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February saw restaurant group Viva Brazil fall into administration after unsuccessful expansions put the business under unsustainable financial pressure. The business was sold as part of a pre-pack deal to its founder and has kept its restaurants open in Liverpool, Glasgow, Cardiff and Birmingham.
The month also saw a for sale sign hoisted above Jones Bootmaker, with all options for the business being explored. At the time of writing, the future of Jones Bootmaker hangs in the balance as it teeters on the brink of administration.
As ever, speculation surrounding Brexit and business rates dominated the headlines. A new study by Total Retail revealed that a fifth of UK shoppers (20%) think Brexit will impact their shopping habits over the next 12 months, with almost six in 10 consumers worried about their lack of disposable income; and almost one-fifth of small businesses - including retailers - would consider closing down as a result of the looming business rates revaluation, according to research from the Federation of Small Businesses. The research suggests that 36% of small businesses expect to see their rates increase, with 44% expecting bills to eventually rise by more than £1000 a year. Of the businesses expecting a rise in rates, 54% expect profits to drop and 38% said they will increase prices to make up for the loss.
However, it was not all doom and gloom on the high street.
According to Savills’ Global Luxury Retail report, London topped the global rankings for new luxury retail store openings in 2016. London saw a total of 41 new luxury openings during the year, (of which 15 were the respective brand’s first ever store in London), compared to 36 in Paris and 31 in both New York and Dubai.
New figures from Visa UK’s Consumer Spending Index show that average spend grew 1.5% in February, up from a five-month low of 0.4% in January. Spend on recreation and culture saw the most significant boost of 3.3%, compared to a rise of just 2% on miscellaneous goods and a drop in spend on clothing, footwear, food, drink and household goods.
It will certainly be interesting to see how consumer spending fares over the next few months and the impact rising business rates has on business. SnapShop will aim to keep you informed of this as and when it happens.
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