Insolvency trade body R3 suggests 26% of retail outlets and 18% of hoteliers at risk
The insolvency trade body R3 has issued a dire warning for Scotland's high street, predicting more than a quarter of shops and a fifth of hotels could go bust in the next 12 months.
R3 said 274 retail outlets and as many as 30 hotels are currently at “high risk” of failure, with a further 1,238 shops and 137 hotels in Scotland “vulnerable to failure” in the next 12 months.
The estimates put more than 26 per cent of Scotland's retailers and nearly 18 per cent of hoteliers at risk of insolvency.
Iain Fraser, spokesman for R3 in Scotland, said: “It is not likely to surprise anyone that the retail and hospitality sectors are vulnerable.
“Retail, as has been widely reported, is suffering both from a lack of consumer confidence coupled with systemic changes to the way in which people buy products.
“The shift to online purchasing is greatly affecting retailers, many of which have not effectively moved online.”
“Whilst there will always remain high street retail outlets their composition, offerings and delivery have changed dramatically over the last ten years and will continue to do so.
“Those retailers that do not respond to these changes will, unfortunately, cease to exist. There also remains the extremely difficult economy which, even for those businesses that are successfully adopting new technologies, poses a challenge for all businesses.
“There remains some way to go before the economy recovers and, until that time, retailers offering niche or non-essential products will face troubling times.”