Posted: Thursday, November 24, 2011 10:52 am

The Arcadia group has announced a 38% fall in it's yearly profit. The news is reflective of the current state of the high street as a whole. In the past year a number of major high street retailers such as the fashion chain Jane Norman, and the discount general-store retailer TJ Hughes have fallen into administration.

This bleak portrait is upheld by a recent Bank of England survey which has reported a steep decline in consumer confidence and overwhelming fears that more chains could also go bust.The Arcadia group is owned by billionaire, Philip Green, and includes the Topshop, Topman, BHS, Dorothy Perkins, Miss Selfridge, Wallis, and Evans brands.

The group is one of the largest in the sector with  2,507 owned stores and 600 franchised outlets in 36 countries. The group reported a pretax profit of £133.1m sterling in the year to August 27, down from £213.2m the previous year. Total sales fell 3.4% to £2.683 billion. However, there has been a rise of 27% in e-commerce sales.

Industry experts are blaming rising prices and government austerity measures for the sector's state. With consumers concerned over job security, the housing market, the economy and the euro zone crisis belts are being tightened, and the high street is bracing itself for a difficult Christmas.