UK's top high streets lost nearly 2,500 stores in 2018 - report

By

Barbara Santamaria

Published
Apr 10, 2019

16 shops disappeared from Britain’s top 500 highs streets every day last year, according to new research by PwC compiled by the Local Data Company.

A record net of 2,481 units remained vacant or were redeveloped after demand for new shops failed to meet the rising number of exits, the report said. In total, 3,372 shops opened, while 5,833 closed.

The rate of store closures remained stable at 16 stores a day but store openings dropped to nine a day- almost half the levels of five years ago. Structural changes in consumer habits, increasing cost of occupancy and subdued consumer spending are to blame for the UK high street’s crisis.

The study said last year’s shortfall between openings and closures reached its highest level since the beginning of the decade.

“The results are clear - 2018 was a turbulent year for retailers with a number of high profile store closures. We saw an acceleration in footfall decline on the high street with businesses continuing to see the impact of online shopping, increasing costs and subdued consumer spending,” Lisa Hooker, consumer markets leader at PwC, said.

“It’s interesting that the marked reduction in openings has accelerated the net closure trend. In categories as diverse as fashion and financial services, new entrants are able to gain share by launching online - enabled by technology and consumer adoption of mobile and e-commerce - rather than be saddled with the costs and risks of opening on the high street.”

Zelf Hussain, retail restructuring partner at PwC added: “Several national chains weathered company voluntary arrangements or administrations as retailers toiled in the tough climate of 2018. Retail companies looking to survive let alone flourish in 2019 face an uphill battle.

"We have already seen several casualties in 2019 and there will undoubtedly be more, most likely in all categories except for groceries. Those retailers who will give themselves the best chance of survival must focus on having the relevant proposition, and the investments needed to deliver this proposition; the optimal mix of channels and business portfolio; flexible leases.”