After the fall of the HMV retail stores, the retail sector takes another slump as fashion chain Republic, plummets into administration. Running the risk of potentially losing 2’500 jobs, should the appointed administrators, Ernst & Young, fail to find a suitable buyer, to secure the stores.
Republic made an announcement, indicating massive losses experienced in the latest financial year records. It’s when those are compared with the last noted on Companies House, for last year’s financial records…the true tragedy facing the fashion chain unfolds.
In the year to January of 2012, the company had made £3.7 million. Down an agonizing 86%, and with over 121 stores on the high street to pay for, the Christmas melt down in sales, has left Republic no other option but to appoint administrators, and enter into the insolvency process.
It’s certainly looking doom and gloom when you take into account the total number of job losses from the sector. Since Christmas, the following stores have seen massive casualties hit the retail industry:
When you take into account the other 2’500 jobs, currently at risk at Republic stores, the total job losses for 2013, to hit the UKs high streets, could be as high as 10’000 jobs. That’s a lot of people to be out of work in the first quarter of 2013.
There’s an ever more depressing scenery each time you take a walk down your local high street. Boarded up buildings with sky-high prices that small retailers can’t afford, with the typical stores consisting of pound shops, pawnshops, cash for gold, bookmakers, bars, and restaurants. Beyond that, if you want to go shopping for clothes, a new pair of shoes, CDs or DVDs, you’re chances are rapidly fading of finding them.
Given that the entertainment sector has already seen the loss of HMV and Blockbuster, now to be hit with the fashion chain store Republic facing extreme pressure, combined with the closure of Jessops photography stores, there’s tons of shops been taken off the high street.
The buyout of Jessops by Peter Jones, with the intention of running the brand name as an online retail store only, takes more customers online again. Facing fierce competition from larger competitors online seems fair game to avoid the high fees of the high street.
This ties back into a previous post, where IT consultants are finding that their services are better served to the “Silver Surfers” market, teaching the older generation about accessing the savings that online shopping has to offer.
It seems to be the only way the retail sector can thrive, going forward. Employing a team of retail assistants, seems to be heading in the direction of a different job specification.
Instead of stacking shelves and taking payments, retail assistants, may find themselves stacking posts on social media sites, providing email and telephone support, and processing payment details electronically, instead of the cash register.