U.K. Businesses Face "Huge" Costs Associated With Riots

Damage costs are expected to run into the tens of millions of dollars; some retailers will be unable to reopen.

August 11, 2011

LONDON - The British Retail Consortium (BRC) warned that businesses affected by riots that have taken place over the past several days in England face "huge costs," the BBC reports.

The BRC said it is still assessing damages but that shops in England and other cities were closing early and some would not open at all (as of Wednesday afternoon??s BBC report). Additionally, the British Chambers of Commerce (BCC) said that the damage could be long-term and far-reaching.

"The violence that we've seen over the last three nights - it's not only against individuals but it's destroying the very fabric of society, not just for now but for years to come and that's why the government has to get a grip of this," said the BCC's director general David Frost.

The BRC said that retailers of all sizes had suffered damage.

"There are huge costs being incurred and employment lost because shops are closing down across the capital early. Some shops won't be opening," said Stephen Robertson, director general of the BRC.

"The problem is that here we are, we're on the verge of the Olympics when we're hoping to [send] a great message to the world about what a great capital this is to come to," he said. "We mustn't underestimate the fact that the pictures on our television screens were beamed to the world last night."

Liz Pilgrim, a small business owner from Ealing in West London, described the rioters who looted her store as "feral rats."

"My message to the Home Office is just to get a grip. We need to engage with these disillusioned youths who aren't forming any part of society at the moment," she said.

Nadeem Sheikh, who works in Pound Kingdom in Ealing Broadway, said he was forced to close early.

"It is not safe for shops. A lot of places have been burned down, we have no boards or shutters so we are worried about what could happen," he said. "No customers will come later anyway, they are frightened. The rioters will smash things and take things and the police won't stop them."

"It is clear that the cost of the damage is going to run into the tens of millions of pounds at least in terms of property damage, goods stolen and loss of business," said a BRC spokesperson. "Undoubtedly there will be retailers for whom this will be the final horrendous straw and it won't be viable for them to reopen."

About 157 Tesco stores in London, Liverpool and Bristol were closed overnight or shortened their opening hours earlier this week as a precautionary measure, while at least 26 stores suffered varying degrees of damage.

Sainsbury's said 16 stores had experienced "serious incidents" while three convenience stores remained closed.

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