UK retail sales fell - who were the biggest casualties?

Blockbuster, HMV, Jessops and more.

UK retail sales fell in December - 0.1 per cent from the month before. For a December, this is bad: at 0.3 per cent the annual growth rate is the slowest since 1998 (excepting 2010).

Only one sector has been doing well: rather unsurprisingly, online retailers are fine. About 10.6 per cent of sales were carried out online during the month, compared to 9.4 per cent in December last year.

Companies from other sectors have not been as lucky. Here are the biggest casualties from the past year:

1. Blockbuster

On 16 January the company announced it would go into administration. Online competition and posted rental videos had destroyed the business.

2. HMV

The company announced it was filing for adminstration on 15 Jan, overtaken by supermarket and online sales of CDs and DVDs.

3. Jessops

Administration happened on 9 January. Competitors had been supermarkets, smartphone cameras, and internet camera vendors.

4. Comet

Went into administration on 2 November: the sale of TVs and other large appliances have mostly moved online.

5. JJB Sports

Announced administration on 24 September. Rival Sports Direct had wiped it out.

6. Clinton Cards

The company announced administrators were coming in on 9 May. Supermarkets and the internet had started selling greetings cards, and the company couldn't compete.

7. Aquascutum

17 April went into administration. The economic downturn had caused major problems.

HMV filed for administration on on 15 Jan. Photograph: Getty Images
Getty
Show Hide image

How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

0800 7318496