Image copyright Getty ImagesA record number of Scottish shops folded in the first three months of the year, according to analysis of insolvency data.
A total of 28 retailers were made insolvent over the period, compared with 68 recorded for the whole of 2018.
Business advisers French Duncan, which analysed official figures, warned time may be running out for the high street.
It suggested there were “major problems” in the retail sector that needed to be addressed.
The warning came despite figures released last week showing that retail sales in Scotland grew by 1.1% in value during the first quarter of 2019.
Eileen Blackburn, from French Duncan, said: “Given that the retail sector has been experiencing steady, very high numbers of business failures over a prolonged period, this does not bode well for an uplift in the sector despite recently reported improved sales figures.
“Change needs to happen soon if we are not to see our high streets decimated by insolvency and the closure of many familiar and well-loved shops.”
Ms Blackburn added: “There must be some negotiation on the part of landlords and councils to accept that if they are to continue making money from retailers they must accept and facilitate a situation where retailers can make money.
“Treating the retail sector as a cash cow simply doesn’t work anymore and if everyone is to benefit and ensure we have a high street in the future then councils, landlords and retailers must get together and work out a mutually-beneficial system.
“The latest insolvency figures indicate that time may be running out.”
‘Immense pressures’
The Scottish Retail Consortium (SRC) said the latest figures were further evidence of the “immense pressures” facing retailers.
SRC director David Lonsdale added: “Sluggish economic growth, rising public policy costs, and the continued effect of retail transformation are combining to make trading as challenging as at any time.
“Regrettably, it’s clear that for many retailers the costs of operating from physical premises are becoming intolerable.
“In particular, business rates remains onerous, with the poundage rate now at its highest in 20 years.”
Content provided by the BBC. Original piece can be found here https://www.bbc.co.uk/news/uk-scotland-scotland-business-48147807
