Nearly 50 shops closed per day in first half of year, research shows

·2-min read
A quiet high street in West Bridgford, Nottingham. Research shows shops in Britain closed at an average of nearly 50 per day during the first half of the year (Tim Goode/PA) (PA Archive)
A quiet high street in West Bridgford, Nottingham. Research shows shops in Britain closed at an average of nearly 50 per day during the first half of the year (Tim Goode/PA) (PA Archive)

Almost 50 chain stores per day closed down on British high streets, retail parks and shopping centres in the first half of the year, research has found.

Figures collected by the Local Data Company on behalf of accounting firm PwC showed 8,739 shops shut across Britain in the first half of the year, with 3,488 opening in the same period.

While this reflected a net decrease of 5,251, the rate of closures slowed compared with the first six months of 2020.

In the first half of last year as the Covid crisis began, 11,120 shops closed for a net decrease of 6,001 – 750 more net closures than in the first six months of this year.

PwC said government pandemic supports such as the extended furlough scheme, business rates relief and government-underwritten loans have played major roles in helping operators stay afloat, along with the impact of the rent moratorium.

But the firm warned the second half of this year will be “make or break” for many outlets as Government assistance is wound down.

“After an acceleration in store closures last year coupled with last-minute Christmas tier restrictions and lockdowns extending into 2021, we might have expected a higher number of store closures this year. Government support has proved to be a lifeline, said Lisa Hooker, leader of industry for consumer markets at PwC UK.

“However, the next six months will be make or break for many, particularly with the reinstatement of business rates, the winding down of furlough and the need for agreement on rent arrears, as well as uncertainty for hospitality businesses around further lockdowns, vaccine passports and other operating restrictions.”

The study surveyed more than 200,000 outlets operated by businesses with more than five branches across Britain, including retail, restaurants, banks, cafes and gyms.

Fashion retailers were worst affected, with 1,063 stores closing in the first half of the year, ahead of charity shops with 452 closures, car and motorbike outlets (428) and betting shops (337).

City centres were hit the most severely as people and businesses moved more to suburban or out-of-town locations, reflecting the rise in working from home. City centres suffered a 4.3 per cent drop in their number of retail outlets, compared with a 3% decrease for commuter towns and a 2.3 per cent decline in villages.

London went from being the best-performing region by this measure in 2016, with a 0.9 per cent fall, to the worst across the past two years, with a 2.9 per cent drop, the study showed.

Retail parks, with 636 net closures, fared better in the first half of this year compared with high streets (3,643) and shopping centres (1,464).

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