High avenue disaster as 17,000 shops ‘susceptible to closing,’ Sainsbury’s boss warns

The boss of a major UK supermarket has warned that 17,000 high street stores are “at risk” of closing

With major names such as Tesco already announcing closures this year, as well as high street mainstays such as Clintons, Morphe and more closing stores, a swathe of other stores could be on the verge of disaster.

The urgent warning has come from Sainsbury’s CEO Simon Roberts, who was speaking to The Times alongside Union of Shop, Distributive and Allied Workers General Secretary Paddy Lillis.

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Raging about business rates levies, and urging the Government to reform them, Roberts said: “The number one barrier to growth in our industry is the outmoded business rates system. Successive governments have promised reform but have only ever tinkered around the edges. The result? Shops closing, jobs lost, economic growth stunted.

“All responsible retailers want to pay their fair share of tax, but the current business rates system has become an enormous burden on our industry. It is no longer fit for purpose. It has failed to keep pace with major changes in how customers are now shopping and how much our retail industry has changed over the last decade. As a result, it is directly causing store closures and job losses across the sector.

According to official date from Development Economics, 17,300 stores could close by 2033-34, which could leave 42,000 people without jobs. However, the data also that those 17,000 jobs could be saved – and doubled – if business rates were dropped by 20% and save retailers around £1bn per year.

The pair added: “A government that revitalises growth, boosts jobs and secures long-term funding for public services will be able to look back on its achievements with pride.

“Reforming business rates won’t be a silver bullet to achieving all of this, but it would be a very good place to start.”

In response, a Treasury spokesman said: “As committed to in the manifesto, we pledged to replace business rates with a fairer system. This new system will level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship.”

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