propped up our phoney economy.

Debt is the new wealth.

Or it was

Dan:_4

The high steet has been suffering for years, and can only get worse - consumers prefer to use the internet these days.

zappahey

Really2 wrote: »

It as always been like that, it's the people .

(only joking, but the fake "have a nice day" does make me feel sick"

I was there last week and I was really struck by the rate of inflation. It seems we should "have a wonderful day" now.

On a more serious note, I always enjoy reading the local press when I go on holiday and, if the papers are even halfway accurate, things really look quite dire over there with many, many banks, businesses and home owners on the edge.

It was hard to tell from behaviour though as people still appeared to be spending as if there was no tomorrow.

We did notice that most of the RV parks we passed seemed to be for sale so maybe that sort of leisure spending is taking the biggest hit.

lemonjelly

Interesting comments...

So why is there an apparent disparity between house purchases and consumer purchases? What is the bigger picture here? Is the economy growing, or is just part of it growing, or is the growth thing a myth?;)

Thrugelmir

lemonjelly wrote: »

Interesting comments...

So why is there an apparent disparity between house purchases and consumer purchases? What is the bigger picture here? Is the economy growing, or is just part of it growing, or is the growth thing a myth?;)

Not everyone has a fixation with property!

lemonjelly

Thrugelmir wrote: »

Not everyone has a fixation with property!

I agree. But property appears to be being used as a barometer, in the media, and by most on this board.

Personal belief is that there is a long uphill road ahead, and there is still stuff to come out that will hurt one and all. Actually, this causes me greater confusion when I hear house prices are increasing!

Property, and shopping are 2 large enough sectors of our economy. Many are arguing the downturn/crash/whatever is over. If that is so, why are 2 sectors of the economy having such apparently different experiences?