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The British high street is in crisis. Much like in the US, traditional retailing has been hit hard by the rise of Amazon and others, while the UK’s problem has been compounded by falling retail sales and high taxes on commercial properties. The latest figures from the British Retail Consortium (BRC) showed that sales fell 3.1% in April compared to a year earlier, the sharpest decline since the survey was initiated in 1995. December 2008 was the last time that total sales fell overall. Despite recent weakness in inflation, real incomes remain under pressure, with the best that can be said of the most recent figures being that real pay was unchanged for the three months to April.
While the Bank of England (BoE) opted not to raise rates at its most recent meeting, its decision to lift rates back in November meant that households have become more cautious, concerned that other rate rises will follow in due course. As a result spending has been cut, as homeowners trim their budgets.