High street-only businesses are 30% more likely to fail

Monday, 02 February 2009 10:33

The rise in online sales was simultaneously marked by the closures of many high street stores.
According to Tenon Recovery, a turnaround, restructuring, recovery and insolvency specialist businesses which do not invest in e-commerce are 30% more likely to fail.

Carl Jackson, national head of Tenon Recovery, says that the new-age consumers like to go shopping with their fingers rather than their feet, as it is easier for them to compare prices online than move around the high street. Businesses which do not enable their consumers to shop 24 hours a day are at a disadvantage.

This is what Jackson had to say in favour of online shopping. “By transferring from bricks to clicks, retailers can boost their profits substantially, reduce their running costs and capture consumer spend around the clock. A business needs far less capital to create an online empire than expand its presence on the high street.”