Are the Woolworths retail chain’s major problems simply the thin end of the wedge for the High Street?

With both MFI and Woolworth’s in administration, British retailing looks bleak, especially with others like Currys, PC World and Dixons saying profits are down. MFI seemed to lose their way several years ago when they tried to move up market away from their original marketplace, and instead of being able to buy goods and take them home you now have to order them and wait – No wonder IKEA have done so well as they have filled the void MFI for some unknown reason appeared to have vacated.

Unlike MFI, Woolworth’s is a High Street brand that would be very sad if it closed. Woolworths have 3 retail outlets local to Hazlemere Windows in Amersham, Beaconsfield and High Wycombe. Woolworths have been in the High Street in High Wycombe since 1969, and a major employer in the town, so it would be a blow if they do not come out of administration. There is an article about the current plight of Woolworth’s High Wycombe Superstore on the Bucks Free Press website by Business Journalist, Neil Phillips.

Retail outlets simply can not sustain their outgoings with rising utlilty charges, labour costs and “greedy” landlords wanting rent increases. If landlords want to insure against empty High Streets they will have to re-adjust their expectations, as even existing leases and covenants will be worthless if the businesses go into liquidation. Lets hope Worthworths is not the thin end of the wedge as Northern Rock was to the banking sector!