Retail investor and former Dragons' Den star Theo Paphitis has warned that shrinking high streets and outdated business rates are devastating communities across the UK. The owner of chains including Ryman Stationery, Robert Dyas and Boux Avenue said the collapse of major retailers like Wilko is leaving fewer shops on the high street, with the tax burden falling on those that survive.
Speaking to the PA news agency, Mr Paphitis highlighted the demise of Woolworths, British Home Stores, Debenhams, House of Fraser, Arcadia and Wilko as evidence of the struggle. He added that when a big player goes out of business, the remaining shops pick up some of its trade but also bear more of the tax load, creating a cycle that pushes others to collapse.
Mr Paphitis criticised business rates, a tax on commercial properties including shops, offices, pubs and factories, as a “ridiculous tax from the 1500s”. He argued the system unfairly penalises bricks-and-mortar businesses while online and tech giants only pay rates on their warehouses, and called for the Government to implement proper reform.
His comments come amid a wave of consolidation on the high street, with fashion and homeware retailer Next recently acquiring FatFace for £115 million. Meanwhile, the assets of Wilko were sold off, with its website and intellectual property bought by The Range and some stores taken over by Poundland.
