Is the death of the High Street greatly exaggerated?

Retailers surprised analysts with Christmas trading

Investors love to talk about the 'death of the High Street.' But are reports of its demise greatly exaggerated? To understand today's situation, it's helpful to look to the past.

In the period 1979-2009, real disposable wages in the UK, i.e. the amount each person has left over to spend on what they like, adjusted for inflation, roughly doubled from £2,300 a year to £4,700. Since then, this figure has stayed flat. Wage growth hit a low in 2014 but has since been rising. However, this growth has been offset by a spike in inflation, mainly caused by the effect of a weak pound on imported goods. The pound stopped falling months ago, and wage growth is accelerating, so there may finally be more money available to spend. Uncertainty suppresses spending Unfortu...