Shopping centers in the UK are in danger of falling into administration, as more than 200 shopping malls are facing a downturn.
The BBC quotes analyst Nelson Blackley from the National Retail Research Knowledge Exchange Centre said the demise of “major anchor stores” such as BHS and Toys R Us, and the rise of online retail had caused a “downward spiral”.
The closure of the shopping centers, especially in small towns will have negative consequences both on retail sales and retailer’s financial performance.
Analysts agree that there are too many retail stores offering the same range of products that are not attractive to customers.
“New data suggests over 200 shopping centers in the UK are in danger of falling into administration unless their owners secure fresh funding.”
Nelson Blackley pointed out that the growth of online retail in the UK had been faster than in almost any other retail market in the world and that is now threatening traditional retail stores.
Blackley, also noted that according to research from the Financial Times about £2.5bn worth of shopping centers and retail parks are up for sale in towns across the UK.
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