The spread of large multiplexes and chain stores is slowly killing off small retailers, leading to ‘ghost towns’ across the UK, a worrying new report has claimed.
The study, undertaken by the New Economics Foundation (NEF), found that the decline of independent shops, pubs and post offices in Britain was destroying local economies and jobs.
The NEF said that closures of local businesses has created ‘ghost towns’ across the country, as wider economic forces and a lack of government support for enterprises empty the UK’s high streets.
According to the report, government regeneration strategies have done more harm than good by driving out local shops in favour of large multiple retailers.
Key findings in the study include:
- Wholesalers, vital to small retailers, have closed at a rate of six per week.
- Small food manufacturers have declined by 12 per cent over the past year.
- Traditional pubs are closing at a rate of 20 per month.
- In the five years to 2002, 50 specialised stores such as butchers, bakers and fishmongers closed every week.
The report said that the decline of local firms, along with widespread closure of banks, has badly harmed local communities and has resulted in repeated job cuts.
However, the NEF said that some communities are fighting against becoming ghost towns, with ethnic minorities taking a lead role in job creation and enterprise.
The report found that African, Asian and Caribbean entrepreneurs were far more likely to start up a business than their white counterparts and that people originating from South Asia now contribute more than £5 billion a year to the UK economy.
Andrew Simms, co-author of the report, said that we are witnessing the slow death of small and independent retailers in our local communities.
“A new retail feudalism is emerging across Britain as a handful of brands take over our shopping.
“Unless it is challenged, Ghost Town Britain will become a daily reality. If things carry on as they are, before long, we will be facing a commercial one-party state,” he said.
