Scott Reid's Business Blog: Are things really all that bad on the high street?

TODAY'S news that struggling sportswear group JJB is shedding more than 400 staff would suggest that conditions remain resolutely grim.

The move follows the appointment of administrators to JJB's "lifestyle" division, a business that comprises the Original Shoe Company and Qube, the footwear chain acquired from Sir Tom Hunter less than a year ago.

Among the branches being axed with immediate effect are OSC stores in Edinburgh, East Kilbride, Dundee and Dumfries and Qube outlets in Falkirk, Carlisle, Wrexham and Margate.

It's a worrying time, too, for the 300-odd remaining staff as the corporate undertakers work on a rescue plan for the division.

We've seen what has taken place at the likes of Zavvi, the collapsed music and DVD chain – the odd outpost being rescuced but otherwise death by a thousand cuts.

Trouble is, there ain't that many trade buyers out there. And those with acquisitive aspirations are being thwarted by tight-fisted lenders.

Yet, hope springs eternal in the face of recession. In recent days, there have been some nuggets of good news worth grasping.

A slimmed-down childrenswear retailer Adams was rescued at the weekend, with the deal protecting about 1,900 jobs.

Hopes have also been raised that a similar agreement can be struck to save at least part of Stylo, the shoe retailing group behind the Barratts and Priceless chains which together employ about 5,400 folk.

Then there are the high street names doing rather well, thank you very much.

Among them Sports Direct International, owner of the Sports World chain. The lure of cut-price trainers and bargain sweatshirts meant the group enjoyed a 12 per cent hike in sales in the 13 weeks to 25 January.

Not a bad performance, and a marked contrast to the woes over at arch-rival JJB.

Capping all this was yesterday's revelation that shoppers north of the Border were still out in force last month.

According to the number-crunchers at the Scottish Retail Consortium, like-for-like sales rose a healthy 2 per cent in January, marking the strongest result since the summer, and easily out-gunning the UK-wide growth of 1.1 per cent.

Note of caution time. Much of the upturn was driven by those seemingly-endless clearance sales and "one-off" discount events.

It's the impact on retailers' bottom lines that's really going to matter, (apologies for the management parlance) going forward.

Trading updates have been decidedly mixed since the start of the year.

Only when the accounts proper start to drop will a clearer picture emerge of the state of the British high street.

Confirmed today. Some 2,500 jobs will go at Barratt and Priceless shoe group Stylo. Administrators at Deloitte said 220 stores would have to close.
But there was some good news too. As expected, a deal has been struck with Stylo's existing management team, led by chairman Michael Ziff, securing 160 shops and 165 concessions and some 3,000 roles.