Amazon chief denies the online giant is ‘single handedly killing Britain’s high streets’

An Amazon boss has denied the online giant is ‘single-handedly killing the high street’ as she was grilled by MPs in Parliament today.

Amazon director of public policy Lesley Smith was questioned by a committee investigating the destruction of UK town centres as shops close down. 

She was questioned after shocking new statistics revealed 93,000 retail jobs have been lost in the past year amid a crunch on the high street.

But Ms Smith denied Amazon was the problem, insisting retail is a ‘changing environment’ and her company was simply ‘meeting customers where they want to be’.

Online chiefs: (Left to right:) Lesley Smith, Director Public Policy at Amazon UK, Andy Mulcahy, from online retail association IMRG, Julie Howkins, from Hive.co.uk, and Clayton Hirst, of John Lewis

She said: ‘I would say for Amazon that 82% of retail in the UK is from physical rather online, so only 18% is actually online of which we are a part, but a relatively small part.

‘And there is a huge amount of innovation on the High Street and that’s partly because customers have changed the way they shop for the same things they always have done.’

Clive Betts MP replied: ‘But 18% is 18% of sales that would otherwise be being done physically in shops.’

But Ms Smith insisted Amazon was in fact supporting high street stores and even setting up some new shops.

‘Half of the things that are bought on Amazon, are not bought from us, they are bought from third party business, many of which have got high street stores.’  

Andy Mulcahy, from online retail association IMRG, said British consumers were particularly open to only shopping due to good roads allowing quick delivery, trust in businesses not to defraud customers, and a history of ‘distant selling’. 

High streets have seen widespread shop closures as customers move to online retailers

High streets have seen widespread shop closures as customers move to online retailers

Amazon director Lesley Smith denied that her company was behind the high street strife

Amazon director Lesley Smith denied that her company was behind the high street strife

There have been a string of high-profile store closures as shoppers desert town centres and flock to web titans instead.

Analysis by the British Retail Consortium shows there were 3m people working in retail in September, the most recent month for which figures are available, down from 3.1m a year earlier.

Household names Marks & Spencer, Debenhams and House of Fraser have all announced store closures, while others such as Maplin, Toys R Us and Poundworld went bust this year.

Tough trading conditions triggered by the rise of the internet and a temporary squeeze on living standards after the Brexit vote are behind the crisis. And campaigners have warned that sky-high business rates make it even worse, by forcing companies to spend vast sums on tax for shops which are struggling to turn a profit.

Jessops chairman and Dragons’ Den star Peter Jones said the Government needed to do more to ease the burden on retailers.

‘Sadly we’ve spent so long looking at and focusing on Brexit, we’ve really tiptoed around trying to support the High Street,’ he said.

The Amazon chief insisted many of the sales made through the firm helped support shops

The Amazon chief insisted many of the sales made through the firm helped support shops

‘If the Government doesn’t take action we’re going to see many more brands on the High Street dissipate like an Alka-Seltzer in a swimming pool.’ 

Sports Direct tycoon Mike Ashley has called for a tax on internet shopping to help revive the High Street’s fortunes. In an extraordinary exchange with MPs this month, Ashley said the ‘internet is killing the High Street’. 

Meanwhile Ashley, 54, is embroiled in a public battle with Debenhams in which he has a near 30pc stake, after the department store spurned his offer of a £40m interest-free loan in return for an additional 10pc shareholding.

Ashley, has suggested Debenhams has little chance of survival after it lost almost £500m in the year to September, the biggest full-year loss in its 240 years on the High Street.

But Debenhams chairman Sir Ian Cheshire hit back, challenging Ashley to put his money where his mouth is and make a formal takeover bid.

Cheshire said: ‘If you want to make an offer for the other 70pc you don’t own, then you’re free at any time.’

 

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