PwC: 'One in five shops may be closed by the end of the recession'

11 November 2008 In Business and Economy

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PwC: 'One in five shops may be closed by the end of the recession' According to a survey from PricewaterhouseCoopers (PwC), one in five shops may close by the time the economy recovers.

The Big 4 firm has estimated that 3,600 shops may be empty if ten per cent of retailers get into financial problems in the next 12 months and it has said internet shopping and the growth of new shopping centres will exacerbate the problem.

PwC partner Barry Gilberston said: "What we are seeing is going to have a huge impact on the shopping environment, in particular high streets.

"The problem is who will take over the empty units? A few years ago coffee shops came in, but now there is really no one waiting in the wings."

Meanwhile, PwC has warned that Christmas is "set to be a real nailbiter this year".

UK retail and consumer leader Mark Hudson said he expected to see large discount offers and for some retailers to disappear from the high street.

Long queues are to be expected as stores put in fewer staff hours to protect their margins.

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